CAMBRIDGE, ON, Sept. 8, 2020
/CNW/ - ATS Automation Tooling Systems Inc. (TSX: ATA) ("ATS"
or the "Company"), an industry-leading automation solutions
provider, today announced a reorganization plan to help mitigate
the expected impact of a downturn in its transportation markets
brought on by the COVID-19 pandemic.
The reorganization plan is expected to be completed by the end
of the fiscal year and includes the closure of facilities along
with workforce reductions primarily in Europe and Asia. Management expects to incur total
restructuring costs of approximately $24
million. Costs will be incurred during the second and third
quarters of the current fiscal year. Certain of the Company's
foreign operations will engage in normal-course consultation and
notice processes with local employee representative bodies
regarding the implementation of the reorganization plan at the
relevant foreign operations.
"This action is necessary to align the capacity and cost
structure of our business to current and expected conditions in the
transportation market," said Andrew
Hider, Chief Executive Officer. "By implementing the plan
now, we will help to mitigate against future margin erosion and
emerge to serve transportation customer opportunities that are
aligned with our technologies, capabilities and objectives for
value creation."
ATS serves customers in four vertical markets: life sciences
(55% of trailing twelve-month revenues for the period ending
June 28, 2020), transportation (26%
of revenues), consumer (12% of revenues) and energy (7% of
revenues).
About ATS
ATS is an industry-leading automation solutions provider to many
of the world's most successful companies. ATS uses its extensive
knowledge base and global capabilities in custom automation, repeat
automation, automation products and value-added services, including
pre-automation and aftersales services, to address the
sophisticated manufacturing automation systems and service needs of
multinational customers in markets such as life sciences,
chemicals, consumer products, electronics, food, beverage,
transportation, energy, and oil and gas. Founded in 1978, ATS
employs approximately 4,400 people at 22 manufacturing facilities
and over 50 offices in North
America, 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.
Note 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'
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 are 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. Forward-looking statements relate to, among other
things, the expected impact of a downturn in the Company's
transportation markets, expected timing of completion of the
reorganization plan, and the expected cost thereof. The risks and
uncertainties that may affect forward-looking statements include,
among others: the progression of COVID-19 and its impacts on the
Company's ability to operate its assets, including the possible
shut-down of facilities due to COVID-19 outbreaks; the severity and
duration of the COVID-19 pandemic in all jurisdictions where the
Company conducts its business; the nature and extent of government
imposed restrictions on travel and business activities and the
nature, extent, and applicability of government assistance
programs, in both cases related to the COVID-19 pandemic, as
applicable in all jurisdictions where the Company conducts its
business; the impact of the COVID-19 pandemic on the Company's
employees, customers, and suppliers; the impact of the global
economy and general market performance; performance of the
transportation market; that the reorganization plan is not
implemented as anticipated, takes longer than anticipated, and/or
does not achieve the anticipated benefits, resulting in delays,
increased costs, and/or lower than expected improvements to
operating performance; management effectiveness and disaster
response preparedness, including business continuity plans in
response to COVID-19; that one or more customers, or other entities
with which the Company has contracted, experience insolvency or
bankruptcy with resulting delays, costs or losses to the Company;
political, labour or supplier disruptions; risks relating to legal
proceedings to which ATS is or may become a party; exposure to
product and/or professional liability claims; and other risks
detailed from time to time in ATS' filings with Canadian provincial
securities regulators. There can be no assurance that
forward-looking statements or information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
you should not place undue reliance on the forward-looking
statements or information contained herein which speak only as of
the date they are made. 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.
SOURCE ATS Automation Tooling Systems Inc.