Modine Manufacturing Lowers FY17 Adj. EPS Guidance Range - Quick Facts

(RTTNews) - Modine Manufacturing Company (MOD) announced the company is adjusting full-year 2017 forecast to account for lower volumes in the Americas and Building HVAC segments, along with the temporary impact of higher metals and exchange rates. Modine Manufacturing lowered the range for adjusted earnings per share, due to the incremental interest expense from the acquisition debt.

For fiscal 2017, the company now expects: year-over-year sales up 9 to 11 percent, including a reduction of 1 to 3 percent in the base business and approximately $160 million of revenue contributed by the CIS business; and adjusted earnings per share of $0.74 to $0.80, reflecting incremental interest expense from the acquisition debt. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.84. Analysts' estimates typically exclude special items.

The company noted that it is holding its range for 2017 adjusted operating earnings. Adjusted operating income is expected to be in a range of $65 million to $71 million, with $61 million to $66 million contributed by the base business and $4 to $5 million contributed by the CIS business.

"We continue to expect the newly-acquired CIS business to be accretive to Modine's operating income, for fiscal 2017 and beyond," said Modine CEO, Thomas Burke.

Third-quarter earnings per share were $0.04, a decrease of $0.13 compared with the prior year. Adjusted earnings per share were $0.21 as compared with adjusted earnings per share of $0.22 in the third quarter of the prior year, with the slight decrease driven largely by the increased interest expense from the acquisition debt. Net sales for the third quarter were $349.8 million, including $34.7 million of sales from new CIS segment, up 6.4 percent from the prior year. On a constant currency basis, sales of the non-CIS business decreased $9.5 million or 3 percent.