spacetoday.net: EMS to sell commercial space unit

Posted: Sat, Jul 12, 2003, 9:48 AM ET (1348 GMT)
EMS Technologies announced Friday that it plans to sell a unit of the company that specializes in commercial space products. EMS said it will sell the branch of its Space and Technology division based in Montreal; that unit builds antennas and power systems for commercial communications spacecraft as well as the International Space Station. EMS executives said the decision was based on the "volatile" financial performance of the division caused by a lack of commercial satellite orders. No buyer of the division has been identified yet, although EMS said it has engaged an investment banker to help broker the sale, which it expects to complete within a year. EMS's other divisions, including the branch of its Space and Technology unit based in Atlanta that focuses on defense products, will be retained. EMS plans to take a $20 million charge in its fiscal third quarter to account for the anticipated loss incurred by selling the unit. EMS shares rose by over 11 percent Friday on the news.