Thermal management systems provider Modine Manufacturing Co. (MOD), reported Tuesday a wider loss for the fourth quarter, reflecting considerable decline in Global OEM production and 43.1% slide in sales, amid weak economic conditions.
For the quarter, net loss widened to $47.1 million or $1.47 per share from $35.2 million or $1.10 per share in the previous year.
Loss from continuing operations for the quarter broadened to $40.8 million or $1.27 a share from $18.3 million or $0.57 a share in the same period last year. Impairment of goodwill and long-lived assets increased to $13.2 million from $3.9 million, chiefly due to a decline in the value of an investment in an affiliate and a reduction in the value of certain program assets.
Sales declined 43.1% year-over-year to $254.8 million from $447.6 million, reflecting the frail economy and weak vehicular markets of Modine.
Thomas Burke, Modine's chief executive officer, said, "The global recession, with the lowest global vehicular OEM production rates in decades, continues to significantly challenge our business,"
Gross margin declined year-over-year to 9.3% from 13.7% due to decline in sales and the corresponding under-absorption of fixed costs in the company's manufacturing facilities, partially offset by reduction in direct and indirect costs and lower materials costs.
Selling, general & administrative expenses reduced 33.9% to $40.3 million from $61 million in the prior-year quarter.
For the full year, 2009 net loss widened to $108.6 million or $3.38 per share from $68.6 million or $2.14 per share in fiscal 2008. Loss from continuing operations widened to $103.6 million or $3.23 a share from $54.4 million or $1.70 a share.The results of fiscal 2009 included total asset impairment charges of $43.7 million.
Sales for the year decreased 12% to $1.41 billion from $1.60 billion last year.
Looking ahead to fiscal 2010, Modine expects revenues up marginally from the fourth quarter 2009 run rate resulting from incremental volume from new program launches globally.
Further, the company pegged its planned capital outlay to a maximum of $65 million in fiscal 2010.
MOD is currently trading at $4.26, down $0.98 or 18.70%, on the NYSE.
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