Modine Manufacturing Company Business Report FY ended Mar. 2012

Business Highlights

Financial Overview

(in million dollars)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of
change (%)
Sales 1,577.2 1,448.2 8.9 -
EBITDA 124.8 108.8 14.7 -
Sales by segments
OE- Europe 602.8 546.7 10.3 1)
OE- North America 602.0 573.2 5.0 2)
OE- Asia 84.1 63.9 31.6 3)
South America 175.6 158.9 10.5 4)

1) OE- Europe
-Sales increase was primarily due to increased sales in commercial vehicles, agriculture and construction markets along with a 24 million dollars favorable impact due to foreign currency exchange rate changes.

2) OE– North America
-Sales increase was mostly due to continued improvement in the North American commercial vehicle market.
-The restructuring for the segment was completed with the closure of the Camdenton, Missouri facility.

3) OE- Asia
-The increase in sales is attributed to a growing presence in the region and the continued launch activities and ramp-up production.

4) South America
-Sales increased due to increased sales volumes within the commercial vehicle market, as a result of the pre-increases in the off-highway market and aftermarket business, as well as a 4 million favorable impact of foreign currency exchange rate changes.

Recent Development Outside USA

-The Company is scheduled to begin production of several new products from three facilities below during fiscal 2013.
  • Facility in Chennai, India is currently producing low volumes of products.
  • Facility in Changzhou, China is continuing to ramp up production.
  • The Company is transforming its light assembly facility in Shanghai, China into an engine products focused manufacturing facility and expect the transformation to be completed during fiscal 2013.

Outlook for FY ended Mar. 31, 2013

-The factors below result in an outlook of a 5-10% year-over-year decrease in net sales compared with its fiscal 2012 results.
  • In fiscal 2013 the Company expect weaker economic conditions in several key markets, including Europe, South America, and Asia.
  • The Company expects approximately 80 million dollars of planned program reductions due to the wind down of its BMW business in Europe and Asia, along with certain automotive and military programs winding down in North America.
  • Unfavorable foreign exchange impacts.
-The Company plans to begin to implement a restructuring program designed to align the cost structure and manufacturing base in Europe with a strategic focus on the commercial vehicle market.
-The Company expects the impact of the sales volume declines in fiscal 2013 will result in operating income in a range of 3.5-4.0% of sales, excluding the impact of the European restructuring.


R&D Expenditure

(in million dollars)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 70.2 67.0 56.9

R&D Structure

-The Company owns two global, state-of-the-art technology centers, dedicated to the development and testing of products and technologies.
-To achieve efficiencies and lower developmental costs, the Company's research and engineering groups work closely with its customers on special projects and systems designs.
-Its current R&D is focused primarily on company-sponsored development in the areas of powertrain cooling, engine products and commercial HVAC products.


-It has been granted and/or acquired more 2,000 patents worldwide over its life.

Investment Activities

Capital Expenditure

(in million dollars)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Original Equipment- Asia 12.5 10.8 8.0
Original Equipment- Europe 29.8 25.0 36.6
Original Equipment- North America 15.4 12.9 14.3
South America 5.2 4.1 2.5
Commercial Products 1.7 2.3 0.5
Corporate and administrative


- (1.9)
Continuing operations 64.4 55.1 60.1
Discontinued operations - - 0.2
Total capital expenditures 64.4 55.1 60.3

-Capital expenditure in FY ended Mar. 31, 2012 included tooling and equipment purchases in conjunction with new global program launches with new and current customers in Europe, Asia and North America.