- Renews Contract with Ford in North America through 2012
- Announces Sale of U.K.-based Drivetrain Business
DOWNERS GROVE, Ill., May 10, 2010 (GLOBE NEWSWIRE) -- ATC Technology Corporation (ATC) (Nasdaq:ATAC) today announced that it has renewed its contract with Ford in North America through 2012. No other contract terms were disclosed. In an unrelated development, the Company announced the sale of its U.K.-based Drivetrain business to two senior members of the local management team.
In commenting on the developments, Todd R. Peters, President and CEO, said, "We are pleased to report the renewal of our contract with Ford in North America for the remanufacturing of transmissions. Ford has been our valued customer since 1989 and we look forward to continuing our partnership.
"We have sold our U.K.-based Drivetrain business to the local management team. We believe that the sale of the business was the right decision for our customers in Europe, our U.K.-based employees and our shareholders. The U.K.-based Drivetrain business contributed $11.9 million of revenue in 2009 with a corresponding loss from continuing operations of $2.3 million. The sale price was less than the net book value of the assets of the business. As a result, we will record a loss of approximately $5.5 million net of tax, or $0.28 per diluted share. The U.K.-based Drivetrain operations, including the loss on disposition, will be reflected in discontinued operations beginning with the second quarter of 2010."
ATC Technology Corporation is headquartered in Downers Grove, Illinois. The Company provides comprehensive engineered solutions for logistics and refurbishment services to the consumer electronics industries and the light-, medium- and heavy-duty vehicle service parts markets.
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Certain statements in this news release are "forward-looking statements" (as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). These forward-looking statements generally include all statements other than statements of historical fact, including statements that are predictive, that depend upon or refer to future events or conditions, or that include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," "hopes," and similar expressions. In addition, any statements concerning future financial performance or position (including future revenues, expenses, earnings, growth rates or margins), ongoing business strategies, budgets or prospects, and possible future actions are also forward-looking statements. The forward-looking statements contained in this news release are based on information available to our management as of the date of this news release, and reflect management's judgments, beliefs and assumptions as of the date of this news release with respect to future events, the outcome of which is subject to risks and uncertainties that could have a significant impact on our business, operating results or financial condition in the future. Should one or more of these risks or uncertainties materialize, or should underlying information, judgments, beliefs or assumptions prove incorrect, actual results or outcomes could differ materially from those expressed or implied by the forward-looking statements in this news release. Some of these risks and uncertainties are described in our periodic filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update the forward-looking statements contained in this news release.