Modine Manufacturing's first-quarter earnings down: Racine firm's revenue increases 12%

Jul 30, 2008 (Milwaukee Journal Sentinel - McClatchy-Tribune News Service via COMTEX) -- MOD | Quote | Chart | News | PowerRating -- Jul. 30--Modine Manufacturing Co. said Tuesday its fiscal first-quarter earnings fell as the company continued with a restructuring plan.

The company posted $7.8 million in diluted net earnings, or 21 cents per share, down from $11 million, or 34 cents per share, in the year-ago quarter. Earnings from continuing operations were $6.8 million, or 21 cents per share.

Revenue increased to $499.7 million from $444.2 million in the quarter ended June 30.

The company said in April that it planned to close three plants in the U.S. in addition to a facility in Germany as part of a global restructuring plan. Fiscal 2009 will be a year of "blocking and tackling" as Modine continues to implement the restructuring, according to CEO Thomas Burke.

Modine saw strong results in Europe and South America, but the company said the downturn in the automotive industry hurt its business in the North American truck market.

Modine sees a softening in the automotive market in Europe, which accounts for almost half of its net sales.

It also expects the weakness in the North American heavy-duty truck market to continue and cut its volume forecast for the North American truck market by about 10,000 units.

"Fiscal 2009 remains a year of blocking and tackling to attain fiscal 2011 goals of an 18% to 20% gross margin and 11% to 12% return on capital employed," Burke said in a conference call with analysts.

Modine expects 2009 pre-tax earnings of $12 million to $16 million on net sales of $1.9 billion to $2 billion.

Modine shares closed at $16.49, up $2.68. The stock has ranged from $11.62 to $29.95 over the past year.

1st quarter

%

06/08 2009 2008 change

Sales $499.7 $444.2 +12.5%

Net income $7.8 $11 -29%

EPS (diluted) 0.21 0.34 -38%

Figures in millions except for earnings per share. Percentages are based on unrounded sales and income figures.

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