Automodular Corporation

Automodular Corporation

April 02, 2007 13:51 ET

Automodular Corporation: 2006 Results

TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) - Automodular Corporation ("Automodular")(TSX:AM) reports 2006 net earnings of $1.5 million or $0.07 per share on sales of $57.9 million compared to net earnings of $11.0 million or $0.54 per share on sales of $79.2 million in 2005. The prior year included a gain on a legal settlement of $10.1 million on an after-tax basis.

Automodular's consolidated financial statements, management discussion and analysis and annual information form for the year ended December 31, 2006 will be filed on SEDAR today and the complete annual report together with the management information circular will be mailed to shareholders on or about April 13, 2007.

2007 should be a strong year for Automodular as it reaps the benefits of investments it has made in Oshawa and Oakville. The automotive industry is volatile and Automodular does not make public forecasts or projections, since they would be inherently unreliable. However, given the magnitude of the expected improvements in 2007, Automodular's board has decided to release the budget targets it has given management for the year but has made no determination whether this information will be released on a regular basis.

For 2007, Automodular has budgeted sales of $100 million and net income of $6 million. A new incentive compensation system, designed in 2006, ties senior management compensation to the achievement of this level of profitability. While actual financial results may vary, management believes these targets are achievable and reasonable, and has committed to be measured and compensated against their achievement.

Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to six OEM plants in Ontario, Michigan and Ohio. The Company has six operating facilities and employs over 900 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 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.

Contact Information

  • Automodular Corporation
    Christopher S. Nutt
    Vice President, Finance and CFO
    (416) 861-0662 x 223