Modine Manufacturing Company Q3 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Sequential performance improved despite material inflation, supply chain pressures, and labor shortages.
  • Sales rose 4% year-over-year (up $18 million), supported by pricing actions and strength in Building HVAC and CIS; however, unit volume declined $8 million due to auto weakness.
  • Adjusted EBITDA fell 16% year-over-year (down $7 million) but improved sequentially from Q2.
  • Adjusted EPS increased to $0.31, up $0.03 from prior year.
  • Company reaffirmed full-year fiscal 2022 outlook, expecting Q4 sequential growth across all segments.

Strategic and Operational Highlights

  • Leadership continues implementing 80/20 discipline to rationalize product offerings, enforce pricing discipline, and improve operational efficiency.
  • Plans underway to restructure particularly within automotive; targeting $20 million in annual SG&A savings with $20–$25 million in mainly severance-related costs.
  • Focus shifting from legacy internal combustion products to thermal system technologies for EV applications, including last-mile delivery, buses, and specialty vehicles.
  • Supply chain disruptions continue, especially in North America. Critical supplier management efforts include daily oversight and dual-sourcing initiatives.

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Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is partly edited and is designed as a guide.: Operator: 0:10 Good morning, ladies and gentlemen, and welcome to Modine Manufacturing Company's Third Quarter Fiscal 2022 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. [Operator Instructions] As a reminder, this conference call is being recorded. 0:36 I would now like to turn the conference over to your host Ms. Kathy Powers, Vice President, Treasurer, Corporate Communications, Investor Relations. Kathy Powers: 0:49 Good morning and thank you for joining our conference call to discuss Modine's third quarter fiscal 2022 results. I'm joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President 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. 1:16 On Slide 3 is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release,

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