CAMBRIDGE, Ont. – ATS Automation Tooling Systems Inc. (TSX:ATA) booked a loss in its fourth quarter of 2011, saying it suffered from poor performance at its Photowatt solar energy division.
The southwestern Ontario-based maker of machinery and equipment for industrial and automotive markets reported a net loss of $15.7 million or 18 cents per share for the quarter ended March 31, compared to a profit of $2.1 million or three cents per share a year earlier.
Revenues went up to $198.9 million compared to $138.8 million a year ago.
The company said its Photowatt division reported a loss from operations of $31.3 million compared to a loss of $42.4 million a year ago.
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ATS said Photowatt’s loss reflected low volumes due to difficult market conditions in the global solar industry, particularly in France where a government-imposed moratorium on certain new solar installations caused a reduction in demand and average selling prices in the fourth quarter.
It also said the loss reflected increasing operating costs due to work stoppages and slowdown due to restructuring at Photowatt.
A number of charges related to restructuring the division were also incurred during the quarter.
The company’s board has approved a plan to separate Photowatt from the company as a spinoff and it is simultaneously also trying to sell Photowatt France.
“Losses at Photowatt negatively impacted consolidated results,” said CEO Anthony Caputo, Chief Executive Officer.
“We are moving ahead with our separation plans via a spinoff of our Photowatt businesses, which we are targeting to complete before the end of the calendar year, unless an acceptable sale arrangement of Photowatt France is identified first.”
ATS Automation provides technology and equipment used by companies in industries such as life sciences, computer/electronics, energy, automotive and consumer products.
The company employs about 3,000 people at 21 manufacturing plants in Canada, the United States, Europe, Southeast Asia and China.
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