ATS awarded major 5 year contract by U.S.-based automotive multinational
TSE Symbol: ATA
CAMBRIDGE, ON, May 24 /CNW/ - ATS Automation Tooling Systems Inc. today announced it has been selected as the sole production source for an innovative, new power seat adjustment sub-system produced by a major U.S.- based multinational automotive company. The customer will introduce the sub- system, to be installed across multiple vehicle platforms, in 2003.
Based on current estimates, the program is expected to commence in May 2003 and contribute revenue to ATS of approximately $12 million to $15 million during the Company's 2004 fiscal year (year ended March 31, 2004). The following year ATS annual revenues under the program are forecasted to grow to approximately $40 million to $50 million based on assumed shipment volumes to the customer. The program is expected to continue for five years, extending into ATS's fiscal 2008 year.
This marks a new stage in a long-term relationship between ATS and this customer. ATS has been an award-winning supplier to this customer in each of the last two years. The customer, who does not wish to be named, will produce interior products for more than 23 million vehicles worldwide in model year 2001.
"The fact that ATS was chosen to take a leading role in co-designing and producing this new component product is a strong endorsement of our Company and its strategy to combine automation, assembly and precision components capabilities to serve the growing need for outsourced parts," said Klaus Woerner, ATS President and CEO. "This award clearly demonstrates our strategy of using our full range of skills, experience and capabilities across all areas of our company to provide more valuable subassemblies to our precision components customers and to support their needs. We are fully committed to deliver quick prototype design, rapid ramp-up and introduction of these new generation products for our customer. As well, we expect to bring unparalleled quality and continuous cost reduction to this assignment as a way to deepen this important strategic customer relationship."
The power seat adjustment sub-system to be supplied by ATS will incorporate precision components supplied by both ATS Metals and Plastics operations and final assembly and test of the sub-system will be performed at the ATS Advanced Manufacturing Division. The ATS Automation Systems group will supply automated assembly and test equipment for the project.
About ATS Automation Tooling Systems
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. ATS employs approximately 3,300 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' products, technologies, customer requirements and other risks detailed from time to time in ATS' periodic reports filed with Canadian regulatory authorities.
For further information:
Ron Jutras, Chief Financial Officer
(519) 653 6500