Modine Manufacturing Company, a diversified global leader in thermal management technology and solutions, today reported financial results for the quarter ended September 30, 2020.
Second Quarter Highlights:
- Net sales of $461.4 million decreased 8 percent from the prior year
- Operating income of $28.5 million up $22.5 million and net earnings of $8.9 million up $13.7 million
- Adjusted EBITDA of $55.4 million, up 40 percent from prior year on a 240 basis point improvement in gross margin and lower SG&A expenses
- Earnings per share of $0.17 and adjusted earnings per share of $0.43
- Significant year-over-year improvement in cash flow, with $75.0 million of cash flow from operating activities and $69.5 million of free cash flow in quarter; lowered leverage ratio to pre-pandemic levels
“We are very pleased with our second quarter results, which well exceeded our expectations. Higher than anticipated sales combined with cost reduction measures allowed us to deliver much improved margins, earnings and cash flow,” said Modine Interim Chief Executive Officer, Michael B. (Mick) Lucareli. “We are seeing slow but steady recovery in most of our end markets and geographies. This, along with continued controls over capex spending and positive working capital performance, led to record cash flow this quarter. We also recently announced that we reached a definitive agreement to sell the majority of our automotive business to Dana Incorporated. This is a critical step in our strategic transformation and allows us to avoid significant liabilities and cash investments to complete necessary restructuring in our automotive business.”
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