TSE:AM HUGE NEWS OUT..Automodular Extended contract with FORD
AJAX, ONTARIO, Jun 27, 2011 (MARKETWIRE via COMTEX) -- Automodular Corporation ("Automodular") CA:AM +2.89% announces that it has signed a multi-year agreement ("MYA") with Ford Motor Company ("Ford") for an extension of services at its Oakville operations. Automodular sub-assembles, sequences and delivers engines, suspension and instrument panel modules for the Ford Edge, Ford Flex, Lincoln MKX and Lincoln MKT being produced in Ford's flexible assembly complex in Oakville, Ontario. This MYA will end in June, 2014.
The MYA provides for certain price reductions over the course of the agreement some of which are retroactive to January 1, 2011. The impact on previously reported first quarter 2011 financial results is a reduction in revenues and pre-tax earnings of $0.6 million and a reduction in net earnings of $0.4 million.
Automodular is a supplier of sub-assembly, sequencing and transportation services to Ford's Oakville Assembly Plant. The Company has two operating facilities and employs approximately 500 people.
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