ATS provides update on solar separation process
October 24 2011 - 6:00AM
PR Newswire (Canada)
CAMBRIDGE, ON, Oct. 24, 2011 /CNW/ - ATS Automation Tooling Systems
Inc. ("ATS" or the "Company") today provided the following updates
on its previously announced dual-track process involving a spinoff
of the Company's combined solar businesses or a sale of Photowatt
France ("PWF") and/or Photowatt Ontario ("PWO"): -- Detailed
discussions with parties in regards to a sale of PWF have recently
concluded without producing an acceptable transaction. -- The state
of economic conditions in Europe and further deterioration in the
demand for solar products in France, and the rest of Europe, are
negatively impacting PWF and have prompted the Company to
re-examine the viability of the spinoff alternative. -- Given these
developments and the significant reduction in off-balance sheet
obligations at PWF (as previously announced), ATS is reconsidering
a broader set of strategic options for both PWF and PWO. ATS
remains committed to the separation of its solar business and
expects a modest delay to the previously announced timeline.
The Company still expects to complete the separation without
materially impacting growth plans for its core automation business.
About ATS ATS Automation provides innovative, custom designed,
built and installed manufacturing solutions to many of the world's
most successful companies. Founded in 1978, ATS uses its
industry-leading knowledge and global capabilities to serve the
sophisticated automation systems' needs of multinational customers
in industries such as life sciences, computer/electronics, energy,
transportation and consumer products. It also leverages its many
years of experience and skills to fulfill the specialized
automation product manufacturing requirements of customers. Through
Photowatt, ATS participates in the solar energy industry. ATS
employs approximately 2,900 people at 21 manufacturing facilities
in Canada, the United States, Europe, Southeast Asia and China. The
Company's shares are traded on the Toronto Stock Exchange under the
symbol ATA. Visit the Company's website at www.atsautomation.com.
Notes to Readers: Forward-Looking Statements This news release
contains certain statements that constitute forward-looking
information within the meaning of applicable securities laws
("forward-looking statements"). Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of ATS, or developments in ATS's business or in its
industry, to differ materially from the anticipated results,
performance, achievements or developments expressed or implied by
such forward-looking statements. Forward-looking statements
include all disclosure regarding possible events, conditions or
results of operations that is based on assumptions about future
economic conditions and courses of action. Forward-looking
statements may also include, without limitation, any statement
relating to future events, conditions or circumstances. ATS
cautions you not to place undue reliance upon any such
forward-looking statements, which speak only as of the date they
are made. Forward-looking statements relate to, among other
things: re-examination of the viability of the spinoff alternative;
reconsideration of a broader set of strategic options; commitment
to, and timing of, the separation process; and expectation to
complete the separation without materially impacting growth plans
for its core automation business. The risks and uncertainties
that may affect forward-looking statements include, among others:
general market performance including capital market conditions and
availability and cost of credit; economic market conditions;
foreign currency and exchange risk; the relative strength of the
Canadian dollar; performance of the market sectors that ATS serves;
impact of factors such as increased pricing pressure and possible
margin compression; impact of the global economy, conditions in the
solar and capital markets, Photowatt performance, the regulatory
and tax environment, availability of credit facilities, and
unexpected delays and issues, on the timing, form and structure of
separation, and the capitalization requirements of Photowatt; that
other capitalization alternatives are not available in a spinoff
scenario; inability to successfully expand organically or through
acquisition, due to an inability to grow expertise, personnel,
and/or facilities at required rates or to identify, negotiate and
conclude one or more acquisitions; the availability and possible
reduction or elimination of government subsidies and incentives for
solar products in various jurisdictions, including France and
Ontario; ability of ATS and its solar joint venture to acquire the
needed expertise and financing necessary to effectively develop
Ontario solar projects; the financial attractiveness of, and demand
for, those solar projects; the success of developers with whom ATS
has signed agreements in obtaining FIT contracts and ultimately
developing the projects; the potential for the ramp up to full
production of the PWO 100 MW module line will be hindered or
delayed due to an inability to procure necessary permits,
approvals, materials, equipment, and staff on a timely basis;
ability to obtain necessary government and other certifications and
approvals for solar projects in a timely fashion; that one or more
of the customer agreements signed by PWO is terminated or impaired
as a result of a cancellation or material change in the FIT program
in Ontario and as a result contemplated minimum amounts to be
supplied are not supplied with resulting impacts on revenue and
profitability; that PWF's market strategy is unsuccessful in
differentiating it and penetrating the markets it is targeting;
that PWF's restructuring plan is not fully achieved and/or does not
generate the desired results; that unexpected problems arise with
the new module assembly outsourcing arrangements; that one or more
customers, or other persons with which the Company has contracted,
experience insolvency or bankruptcy with resulting costs or losses
to the Company; political, labour or other disruptions, impacting
the supply of goods or services to PWF and/or PWO; the success of
competitors with greater capital and resources in exploiting their
technology; risks relating to legal proceedings to which ATS is or
may becomes a party; exposure to product liability claims of
Photowatt; and other risks detailed from time to time in ATS's
filings with Canadian provincial securities
regulators. Forward-looking statements are based on
management's current plans, estimates, projections, beliefs and
opinions, and other than as required by applicable securities laws,
ATS does not undertake any obligation to update forward-looking
statements should assumptions related to these plans, estimates,
projections, beliefs and opinions change. ATS Automation Tooling
Systems Inc. CONTACT: Maria Perrella, Chief Financial OfficerCarl
Galloway, Vice-President, Treasurer519 653-6500
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