CAMBRIDGE, ON, May 13 /CNW/ - ATS Automation Tooling Systems Inc. todayannounced it has entered into discussions with prospective buyers regardingthe sale of its precision metals business, a division within itsPrecision Components Group (PCG). In announcing the initiative, Ron Jutras, ATS President and ChiefExecutive Officer said: "In reviewing our precision components business weconcluded that the precision metals division would be better served undera new owner that can bring greater synergy and focus to the business. Theprecision metals division has had a number of challenging years and thelevel of interdivisional activity with other ATS divisions has declinedsubstantially due to changes in the buying practices of the customers servedby PCG.
We believe this business, and its employees, will have the opportunityfor a brighter future under new ownership." ATS expects to record a non-cash charge in the fourth quarter of itsfiscal year ended March 31, 2005 to reduce the book value of the precisionmetals business to its estimated net realizable value. ATS intends to releaseits financial results for the fourth quarter of fiscal 2005 on May 26, 2005. The precision metals division employs approximately 230 people at amanufacturing facility in Kitchener, Ontario. "I believe this planned sale, along with other recent improvementinitiatives, will help the Precision Components Group significantly improveits future performance," added Mr.
Jutras.
Corporate Description
ATS Automation Tooling Systems Inc. ( www.atsautomation.com ) is theindustry's leading designer and producer of turn-key automated manufacturingand test systems, which are used primarily by multinational corporationsoperating in a variety of industries including: automotive,computer/electronics, healthcare, and consumer products. ATS is also anemerging leader in the rapidly growing market for solar energy cells andmodules and makes precision components and subassemblies using its own custom-built manufacturing systems, process knowledge and automation technology.
ATSemploys approximately 4,000 people at 26 manufacturing facilities in Canada,the United States, Europe and Asia-Pacific. The Company's shares are traded onThe Toronto Stock Exchange under the symbol ATA. Certain forward looking statements may be made in this news release,including statements regarding the potential sale of a business. Investors arecautioned that such forward-looking statements involve risks anduncertainties, including, without limitation, continued acceptance of ATS'sproducts, technologies, customer requirements and other risks detailed fromtime to time in ATS's periodic reports filed with Canadian regulatoryauthorities.
