May 19 2005
ATS Automation Tooling Systems Inc. has announced it has entered into discussions with prospective buyers regarding the sale of its precision metals business, a division within its Precision Components Group (PCG).
In announcing the initiative, Ron Jutras, ATS President and Chief Executive Officer said: "In reviewing our precision components business we concluded that the precision metals division would be better served under a new owner that can bring greater synergy and focus to the business. The precision metals division has had a number of challenging years and the level of interdivisional activity with other ATS divisions has declined substantially due to changes in the buying practices of the customers served by PCG. We believe this business, and its employees, will have the opportunity for a brighter future under new ownership."
ATS expects to record a non-cash charge in the fourth quarter of its fiscal year ended March 31, 2005 to reduce the book value of the precision metals business to its estimated net realizable value. ATS intends to release its financial results for the fourth quarter of fiscal 2005 on May 26, 2005. The precision metals division employs approximately 230 people at a manufacturing facility in Kitchener, Ontario.
"I believe this planned sale, along with other recent improvement initiatives, will help the Precision Components Group significantly improve its future performance," added Mr. Jutras.
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