ATS Automation Tooling Systems Inc. reported its financial results for the first quarter of fiscal 2007 (three months ended June 30, 2006).
Consolidated earnings from operations were $5.6 million on revenue from continuing operations of $190.9 million, compared to a loss from operations of $1.3 million on revenue of $210.8 million in the fourth quarter of fiscal 2006. Changes in effective foreign exchange rates reduced consolidated revenue and consolidated operating earnings for the quarter ended June 30, 2006 compared to the same period of fiscal 2006 by an estimated $19.4 million and $5.9 million respectively. Automation Systems Group operating margins were 2% in the first quarter of fiscal 2007 compared to 3% in the fourth quarter of fiscal 2006. Operating earnings were $2.8 million on sales of $121.8 million in the first quarter. Photowatt International achieved record operating earnings in the first quarter of $10.0 million – up 51% and 61% from the first and fourth quarter of fiscal 2006, respectively. Revenues were 3% and 11% higher compared to the first and fourth quarter of fiscal 2006, respectively. Excluding the effect of foreign exchange, revenue and operating earnings increased 15% and 69%, respectively, compared to the first quarter of the prior year. Photowatt Canada's operating loss, decreased to $4.4 million in the first quarter from $7.6 million in the fourth quarter of fiscal 2006 reflecting the new focus announced in May. PCG operating earnings were $0.9 million, a significant improvement from the $0.1 million in the fourth quarter of fiscal 2006 and the $1.0 million operating loss in the first quarter of fiscal 2006.
"ATS made substantial headway in advancing our solar business and executing our strategic initiatives in the first quarter," said Ron Jutras, President and CEO. "To date, these initiatives are responsible for the record performance at Photowatt International, substantial turnaround within our Precision Components Group, and strong performance gains within our US West Coast and certain other ASG operations. While tangible progress is being made, we have not yet fully realized the substantial benefits we expect to see over time from our broad-based improvement strategies. In particular, more progress is needed at our flagship ASG facility in Cambridge to effectively offset foreign currency pressures and the impact of a challenging North American automotive market."
