Torotrak PLC Regulatory News (TRK)

20 Jul 2006 07:01

Torotrak PLC20 July 2006 20 July 2006 Torotrak plc AGM Statement and Trading Update At Torotrak's Annual General Meeting to be held in Leyland at 12 noon today, theChief Executive Dick Elsy will give the following update on the Company'sprogress since the start of the current financial year. "In each of Torotrak's four principal markets - Off-highway, Outdoor PowerEquipment, Automotive and Truck & Bus - the company's performance is in linewith our business development plans and trading expectations. There have beenpositive recent developments in two of these areas. Off-highway In the Off-highway sector, I am pleased to announce that we have agreed theprincipal terms of a Technology Licence with the tractor maker Uzel (Uzel MakinaSanayi AS), a global top-10 OEM which produces more than 20,000 tractors a yearfrom manufacturing bases in Turkey and Germany. Uzel manufactures anddistributes its own brand of tractors and associated machinery for the globalmarket, and also manufactures a range of Massey Ferguson branded tractors fordistribution in Turkey and in the global market through the owner of the MasseyFerguson brand, AGCO. Torotrak has agreed to grant Uzel rights to develop its full-toroidal tractiondrive technology for use in Infinitely Variable Transmission (IVT) applications,together with an option for Uzel to manufacture these transmissions in the powerrange 25-110kW. In addition, we will be providing Uzel with engineeringconsultancy to support them in bringing to market the various IVT projects thatthey are planning. Outdoor Power Equipment Torotrak continues to make progress in the Outdoor Power Equipment (OPE) marketthrough its joint venture company, Infinitrak, with MTD. Production tooling forthe first Infinitrak IVTs is now committed and is being manufactured. Theengineering programme is well advanced with durability testing ofInfinitrak-equipped vehicles underway at MTD's headquarters in Cleveland Ohio.Production is scheduled to begin following successful completion of thesetransmission and vehicle tests. Manufacturing will commence in existing MTD facilities in Kentucky using MTD'sexpertise in low-cost, high-volume manufacture. This plan for initialproduction is based on Infinitrak sub-contracting the manufacture of its IVTs toMTD, in the same way that Torotrak is sub-contracted to provide engineeringservices to the venture. In the contract-manufacturing process, MTD will bearthe cost of stock, work-in-progress and all related working capital. Thisapproach will also enable MTD to phase the introduction of Infinitraktransmissions into their vehicle assembly process. Infinitrak's agreement to sub-contract manufacturing is sufficiently flexible toaddress the needs of the joint venture business in the start-up phase. Fromthis stable platform the venture can progress, at an appropriate date, to beingan independent manufacturing entity. In this way, Infinitrak will benefit fromthe financial and manufacturing support of MTD during start-up and will be ableto progress to manufacturing independence at a later time." Further information:John Grant, Chairman +44 (0) 1772 900900Dick Elsy, Chief Executive +44 (0) 1772 900900 Media enquiries:Peter Curtain +44 (0) 20 7307 5330peter.curtain@capitalmsl.com Notes to editors: Torotrak plc is the world leader in the design and development of traction driveInfinitely Variable Transmission (IVT) systems with competitive benefits for theautomotive, off-highway and now outdoor power equipment industries. Inautomotive, IVT offers significant improvements in fuel economy, performance andsmoothness combined with innovative driving control features. In off-highway andoutdoor power equipment, IVT offers a cost effective and mechanically efficienttechnology that can be used across product ranges. Torotrak's principalcommercial strategy is to generate royalty income from high volume manufactureof IVT technology by its licensed customers. This information is provided by RNS The company news service from the London Stock Exchange