Second Quarter 2008 Results
Toronto - August 7, 2008
Automodular Corporation ("Automodular" or "the Company") reports net earnings of $1.7 million or $0.07
per share for the six months ended June 30, 2008 compared to $3.7 million or $0.17 per share in the same
period in 2007. Net earnings for the quarter ended June 30, 2008 were $1.0 million or $0.04 per share
compared to $2.2 million or $0.10 per share in the same period in 2007.
Operating earnings are lower in the current year primarily as a result of downsizing in our Oshawa
operations. Oshawa truck operations were negatively impacted by the reduction from a 3-shift to a 2-shift
operation effective January, 2008 and by a strike at one of our customer's suppliers which resulted in
production down-time of seven weeks for two of our Oshawa-area facilities. In our Oshawa car operations,
the elimination of certain car platforms and consolidation of the two Oshawa car plants into one at the end of
2007 and subsequent slow rampup in the first quarter of 2008 further depressed earnings year over year.
The current quarter includes a $0.6 million charge related to costs incurred as a result of the closure of
certain Oshawa-area operations following the expiry of commercial contracts. The prior period included a
$0.6 million charge related to closeout costs incurred as a result of the closure of the Company's Lansing,
Michigan-based operations.
The first half results are summarized below (all figures in '000s except per share):
|
Three months ended June 30 |
Six months ended June 30 |
| |
2008
|
2007
|
2008
|
2007
|
| Sales |
$25,013 |
$27,050 |
$45,823 |
$54,771 |
| Net earnings |
$1,013 |
$2,222 |
$1,684 |
$3,699 |
| Earnings per share** |
$0.04 |
$0.10 |
$0.07 |
$0.17 |
| Shares outstanding* |
25,751 |
22,049 |
25,751 |
22,049 |
| *(basic and fully diluted) |
While earnings year over year are lower, they are ahead of management's expectations. On balance, the
Company is cautiously optimistic that earnings from operations for 2008 will approximate 2007 earnings.
Automodular's ability to meet these results depends substantially on production volumes which may be
impacted by the soft automotive market in the US.
The Directors have declared a dividend of $0.03 per share payable September 30, 2008, to shareholders of
record September 16, 2008. In addition, Automodular Corporation will be making an additional contribution
of $500,000 to its existing Performance Share Unit Plan for senior executives.
Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to
five Original Equipment Manufacturer plants in Ontario and Ohio. The Company has five operating
facilities and employs over 900 people.
For further information, contact:
Christopher Nutt
Vice President, Finance
Automodular Corporation
(416)861-0662 x 223
invest@automodular.com
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 www.sedar.com. 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.
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