ATS wins multiple automation systems contracts valued
at up to US$17.9 million from major automotive customer
TSX: ATA
CAMBRIDGE, ON, July 8 /CNW/ - ATS Automation Tooling Systems Inc. today
announced that a major multinational automotive component manufacturer has
placed numerous orders for turn-key automation systems - valued at a total of
US $13.2 million (approximately Cdn$17.9 million) that will be employed at
several of the customer's worldwide facilities. The customer has also selected
ATS for additional orders, which are expected to be placed later this summer,
with a combined value of approximately US$4.7 million (approximately
Cdn$6.3 million).
This same customer placed orders valued in total at US $8.8 million
(approximately Cdn $13 million) earlier this calendar year (during ATS's
fourth quarter ended March 31, 2003).
"ATS has built a good long-term relationship with this customer but
winning some US $26 million worth of business (approximately Cdn$37 million)
in just six months signals that the bond between our companies is growing and
we've reached a higher level as a trusted supplier," said Klaus Woerner, ATS
President and Chief Executive Officer. "Our strategic efforts are clearly
paying off."
Mr. Woerner added that ATS is benefiting "from the fact that this
customer continues to rationalize its supplier base, and that our leading
technology, track record of innovation, broad capabilities, quality, global
presence and demonstrated ability to add value have secured a strong place in
this customer's supply chain."
ATS will design and build these systems, which will be used for automated
assembly, test and machining, at numerous ATS facilities including its plants
in Ontario, Ohio and Singapore over the course of the next nine months. The
orders include manufacturing systems for different components and vehicle
platforms. Staged deliveries are scheduled for completion to the end of April
2004. Mr. Woerner said these orders - which will make use of a variety of
innovative ATS technologies as well as the Company's industry-leading design
and engineering resources - once again illustrate the value ATS can deliver to
automotive customers.
"We've known for some time that ATS is gaining market share and these
orders provide further evidence, while also demonstrating one other fact: the
automotive industry remains a stable market that offers strong, long-term
prospects for our Company," said Mr. Woerner. "The key for us is to continue
aligning ourselves more closely with these types of customers who are firmly
committed to using innovative automation solutions to advance their place in
the industry, improve quality, introduce new products and drive down
production costs."
The name of this customer and further details about the orders cannot be
disclosed due to customer confidentiality requirements. ATS's Automation
Systems Group alone derived approximately $177.6 million or 41.7% of its
revenue from automotive customers in its last fiscal year to March 31, 2003.
ATS's total consolidated revenues were $584.3 million in the fiscal 2003 year.
About ATS
ATS Automation Tooling Systems Inc. (www.atsautomation.com) is the
industry's leading designer and producer of turn-key automated manufacturing
and test systems, which are used primarily by multinational corporations
operating in a variety of industries including: automotive,
computer/electronics, healthcare, and consumer products. The Company also
makes precision components and sub-assemblies using its own custom-built
manufacturing systems, process knowledge and automation technology. This
includes a line of advanced thermal management devices used by computer
manufacturers to cool high-speed processors. Through Photowatt International
S.A., and Spheral Solar Power Inc., ATS is an emerging leader in the rapidly
growing market for solar energy cells and modules. ATS employs approximately
3,500 people at 26 facilities in Canada, the United States, Europe and Asia-
Pacific. The Company's shares are traded on The Toronto Stock Exchange under
the symbol ATA.
Certain forward looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including, without limitation, continued acceptance of
ATS's products, technologies, customer requirements and other risks
detailed from time to time in ATS's periodic reports filed with Canadian
regulatory authorities.
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For further information: Ron Jutras, Executive Vice President and Chief Financial Officer, (519) 653-6500