USA: The impact of Covid-19 on US manufacturer Modine’s sales in the three months to June 30 were partially offset by higher UK data centre sales by UK subsidiary Airedale.
Despite this, Modine recorded net sales of $347.8m, down 34% from 2019. This related to an operating loss of $3.2m and net loss of $8.4m.
Gross profit decreased 45% year-over-year in the first quarter to $46.1m, which was partially offset by higher gross profit in the Building HVAC segment, which increased 6% on slightly lower sales volume.
BHVAC segment sales were $47.6m, compared with $49m one year ago, a decrease of 3%. This decrease was driven primarily by lower sales of heating and ventilation products, but was partially offset by higher sales to data centre customers in the UK.
Adjusted EBITDA for the BHVAC segment was $7.9m, an increase of $1.8m, or 30%, from the prior year.
“The severe drop in customer demand and resulting plant shutdowns in the first quarter caused by Covid-19 appears to be behind us, but many of our manufacturing facilities continue to operate at well below normal capacity,” commented Modine interim CEO Michael B Lucareli.