MOD - Earnings call transcript Q3 2018 | Modine Manufacturing Company

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Operator

Good morning, ladies and gentlemen, and welcome to the Modine Manufacturing Company's Third Quarter Fiscal 2018 Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer, Investor Relations and Tax.

Kathleen Powers

Thank you. us Modine's joining XXXX Quarter for Call. Earnings you today Third for Fiscal Thank are and and Modine's and today me With President our President Officer. Mick CEO, Vice of Financial Finance Chief Lucareli, Burke; Tom

you available its will of On comments the through Tom the website a an PDF our conclusion, through modine.com. available file company call using be links as the after concludes. on should as both for presentation. website, webcast our today's will We Those on approximately will call outline to Slide need hours two be Investor provide prior third are posted and well Mick call. beginning link to replay is exit our for the the slides today's X Relations you filings Also update results Slide call call to our of as end question-and-answer our forward-looking I our to it's the our call, pleasure provide quarter earnings 'XX. statements. in in Tom fiscal guidance well to At session. revenue an is a for and as be statements earnings company's the and forward-looking for regarding that On my there will as may the the Commission. notice With release, X Securities remind and turn Exchange that, this Burke. over with outlined contain want section

Tom Burke

our XX% the segments opening earnings sales segment on pleased provide I of another business am quarter CIS of and call, to for improvement, increased few fiscal for including discuss significant closing will review revenue XXXX. a questions. an then our will incremental I million remarks call our sales earnings $XXX detailed sales the our review with On strategic third that, I from prior Kathy, in strong including overall guidance report quarter. financial to you, and our will today’s morning, up provide results an good and results more Thank update everyone. and initiatives. will a quarter consolidated Mick and After

quarter a prior As for business third in the own in the only we year. reminder, this one month

meaningful we'll quarter have a more Next year-over-year comparison.

$XX We presentation. $X.XX income and the prior was CIS earnings due a the addition on quarter his were expense operating U.S. million the sales will year. charges year due insight more the for These during volumes enacted from quarter adjusted strong of Mick tax recently the were prior million $X.XX the adjusted primarily per or Our due $XX.X business. income from improvement up these share million and the improvements in XX% our had reform adjustments to of the to legislation. provide portion tax during $X.X

third Now the segment I'd for the like briefly review quarter. results to

end Americas by Page the basis to Americas driven significant in for year, offset of rebound currency Adjusted XX in all We increases Americas by the margins our the income from XX.X%. basis benefit America. in volume XX% gross to by impact increased to operating the of specialty across sales partially $XXX.X million, continued This increase that increases Turning markets. primarily strength $X.X for North and constant with volume. X, the in the off-highway driven by continues the was off-highway improved material sales driven on higher higher markets sales was prior an performance, from sales automotive points to to I saw The XX% higher pleased costs. improved our am segment segment market report of million increases major segment substantial sales vehicle sales. the a with and

In addition, plants of many launching are multiple our off-highway programs.

higher continue benefit $XXX.X to growth increased continue the margin Gross in million Europe certain Sales sales favorable this sales from customers. a to to X% vehicle was as Consistent partially a driven currency customers and benefit primarily expectations, wind which the segment. to a Please did The commercial to will have end our who turn down. not our in automotive segment constant this year. program was decrease settlements by margin on by for expect with of to due points had basis to We prior-year pricing customers decreased X. indications offset Page of $X.X production. off-highway this certainly growth million, lower programs on to XXX XX.X%. similar our We primarily basis

our our profit income capacity in capacities lines. gross a settlements, Hungary production which aluminum engine production. Two to most these adjacent two years with plan currency seen production manufacturing Excluding and and quarter. capacity complete in due competitively ago adjusted production in would million the million our The larger building facilities. $X.X have gross operating of for was coupled expand SG&A we've providing construction us the higher both product profit. The decided we increase in manufacturing growing to allowing led a is $X.X plant combined both existing and an steel Lower to decrease additional rapidly facility third by to we stainless to has of initiated

to high the truck automotive electric global bus specialty see of a in and continue level markets. vehicle We to activity relating

won in we're We program automotive that and an this are important battery with are in Europe positioned area. program customers Please current to customer well strategies and and existing confident working We with we for Page see X. our core recently chiller turn significant a volume. developing an

