ADS Inc. Earnings Fall Short.QUEBEC CITY, QUEBEC--(BUSINESS WIRE)--Aug. 22, 1997--(ME AAL (ATM Adaption Layer) The part of the ATM protocol that breaks up application packets into 48-byte payloads which become ATM cells when the 5-byte headers are attached. The AAL resides between the higher layer transport protocols and the ATM layer. .A.)ADS Inc. announces that it will fall short of earnings forecasted by financial analysts for the current fiscal year. On August 19, 1997, Bombardier Inc., a major ADS client, announced that it would cut its Sea-Doo watercraft production for the 1998 season. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. information from Bombardier Inc., as a result of this reduction in the volume of Sea-Doo hulls, only one of ADS's three Sea-Doo hull production lines would be operating for the 1998 season. The drop in sales figures sales figures npl → cifras fpl de ventas , fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). inherent in the production lines that will not be operating, the efforts expended to increase competition as well as the new production schedules announced by Bombardier Inc., according to an alternating principle with Ski-Doo snowmobiles, are all aspects that will impact on ADS's earnings for the current fiscal year. Furthermore, additional costs related to the installation of its second plant in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , the temporary production shutdown of a major client and the low pace production of certain new products that will not meet acceptable profitability levels before the end of this fiscal year also affect ADS's operations. Overall, ADS estimates that its sales figures for the current fiscal year would drop by almost $14,000,000 in relation to forecasts and its net income for the current fiscal year will be reduced by $3,500,000 or $0.19 per Class A share. Bombardier Inc.'s decision to cut its production should contribute to re-establishing a better balance between supply and demand in the personal watercraft market during the 1998 season given high personal watercraft inventories accumulated by different manufacturers. Bombardier Inc. remains one of ADS's major clients and it will continue to participate in developing products, including the NEW (neighborhood electric vehicle “NEV” redirects here. For other uses, see NEV (disambiguation). A Neighborhood Electric Vehicle (NEV) is an American term for a speed limited battery electric vehicle (25-35 miles per hour in the U.S.A. ), launched last year for which it is one of the main composite material suppliers. We also wish to mention that ADS's activities in the technical textiles sector should grow by 30 percent during the fiscal year. ADS Inc. is a holding company primarily involved in the manufacturing sector through subsidiaries operating in the field of technical textiles and composite materials. Its securities are listed on The Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg under the symbol AAL.A CONTACT: ADS Inc. Paul Drouin, 418/626-3383 |
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