Modine Manufacturing Company Q3 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Overview
  • Management: CEO Neil Brinker (new to Modine), CFO Mick Lucareli.
  • Company continues transformation efforts, including the exit of the Automotive segment.
  • Automotive liquid-cooled business sale to Dana is progressing and expected to close in the June quarter.
  • Air-cooled automotive business exit plan is progressing with multiple interested parties.
Financial Performance (Compared to Q3 FY2020)
  • Sales increased by $11 million, up 2% year-over-year, aided primarily by favorable currency translation.
  • Gross profit increased to $83 million, up $9 million year-over-year.
  • Gross margin exceeded 17%, improving by 160 basis points.
  • GAAP results were heavily impacted by $134 million in non-cash impairment related to the Automotive business sale.
  • Total adjustments for the quarter were $139.1 million.
  • Tax impact of impairments and related valuation allowances totaled $79 million.
Strategic and Operational Highlights
  • 80/20 transformation initiative is underway, with a pilot program in the data center business. KPIs expected within 30 days.
  • Building HVAC segment highlighted as critical for indoor air quality—especially in schools during COVID-19.

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 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. 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, Treasury, Investor Relations and Tax. Kathy Powers: Good morning. And thank you for joining our conference call to discuss Modine’s third quarter fiscal 2021 results. I am joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Vice President of Finance and Chief Financial Officer. Neil Brinker: Thank you, Kathy, and good morning, everyone. It’s been a busy first two months at Modine and I am encouraged by what I see. I spend much of my time connecting with the senior leadership team and getting to know the business. I am honored to be part of a company with such a long and rich history. I would also like to share my appreciation for everyone in this organization that has gone above and beyond expectation during this past year to respond to the global pandemic. In addition to all of our employees, I would also like to thank members of our supply chain for keeping us running efficiently and for our customers who have continued to give us their business and their trust. This has been a diffic

Continue Reading

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

Upgrade to Professional