Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported its financial results for the first quarter ended June 30, 2013. Highlights and year-over-year comparisons include:
- Sales of $375.8 million, up 7.2 percent;
- Operating income of $19.0 million, up $15.1 million;
- GAAP earnings per share of $0.21, up $0.24; and
- Adjusted earnings per share of $0.27, up $0.20.
“We are off to a strong start to fiscal 2014, with adjusted earnings per share of $0.27, a $0.20 improvement from the prior year,” said Modine President and Chief Executive Officer, Thomas A. Burke. “The increase in sales and the improvement in gross margin contributed to significantly higher operating earnings for the quarter.”
First Quarter Financial Results
Net sales in the first quarter of fiscal 2014 increased $25.4 million, or 7.2 percent, from the first quarter of fiscal 2013. Sales improved in the Europe, South America, Asia and Commercial Products (Building HVAC) segments. Gross profit increased $10.2 million, or 19.7 percent, largely due to higher sales volume and favorable material costs. Gross margin improved 180 basis points to 16.5 percent, despite the inclusion of $2.2 million of accelerated depreciation relating to the European restructuring program. Selling, general and administrative (SG&A) expense decreased $0.8 million, and restructuring expenses of $0.5 million were $4.1 million lower than the prior year. Net income attributable to Modine of $10.0 million compares to a net loss attributable to Modine of $1.2 million for the same period last year, and represents GAAP earnings per share of $0.21 compared to a loss per share of $0.03 last year. Excluding European restructuring costs and accelerated depreciation totaling $2.7 million or $0.06 per share, adjusted earnings per share was $0.27 in the first quarter of fiscal 2014, compared to $0.07 in the first quarter of last year.