Automodular Corporation

Automodular Corporation

May 08, 2008 11:54 ET

Automodular Corporation: First Quarter 2008 Earnings

TORONTO, ONTARIO--(Marketwire - May 8, 2008) - Automodular Corporation ("Automodular") (TSX:AM) reports net earnings of $0.7 million or $0.03 per share for the three months ended March 31, 2008 compared to earnings of $1.5 million or $0.07 per share in the same period in 2007. While first quarter 2008 results were lower than those in the same quarter in 2007, they are ahead of our expectations. The year over year decline was expected and is attributable to our Oshawa-area operations. Oshawa truck operations were negatively impacted by the reduction from three shifts to two combined with the effect of an ongoing GM supplier strike which shut down operations for the month of March. Earnings from Automodular's Oshawa car operations were impacted by the elimination of certain programs.

The first quarter results are summarized below
(all numbers in '000 except earnings per share):

2008 2007
Sales $20,810 $27,721
Net earnings $671 $1,477
Earnings per share $0.03 $0.07
Shares outstanding 25,949 22,049

Automodular expects 2008 results to improve as the Ford Flex vehicle in Oakville reaches full production levels and the third shift of production is added as scheduled in the third quarter of this year. On balance, Automodular expects 2008 results from ongoing operations to be comparable to 2007 with an improvement expected in 2009.

Automodular is a supplier of sub-assembly, sequencing, transportation and logistics services to four OEM plants in Ontario and Ohio. The Company has seven operating facilities and employs approximately 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 Nutt
    Vice President, Finance
    (416) 861-0662 x 223