Revenue during the quarter dropped 4.88 percent to $317.70 million from $334 million in the previous year period. Gross margin for the quarter expanded 133 basis points over the previous year period to 15.01 percent. Operating margin for the quarter stood at negative 0.60 percent as compared to a negative 9.61 percent for the previous year period.

Operating loss for the quarter was $1.90 million, compared with an operating loss of $32.10 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3.60 million compared to $8.10 million in the prior year period. At the same time, adjusted operating margin contracted 129 basis points in the quarter to 1.13 percent from 2.43 percent in the last year period.

"Revenue was lower than anticipated in our Americas and Building HVAC segments, mostly due to weaker than anticipated market conditions," said Modine president and chief executive officer, Thomas A. Burke. "Despite these end-market headwinds, our teams have continued to strengthen our business through structured cost-reduction initiatives that we expect will position the Company to deliver strong second-half performance. As a result of these proactive efforts, we remain on pace to meet our full-year guidance. Importantly, we expect to close the Luvata HTS transaction by the end of calendar 2016 and are heavily focused on integration planning to ensure a successful acquisition."

For the financial year 2017, Modine Manufacturing Company expects revenue to grow in the range of 1 percent to 3 percent. The company expects adjusted operating income to be in the range of $65 million to $71 million. It company projects diluted earnings per share to be in the range of $0.77 to $0.87 on adjusted basis.

The company has spent $26.90 million cash to meet investing activities during the first six months as against cash outgo of $37 million in the last year period. It has incurred net capital expenditure of $27.70 million on net basis during the first six months, down 7.97 percent or $2.40 million from year ago period.

Cash flow from financing activities was $8.10 million for the first six months, up 912.50 percent or $7.30 million, when compared with the last year period.

Cash and cash equivalents stood at $63 million as on Sep. 30, 2016, down 2.93 percent or $1.90 million from $64.90 million on Sep. 30, 2015.

Working capital declines
Modine Manufacturing Company has witnessed a decline in the working capital over the last year. It stood at $130 million as at Sep. 30, 2016, down 12.69 percent or $18.90 million from $148.90 million on Sep. 30, 2015. Current ratio was at 1.48 as on Sep. 30, 2016, down from 1.48 on Sep. 30, 2015.

Cash conversion cycle (CCC) has decreased to 27 days for the quarter from 41 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 53 days for the same period last year.

Days inventory outstanding has decreased to 19 days for the quarter compared with 36 days for the previous year period. At the same time, days payable outstanding was almost stable at 48 days for the quarter, when compared with the previous year period.