Modine Announces First-Quarter 2002 Results

July 17, 2002 by Jeff Shepard

Modine Manufacturing Co. (Racine, WI) reported net earnings of $10.4 million, or $0.31 per fully diluted share, and $272.6 million in revenue for the period ending June 26, 2002. Compared to the prior year, revenue decreased two percent and reported net earnings increased two percent.

On a pro-forma basis, Modine's net earnings declined 28 percent to $10.2 million from $14.2 million a year ago. Modine's actual results in the year-ago period were adjusted to remove $3.1 million of pre-tax costs associated with the acquisition of Thermacore International Inc. and $1.4 million of pre-tax goodwill amortization expenses. In accordance with FAS 142, which was adopted in the current period, Modine no longer amortizes goodwill.

The company is experiencing lower-than-expected severance costs relating to the restructuring plan announced in October 2001. As a result, Modine's current-quarter results were positively affected by a $0.3 million pre-tax adjustment to the company's restructuring accrual. Excluding these one-time items, Modine's pro-forma earnings per share would have declined to $0.30 from $0.43 on a year-over-year basis.