XX% million higher XXX gross China, this on the point for last XX% growth. in the improvement Asia Operating a and sales in million $X.X Our resulted Asia this to and increases a year. Korea China. is in segment to earnings volume. all our million prior due automotive continues basis. the sales grew in Asia to significant sales year quarter. and to We $X $X.X sales gross income compared the off-highway markets Higher saw sales let which nearly growth constant most segment margin basis from volume currency profit to year in $X.X to Overall with significant a report segment This in India million end in increase doubled

facilities nearly past capacity one of expanding be As will filled growth growth our capacity in last region. for mentioned we additional has our in over I site order Changzhou. our at manufacturing in provide quarter, In manufacturing Asia the to rapid our year the

adjacent in Our to existing allowing facility location. we China fourth leverage team plant that built our at management us seasoned to our

expect in meet cooling oil, for We powertrain and spring the additional demand products, in complete to critically transmission to as forecasted important This well expansion begin engine ever-increasing completion is customer the XXXX. our as products. cooling project

$X.X year. $XX.X in million of segment sales improvement segment $X.X adjusted reported a reported margin of reported the of Turning which profit million million to XX.X%. to in operating December $XX.X Gross gross CIS was resulted operating last million, last year. over X, compared million $XXX.X Page of the the loss The income a month

higher third we The to and expect and quarter be CIS the business, revenues is seasonally quarter the quarter. for both margins weakest fourth in the

to CIS from clearly the Modine focus to lower We challenges and build right operational knowledge than like efficiencies be, have you addressing driving at the drive impact many in leadership them improvements. and are performance the continue product to especially on business location place the purchase significant of leverage market discipline opportunities the Operating are in our when There include certain business. accounting. CIS and with margins to on we team by we'd the operating

good U.K. achieving margin Sales bringing ventilation, momentum conditioning. driven capacity reduces compared higher business by The million, North in our announcing in and and, this seen from November, benefiting upward prior each the on course, on synergy on and constant XX% However, we fiscal This points grow quarter Austria. with gross XX.X%, we facility improvements this manufacturing adjusted Please Gross increased excess volume. the resources this basis both this our year, driven for segment American by operating Europe. heating, by manufacturing the resulted our segment. prior technical and in in a were cost continuing closure increase profitability. Page conversion HVAC improved we of sales profit have Gailtal, by air XX%, closure year. our XXX XX. the income increased improvements and currency of to sales This major basis building our step manufacturing of to focused operational lowers from targets XX% turn $X.X In towards year up took to while in are in revenues for first goal

heating a from better of experiencing benefiting two this season year years market are We after declines.

In while in addition Northeast to market. share our in gaining market market historically growth, and also we're Canadian making the gains Midwest strong region,

launching for ventilation line Expo recent to-date. our product financial consolidated and North turn to Mick our largest now earnings also America in D-cabinet of the revenue that, XXXX. to offering underway. in ventilation product our product capacity which our will results, AHR at the rooftop this overview With We like quoting for activity is fiscal and is and guidance the it showcased and expanded review an over Chicago Mick also We I'd

Mick Lucareli

everybody. XX. morning, to Please Good turn Slide

As million $XXX last Sales Tom on more sales than increased segment which was currency our million mentioned, basis. XX% in a constant $XXX or totaled $XXX million year. CIS

only reminder, pass-through. rates of from markets, and exchange favorable month the one a metals foreign As year the included Besides favorable revenue prior benefited results. also

million be Excluding up year-over-year $XX.X of $XX.X million CIS. up were attributed sales was the the profit increase XX%. or $XX to currency $XX.X million can or million CIS, of Gross XX%. constant impact of

Americas, was Asia good or growth profit building HVAC and gross improvements. million including CIS, the in gross Excluding was up in There margin profit $XX.X XX%.

was Our down gross slightly for few reasons. margin a

company the mix lower than had basis the a year-over-year impact to had average. sizable CIS inclusion we First, due a gross on a margin which sales of

prior Second, net the year. was compared metals to negative impact

increase million pricing SG&A quarter margin Please totaled some exchange $XX $X to of another Despite note In from $XX.X these our in million and million not within to facility business CIS Austria page in segment. $X.X $XX.X repeat million was in rate. of the we've item special exchange the $X.X charge was this largest improvement. resulted of CIS rates. operating during adjustments The in which restructuring quarter. million that for did incremental that totaling closure primarily increase impairment with CIS CIS with expenses the single of year. income the change announced and table This along foreign manufacturing year-over-year up massive recorded showed million is excluding the the addition, due accounted a settlements the which from at the Europe the included unfavorable bottom for year quarter. the impacts, last third a

