ATS announces sale of Berlin coil winding business
TSX: ATA
CAMBRIDGE, ON, June 9 /CNW/ - ATS Automation Tooling Systems Inc. today
announced it has sold the assets of its Berlin, Germany coil winding
subsidiary to a private, German-based company. This automation systems
business, which occupies a 23,000 sq. ft. leased facility, had revenues of
$8.9 million and an operating loss of approximately $0.6 million in fiscal
2006.
"This latest transaction reflects our continuing drive to sharpen our
focus on those areas of our business that we believe offer the greatest
opportunities and rewards," said Ron Jutras, ATS President and CEO. "The sale
of the Berlin business today follows the divestiture of our Precision Metals
business in January, the closure of the Niagara ASG facility in December 2005,
and the closure of the McAllen Texas PCG facility in July 2005. These actions
are only one element of a broader group of steps we're employing, all of which
are intended to improve margins and returns across our business - both near
term and in future - in direct response to changes in our markets and the
pursuit of new opportunities. Our initiatives also include further actions
designed to reduce costs, increase focus on strategic customer accounts that
offer the greatest long-term potential, strengthen our global business
platform and expand our capabilities in targeted markets, including China and
at Omex, both announced last month."
The name of the purchaser and transaction terms were not disclosed. ATS
expects to record a non-cash loss in respect of the sale of no more than
$2 million in its first quarter of fiscal 2007.
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: healthcare,
computer/electronics, automotive, and consumer products. ATS is also an
emerging leader in the rapidly growing market for solar energy cells and
modules. The Company also makes precision components and subassemblies using
its own custom-built manufacturing systems, process knowledge and automation
technology. ATS employs approximately 3,900 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.
Note to Readers
This press release contains certain statements that constitute forward-
looking information within the meaning of applicable securities laws
("forward-looking statements"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements of ATS, or developments in ATS' business
or in its industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by such
forward-looking statements. Forward- looking statements include all disclosure
regarding possible events, conditions or results of operations that is based
on assumptions about future economic conditions and courses of action.
Forward-looking statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. ATS cautions you not
to place undue reliance upon any such forward-looking statements, which speak
only as of the date they are made. Forward-looking statements relate to, among
other things, programs implemented which are intended to, among other things,
improve margins and returns and reduce costs, and the non-cash loss that ATS
expects to record. The risks and uncertainties that may affect forward-looking
statements include, among others, general market performance, performance of
the Canadian dollar, performance of the market sectors that ATS serves, impact
of the programs that ATS is undertaking, the potential for sale related
transaction costs to exceed those currently contemplated, failure of the other
party to the sale transaction to meet its commitments pursuant to the
transaction, and other risks and uncertainties detailed from time to time in
ATS' filings with Canadian provincial securities regulators, including ATS'
Annual Report and Annual Information Form for the fiscal year ended March 31,
2005. Forward-looking statements are based on management's current plans,
estimates, projections, beliefs and opinions, and ATS does not undertake any
obligation to update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
%SEDAR: 00002017E
For further information: For more ATS information, contact: Carl Galloway, Vice President and Treasurer, Gerry Beard, Vice President and Chief Financial Officer, (519) 653-6500