Productivity Technologies Corporation Announces Product Launch
23 December 1999
Productivity Technologies Corporation Announces Product Launch
Atlas Introduces Standard FLEX Transfer Press Cells
ANN ARBOR, Mich., Dec. 22 -- Productivity Technologies
Corporation announced today that its operating subsidiary Atlas
Technologies, Inc. has launched a new series of standard FLEX Transfer Press
Cells for medium-size sheet metal stamping applications.
Atlas has targeted the FLEX Transfer Press Cell for tier one automotive
suppliers and appliance manufacturers to address their needs for highly
automated, flexible and integrated production systems provided by a single
source. Atlas combines its extensive handling automation and controls
integration product lines into modular turnkey cells utilizing a select group
of stamping press and coil feed suppliers which provide customers with their
choice of pre-engineered sizes and brands.
"Our experience as a system integrator and the use of standardized designs
are expected to positively impact future earnings," says Michael D. Austin,
Atlas President and CEO. "While revenue has been sluggish in the first half
of the year we expect an improvement in revenue and earnings in the latter
half."
"While capital spending by the auto makers has been flat for the last few
years, a number of other industry-wide trends have captured our attention,
primarily the shift from tandem to transfer press lines and the increased
demand for turnkey systems," continued Austin. "During the 1970s and the
1980s, most purchases were tandem press lines. Today that has completely
shifted in the opposite direction, with 90 percent of new capital equipment
expenditures heavily favoring the transfer press. U.S. automotive transfer
press applications have grown from about 80 units in the 1990-1995 period to
over 160 presses during the 1995-2000 period, while also changing towards
purchasing new presses as opposed to upgrading older presses. We believe the
Atlas FLEX Transfer Press Cell product line meets this increasing demand head-
on. The use of standard products, and the introduction of the FLEX Transfer
Press Cell are together expected to improve order bookings during the second
half of the 2000 fiscal year, allowing us to finish the 2000 year with
earnings at least equal to last year, and fostering growth in 2001."
Atlas, headquartered in Fenton, Michigan is an ISO 9001 registered
producer of stamping press automated systems and equipment for the world's
automotive, appliance, and other manufacturers.
Cautionary Statement Under the Private Securities Litigation Reform Act of
1995: Statements of this Press Release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 that are based on the beliefs of the company and its management. Any
statements contained herein which are not historical facts or which contain
the words expect, believe, project, estimate, seek, anticipate, could, may,
and similar statements shall be deemed forward-looking statements. The
Company may be unable to realize its plans and objectives due to various
important factors. These factors include but are not limited to the potential
softening of the domestic and foreign markets for automobiles and automotive
parts resulting in reduced demand for the Company's automation equipment;
potential technological developments in the metal forming and handling
automation equipment markets which could render the Company's automation
equipment noncompetitive or obsolete; the potential failure of the Company's
older automation equipment to be Year 2000 compliant; and the potential
tightening of credit availability generally or under the Company's credit
facility, rendering the Company unable to access needed working capital.