UPDATE 1-ATC Tech to incur $1.32/shr charge on loss of Honda biz

jueves 18 de junio de 2009 15:33 CEST
 

* Sees charge of $1.32/shr in Q2

* Says charge will not impact liquidity

* Sees 2009 drivetrain revenue $140-$144 mln

* Says developing additional restructuring actions

June 18 (Reuters) - Engineering and logistics services provider ATC Technology Corp ATAC.O said it expects to incur a $1.32-a-share impairment charge in the second quarter related to Honda Motor Co's (7267.T: Cotización) decision to move the remanufacturing of automatic transmissions in-house.

Honda's automatic transmissions accounted for about 29 percent of ATC's drivetrain segment revenue in 2008.

ATC said the goodwill impairment charge will not impact its liquidity or prospects for its logistics business.

The company now expects 2009 drivetrain revenue of $140 million to $144 million, with Honda transmission contributing $32 million to $34 million.

The drivetrain unit, which accounts for 30 percent of the company's total business, supplies aftermarket parts to principal customers including Chrysler Group LLC and Ford Motor Co (F.N: Cotización).

The company -- which had last month withdrawn its 2009 outlook, citing the loss of the Honda program -- also noted that it was in the process of developing additional restructuring actions to mitigate the loss.

ATC shares were down 6 cents at $13.86 Thursday morning on Nasdaq. (Reporting by Dhanya Ann Thoppil in Bangalore; Editing by Himani Sarkar)