NEWS

ATS Automation sales jump 44 per cent in fourth quarter

Friday, May 22, 2015

Fourth-quarter sales at ATS Automation Tooling Systems jumped 44 per cent due to revenue from its recently acquired German operations and higher order bookings.

The Cambridge-based manufacturer of factory automation systems recorded sales of $289.4 million in the fourth quarter ended March 31, up from $200.7 million in the same period a year earlier.

Revenue from Process Automation Solutions, a German company ATS acquired last August, accounted for $70.5 million of the gain.

Excluding revenue contributed by Process Automation, sales rose nine per cent, reflecting higher order bookings in the last three quarters of the fiscal year and the timing of work on some larger projects.

For the full fiscal year, ATS recorded revenue of $936.1 million, up from $683.4 million a year earlier. Again, revenue generated by acquired companies accounted for most of the gain.

"Fourth quarter performance was strong, with record order bookings, revenues and continued strong operating margins," chief executive officer Anthony Caputo said in a news release.

ATS reported net income from continuing operations of $13.9 million in the fourth quarter, up from $11.7 million in the same period a year earlier. Net income from continuing operations for the full fiscal year was $38.9 million, down from $49.4 million a year earlier.

The company reported earnings from operations of $22.6 million in the fourth quarter, up from $17.2 million a year earlier. Operating earnings for the full fiscal year were $67 million, up from $61 million in fiscal 2015.

ATS said it booked $317 million in orders in the fourth quarter, up from $197 million in the same period a year earlier. Process Automation contributed $70 million in bookings.

The company said strength in the transportation, life sciences and energy markets more than offset lower activity in the consumer products and electronics markets.

ATS said that as a result of a review of its operations following the acquisition of Process Automation, it is selling its Swiss-based automation operations to a third party. It said additional moves to "rebalance global capacity and improve the company's cost structure" are expected to be implemented in the first and second quarters of fiscal 2016.

ATS employs about 3,500 people at 26 plants and 47 offices in North America, Europe, Southeast Asia and China.

The company's shares rose $1.10 or 8.2 per cent on Thursday, closing at $14.50 on the Toronto Stock Exchange.

 

thespec.com

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