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2nd QUARTER RESULTS
TORONTO - August 5, 2004
Automodular Corporation ("Automodular") reports net earnings of $1.8 million or $0.09 per share for the six months ended June 30, 2004 compared to $3.3 million or $0.17 per share in the same period in 2003. Last year's results included only five months of sales of Tec-Mar Distribution Services, Inc., acquired January 31, 2003.
Net earnings for the quarter ended June 30, 2004 were $0.7 million or $0.04 per share compared to $2.3 million or $0.12 per share in the same period in 2003. The current period results include an after-tax charge of $1.1 million to record close out costs for three contracts that have ended in Canada and the United States. These contracts include commodities being sub-assembled or sequenced for the Oshawa car plants, the Delaware Saturn assembly plant and the Lansing car assembly plant in Michigan.
The first half results are summarized below:
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2004
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2003
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| Sales |
$55,437
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$54,603
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| Net Earning |
$1,773
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$3,251
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| Earnings per share |
$0.09
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$0.17
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| Fully diluted shares outstanding |
19,088
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18,978
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The outlook for the second half of the year is uncertain. While Automodular expects to be modestly profitable, results will be affected by the start up costs of the two new facilities being built in Oshawa and Lordstown, Ohio, the outcome of the negotiations of the first labour contract with the CAW and sales and production levels of the vehicles for which Automodular supplies components.
Given the uncertainty in the second half of the year as well as the continued high volume of bidding activity, the directors have decided to continue to defer dividends.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to seven General Motors plants in Ontario, Michigan and Delaware. The company has eight plants and employs over 1,000 people.
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