Automodular Corporation
TSX : AM

Automodular Corporation

March 06, 2008 15:17 ET

Automodular Corporation 2007 Results

TORONTO, ONTARIO--(Marketwire - March 6, 2008) - Automodular Corporation ("Automodular") (TSX:AM) reports 2007 net earnings of $7.5 million or $0.33 per share on sales of $99.6 million compared to net earnings of $1.5 million or $0.07 per share on sales of $57.9 million in 2006.

Automodular's consolidated financial statements, management discussion and analysis and annual information form for the year ended December 31, 2007 will be filed on SEDAR on or before March 30, 2008 and the complete annual report together with the management information circular and proxy will be mailed to shareholders on or about April 11, 2008.

In 2007, Automodular benefited from its prior year investments in both its Oakville and Oshawa truck operations with both vehicles realizing full production levels at the start of the year.

At the beginning of 2008, Automodular added a second Oakville facility to accommodate a new vehicle - the Ford Flex - which is scheduled to start commercial production in the second quarter of the year. Automodular's Oshawa facility has commenced work on its new program to support the new Camaro vehicle with start of production scheduled for the first quarter of 2009. At the same time, certain of Automodular's contracts to sub-assemble and sequence components for General Motors of Canada Limited's Oshawa Truck and Oshawa Car plants will end in June, 2008 and not be renewed. Accordingly, Automodular expects to close one of its Oshawa-area facilities in mid-2008. These operations reported revenues totaling $35 million in 2007 and employ approximately 275 people. As a result, Automodular expects 2008 results from ongoing operations to be comparable to 2007 with an improvement expected in 2009.

Automodular Corporation is a supplier of sub-assembly, sequencing, and transportation services to four OEM plants in Ontario 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 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.

Contact Information

  • Automodular Corporation
    Christopher S. Nutt
    Vice President, Finance and CFO
    (416) 861-0662 x 223
    Email: c.nutt@automodular.com