ATS to take writedown on German asset sale
Fri Jun 9, 2006
ATS Automation Tooling Systems Inc. (ATA.TO: Quote, Profile, Research) said on Friday it would take a writedown of less than C$2 million ($1.8 million) on the sale of its Berlin coil winding subsidiary.
ATS, which makes automated manufacturing systems, solar power products and precision components, did not disclose the terms of the asset sale nor the name of what it said was a German-based buyer.
The Cambridge, Ontario-based company expects to take the noncash charge from the sale of the facility in the first quarter of fiscal 2007. In fiscal 2006, the coil winding subsidiary had revenues of C$8.9 million and an operating loss of about C$600,000, ATS said.
"This latest transaction reflects our continuing drive to sharpen our focus on those areas ... that we believe offer the greatest opportunities and rewards," ATS President and Chief Executive Ron Jutras said in a release.
ATS stock was down 19 Canadian cents, or 2.6 percent, at C$10.31 in early afternoon trade on the Toronto Stock Exchange. |
