Modine Manufacturing Company (NYSE:MOD) Q3 2023 Earnings Call Transcript

Neil Brinker: I do. We are seeing that demand and we’re picking up more customers. And that’s the reason why it’s driven the capital strategy that we have in Serbia to continue to advance and build out the capacity there. the incentives are there, the motivation is there. With the traditional products that we sell into that space today, we’ve seen increase in sales and orders. And then as we continue to win new customers, large OEMs, to be honest, that are really helping us pull it through, the team has been very successful commercially in that space.

Unidentified Analyst: Great. It seems like an enduring trend for the next few years. And then just my last question is around free cash flow. And I know Mick gone into this already but just trying to wrap my head maybe around this March quarter free cash flow, the positive free cash flow guided I just want to make sure that the working capital reduction benefit, as you unwind some buffer inventories that should more than offset the restructuring and headcount cash costs. It sounds like you’ve already paid about $13 million in cash payments for the European headcount reduction. I was just wondering about the timing of maybe how much of a final payment you’d have to do in Europe.

Mick Lucareli: Yes. We would expect probably a few million of cash restructuring costs in Q4. Nothing unlike we’ve seen for the full year, we’ll probably be a little bit more than $15 million in cash restructuring. So yes, we’d expect similar — we talked a lot about the EBITDA in Q4. And then we expect the favorable working capital is the main driver of it.

Unidentified Analyst: Great Neil and Mike. That’s it for my questions.

Operator: I am showing no further questions at this time. So, I would now like to turn the conference back over to Kathy Powers.

Kathy Powers: Thank you and thanks to everyone for joining us this morning. You’ll be able to access the replay of this call through our website in about 2 hours. We hope that you all have a great day. Thanks.

Operator: This concludes today’s conference. Thank you for your participation. You may disconnect your lines at this time.