ATS Announces Plan For Transportation Business Reorganization
Cambridge, ON, Sept. 8, 2020 /CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS" or the "Company"), an industry-leading automation solutions provider, today announced a reorganization plan to help mitigate the expected impact of a downturn in its transportation markets brought on by the COVID-19 pandemic.
The reorganization plan is expected to be completed by the end of the fiscal year and includes the closure of facilities along with workforce reductions primarily in Europe and Asia. Management expects to incur total restructuring costs of approximately $24 million. Costs will be incurred during the second and third quarters of the current fiscal year. Certain of the Company's foreign operations will engage in normal-course consultation and notice processes with local employee representative bodies regarding the implementation of the reorganization plan at the relevant foreign operations.
"This action is necessary to align the capacity and cost structure of our business to current and expected conditions in the transportation market," said Andrew Hider, Chief Executive Officer. "By implementing the plan now, we will help to mitigate against future margin erosion and emerge to serve transportation customer opportunities that are aligned with our technologies, capabilities and objectives for value creation."
ATS serves customers in four vertical markets: life sciences (55% of trailing twelve-month revenues for the period ending June 28, 2020), transportation (26% of revenues), consumer (12% of revenues) and energy (7% of revenues).
About ATS
ATS is an industry-leading automation solutions provider to many of the world's most successful companies. ATS uses its extensive knowledge base and global capabilities in custom automation, repeat automation, automation products and value-added services, including pre-automation and aftersales services, to address the sophisticated manufacturing automation systems and service needs of multinational customers in markets such as life sciences, chemicals, consumer products, electronics, food, beverage, transportation, energy, and oil and gas. Founded in 1978, ATS employs approximately 4,400 people at 22 manufacturing facilities and over 50 offices in North America, Europe, Southeast Asia and China. The Company's shares are traded on the Toronto Stock Exchange under the symbol ATA. Visit the Company's website at www.atsautomation.com.
Source ATS Automation Tooling Systems Inc.
For Further Information:
Ryan McLeod, Chief Financial Officer, 519 653-6500
