RACINE, Wis.–(BUSINESS WIRE)–Modine Manufacturing Company (NYSE:MOD), a diversified leader in thermal management technology and solutions, announced that, to date, it has been awarded a series of programs to supply exhaust gas recirculation (EGR) cooling solutions to meet U.S. EPA 2010 on-highway vehicle and Tier 4 off-highway equipment emissions standards. The new programs, which consist of medium and heavy-duty engine applications for a variety of customers, total approximately $125 million in annualized revenues. Production is expected to begin in Modine’s Joplin, Missouri, manufacturing facility in mid-calendar 2009 and extend through 2015.
Commenting on the new business, David B. Rayburn, Modine President and Chief Executive Officer, said, “We are especially pleased with the market’s acceptance of our latest EGR technology. These recently awarded programs reflect a high quality of business, consistent with our growth targets for the overall company and our efforts to turn around the performance of our Original Equipment – North America business segment.”
“The success of our new EGR technology is based on our continuing ability to help our customers meet their challenging engine applications, while at the same time reaching the more stringent environmental standards that help keep air cleaner for all of us,” said James R. Rulseh, Modine Regional Vice President – Americas. “These wins are based on our field-proven, third generation, high efficiency EGR technology which is not only applicable to meet the coming U.S. EPA emissions standards, but also will help our global customers meet Euro-5 and Euro-6 standards in Europe and Euro-4 standards in Asia.”
EGR coolers are used on diesel engines to cool and re-circulate a percentage of the exhaust gas in order to promote more effective combustion and reduce the formation of nitrogen oxides (NOx) and particulates.
“Modine’s latest EGR solution builds on our years of experience in providing highly efficient, highly durable technology with performance density and world class fouling (soot) resistance,” said Scott D. Wollenberg, Managing Director – Global Engine Products. “We are pleased that a growing number of customers have recognized Modine’s technology as their solution of choice to meet increasingly demanding environmental regulations and their own exacting standards for high efficiency, durability and performance.”
A majority of the new programs represents incremental business that supports Modine’s goal of generating 4 to 6 percent annual organic revenue growth. The Joplin facility, where the EGR coolers will be produced, is registered to ISO-TS Quality Standards, which are recognized international standards for quality systems. The plant also is registered to ISO 14001 Environmental Standards, which are the internationally recognized standards for environmental management systems.
About Modine – www.modine.com
Modine, with fiscal 2007 revenues from continuing operations of $1.7 billion, specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilation and air conditioning) equipment, industrial equipment, refrigeration systems, fuel cells and electronics. Based in Racine, Wisconsin, the company has approximately 7,800 employees at 33 facilities worldwide. For information about Modine, visit www.modine.com.
Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Modine’s current expectations. The company’s actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to, the company’s ability to successfully implement its restructuring plans and drive cost reductions as a result; the ability to maintain adequate liquidity to carryout restructuring programs while investing for future growth; its ability to continue to service its customers during the implementation of any restructuring plan; the avoidance of inefficiencies in the transition of products from plants to be closed to plants continuing in operation; factors impacting the Original Equipment – North America segment operating results; the ability of the company, its customers and suppliers to achieve projected sales and production levels; unanticipated product or manufacturing difficulties; the company’s ability to remain in compliance with its debt agreements; international economic changes and challenges; and other factors affecting the company’s business prospects discussed in filings made by the company, from time to time, with the Securities and Exchange Commission including the factors discussed in Item 1A, Risk Factors, and in the “Forward-Looking Statements” section in Item 7 of the company’s most recent Annual Report on Form 10-K and its quarterly reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.