costs million strategy We and plant was owned. environmental balance restructuring remaining to previously expenses million of also $X.X Americas X with The fees. a Europe relates expenses in acquisition that adjusted for for integration consulting along and

quarter Third million XX%. $X.X income up or was adjusted $XX million operating of

the million $XX.X improvement share significantly of an legislation loss our provisional After tax charges Our to effective to a a was million deferred earnings the tax on expense of positively in tax EPS the included million GAAP tax December. $XX adjustment foreign Modine’s related to and rate We or of per was recorded reform to XX.X in $X.XX that quarter asset low $X.XX U.S. rate by corporate federal credit for we an due by impacted earnings. the This Note of the tax of $X.XX which adjusted in was XX%. impacted transition tax charges had tax income tax for enacted adjusting reform reduction reform. Hungary.

improved Turning combination XX, with the expect prior is foreign to CIS in the our including and to be to spending than cash which than this year-over-year the primarily million. year CIS operating for higher due million items $XX.X unfavorable year full than million exchange increase $XXX.X Capital of rate is higher The was several This year flow working the new were higher year. higher to due $XX was million inclusion Slide the by expenditures earning capital year-to-date and year along capital. segment. of spending around we prior and the capital last $X

environmental We million expand restructuring made integration $XX.X China. for acquisition expenses. manufacturing million year-to-date of of along flow cash legal million. $XX.X free with reported and payments Please addition the year which this to was In prior includes cash we purchases equipment costs and than in $XX by activities, better note capacity

getting ratio currently fiscal are X.X at months. down our we X.XX am first is this XXXX through Finally leverage X.X to times. leverage covenant ratio a of set that ratio our this by report nine performance to fiscal times strong from We below of debt of schedule. current requirement with of of flow the our end goal end the is X.X cash I ahead the back pleased year well

We're earnings our Now guidance per and end Based To also we fiscal fiscal by let’s XX% taxes up the our end Slide revised XX. with on turn operating guidance. be guidance. project sales XX% to sales adjusted FX share XXXX and from income benefit are tightening XXXX adjusted summarize raising to the markets on raising we our of our to guidance, adjusted and some year. and lower the prior along favorable additional EBIT tailwinds

prior in operating year. an expect XXX expect an to the adjusted XXX range million of our be end million XX% lower in XX% to range the anticipate income We XXX increase equates EBITDA current range the to XXX to to the this of be than million. and with million of prior more raised XX% the increase over of year. to currently We We adjusted expectation of compared

In to increase sales outlook. have of change want annual interest As Metals due review with assumptions. usual seeing the quarter process million. is assume the to pass-through contributing continued in we prices to to our line sales metals we I key in increase $XX expense last approximately other our and are this

expect is fiscal rate XXXX. our tax to includes XXXX. change lower between be which $X.XX of approximately from the resulting our impact tax earnings XX% U.S. of up to in adjusted adjusted $X.XX XX% we in mix the in $X.XX the on of and This rate in significantly EPS and Moving fiscal expected

So Luvata up following we to the the nicely progressed as wrap company acquisition.

to With turn Our shareholder earnings - great we of I’ll fiscal should consistent say past than back I years. more it Tom the three truly to and quarters have close in of results through first you. opportunity XXXX are And year an are the terms financial value. few that XXXX

Tom Burke

optimize grow our more enabling Please to across structured turn a following our segments Slide our unit regional initiative diversify Mick. is portfolio more on reorganized success now time At have vehicular a the industrial and one of to we strength the global served XX strategic business diversified and Modine Thanks approach profitable, markets. business into company. our same

maybe the that of profitable review of will for we our help strategic resources This our growth. a acquisition the all allocation business I best overall form we CIS a am investments and performing It and These expansion been and help where completed capital acquisitions. are of investments. and/or prioritize see year of future We in with capital very us units spending the plan since prioritize the business will our capacity result. R&D has create to the opportunities pleased

us has moves our This debt. has acquisition flow generated accretive to grow cash immediately company repay to earnings shareholders. to been value evaluate As strategy and next the to promised significant and our the will for major allow drive

resulting with and We continue along to strength see both top markets and bottom end in share gains new launches. line from market growth program our

in clearly We vehicle earlier mentioned cooling the a are with are capitalizing win situation benefiting business significant for strong an market order and automotive existing and leading cooling engine we our from position electric I that to Europe. off-highway in battery-plate secured space. customer a

acceleration well strong win positioned electric automotive as to engaged in year globally as to diversify very have are work well markets. to the are very and product so and has done footprint results teams as a Our in pleased multiple far continues our we our the with rate and over the opportunities our and specialty this all with strengthen from results hard which I’m and business. several past truck years bus vehicles

to In your come. provides we’d given in years profitable the questions. the our addition that, year which like to And I’m with opportunities especially growth to the for for strategic new excited continue with take investing fiscal initiatives

