UPDATE 1-Modine under pressure to comply with debt covenant

* Feels pressure complying with debt covenant

* Q2 loss per share wider-than-expected

* Cuts FY 2009 outlook on economic uncertainty

* Sees slowdown in North American, European markets

* Shares down more than 2 pct

Oct 30 (Reuters) - Modine Manufacturing (MOD.N), a maker of heating and cooling systems for vehicles, said a number of factors, including the credit crunch and economic uncertainty, have put additional pressure on its ability to remain in compliance with a covenant of a debt agreement. [ID:nWNAB4928] [ID:nBw305315a]

Depending on the severity, duration and timing of the impact of the adverse trends, the company may need to work with its lenders to seek to obtain a waiver of or amend the interest coverage ratio covenant in the near future, Modine said in a statement.

Shares of the Racine, Wisconsin-based company fell more than 2 percent to $7.74 in early morning trade Thursday on Nasdaq.

Modine on Thursday also posted a wider-than-expected quarterly loss, hurt by sluggish sales in North America and Europe, and cut its 2009 earnings forecast.

Modine sees a weak North American heavy-duty truck market and significant slowing down in the European and North American commercial vehicle and automotive markets in 2009.

The company cut its outlook for the 2009 financial year, based on tough operating conditions, economic uncertainty and the impact of the credit crisis on its end-markets.

For the period ended September 30, the company posted a net loss of $13.2 million, compared with income of $10.4 million a year earlier.

Third-quarter earnings will be affected by lower volumes in the winter holidays due to closed plants, the company said. (Reporting by Eric Yep in Bangalore; Editing by Pratish Narayanan)