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ATS Automation Tooling Systems reports $13.1M fourth-quarter profit

CAMBRIDGE, Ont. — ATS Automation Tooling Systems Inc. says it is focused on its costs and the preservation of liquidity as it works to deal with disruptions caused by the pandemic.

The maker of automation systems says it has cut discretionary spending, deferred of some capital investments, and in some locations temporarily laid off workers and reduced hours.

ATS made the comments as it reported a fourth-quarter profit of $13.1 million or 14 cents per diluted share, down from a profit of $18.2 million or 20 cents per share a year ago.

Revenue for the quarter ended March 31 totalled $382.1 million, up from $348.6 million in the same quarter last year.

On an adjusted basis, ATS says it earned 26 cents per share, the same as a year ago.

Analysts on average had expected an adjusted profit of 18 cents per share, according to financial markets data firm Refinitiv.

ATS chief executive Andrew Hider said the pandemic is expected to put pressure on the company's revenue and operating margins.

"We have a strong business with good order backlog, a healthy balance sheet and valued customer relationships with world-leading organizations many of whom themselves are essential service providers," Hider said in a statement.

"Over the long-term, when we do move beyond this crisis, our business is uniquely positioned to provide value to our customers as they innovate, drive efficiency and examine the need for supply chain refinements within their operations."

ATS has 22 factories and more than 50 offices in North America, Europe, Southeast Asia and China.

The company's shares lost 76 cents or 3.4 per cent at $21.48 in midday trading on the Toronto Stock Exchange.

This report by The Canadian Press was first published May 27, 2020.

Companies in this story: (TSX:ATA)

The Canadian Press

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