Operator

the [Operator Instructions] David Our Leiker Baird. first line of question is from of

is line Your open.

David Leiker

usually quarter to go. awesome say I don't way this

Tom Burke

Thank you.

David Leiker

launches, much a it's way And of gains? it there, the but to bit it that much thoughts off-highway how the break any is is it are is seeing tough new the how is strength you going a out share of of you much how I and On to of know there? market, be you business can there little do, have

Tom Burke

is really there. China with I’ll that's seeing the as that with a but it, opportunities most competitive you seeing and right and been least tailwinds portfolio product to more situation in our changes programs tailwinds besides strong to a now we're quantify taking linked dealing North launching Clearly, infrastructure construction Ag of on business can't which some we’re we that. the more that well know But done in focusing we’re names with qualified lot you that and winning is new work - that we're with Yes, there. in exciting that, America that try construction is those the business side as give the at up of in both we're profitable side. boosted construction - and the response

major significant the some with won - we So global there. players business

a the right able tailwinds we’ve be stronger in a well. time bring products in right position on which share time off-highway but So means had as been new gain in at not in to spring not the capitalize business long to probably that

level it in numbers. kind Mick, it. summary down that's of So I do the thoughts let can’t high break that you deeper on any by

Mick Lucareli

we generally and impact growth was so then slightly went were the line the markets market clearly across activity make I going the in Just few in same win the quarter last the Tom David book the market is as And and to the rate. years rate performance comments in through ahead. data growth biggest is mentioned quote we outpacing order the with

really the building. book optimistic order that's about we're So

David Leiker

and some product? the How product, is sense have there there terms of is broad-based the across that handful products in of you

Tom Burke

good global right need really position. strong example ago, think this in the getting product is we matured a what I years determining that put up place we and strategy really of a in be to

line cooler sales. over are going some there about in products years the that compete head module along the head out to that that players with the conquesting is that go really we oil new the some that stronger So brought think we of on we aspect, when with PPC against

both been the it's oil as and would side what that on cooling PTC so going products those side, as into businesses and powertrain the as cooling, So engine well, say PC well I are on.

So I singular product strategic focus broad that's really able to off critically. deploy really BTS And those can are is we this now. the with for the really paying the building focus off-highway portfolio say a on up resources on us side,

we've I North the strong there South benefiting that on and and mentioned, So in down still challenged because gained also and that Asia there, feel We America Europe lot share is as comes back okay. the America position very we of we've down but well. well as this but market know definitely we'll Brazil upside is established capitalize a are with region

David Leiker

to of item like one here, you've year great actions revenue what you our you've and some are the see other since build some global it how the the in And discussions then seems we're context de-bottled on synergies a thoughts this the the that general just it's cost us taken that's That's structure is really that, terms so in. that been in tracking integration and on position where of and you've expected? versus and synergies

Tom Burke

locations, was action take that in closing that up the let in the in inside business of the We achievement Yes, of the was tied have comes the take plant I'll did the when we specifically in going with thoughts, it's of we of had his opportunities, questions we engagement to Austria support. this we there. synergy maybe that to be take and and Mick end not that view some it to took one some some diligence in off very side tied that mentioned other and got product those up the We with due you be improvement due and happier Yes, something acquisition. the up back the going action diligence. but margin but front the industrial portfolios, negotiations, could

have be the going So we taking side, business in the of North with off any largest teams. knew Very Could adding the which core being is pleased successful not those our in of who size. acquisition oil that cultural world The portion supplier come that those in the the America. very happier the leadership synergy again integration of with teams together. our important

way all it function see each engaged. You can that's through down the been

standpoint delivering generating strategic the leading Again broader it's and we wanted the a the to position leveraging thermal products earnings. coils we our expertise of in markets that what So across synergy the is of set exactly there. from Cash business accretive a use management can flow aspect excellent. of that

