Modine Manufacturing Company Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Q3 FY2020 sales declined 12% year-over-year, down $67.6 million, largely in line with prior guidance.
  • Adjusted operating income was $24 million, down 31% from the prior year, primarily from weaker VTS (Vehicular Thermal Solutions) and CIS (Commercial and Industrial Solutions) segments.
  • Free cash flow improved to $11.6 million, including auto separation and restructuring costs.
  • Automotive business separation substantially complete; Modine plans to report it as a standalone segment beginning Q1 FY2021.
  • Company remains committed to exiting automotive as quickly and efficiently as possible, through two separate potential divestitures.

Segment Performance

Vehicular Thermal Solutions (VTS)
  • Sales down 16% year-over-year.
  • Commercial vehicle and off-highway sales each down 26%; automotive sales down 3%.
  • Adjusted operating income: $5.1 million, down $9.9 million; margin down 270 bps to 1.9%.
  • Weakness seen across all regions:
    • Americas down 18%
    • Europe down 18%
    • Asia down 4%
  • Market declines stabilizing, but no recovery expected in calendar 2020.
Commercial and Industrial Solutions (CIS)
  • Segment sales declined 12% from prior year.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good morning, ladies and gentlemen. And welcome to Modine Manufacturing Company’s Third Quarter Fiscal 2020 Earnings Conference Call. At this point, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer, Investor Relations and Tax. Please go ahead. Kathy Powers: Good morning. And thank you for joining our conference call to discuss Modine’s third quarter fiscal 2020 results. I am here with Modine’s President and CEO, Tom Burke; and Mick Lucareli, our Vice President, Finance and Chief Financial Officer. We will be using slides for today’s presentation, which can be accessed either through the webcast link or by accessing the PDF file posted on the Investor Relations section of our website modine.com. This morning, Tom and Mick will present our third quarter results for fiscal ’20, and will provide an update for our outlook for the rest of the year. At the end of the call, there will be a question-and-answer session. On Slide 2 is our notice regarding forward-looking statements. This call may contain forward-looking statements as outlined in our earnings release as well in our company’s filings with the Securities and Exchange Commission. With that, it’s my pleasure to turn the call over to Tom Burke. To

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional