Racine-based Modine Manufacturing Co. reported a fiscal 2016 second quarter net loss of $22.5 million, or 47 cents lost per share, compared with net income of $2 million, or 4 cents per share, in the second quarter of 2014.
The thermal management systems and components manufacturer recorded a quarterly operating loss of $32.1 million, compared with operating income of $7.9 million in the same period a year ago. Selling, general and administrative expenses increase to $76.8 million, from $47.8 million in the second quarter of 2014.
Revenue totaled $334 million in the second quarter, down from $377.3 million in the year ago quarter. On a constant currency basis, revenue was down 2.3 percent year-over-year, due to lower sales in the Americas segment, the Europe segment, and to a lesser degree in the Asia segment.
The second quarter included a non-cash charge of $39.2 million from a voluntary pension lump sum payout.
“As expected, second quarter results were impacted by seasonally slow sales and challenging market conditions,” said Thomas Burke, president and chief executive officer of Modine. “We continue to anticipate a much stronger second half of the fiscal year due to volume increases related to new program launches and increased heating season sales, positive results from our past restructuring actions and continued cost control efforts. While our results continue to be impacted by unfavorable exchange rates and economic conditions in certain markets, we remain on track with our full year outlook. We are also excited about our new Strengthen, Diversify & Grow strategic transformation, which we announced in a separate press release today. We expect this to guide the company for the foreseeable future. In addition, our board has authorized a new $50 million share repurchase program. We believe that with our strong competitive position, solid balance sheet and outlook, we can provide a return to our shareholders and make significant investments to grow and diversify our business for long-term shareholder value.”