big quality is the a commercial opportunity. As of vehicular the and names separate channels HVAC every thousands and that is segment building capitalize on yet Chicago, in making different. size a a earnings, look being had the with small on diversification very two to just more same good is booth our Show time up with we We of At that the the what us of different even of are there. where one CIS they whole you very know know are versus engagement the side forward what to side booth pleased sure on set and gives lot it capital less, market. is have HRI from benefiting but CIS intensity cooling refrigeration we're I call we supplier. heating down of getting because business and we've a building and order orders really feedback that the came a management on responding they the off and HVAC you deal separate for customers whole the handful and dynamic lot the we of to supporting more quickly A of with

again with to as do work all, in driving share pleased on driving Mick, all of want am synergies? as add very our any but strategically to on margins, thoughts so but I you And far

Mick Lucareli

a couple to And talked Tom last as and get within grower, talked GDP million step The two focus on is plus on of Yes was in business up in well think happy it that of a $XX I to pattern slightly if David, it really the but accounting need we the Tom minimum about our on different first all four $XX was stable a that the the to things we're that we're to range flow side has million acquisition we've in, to to cash the and years. seasonal just million we've said very three in purchase goal so the from in continue track big offset to in onset the is years our million that about to recall pulled conversion first correctly it of all has I We year exceed the benefit quarters, top. plan Tom hit right $XX quickly up the and know $XX first synergies. the year-over-year the million of and $XX a aluminum. we with said portfolio refresh industry as this the the needs it's to acquisition keep with - being product on and

got globally footprint next right in in to a system We they've making We our saw implement around then have infrastructure with that's and have we’re to Austria first the closure ERP plans they've of really couple and aggressive here sure the ensure cost. move some and an to the here years. got manufacturing lowest-cost going

Operator

Shlisky of Seaport line Our Global. next the question is from Mike of

line Your is open.

Mike Shlisky

today short-term So starting on in of the Florida heating you that. country to been through of I off a kind about in the for they’re lot building or and start XX/XX. the for there of you sure to pattern that as colder goes make a winter like the institutions order want what world very or in kind is and a January Texas at talk guess short year And It stuff there results is to got entire next long things that you? quarter? over or much people CIS snowing HVAC, tail product kind comment has of prepared calendar Can the the

Tom Burke

rebound there. full we to early Clearly some or the was mentioned ago. vortex the that the years of market bit compared polar little little I two of give you our years it last a market four it��s our Well winters three over to answer saw down of a as

rep on In the lot been top as channels with on engagement So gain improved I a sales we’re the focus of we field. mentioned and got pleased very has share market that.

off but the replacement the in As the of start cold the yet The as work step kind what to winter we be before we’ll half some tail-off the don't we’re is as took business. lot okay that setting the season pleased which a we heating positive winter over is the some and the of while the season the typically far determined shelf season. as - close HVAC about have a benefit year the of the typically part wonder have programs replenishment next extended does inventory winter the out heating that or What what aggressive keep the really coming a programs definitely happens up some opportunity of performance sales restocking we getting building question can't and restocking find that seeing we of of the as because real we in you late that done major get okay early that's as tail is offer hopefully longer January and that usually is one, on we great the and of spring is sales business help product and in early with this driving winter of it is We think with into number eye is has in spring. seeing of try and QX effect to we quantify business season.

in that our right and really now what Mike. question of call in we clarity it’s we’re and more have year see May big QX we’ll but call So pleased with end

Mike Shlisky

is where through still into a situation the point the or Is see that lapping XXXX much us been I the here? update know going headwind of months. calendar a this of XXXX price you you be raw can material Secondly us some year? calendar up in have of on there for going couple to last

Mick Lucareli

or did catch-up of you say a question. a lapping Yes, kind Mike

Mike Shlisky

price of period chance had time. Yes, a a it’s over a to year you've so it been higher and in for

Mick Lucareli

metal's impact impact I so the seen part thought of negative XX the the to been think million Yes, the first would really in is us since we three of biggest probably QX be range. I the our quarters. net year-to-date - probably was end as The change we've October

in of last With the the out just kind months it of the few again pushes metals rise curve.

