Question-and-Answer Session
Operator
(Operator Instructions) We’ll wait one moment while questions compile. The first question comes from the line of Andrew DeAngelis from Keybanc Capital Markets. Please proceed.
Andrew DeAngelis - Keybanc Capital Markets
Good morning guys. First of all I just wanted to dig in on your expectations relative to North America, relative to the change that’s occurred. Could you talk about the mix of the inefficiencies that are currently occurring and the changes in the external environment that has prompted the changes in your expectations going forward for that segment?
David B. Rayburn
Let me talk about the operating side and then I’m sure Brad will have some additional color. From an operating side and certainly as I mentioned we had a lessons learned in regards to the consolidation work that we went through. Some of it has gone very well, some of it candidly had some frustrations with it. Coupled with that we’ve had a number of new product launches and as I mentioned that management team was really stretched very, very heavily and so that’s why we are taking the actions to put incremental resources both from an internal reprioritization as well as bringing The Highland Group in. So I have a lot of confidence in the execution of these plans based on what we’ve learned and some of it was very positive but also some things that we’ve learned that was not so positive. Brad, any further color on that?
Bradley C. Richardson
Yeah, Andrew, and I think it’s clear to point out here that we do see continued growth from where we are in the North American business as the truck market recovers and also because of some of the engine programs that Dave mentioned in his prepared remarks, but as we look at the overall growth rates to what we had previously thought, again the growth rates have come down. In addition I think there are some what I would call... You specifically asked about the mix issues and certainly with some of the automotive business that we have here in North America. It is not as profitable as we had expected so our overall margin expectations for the business have also come down and finally as it relates to the margins and overall revenue in the North American business, some of our business is moving to other Modine facilities, in particular in South America, which does impact obviously the value of the Original Equipment - North America segment that is offset obviously by enhanced value in our South American business.
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