Productivity Technologies Corporation Announces Management Changes And Further Cost Reduction Initiatives
7 December 2000
Productivity Technologies Corporation Announces Management Changes And Further Cost Reduction Initiatives
ANN ARBOR, Mich., Dec. 7 Productivity Technologies
Corporation announced today management changes and further cost
reduction initiatives at its operating subsidiary Atlas Technologies, Inc.
Effective immediately, Mr. James Kolinski, who serves currently as Vice
President, Operations, of PTC also becomes interim Chief Executive Officer
(CEO) of Atlas Technologies, Inc. Mr. Kolinski becomes immediately
responsible for all operating and strategic decisions at Atlas, and will
continue to report to Samuel N. Seidman, Chairman, President and CEO of PTC.
Mr. Kolinski replaces Mr. Mike Austin as Atlas CEO. Mr. Austin has been
appointed to the new position of Senior Vice President, Strategic Planning and
Marketing at PTC, and also remains as President of Atlas Technologies. Mr.
Austin will be performing operating due diligence in connection with PTC's
ongoing acquisition initiatives and also will assist Atlas in improving sales
activities and product planning.
PTC also continues cost reduction initiatives at Atlas. Atlas has
undertaken further personnel reductions and management estimates total
annualized cost reductions approximating $1.4 million obtained since these
cost reduction initiatives began in the fourth quarter of fiscal year 2000.
As PTC is already five months into the current fiscal year ending June 30,
2001, the expected savings impact this fiscal year approximates $950,000 prior
to severance and other related costs estimated at $150,000.
Headquartered in Fenton, Michigan, Atlas is an ISO 9001-registered
producer of automated stamping press systems, equipment, and tooling used by
the world's appliance, automotive, and other manufacturers, and by steel and
other metal producers. PTC's other operating subsidiary, Westland Control
Systems, Inc., designs and manufactures custom electrical control panels used
in production machinery and machine tools utilized in automotive, adhesive and
sealant, food processing, and other industrial applications. Productivity
Technologies Corp., which wholly owns Atlas Technologies, Inc. and Westland
Control Systems, Inc., is an Ann Arbor, Michigan based investment holding
company participating in the factory automation and industrial equipment
industry.
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, automotive
parts, and appliances, resulting in reduced demand for the Company's
automation or control panel equipment; potential technological developments in
the metal forming and handling automation equipment markets which could render
the Company's automation equipment noncompetitive or obsolete; and the
potential tightening of credit availability generally or under the Company's
credit facility, which may render the Company unable to access needed working
capital.