Automation systems results published

ATS Automation Tooling Systems has reported its financial results for the three months ended March 31, 2006.

ATS Automation Tooling Systems has reported its financial results for the three months ended March 31, 2006.

Highlights - Consolidated revenue from continuing operations increased 18% over the third quarter of fiscal 2006 to a record $210.8 million.

- Automation Systems Group operating earnings increased to $3.6 million, compared to an operating loss of $0.8 million in the third quarter on a 19% increase in revenue compared to the third quarter.

- Photowatt International operating earnings increased 22% to $6.2 million, compared to the third quarter of fiscal 2006, on a 14% increase in revenue.

- PCG operating earnings were $0.1 million compared to a loss of $0.5 million in the third quarter, on an 18% sequential increase in revenue.

- Changes in effective foreign exchange rates reduced consolidated revenue and consolidated operating earnings for the quarter ended March 31, 2006 compared to the same period of fiscal 2005 by an estimated $17.3 million and $6.2 million respectively.

- ATS remains committed to SSP, however delayed commercialization of SSP has resulted in a non-cash accounting provision of $65 million after-tax ($1.10 per share) against the SSP assets.

Management Commentary "ATS continues to take decisive measures to combat the soaring value of the Canadian dollar and difficult automotive market conditions and to improve our operating processes," said ATS President and CEO Ron Jutras.

"While I am not satisfied with our financial performance, I am pleased with the substantial progress we've made internally this year and since the third quarter to strengthen our approach, remove costs, streamline operations, and gain greater leverage from our global name, assets, capabilities and purchasing power.

"Our progress to date is reflected in the sequential improvement in Automation Systems Group operating earnings from the third quarter and recent performance gains made in our Asian and Western USA ASG operations.

PCG has also staged a major turnaround in spite of the substantial negative impact of currency.

It is now winning attractive new business and is focusing on achieving greater synergy with our strategies and business model.

Our ASG Munich operation returned to profitability and Photowatt International delivered strong results this year.".

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