ATS enters discussions to sell precision metals business
TSX: ATA
CAMBRIDGE, ON, May 13 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has entered into discussions with prospective buyers regarding the sale of its precision metals business, a division within its Precision Components Group (PCG). In announcing the initiative, Ron Jutras, ATS President and Chief Executive Officer said: "In reviewing our precision components business we concluded that the precision metals division would be better served under a new owner that can bring greater synergy and focus to the business. The precision metals division has had a number of challenging years and the level of interdivisional activity with other ATS divisions has declined substantially due to changes in the buying practices of the customers served by PCG. We believe this business, and its employees, will have the opportunity for a brighter future under new ownership." ATS expects to record a non-cash charge in the fourth quarter of its fiscal year ended March 31, 2005 to reduce the book value of the precision metals business to its estimated net realizable value. ATS intends to release its financial results for the fourth quarter of fiscal 2005 on May 26, 2005. The precision metals division employs approximately 230 people at a manufacturing facility in Kitchener, Ontario. "I believe this planned sale, along with other recent improvement initiatives, will help the Precision Components Group significantly improve its future performance," added Mr. Jutras. Corporate Description 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. ATS is also an emerging leader in the rapidly growing market for solar energy cells and modules and makes precision components and subassemblies using its own custom- built manufacturing systems, process knowledge and automation technology. ATS employs approximately 4,000 people at 26 manufacturing 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 may be made in this news release, including statements regarding the potential sale of a 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. %SEDAR: 00002017E
For further information: Carl Galloway, Vice President, Treasurer, (519) 653-6500