AQM Announces Record Sales Growth for 1998
17 December 1998
AQM Announces Record Sales Growth for 1998
WOODBRIDGE, ON--Dec. 17, 1998-- AQM Automotive Corporation today announced that sales for the year ended November 30th, 1998 increased by 23.1% over 1997 to $12,615,067. The Company believes that this increase is an affirmation of its marketing strategy during a period of intense competition, and anticipates that sales growth will continue to be strong in 1999. Furthermore, the Company reports that profits for 1998 will approximate 3 cents per share, an increase of over 400%.
Other recent events include the disposal of the remainder of the Company's fuel filter manufacturing assets. These assets were sold to an existing major supplier, with whom the Company has recently established a joint venture to sell automotive filter products to markets outside of North America. Sales from this joint venture are expected to add significant volumes to the Company's consolidated sales commencing in the last half of 1999.
The Company wishes to further announce that the US Treasury Department has re-activated its case with G.K. Industries Ltd., the Company's main operating subsidiary. It is seeking compensation for processing anomalies that allegedly occurred between 1989 and 1992. Shareholders are reminded that in anticipation of this event, the Company has maintained an accrued liability of $US 75,000 in its accounts since 1994. It is believed by management that settlement of this issue is likely to occur in the first 6 months of 1999. The amount of settlement is unknown today. As has been stated in the notes accompanying the Company's financial statements, all amounts resulting from this settlement will not affect reported net income.
Finally, the Company wishes to announce the resignation of James S. Shekarchi, Vice-President and Director. Mr. Shekarchi has accepted a senior executive appointment with a company that does not compete with AQM. We thank him for his past contributions and wish him well.
AQM Automotive Corporation, through its wholly owned subsidiaries packages and distributes automotive fuel filters, breather elements and automatic transmission filter kits exclusively to the automotive aftermarket. Its clients include some of the largest automotive parts distributors and retailers in Canada, the USA and Latin America.