Modine Announces Global Product-Focused Organization Structure For Vehicular Market-Based Operations, Promotions Of Key Employees
Racine, WI, October 9, 2006 - Modine Manufacturing Company (NYSE: MOD), a diversified global leader in thermal management technology and solutions announced today it is creating a new strategic product focus with a supporting internal structure for its vehicular business units and related administrative groups. This will enable the company to respond better to the long-term product needs of its customers and further enhance the company's ability to bring its superior technology solutions to global markets. This change, which will become effective November 1, 2006, relates to three primary vehicular product areas:
o Powertrain Cooling Products (covering chassis mounted components and systems)
o Engine Products (covering engine mounted components and systems, including Modine's exhaust gas recirculation (EGR) coolers)
o Passenger Thermal Management Products (covering passenger HVAC products and systems)
"We are placing resources behind these product groups to enable us to meet the global market proactively, with more speed, agility and vision. We are very proud of our 90 year history at Modine and this new focus will allow us to build on that past success. A better global product focus will facilitate our ability to develop and commercialize our products and leverage our skills and knowledge across multiple global markets. We will retain our core strengths of innovative product development, application engineering and manufacturing, while enhancing our ability to address our customer needs on a consistent, global basis," said David B. Rayburn, Modine President and Chief Executive Officer.
In addition to creating global vehicular product groups, Modine will strengthen its regional focus on the manufacturing operations, sales and select administrative activities relating to those vehicular market-based units along its current regional lines - Americas, Europe and Asia Pacific. "This will better enable the company to implement consistent sales and marketing strategies, share best practices, better utilize assets, establish a Modine Production System to drive continuous improvement, and plan strategically for future geographic expansion, all of which will make the company more cost competitive on the global stage, "said Thomas A. Burke, Modine Executive Vice President and Chief Operating Officer. "We believe these changes will result in significant benefits to our customers, and strengthen Modine's position as a leading global thermal management solutions provider," Burke continued. Modine will continue to report its operating results along these regional lines.
Modine has successfully taken a more product-based orientation in the last six years, having launched successfully its Engine Products, Fuel Cell and Vehicular HVAC groups. "The success of these smaller product-focused groups as well as feedback we have received from customers bolsters our strong belief in the value of a broad thermal product-based organization structure for Modine at this time," Rayburn concluded.
These organizational changes will result in many new responsibilities and reporting structures for key executives at Modine. At the senior leadership level, reporting to Thomas Burke, Executive Vice President and Chief Operating Officer will be the three current Group Vice Presidents, who will become Regional Vice Presidents in the new structure. Those individuals and their regional assignments are:
o Jim Rulseh, Asia Pacific
o Chuck Katzfey, Americas
o Klaus Feldmann, Europe
In addition, Modine announced newly created senior leadership positions overseeing the new vehicular global market product groups. Individuals selected for these new roles are:
o Tom Marry, Managing Director of Global Powertrain Cooling Products. Tom has worked at Modine for eight years, most recently as General Manager of the North American Truck Division.
o Paul Byrne, Managing Director of Global Engine Products. Paul has spent 21 years at Modine, most recently as Managing Director, European Heavy Duty Division.
"Tom and Paul are excellent choices for these positions," said Burke. "Each has significant global product experience and will bring strategic focus to their respective groups. I am confident our customers will experience the benefit of their global expertise and leadership. We also look forward to selecting our Managing Director of Passenger Thermal Management Products in the near future," he concluded.
These organizational changes are an essential component of Modine's Global Competitiveness Initiative announced this year to accelerate the company's technology leadership in a cost competitive manner in order to win additional business, grow its worldwide market share and meet its Return on Average Capital Employed (ROACE) target of 11-12 percent through a cycle. Further announcements will follow over the following days and months as Modine continues these efforts in earnest.
About Modine
Founded in 1916, with fiscal 2006 revenues from continuing operations of $1.6 billion, Modine specializes in thermal management systems and components, bringing highly engineered heating and cooling technology and solutions to diversified global markets. Modine products are used in light, medium and heavy-duty vehicles, HVAC (heating, ventilating, air conditioning) equipment, industrial equipment, refrigeration systems, fuel cells, and electronics. Based in Racine, Wisconsin, the company employs approximately 9,000 people at 34 facilities with three technical centers worldwide. For information about Modine, visit www.modine.com.
