EXHIBIT 20
NEWS RELEASE
Release Date: Immediate Modine Manufacturing Company
1500 DeKoven Avenue
Contact: Gerald J. Sweda Racine, Wisconsin 53403-2552
Telephone: (262) 636-1361
Modine revises sales and earnings outlook, expresses future
optimism
RACINE, Wis., Nov. 30, 2000 -Modine Manufacturing Company
(NASDAQ: MODI) announced today that it is revising its sales and
earnings outlook for the fiscal year ending March 31, 2001, and
is projecting third-quarter results. On a full-year basis,
revenues are now forecast to be 7- to 10-percent less and
earnings 25- to 30-percent less than the prior year. For the
third quarter, revenues are expected to decrease 10 to 13 percent
from the year before and earnings are expected to decline by 55
to 65 percent.
The lower revenue and earnings estimates are due to a number
of external market forces that have had a negative impact on the
entire industry: (1) a sharply lower heavy-truck market; (2)
slowing light-vehicle sales, including a number of customer plant
shut-downs; (3) continued softness in the North American
aftermarket; and (4) protracted weakness in the Euro versus the
U.S. dollar, which is offsetting otherwise strong European
operating results.
Modine is responding to these difficult market conditions
with an aggressive campaign to reduce working capital levels,
increase emphasis on cost reduction, and curtail new capital
spending commitments. In this regard, year-to-date operating cash
flows have increased over the prior year by $52 million, or 108
percent, despite lower earnings. Capital expenditures, year-to-
date, have also been reduced by $13 million, or 24 percent,
against prior year levels. In terms of cost reduction, Modine has
reduced its salaried workforce in North America by nearly six
percent, year-over-year, and has shut down or consolidated eight
unprofitable aftermarket branch locations. Internal studies are
underway for more extensive operational improvements to reduce
fixed expenses and improve capacity utilization across the
company. The balance sheet has also been strengthened this year
by a $90-million, or 37-percent, reduction in interest-bearing
debt compared with prior year levels.
Separately, despite the challenging earnings environment,
Modine remains committed to long-term growth and will continue to
redeploy freed-up cash flow to fund development of its leading-
edge technologies and new products. Customer interest in Modine's
thermal-management solutions for fuel cells and microturbines and
in its innovative, CO2 air-conditioning technologies has been
broad-based and is accelerating at a rapid pace. These new
technologies and related products afford Modine an exciting
opportunity to reposition itself into new, high-growth markets
and drive continued optimism about the future.
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These and other forward-looking statements about sales,
earnings, and operations involve risks and uncertainties, as
detailed on page 17 of Modine's Annual Report to shareholders.
Modine specializes in thermal management, bringing
technology to diversified markets. Modine can be found on the
Internet at www.modine.com.
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