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Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported its financial results for the fourth quarter ended March 31, 2012. Highlights versus the same period last year include:
Sales of $388.7 million, down 2.0 percent;
Gross margin of 16.8 percent, up 160 basis points;
Operating income of $18.5 million, up $10.7 million or 136 percent;
Net earnings of $16.2 million, up $4.2 million or 35 percent; and
Diluted earnings per share of $0.34, up 36 percent.
“We finished the year with another solid quarter, including significant improvements in gross margin and earnings from operations," said Modine President and Chief Executive Officer, Thomas A. Burke. "We delivered earnings per share of $0.83 for the full year, a substantial improvement over the prior year.”
Fourth Quarter Financial Results
Net sales in the fourth quarter of fiscal 2012 decreased $8.0 million, or 2.0 percent, from the fourth quarter of fiscal 2011. Excluding the impact of foreign currency translation, net sales increased 0.2 percent from the prior year. As expected, sales decreased in the South America segment after the strong pre-buy of commercial vehicles ahead of the January 1, 2012 change in emissions standards. In addition, sales in Europe were below prior year, largely due to the impact of foreign currency translation and the expected wind down of some non-strategic business. Gross profit increased 8.2 percent, or $5.0 million, resulting in a gross margin of 16.8 percent, up 160 basis points from the prior year. The increase was largely due to improved plant performance, lower material costs, and higher tooling profits in the current quarter, and $2.7 million of unfavorable inventory adjustments in the fourth quarter of fiscal 2011. Selling, general and administrative (SG&A) expense decreased $5.7 million or 10.8 percent year over year, primarily due to lower pension expense and higher customer reimbursement of development costs. Operating income increased $10.7 million to $18.5 million, a 136 percent improvement from the fourth quarter of fiscal 2011, as a result of the higher gross profit and lower SG&A expense. Other income of $0.4 million represents a $1.0 million decrease from other income of $1.4 million during the same period last year. Net earnings of $16.2 million represent a $4.2 million or 35 percent improvement, from net earnings attributable to Modine of $12.0 million for the same period last year.