Automodular Corporation

Automodular Corporation

November 12, 2008 13:41 ET

Automodular Corporation: Third Quarter 2008 Results

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2008) - Automodular Corporation ("Automodular" or "the Company") (TSX:AM) reports net earnings of $3.0 million or $0.12 per share for the nine months ended September 30, 2008 compared to $5.2 million or $0.24 per share in the same period in 2007. Net earnings for the quarter ended September 30, 2008 were $1.3 million or $0.05 per share compared to $1.5 million or $0.07 per share in the same period in 2007.

The major contributor to lower sales and profits was unscheduled downtime at customer assembly plants, and a change in Q1 2008 from 3-shift to a 2-shift production by the Oshawa Truck Assembly plant of General Motors. Low demand for cars and trucks is likely to persist for several quarters, and result in further downtime across Automodular's operations. Automodular expects this trend to continue over the next few quarters and accordingly cannot reasonably predict sales or profits for its operations in the near term.

The current quarter includes a $0.5 million charge related to costs incurred as a result of the reduction from 2 shifts to 1 shift of the Company's Oshawa truck operations in September.

The nine month results are summarized below (all figures in '000s except per share):

Three months ended Nine months ended
Sept. 30 Sept. 30
2008 2007 2008 2007

Sales $ 20,691 $ 21,941 $ 66,514 $ 76,712

Net earnings $ 1,295 $ 1,546 $ 2,979 $ 5,245

Earnings per share(i) $ 0.05 $ 0.07 $ 0.12 $ 0.24

Shares outstanding(i) 25,570 21,939 25,690 22,013
(i)(basic and fully diluted)

Automodular is in the process of installing capital equipment and is actively engaged in the pre-production process for the new Chevrolet Camaro in Oshawa and the new Lincoln MKT in Oakville with commercial production scheduled for 2009. These new vehicles, if well received by customers, should contribute to improved sales and profits for 2009 and beyond.

The Directors have declared a dividend of $0.03 per share payable December 30, 2008, to shareholders of record December 16, 2008.

Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to four Original Equipment Manufacturer plants in Ontario and Ohio. The Company has six operating facilities and employs approximately 650 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