Aftermarket Technology CEO expects new business win
Aftermarket Technology Corp. (Nasdaq: ATAC) CEO Don Johnson said during a midday conference call that the provider of outsourced engineering solutions expects additional business contracts during the remainder of the year.
Before the opening, Aftermarket Technology raised its fiscal 2007 earnings guidance to a range of $1.75 to $1.80 per share, from a previous range of $1.55 to $1.70 per share. The new guidance is the second time the company has raised earnings projections this year.
CFO Todd Peters said drivers of the raised guidance include the successful launch and ramp-up of new business wins, meeting target cost levels for product and market developments and continued strong order volume in the firm’s logistics segment.
Johnson said the raised guidance shows a positive business direction.
“This improvement is evidence that our efforts to drive growth, revenue and earnings by executing on the fundamentals and by balancing our short and long-term investments continue to pay off for the company,” Johnson said.
Aftermarket Technology’s logistics segment has opportunities that exceed $146 million in high tech, broadband, automotive and wireless segments, Johnson said. The firm’s logistics business has $57 million in annual new business signed, he said, and most of the business is in the high tech market.
For the company’s vehicle remanufacturing segment, dubbed Drivetrain, Johnson said growth opportunities exceed $158 million. The company has $1 million in annual new business signed, he said.
He also said Aftermarket and Honda Motor Co. (NYSE: HMC) agreed on a customer payment program during the third quarter.
“We have come to an agreement to ramp up the program over the next few quarters,” the chief executive said.
In midday trading, ATAC shares are up 9.35%, or $2.88, at $33.67. Over the last 52 weeks, shares have ranged from $17.51 to $34.66.
