UPDATE 1-Modine to cut jobs, post-retirement medical benefits
(Recasts; adds details, share movement)
Oct 1 (Reuters) - Modine Manufacturing Co (MOD.N), a maker of heating and cooling systems for vehicles, said it will cut jobs and do away with post-retirement medical benefits, as it restructures its North American operations to boost cash flow.
The company plans to cut about 20 positions, including about 15 percent of the managerial workforce at its headquarters in Wisconsin, and will take a $2.5 million charge in the second quarter ended September 30.
The company said it will stop post-retirement medical benefits for Medicare-eligible participants, effective Jan. 1, resulting in possible annual savings of about $3.3 million.
The company, however, said medical coverage for active Modine employees or pension benefits will not be affected.
Modine has been facing weakness in the North American heavy-duty truck market and also seeing a softening in the European automotive market, which accounts for almost half of its net sales.
Shares of the company were down more than 2 percent at $14.14 in morning trade, after hitting an intraday low of $13.99 on the New York Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anil D'Silva)
