Aftermarket Technology To Keep Remanufacturing Business.(Brief Article)

Aftermarket Technology Corp. said that it has successfully restructured its remanufactured aftermarket engine business, returning it to profitability and subsequently has decided to retain the business as part of its continuing operations. The company also said the decision will result in reclassifying operating earnings for 2000 and this year's first quarter into continuing operations.

After announcing plans to divest the business last August, the company said it closed 21 branch locations, reduced overhead and dramatically improved quality. Now it ships directly to customers from one of three regional warehouses. "The turnaround of the engine business has exceeded our original expectations," said Chairman and Chief Executive Officer Mike DuBose in a statement.

He said ATC has recently been able to use its engine business to sell reconditioned transmissions. The engine business will increase ATC's earnings per share by six cents in 2001, and 10 cents for 2002, he said. Including the engine business, full year 2000 pro-forma earnings per share, before special charges for continuing operations, is $1.08 instead of the $1.25 the company previously reported. Pro-forma earnings per share for the first quarter is $0.31, instead of the $0.29 previously reported.

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