Racine-based Modine Manufacturing Co. today reported fiscal fourth quarter net earnings of $119.7 million, or $2.49 per share, up from a loss of $1.6 million, or 4 cents lost per share, in the fourth quarter of 2013.
Revenue was $390.6 million, up 9 percent from $359.6 million in the same period a year ago.
The thermal management technology and solutions manufacturing company attributed the earnings bump to a U.S. tax valuation allowance reversal of $119.2 million. Modine’s improved North American profitability over the past few years resulted in the reversal.
Beginning with the first quarter of 2015, net earnings will be reduced to reflect an effective tax rate of 35 to 40 percent. But Modine’s operating loss carryforwards will eliminate cash taxes on the next $130 million of future taxable income.
“We finished our fiscal year with a solid quarter in terms of revenue, earnings and cash flow,” said Thomas Burke, president and chief executive officer. “Adjusted earnings per share of $0.73 for the fiscal year exceeded our previous guidance due to stronger markets, particularly in Europe and in our commercial products segment.”