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1st QUARTER RESULTS
TORONTO - May 13, 2005
Automodular Corporation (“Automodular”) reports net earnings of $0.5 million or $0.03 per share for the three months ended March 31, 2005 compared to $1.1 million or $0.06 per share in the same period in 2004. The current quarter includes an after-tax gain of approximately $0.9 million on the sale of surplus real estate located in Whitby. The sale closed April 29, 2005. Excluding this item, the Company would have recorded a loss of $0.4 million largely as a result of lower production levels at the plants the Company supplies.
The first quarter results are summarized below:
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2005 |
2004 |
| Sales |
$19,306 |
$28,648 |
| Net Earnings |
$523 |
$1,057 |
| Earnings Per Share |
$0.03 |
$0.06 |
| Shares Outstanding |
19,049 |
19,098 |
The automotive industry is extremely volatile at the present time. Continued higher inventory levels of unsold vehicles may result in further downtime which has a negative impact on the Company’s profitability.
Automodular expects to see some improvement in earnings as the year continues and expects the year as a whole to be marginally profitable.
Recently announced business awards will require the Company to invest approximately $20 million in capital and pre-production expenses. Discussions are underway with several financing institutions to raise the required funds.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to plants in Ontario, Michigan and Ohio. The company has several operating facilities and employs over 800 people. | 
