Modine Manufacturing Company (NYSE:MOD), a diversified global leader in thermal management technology and solutions announced today it has been awarded a program to supply exhaust gas recirculation (EGR) coolers representing approximately $13.0 million in sales over five years to DEUTZ AG, one of the world's leading independent manufacturers of diesel and gas engines. These EGR coolers will be mounted on new 4 and 6 cylinder TCD2013 engines, which are mainly used for agricultural applications.
"This is another step in our long relationship with DEUTZ AG. We are proud to be their development partner on this EGR project, which helps DEUTZ and its customers meet the new, stricter emission requirements that every engine manufacturer in Europe and the U.S. must achieve, by January 1, 2007," said Klaus Feldmann, Modine's Group Vice President for Europe.
EGR coolers are used on diesel engines to cool and re-circulate a percentage of the exhaust gas in order to promote more effective combustion and remove the nitrogen oxides (NOx) and particulates. This results in cleaner air for the environment. Modine's 334 workers at its Mezokovesd, Hungary plant will manufacture the EGR coolers, beginning in September, 2006, which will be shipped to DEUTZ's Cologne, Germany facility.
"For the last two years our project team has worked intensively with DEUTZ to develop this Off-Highway EGR system. We are very pleased that we have been able to demonstrate our excellent engineering capabilities to DEUTZ. Providing technologically advanced components at a cost competitive price is what we strive to do for all our customers," said Paul Byrne, Modine's Managing Director of the Heavy Duty Business Unit in Europe.
This program win supports Modine's five year goal of four to six percent organic revenue growth. Including acquisitions, Modine's five year revenue growth goal is 11 to 13 percent.
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.
About DEUTZ AG
With annual sales of about EUR 1,300 million, DEUTZ is one of the world's leading independent suppliers of diesel and gas engines that are used in construction and agricultural machinery, power generation plants, commercial and rail vehicles, and ships. The range of DEUTZ engines stretches from 4 to 4,000 kW. DEUTZ customers are served by 17 sales companies, 12 sales offices, 16 service centres, and more than 800 sales and service partners in more than 130 countries all over the world. In Fiscal Year 2005 Deutz sold more than 195,000 engines.
Statements made in this press release regarding future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, including those regarding a positive impact from new business programs, exploitation of technology, expansion into niche markets, incremental business and continuing market strength are based on Modine's current expectations. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties including, but not limited to, market acceptance and demand for products and technologies; successful launch by Modine of the above described program; success of the above described platform in which Modine's products are included; non-cancellation of the platform or Modine as a supplier; the ability of Modine, its customers and suppliers to achieve projected sales and production levels and avoid unanticipated product or manufacturing difficulties; and other factors affecting Modine's business prospects discussed in filings made by Modine, from time to time, with the SEC including the factors discussed in the "Cautionary Factors" section in Item 7 of the Company's most recent Annual Report on Form 10-K and its periodic reports on Form 10-Q. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.