We have successfully completed year two of the ATC transition. We entered 2000 facing some difficult challenges. Our automotive businesses faced a very difficult market due to an unusually mild winter and summer, increased fuel costs prior to the summer driving season and customer policy changes that disrupted short-term demand for our remanufactured products. Additionally, our customers and the industry faced significant turmoil, driven primarily by weakening domestic demand for new automobiles.
	Challenges notwithstanding, fiscal year 2000 yielded financial results that met or surpassed our expectations. We saw across-the-board improvements for continuing operations in almost every financial parameter, including revenue, operating income and EPS. EPS of $1.25 represented the best ever for ATC. During the year, we sold our Distribution Group – an underperforming asset that was no longer a strategic fit. The sale proceeds and tax benefits improved our balance sheet outlook, decreased our debt level to approximately $227 million and allowed us to focus on our core strengths, opportunities and challenges. The shift in emphasis has prompted a company-wide reengineering program that is resulting in a leaner, nimbler, more productive and more profitable organization.
	We have reorganized, refocused and revitalized our Drivetrain Remanufacturing and Logistics business segments. The strategic improvements we are making to these businesses – strengthening the infrastructure, acquiring information technology upgrades and making a firm commitment to lean and continuous improvement initiatives – should further solidify our existing business and facilitate future growth. We had numerous wins during the year including new contracts covering remanufactured transmissions and other drivetrain components, remanufactured engines for the European market, value-added third party fulfillment and reverse logistics services. We look with pride to our Logistics segment, which has experienced a 36 percent compounded annual growth rate for the past two years.
	For 2001, we have crystallized four strategies that will guide our Company’s sustained profitable growth. These strategies are all focused on achieving unmatched levels of customer service and enhancing shareholder value.
	First, we will establish a foundation of industry-leading operational excellence through the aggressive implementation of lean and continuous improvement principles. We will concentrate on driving non-value-added activities out of our processes and responding to customers’ demands in a better, faster and more efficient manner. This initiative represents the threshold of our future and is key to permanently changing our culture and providing us with the opportunity to reach out in new directions. Second, our customers need us to be sophisticated, nimble and trusted partners. Through our Customer Delight Initiative, we will rededicate ourselves to deepening the relationship we have with existing customers by listening closely to them and then passionately responding to their needs across the entire organization. We will work to attract new customers where we can build a mutually satisfactory and distinct competitive advantage by seeking out and concentrating on opportunities that leverage our core expertise in new ways. Third, we plan to grow our third party fulfillment and logistics businesses both organically and through selective acquisitions. The potential for growth in this segment is obvious and our people are fully energized. Fourth, we will aggressively protect our existing market leadership position and grow our Drivetrain Remanufacturing business by pursuing opportunities to create additional customer value.
	We are excited as we look forward to building upon the past two years of solid achievements and aggressively pursuing our strategy to further improve our Company and enhance stockholder value. I want to take this opportunity to thank you, our valued stockholders, for your confidence throughout 2000 in our terrific team of people. I hope that we will continue to earn your support through 2001. I extend my sincere thanks to our Board of Directors for their guidance and support. I also salute the talents and efforts of our people. It is their dedication and hard work that are the keys to our future success.

		Sincerely,
		Michael T. DuBose    Chairman, President and Chief Executive Officer