Racine-based Modine Manufacturing Co. narrowed its loss during the second quarter of fiscal 2017, even as revenue figures came in below expectations.
The maker of thermal management systems for vehicles and buildings reported a net loss of $4.1 million, or 9 cents per diluted share, during the quarter, compared to a $22.5 million loss last year or 47 cents.
The difference in quarterly loss was largely attributed to a $39.2 million lump sum pension payment that the company made last year.
Adjusted operating income for the most recent quarter was $3.6 million, down from $8.1 million last year. The company posted an adjusted loss of 1 cent per share, down from earnings of 4 cents last year.
Revenue for the quarter was $317.7 million, down 4.9 percent from the prior year.
“Revenue was lower than anticipated in our Americas and building HVAC segments, mostly due to weaker than anticipated market conditions, said Thomas Burk, Modine president and chief executive officer. “Despite these end-market headwinds, out teams have continued to strengthen our business through structure cost-reduction initiatives that we expect will position the company to deliver strong second-half performance.”
The Americas segment reported sales of $126 million. The 12.6 percent drop from the previous year was largely the result of weakness in commercial vehicle and off-highway markets and was partially offset by higher sales to automotive customers.
Commercial vehicle markets also impacted the Europe segment, which was down 2.9 percent to $123.9 million.
The building HVAC segment was down 6.3 percent to $45.7 million. Higher air conditioning and ventilation sales in the United Kingdom were offset by weaker than expected preseason stocking sales of heating products in North America.
The Asia segment was the long bright spot, with a 37 percent increase in sales to $24.7 million. The jump was driven by higher automotive and off-highway sales in China along with incremental sales from a new joint venture.