Company Decides to Keep Reman Engine Business

Aftermarket Technology Corp. (ATC) today announced that it will be keeping its engine remanufacturing after all.
The company said that it’s restructuring initiatives were so successful that the business has been returned to profitability and, as a result, the company has decided to retain the business as part of its continuing operations.
Since last August when ATC announced its intention to divest this business, the company had aggressively addressed the issues affecting the business’s profitability and adopted a business model that has resulted in a more streamlined, focused and profitable business. ATC has closed all twenty-one-branch locations, significantly reduced overhead, and dramatically improved product quality. Now, units are shipped overnight directly to customers from one of three regional warehouses.
The idea was to position the business for the best sale price, but the efforts were so successful the company has decided to keep it.
In commenting on the company’s decision to retain and grow its engine business, Mike DuBose, chairman, president and CEO said, “The turnaround of our engine business has exceeded our original expectations. We now expect that retaining this business will enhance ATC’s profitability by contributing approximately $0.06 EPS to continuing operations for 2001 and $0.10 EPS for 2002. Furthermore, we have recently demonstrated the ability to strategically leverage this business and the associated channel relationships in order to sell remanufactured transmissions into the aftermarket.”