DETROIT - Saying it wanted to concentrate on its most profitable businesses, CDI Corp. will sell automotive contract engineering business Modern Engineering Inc. to a Maryland company.
Modern Engineering, of Troy, Mich., is one of the largest contract-engineering design companies in Detroit.
But last year Modern Engineering, like most companies in its line of work, including MSX International Inc. of Auburn Hills, Mich., was hurt by 7 percent price cuts mandated by automakers and their suppliers.
Sales dropped by more than 14 percent, from $105.6 million in 2000 to $90 million last year, said company President Mark Payne.
The price cuts shrank Modern Engineering's profit margin but didn't prevent it from making a profit, Payne said. In 1999, Modern Engineering achieved a 4 percent profit margin, the company said at the time.
CDI, a $1.5 billion staffing-services company, said on Jan. 9 it will restructure the company "to enhance its profitability and long-term growth."