Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions, today reported its financial results for the third quarter ended December 31, 2013. Highlights and year-over-year comparisons include:
- Sales of $347.0 million, up 6 percent;
- GAAP loss per share of $0.08, an improvement of $0.11;
- Restructuring and impairment charges of $11.4 million; and
- Adjusted earnings per share of $0.16, up $0.14.
“Our year-over-year revenue growth was driven by new program launches in Europe and Asia,” said Modine President and Chief Executive Officer, Thomas A. Burke. “Higher sales volume and lower material costs contributed to our earnings improvements. In addition, we took some significant restructuring charges in the quarter, as we are entering the final stages of our European restructuring plan.”
Third Quarter Financial Results
Net sales in the third quarter of fiscal 2014 grew $20.9 million, or 6 percent, from the third quarter of fiscal 2013, primarily driven by increased sales in Europe. Gross profit increased $8.6 million, or 18 percent, and gross margin improved 160 basis points to 16.4 percent largely due to higher sales volume and favorable material costs. Selling, general and administrative (SG&A) expenses increased $2.2 million, but declined slightly as a percentage of sales. The company recorded $9.4 million of restructuring expenses and $2.0 million of impairment charges related to the ongoing restructuring in Europe. Net loss attributable to Modine of $3.6 million compares to a loss of $8.7 million for the same period last year, and represents a GAAP loss per share of $0.08 compared to a loss per share of $0.19 last year. Excluding restructuring expenses and impairment charges, which totaled $11.4 million or $0.24 per share, adjusted earnings per share was $0.16 in the third quarter of fiscal 2014, compared with $0.02 in the third quarter of last year.