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Modine Plans To Sell Off Automotive Business

This decision comes in the wake of record-setting sales in its non-automotive industrial segments.

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In its fourth-quarter and full-year 2019 earnings release, Modine Manufacturing Co. announced it will sell its Automotive business. This decision comes in the wake of record-setting sales in its non-automotive industrial segments.

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For the full-year, Modine reported net sales of $2,212.7 million, an increase of 5 percent from the prior year and 7 percent on a constant-currency basis. The company’s automotive (VTS) segment had sales of $340 million, compared with $356.8 million one year ago, a decrease of 5 percent. On a constant-currency basis, sales were slightly up, driven primarily by higher sales to commercial vehicle customers in the Americas and higher off-highway and automotive sales in Asia, partially offset by lower automotive sales in the Americas and lower sales to all end markets in Europe. The segment reported gross margin of 13.8 percent, down 210 basis points from the prior year. This decrease was primarily due to tariff-related material cost increases, higher labor costs in certain locations and higher warranty expenses. 

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“The record setting sales of our CIS and Building HVAC segments contributed to our earnings growth this year as we continued to build on our market leading positions in these businesses,” said Modine President and CEO, Thomas Burke. “It is clear that our strategy is working, as we make strides towards our goal of being a leading diversified, industrial thermal management company.  As we look forward to the completion of the strategic review of our automotive business, we are focused on the best outcome for customers, employees and other stakeholders. In making these important decisions, we are focused on unlocking the value in our industrial segments, improving overall return and providing a strong future for Modine.”

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