Modine considering more plant closings

December 18, 2007 08:50 pm

— From staff reports
news@joplinglobe.com
Citing “continued weakness,” Modine Manufacturing Co. announced last week that it may be closing additional plants, but it offered nothing specific about the future of its Joplin operation.
In a statement last week, the company said its Original Equipment-North America business “continues to experience unfavorable operating results amid a slower-than-anticipated heavy-duty truck market recovery and a difficult business climate. The current outlook for this business is below the company’s previous expectations.”
Plans call for “restructuring activities, including plant closures,” the company said. It will provide more details with the release of its third-quarter results in late January.
Asked this week about the potential impact on Joplin’s plant, Susan Fisher, spokeswoman for Modine, said, “It is way too soon for us to make comments about any particular operation or actions.”
She added, “But at the same time, we recently approved investments in that (Joplin) plant, but those investments have not begun.”
The Joplin plant employs 170 people. Modine also has plants in Camdenton and Jefferson City in Missouri, as well as elsewhere around the United States and worldwide.
Earlier this year, the company closed a plant in Mississippi. Some of that work was transferred to its Jefferson City plant. Modine also announced the closing of a plant last fall in Toledo, Ohio.
Modine reported revenues of $1.7 billion from continuing operations for its most recent fiscal year.
The company makes engineered heating and cooling parts used in light, medium and heavy-duty vehicles; heating, ventilation and air-conditioning equipment; industrial equipment; refrigeration systems; fuel cells; and electronics. The company employs about 7,800 people at 33 sites worldwide.

Debt deals

In its statement, Modine Manufacturing Co. said it is in discussions with its lenders regarding potential covenant waivers or amendments to its debt agreements
“In the meantime, the company has secured a short-term waiver in order to accommodate the ongoing evaluation and not disrupt Modine’s ordinary business activities,” the statement said.