Automodular Corporation

Automodular Corporation

March 24, 2011 13:05 ET

Automodular Corporation: 2010 Results

TORONTO, ONTARIO--(Marketwire - March 24, 2011) - Automodular Corporation ("Automodular")(TSX:AM) reports a net loss of $(0.7) million or $(0.03) per share for the year ended December 31, 2010 compared to net earnings of $2.7 million or $0.11 per share in 2009. The results reflect the close out costs of operations in Oshawa, Ontario and Lordstown, Ohio and the recognition of a charge in respect of the cumulative translation loss relating to US operations following the closure of Automodular's last remaining production facility in Ohio.

Automodular has filed a statement of claim for damages arising from breach of contract by GM. There can be no assurance that Automodular will be successful or will recover any amounts.

Automodular's consolidated financial statements, management discussion and analysis and annual information form for the year ended December 31, 2010 will be filed on SEDAR on or before March 31, 2011 and the complete annual report together with the management information circular and proxy will be mailed to shareholders on or about April 15, 2011.

Automodular enters the 2011 year with cash on hand of $10.3 million. With regards to the recent earthquake and tsunami in Japan, Automodular expects there may be supply chain disruptions that may affect operations but does not believe any disruption will be material.

Automodular continues to look for opportunities that would diversify its operations while still utilizing the skill set of its existing management team.

Automodular Corporation is a supplier of sub-assembly, sequencing, and transportation services to Ford's Oakville Assembly Plant in Ontario. The Company has two operating facilities and employs approximately 500 people.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Specific forward-looking statements in the document include those relating to the outcome of the claim filed for damages arising from breach of contract by GM, the impact of the earthquake and tsunami in Japan on the supply chain and Automodular's operations and Automodular's ongoing diversification review. 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 Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, 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. Automodular does not provide financial outlooks.

Contact Information

  • Automodular Corporation
    Christopher S. Nutt
    Vice President, Finance and CFO
    (905) 619-4202