RACINE, WI — Modine Manufacturing Co. has reported stronger financial results for the fourth quarter and fiscal year, which ended on March 31. Sales for the fourth quarter increased 18 percent to $321 million from $272.6 million for the same period one year ago. This is the second consecutive quarter the company has achieved record sales.
Net earnings for the quarter increased to $12.5 million, or 37 cents per fully diluted share, an increase of 55 percent compared with $8.1 million, or 24 cents per fully diluted share reported one year ago. Income from operations increased 48 percent to $17.3 million from $11.7 million one year ago, or 5.4 percent of sales versus 4.3 percent of sales last year.
Sales for the full year increased 10 percent to $1,199.8 million from $1,092.1 million one year ago, setting a new record for the company. Effective with the first quarter of last year, the company adopted Statement of Financial Accounting Standard (SFAS) No. 142, “Goodwill and Other Intangible Assets,” and recorded a related goodwill impairment charge of $21.7 million (net of $1.1 million income tax benefit), resulting in net earnings of $12.7 million, or $0.38 per fully diluted share for last year.
Modine’s net earnings for this year more than tripled to $40.4 million or $1.19 per fully diluted share, while earnings before the cumulative effect of accounting change increased 18 percent from $34.4 million last year to $40.4 million. Both the company’s fourth quarter and full year financial results were positively impacted by net favorable currency exchange rates, primarily the stronger Euro, which added $17.9 million and $70.3 million, respectively, to the quarterly and full year sales. The positive currency exchange effect on pre-tax earnings for the fourth quarter and the year was $1.7 million and $7.2 million, respectively. Also included in the fourth quarter, on a pre-tax basis, is approximately $1.9 million in gains from the sale of closed facilities.