Modine records Q4 loss on currency headwind

Racine-based Modine Manufacturing Co. recently reported its fourth quarter and fiscal 2015 results.

The thermal management technology and solutions manufacturer recorded a net loss of $3 million in the fourth quarter, or a 7 cent loss per share, compared with net income of $119.7 million, or $2.49 per share, in the fourth quarter of 2014.

Operating income totaled $5.2 million in the fourth quarter, down from $6.7 million in the same period a year ago.

Revenue was $363 million in the quarter, down from $390.6 million in the fourth quarter of 2014.

Modine attributed the 7 percent sales decrease mainly to the strength of the U.S. dollar, which resulted in a $36 million negative impact on sales, compared to the prior year quarter. The company also created a $3.2 million reserve for legal expenses in Brazil, a $7.8 million impairment charge related to goodwill in South America, and $1 million in restructuring expenses in North America, Europe and South America during the quarter.

“This was a solid quarter with year-over-year improvements in gross margin and adjusted operating income,” said Thomas Burke, Modine president and chief executive officer. “We achieved these results in the face of significant market and currency headwinds.”

For the full year, Modine reported net income of $22.8 million, or 45 cents per share, down from $131.9 million, or $2.72 per share, in 2014.

The company’s 2015 operating income was $52.7 million, up from $37.2 million last year.

And full year revenue totaled $1.5 billion, flat from 2014.

Modine attributed an increase in gross profit margin to a higher sales volume and lower warranty costs. It also recorded a $7.8 million goodwill impairment charge, $4.7 million in restructuring expenses and a $3.2 million gain on the sale of a wind tunnel during the year.

“I am pleased with our fiscal year results,” Burke said. “Despite challenging markets and negative currency impacts, we improved our gross margin, generated earnings growth and delivered earnings within the guidance provided at this time last year. We continue to focus on improving our cost structure and operating scale production facilities around the world.”

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