Revenue during the quarter grew 6.42 percent to $349.80 million from $328.70 million in the previous year period. Gross margin for the quarter contracted 105 basis points over the previous year period to 16.78 percent. Total expenses were 98.28 percent of quarterly revenues, up from 95.83 percent for the same period last year. That has resulted in a contraction of 245 basis points in operating margin to 1.72 percent.

Operating income for the quarter was $6 million, compared with $13.70 million in the previous year period.

However, the adjusted operating income for the quarter stood at $17.70 million compared to $17.20 million in the prior year period. At the same time, adjusted operating margin contracted 17 basis points in the quarter to 5.06 percent from 5.23 percent in the last year period.

"Over 15 months ago, we announced a strategic plan to transform Modine into a stronger, more diversified company. With the completion of the acquisition of Luvata HTS during the fiscal third quarter, we remain on target to deliver on all elements of our Strengthen, Diversify and Grow strategic initiative," said Modine president and chief executive officer, Thomas A. Burke. "While we are experiencing some additional headwinds with market volumes and metals, I am pleased that we have already corrected a majority of the operational issues identified during the second quarter and continue to drive significant improvements during the fourth quarter."

For fiscal year 2017, Modine Manufacturing Co expects revenue to grow in the range of 9 percent to 11 percent. The company expects adjusted operating income to be in the range of $65 million to $71 million. The company projects diluted earnings per share to be in the range of $0.74 to $0.80 on adjusted basis.

The company has spent $405.20 million cash to meet investing activities during the nine month period as against cash outgo of $54.50 million in the last year period. It has incurred net capital expenditure of $41.70 million on net basis during the nine month period, down 0.95 percent or $0.40 million from year ago period.

Cash flow from financing activities was $353.40 million for the nine month period, up 50,385.71 percent or $352.70 million, when compared with the last year period.

Cash and cash equivalents stood at $50 million as on Dec. 31, 2016, down 38.65 percent or $31.50 million from $81.50 million on Dec. 31, 2015.

Working capital drops significantly
Modine Manufacturing Co has witnessed a decline in the working capital over the last year. It stood at $100.80 million as at Dec. 31, 2016, down 31.71 percent or $46.80 million from $147.60 million on Dec. 31, 2015. Current ratio was at 1.26 as on Dec. 31, 2016, down from 1.50 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 28 days for the quarter from 38 days for the last year period. Days sales outstanding went up to 55 days for the quarter compared with 47 days for the same period last year.

Days inventory outstanding has decreased to 25 days for the quarter compared with 39 days for the previous year period. At the same time, days payable outstanding went up to 52 days for the quarter from 48 for the same period last year.