First quarter 2012 net earnings were $2.3 million, compared to $5.1 million in the same period last year.
Commenting on first quarter 2012 results, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, “While our performance in the first quarter was lower than expected, many of the issues were timing-related or unique due to new product launch activities. We remain excited about our growth initiatives, which are on track to drive strong performance over the next several years.”
The company said that the first quarter 2012 was affected by the timing of Thailand flood-related insurance reimbursements, benefiting from some insurance recoveries that related to 2011 expenses. CTS expects approximately $4.0 million in first quarter business interruption expenses to be reimbursed in the second quarter of 2012.
EMS first quarter sales decreased $8.9 million, or 11%, year-over-year primarily resulting from the continued impact of the Thailand flood. The company said tha some production at the Thailand facility has begun with volumes scheduled to ramp up over the next few months reaching normal capacity utilization by the end of second quarter 2012.