DOWNERS GROVE, Ill. — ATC Technology Corp. (ATC) announced today that it has renewed its contract with Ford in North America through 2012.
In an unrelated development, the company also 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 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 28 cents 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."
The contract renewal from Ford is welcome business for ATC, which last year underwent restructuring actions to reduce operating costs in the drivetrain business, following the loss of its transmission remanufacturing program with Honda.
