Automodular Corporation
TSX : AM

Automodular Corporation

May 12, 2006 09:36 ET

Automodular Corporation: First Quarter 2006 Earnings

TORONTO, ONTARIO--(CCNMatthews - May 12, 2006) - Automodular Corporation ("Automodular") (TSX:AM) reports net earnings of $0.6 million or $0.03 per share for the three months ended March 31, 2006 compared to a loss of $0.3 million or $0.02 per share in the same period in 2005. The comparative figures for the three month period ended March 31, 2005 have been restated to exclude the gain recorded on the sale of an excess facility. The facility gain will be recorded for comparative purposes as a second quarter 2005 transaction.

The improved operating results reflect a combination of reduced customer downtime and improved contract terms on key contracts.



The first quarter results are summarized below:

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2006 2005
(re-stated)
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Sales $17,890 $19,306
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Net earnings (loss) $577 ($340)
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Earnings (loss) per share $0.03 ($0.02)
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Shares outstanding 22,049 19,049
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Automodular continues to be impacted by industry and program risk and may experience further downtime in its operations as OEMs seek to balance inventory levels. Overall, the Company anticipates profitable operations for the balance of 2006 and improved results in 2007 as its new Oakville operation enters its first full year of production.

Automodular is a supplier of sub-assembly, sequencing, transportation and logistics services to six OEM plants in Ontario, Michigan and Ohio. The Company has eight operating facilities and employs over 800 people.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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