RACINE, Wis. (AP) -- Modine Manufacturing Co., which makes heating and cooling systems for buildings and vehicles, said Wednesday it is laying off staff and post-retirement medical benefits in an effort to rein in expenses.
Modine will cut about 20 Racine, Wis., headquarters jobs, including some 15 percent of the managerial force, effective Jan. 1, 2009. The move will result in an estimated charge of $2.5 million for severance and retirement benefits in the quarter ended Sept. 30.
It also will eliminate post-retirement medical benefits for Medicare-eligible participants to save an estimated $3.3 million.
"Modine has established performance targets including selling, general and administrative expenses at 11.5 percent of total sales, which is part of our overall framework to achieve an 11 to 12 percent return on capital employed," Bradley C. Richardson, chief financial officer, said in a news release.
Shares fell 23 cents to $14.24 in morning trading.