Losses deepen for Modine; Oshkosh Corp. reduces debt; Bemis reports record quarterly sales; International Automotive to close Sheboygan facilities; State to provide tax credits for Bucyrus expansion
Losses deepen for Modine
Racine-based Modine Manufacturing Co. reported a fiscal second quarter net loss of $14.7 million, or 32 cents per share, which was worse than a loss of $6.5 million, or 19 cents per share, in the same period a year ago.
The company’s quarterly net sales grew to $345.9 million from $282.3 million a year earlier.
"Our company continued to build on its strong momentum during the second quarter, reporting improvements in sales, gross margin and operating income compared to the same quarter one year ago," said Modine president and chief executive officer Thomas Burke. "We have worked hard over the past several years to redefine our business and technical strategies, carefully evaluating and reorganizing the company to ensure that we achieve our long-term objectives. We continue to be enthusiastic about our future. We are confident that with our strong customer relationships, technological advancements and dedicated employee base, we are on a solid path to achieve our plan of 11 to 12 percent return on average capital employed by the end of fiscal 2013."
Oshkosh Corp. reduces debt
Oshkosh Corp. reported fiscal fourth quarter net income of $116.6 million, or $1.29 per share, which was down from $140.1 million, or $1.70 per share, in the same period a year ago.
The company’s quarterly net sales grew to $2.1 billion from $1.5 billion a year earlier.
Results from continuing operations for the fourth quarter included per share charges, net of income tax benefits related to the write-off of debt issuance costs, restructuring costs and an impairment charge.
Meanwhile, the company reduced its fiscal debt by $736 million.
"We completed a record fiscal year on a high note with strong fourth quarter results," said Robert Bohn, Oshkosh Corp. chairman and chief executive officer. "The strength of the Oshkosh franchise was evident as we delivered all-time records in fiscal 2010 for revenues, operating income and net income. This performance, coupled with our improved balance sheet as a result of our substantial debt repayment during fiscal 2010, puts us in a strong position as we prepare for the gradual economic recovery. As we enter fiscal 2011, we have a solid foundation with our defense business supported by a strong backlog. We also continue to see signs that lead us to believe that our non-defense businesses will generally deliver improved results in fiscal 2011."
Bemis reports record quarterly sales
Neenah-based Bemis Company Inc. reported third quarter net income of $62.8 million, or 55 cents per share, which was up from $38.4 million, or 33 cents per share, in the same period a year ago.
The company reported record quarterly net sales of $1.3 billion, up from $898.9 million a year earlier.
"I am pleased to report the continued successful integration of our Food Americas acquisition," said Henry Theisen, Bemis Company’s president and chief executive officer. "So far in 2010, we have delivered double-digit growth in adjusted earnings per share compared to the record results of 2009. We are on track to achieve our planned acquisition related cost savings synergies in 2010 and 2011. Demand for packaging products in the Americas continues to be robust, offsetting continued weakness in the European region. While we expect to face modest raw material cost pressures during the fourth quarter, our 2010 adjusted earnings per share guidance continues to reflect double-digit growth."
International Automotive to close Sheboygan facilities
International Automotive Components Group will close its two facilities in Sheboygan by Dec. 17, and the company’s remaining 100 employees will lose their jobs, according to a filing with the Wisconsin Department of Workforce Development.
International Automotive occupies two facilities in Sheboygan – a 250,000-square-foot manufacturing facility at 2821 Muth Court and a smaller warehouse at 2924 S. 31st St. The company announced the closure of its manufacturing in July. The firm told the state about its plans to close the warehouse Tuesday.
In total, about 167 of the company’s employees will have lost their jobs because of the closures.
Chad Pelishek, economic development manager for the City of Sheboygan, said International Automotive has consolidated production into another of its facilities in Pennsylvania.
Sheboygan officials believe another out-of-state manufacturer will fill the soon-to-be-closed facility on Muth Court, Pelishek said. He declined to identify the manufacturer, but said the company is committed to moving production into Sheboygan.
“They’ve got to pull some financing together,” he said.
State to provide tax credits for Bucyrus expansion
Gov. Jim Doyle announced $20 million in state tax credits for Bucyrus International Inc. to consolidate and expand their operations and create 515 jobs in Wisconsin.
“I am happy to announce the state will provide $20 million in Enterprise Zone tax credits to support the expansion of Bucyrus and the creation of 515 jobs in the Milwaukee area,” Doyle said. “Since the national economic crisis began, we have used these new tax credits and incentives to help retain and attract companies across the state – from Republic Airways to Mercury Marine to Harley-Davidson. And today, we are using these new tax credits to help Bucyrus create jobs in Wisconsin.”
The state has designated the area as one of 12 Enterprise Zones.
Bucyrus is investing $44 million for the project, including $5 million for worker training and $39 million in capital investment to rehabilitate the former Midwest Airlines headquarters.
Last week, the U.S. Export-Import Bank granted final approval for loan guarantees for equipment built by Bucyrus in the Milwaukee area.