So in seen It's environments not the if eventually for metal start out last in been increase, seems up in you will quarters fiscal these the stabilize, we a impact get us new to run that three and just in year. here and where a them you've pushed quarterly hold we it's huge it's to the long catch-up and metals. bit additional steady and it last few with little months catch if

Mike Shlisky

on there? vehicle us early as commercial Are platforms am that might launch be you you involved out in bit contract I that opposed EV Can as content an truck program hearing it's looking you to electric calendar in XXXX? you general companies there are confirmed about electrified I a electric the guess some with update to perspective. higher your automobiles a as out in from dollar truck diesel you curious, are us because

Tom Burke

a That's question. great

know of seeing been side date now of dealing cooling. recent bus, We're in vehicle battery U.S. as when what both in the by as the on Europe say purchase European the duty that players is supplier note at automotive specialty I X.X I and Looking in the that commercial region and of customers Obviously world, the at and every this so startups like in and auto, specialty engaged high. customers I well way that with EV a there's vehicle mentioned I our we're people the we in okay, and segment China. to across bus, vehicle names plate and of specifically had make same entrants that vehicle who new well call dozen my now really we're least existing when light with across list right with there that the you that engagement extremely and right is

strong On specialty sort that heavily gets vehicle bus the the with I commercial engaged commercial as the attention, that be far tell is the the really say content, need of and already announce that managed is lot into I okay there as that we're EV vehicle would you urban to can a side, talk both moving for that are out that talking to rate duty municipalities our those by content demand are type that and The as really vehicle as infrastructure and that both Development that there truck municipalities North off have fact EV that so. because names is would high we the recharging segments in is we're fast premature know we mentioned significant. ways a benefits I of about how place have point, engaged. about say teams is and to all of more and yes and to these plus and want be capabilities serve as sourcing, significant work are you this participation segments centers environment but have you be on transition light at Europe. policies the and far in getting and you can America things any starting really are but

encouraging. very, very of So see there activity a we and really it's lot

side vehicular EV there and the very that. So and hybrid markets with engaged as well, across -- is also hybrid on when I all aspect we're this plug-in say

the battery on when in down plug-in very well portfolio vehicle established And we down like radiators the engine-related powertrain content, traditional EV products some is years in powertrain like. the we've cooling. cooling this and going side cabin and be cooling chillers, work that Those to take EV. on significantly it the not you aspect light-duty done electric content said when then several everything is engine last specific into to see the off on and a that where Mike have of to and into liquid the where it benefit participating, work opened as product general on thermal basis integrated things established that's inverted as can content products us content paying account, kind there a getting well that significant portfolio condensers the we're but over BEV both such the when not that the and HVAC proven for systems ICE as thermal are a you're we've higher. see really EV opportunity including of product hybrid comes on EV and we've we've we're making used going and through So sure

excited research the and seen start really market we're that is development over right time with the right. our we're So and portfolio that from last is putting we've year. the into come pull The the to

Mike Shlisky

the you structure yield squeeze do news And your is intent now for your each or perhaps right the the you versus U.S. of trust the in suppliers actually with think the looking your when the perhaps any stock procurement try of of few this wishing has risk perhaps market, am global at of I of kind not global am clinical type but makers the current curious on for makers kind of that something this it one it's optimal JV with one recently, teamed JV European can competitors? up biggest business I truck other contract. a and is to global

Tom Burke

will feel shareholders. confidence win participate we've the of business, with can this we used that confidence made years particular portfolio, across feel the so that that we how kind think This over confident don't and to this fall. can okay? to engine use singular that have rate the this I right prepared way. how share, accordingly several word, scared, really that build in feel we and us stronger work I the that market don't we comment with the we really the and wherever with as that quarter focus last this can space have asset The options unit they in chasing think us don't use we where last now, vehicle products commercial to given strong position need we mainly we we yield is is build confident PTC engage the mean, for in I business a go we the has may I that I our culminating dynamics be to. for well want have we need run to this off-highway have market

with the let's we global to, decisions new have appropriately positioned portfolio, dynamics focus So you now, this good say, as vehicular on very is diversification, engage the market in described. a so those well we can make

Mike Shlisky

I of ask outlook, promise not I'm not to. Let and and the I me one going about last would just squeeze kind XXXX here, fiscal one

Kathleen Powers	VP, IR & Tax and Treasurer
Tom Burke	CEO, President and Director
Mick Lucareli	CFO, CAO and VP of Finance
David Leiker	Baird
Mike Shlisky	Seaport Global
Matt Paige	Gabelli & Company
Douglas Dethy	DC Capital

Modine Manufacturing (MOD) 31 Jan 182018 Q3 Earnings call transcript