Modine earnings down on restructuring costs, mixed sales results

Racine-based Modine Manufacturing Co. today reported fiscal 2015 second quarter net earnings of $2 million, or 4 cents per share, down from 5 million, or 10 cents per share, in the second quarter of 2014.

Net sales were $377.3 million, up 4 percent from $364.2 million in the same period a year ago.

The company, which manufactures thermal management systems and components, attributed the earnings decline to a mix of lower margin product and plant inefficiencies. It incurred $1 million in restructuring expenses during the quarter.

South America segment sales were down 14 percent, due to lower sales and weak economic conditions in Brazil. North America segment sales were down 2 percent, while Europe segment sales were up 5 percent, Asia segment sales were up 17 percent and Building HVAC segment sales were up 31 percent.

“Sales continue to show year-over-year increases despite mixed market conditions,” said Thomas Burke, president and CEO. “However, our earnings during the quarter were negatively impacted by sales mix and inefficiencies related to plant consolidations and volume shifts.”

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