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Sep 30, 2021
Modine Q2 2022 Earnings Report
Revenue increased, driven by growth in BHVAC, CIS, and HDE segments, but earnings were negatively impacted by a decline in Automotive revenue and higher raw material prices.
Key Takeaways
Modine Manufacturing Company reported a 4% increase in net sales to $478.9 million, driven by market-related volume improvements in BHVAC, CIS, and HDE segments, which was partially offset by a decline in the automotive segment. Operating income decreased to $10.5 million, and earnings per share was $0.01. The company is raising prices to mitigate headwinds from rising raw material prices and supply chain disruptions.
Net sales increased 4% year-over-year to $478.9 million.
Operating income decreased $18.0 million to $10.5 million.
Earnings per share was $0.01, and adjusted earnings per share was $0.15.
Top-line growth reflects double digit gains in BHVAC, CIS and HDE segments, which together were up $65 million, or 18 percent.
Revenue by Segment
Forward Guidance
Modine lowered its full-year guidance due to the weaker outlook for its Automotive segment and due to ongoing material cost inflation and supply chain issues.
Positive Outlook
- Full fiscal year-over-year sales up 10 to 16 percent
Challenges Ahead
- Material costs have increased further over the past several months and it will take longer to fully offset these increases with commercial actions and contractual metals pass through pricing adjustments.
- Reduced revenue outlook for the Automotive business given the ongoing impact of the semiconductor shortage and other supply chain disruptions on production volumes.
- Lowering full-year guidance due to the weaker outlook for our Automotive segment
- Lowering full-year guidance due to ongoing material cost inflation
- Lowering full-year guidance due to ongoing supply chain issues.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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