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Modine Manufacturing Company (MOD-7.61%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $616.8 million from $561.4 million in the same quarter the previous year. This increase is primarily attributed to higher sales in the Climate Solutions segment, including $73.6 million in sales from the acquired Scott Springfield Manufacturing business.
Cost of sales for the quarter was $467.2 million, representing 75.7% of sales, compared to 77.3% in the same quarter of the previous year. This decrease in cost ratio is due to favorable sales mix and improved operating efficiencies.
Gross profit for the quarter was $149.6 million, compared to $127.3 million in the previous year, with the increase attributed to higher sales and improved gross margin.
Selling, general, and administrative expenses increased to $82.0 million from $68.0 million, primarily due to higher compensation-related expenses and incremental expenses from the Scott Springfield Manufacturing acquisition.
Restructuring expenses for the quarter were $8.3 million, up from $1.6 million in the previous year, primarily due to severance expenses in the Performance Technologies segment.
Operating income for the quarter was $59.3 million, down from $61.7 million in the previous year, due to higher SG&A and restructuring expenses.
Interest expense for the quarter was $6.2 million, an increase from $5.8 million, primarily due to higher borrowings related to the Scott Springfield Manufacturing acquisition.
The provision for income taxes was $13.0 million, up from $10.3 million in the previous year, primarily due to the absence of a prior year's tax benefit related to the sale of automotive businesses in Germany.
Net earnings for the quarter were $41.2 million, down from $45.1 million in the previous year. The decrease is attributed to higher SG&A and restructuring expenses.
Modine continues to focus on expanding its Climate Solutions segment, including through acquisitions such as Scott Springfield Manufacturing, and optimizing its operations to improve profit margins.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Modine Manufacturing Company quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.