CAMBRIDGE, ON, July 8 /CNW/ - ATS Automation Tooling Systems Inc. today announced that a major multinational automotive component manufacturer has placed numerous orders for turn-key automation systems - valued at a total of US $13.2 million (approximately Cdn$17.9 million) that will be employed atseveral of the customer's worldwide facilities.
The customer has also selectedATS for additional orders, which are expected to be placed later this summer,with a combined value of approximately US$4.7 million (approximately Cdn$6.3 million).This same customer placed orders valued in total at US $8.8 million (approximately Cdn $13 million) earlier this calendar year (during ATS's fourth quarter ended March 31, 2003).
"ATS has built a good long-term relationship with this customer but winning some US $26 million worth of business (approximately Cdn$37 million) in just six months signals that the bond between our companies is growing and we've reached a higher level as a trusted supplier," said Klaus Woerner, ATSPresident and Chief Executive Officer. "Our strategic efforts are clearly paying off." Mr. Woerner added that ATS is benefiting "from the fact that this customer continues to rationalize its supplier base, and that our leading technology, track record of innovation, broad capabilities, quality, global presence and demonstrated ability to add value have secured a strong place in this customer's supply chain."
ATS will design and build these systems, which will be used for automated assembly, test and machining, at numerous ATS facilities including its plants in Ontario, Ohio and Singapore over the course of the next nine months. The orders include manufacturing systems for different components and vehicle platforms. Staged deliveries are scheduled for completion to the end of April 2004. Mr. Woerner said these orders - which will make use of a variety of innovative ATS technologies as well as the Company's industry-leading designand engineering resources - once again illustrate the value ATS can deliver toautomotive customers.
"We've known for some time that ATS is gaining market share and these orders provide further evidence, while also demonstrating one other fact: the automotive industry remains a stable market that offers strong, long-term prospects for our Company," said Mr. Woerner. "The key for us is to continue aligning ourselves more closely with these types of customers who are firmly committed to using innovative automation solutions to advance their place in the industry, improve quality, introduce new products and drive down production costs." The name of this customer and further details about the orders cannot be disclosed due to customer confidentiality requirements.
ATS's Automation Systems Group alone derived approximately $177.6 million or 41.7% of its revenue from automotive customers in its last fiscal year to March 31, 2003.ATS's total consolidated revenues were $584.3 million in the fiscal 2003 year.About ATSATS Automation Tooling Systems Inc. ( www.atsautomation.com ) is the industry's leading designer and producer of turn-key automated manufacturingand 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. This includes a line of advanced thermal management devices used by computermanufacturers to cool high-speed processors.
Through Photowatt International S.A., and Spheral Solar Power Inc., ATS is an emerging leader in the rapidly growing market for solar energy cells and modules. ATS employs approximately 3,500 people at 26 facilities in Canada, the United States, Europe and Asia-Pacific.
The Company's shares are traded on The Toronto Stock Exchange underthe 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's products, technologies, customer requirements and other risks detailed from time to time in ATS's periodic reports filed with Canadian regulatory authorities.
