ATS Announces Sale of Berlin Coil Winding Business
CAMBRIDGE, ON, June 9 / - 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.
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
