Founded in 1978, ATS uses its industry-leading knowledge and global capabilities to serve the sophisticated automation systems' needs of multinational customers in industries such as healthcare, computer/electronics, energy, automotive and consumer products.
Automated Tooling Systems continues to be hit by recession, first quarter figures down
12th Aug 2009, 12:50 pm
Automation Tooling Systems Inc (TSX: ATA) said its customers and the markets it sells into continue to be negatively impacted by the current recession as it reported further falls in revenue and profit for the first quarter to end-June 2009.
Revenue from continuing operations fell to C$152.7 million from C$212.1 million in the previous first quarter. EBITDA dropped to 6.7 million from 22.1 million a year earlier.
ATS said it maintained a strong balance sheet, however, with net cash of C$86.6 million at the end of the first quarter compared to C$106.5 million at March 31 2009 and C$27.1 million at June 30 2008.
ASG customers have reduced their capital spending and/or are delaying programs to varying degrees depending on the market segment and some may experience financial difficulties. At its Photowatt division, tighter global credit markets have reduced available funding for solar installation projects.
The resulting reduction in demand for solar modules, in addition to increased global module capacity in the solar industry, have caused average selling prices to decrease and could result in sustained over-supply in fiscal 2010, it said.
“Operationally, ASG plans to continue the consolidation and restructuring of underperforming, non-strategic manufacturing operations. These closures will occur over the next several quarters as current customer commitments are completed or moved to other divisions,” the company added.
No investment advice
The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.
You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.
