Electronics Production |
CTS announces Q3 results
CTS Corporation has announced third quarter 2011 revenues of $146.1 million, an increase of 5% from revenues of $139.4 million in the same period last year. The company also adressed the impact of recent disasters in Japan and Thailand.
Commenting on third quarter 2011 results, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, “We were pleased with our overall third quarter results. The balance of 2011 is expected to benefit from new program launch activities like a new global pedal program and increased sales to our key Japanese automotive OEMs as they ramp up their production.”
Net earnings for the quarter were $5.9 million, or $0.17 per diluted share, compared to net earnings of $6.9 million, or $0.20 per diluted share, in the third quarter 2010. Third quarter 2010 earnings had included approximately $0.04 per share of currency exchange gains.
Components and Sensors segment sales decreased $2.7 million, or 4%, from the same quarter last year. The impact from the Japan earthquake on the Components and Sensors segment sales was a decrease of approximately $4 million. EMS segment sales grew $9.4 million, or 14%, compared to the same period last year.
The company said that based on the year-to-date 2011 results and assuming a modest recovery in the fourth quarter, management maintains its full-year sales guidance of 9% to 13% increase over 2010.
© CTS (image has zoom function)
Thailand flooding
The company stated that management continues to assess the impact of the floods and does not expect any material impact on CTS’ financials. Severe flooding in Thailand has impacted CTS’ EMS manufacturing facility near Bangkok. As a result, production at that facility has been suspended since the second week of October and the facility is expected to remain closed for approximately 10-12 weeks. In the meantime, production is being transferred from Bangkok to other CTS facilities to meet customer demand. CTS has adequate insurance coverage for such events.
Earthquake
Third quarter 2011 earnings were adversely affected by approximately $0.03 per share due to the lingering effects of the Japan earthquake-related production disruptions at several of CTS’ key automotive customers. Sales are expected to begin recovering in the fourth quarter as Japanese automotive production ramps up and inventories are replenished. Third quarter results were also negatively impacted by approximately $0.03 per share for a combination of higher commodity costs and a retirement-related pension charge. Offsetting these unfavorable items was a favorable adjustment of $0.05 per share for insurance recovery for fire-related property damage at CTS’ Scotland EMS facility.
© CTS (image has zoom function)
Thailand flooding
The company stated that management continues to assess the impact of the floods and does not expect any material impact on CTS’ financials. Severe flooding in Thailand has impacted CTS’ EMS manufacturing facility near Bangkok. As a result, production at that facility has been suspended since the second week of October and the facility is expected to remain closed for approximately 10-12 weeks. In the meantime, production is being transferred from Bangkok to other CTS facilities to meet customer demand. CTS has adequate insurance coverage for such events.
Earthquake
Third quarter 2011 earnings were adversely affected by approximately $0.03 per share due to the lingering effects of the Japan earthquake-related production disruptions at several of CTS’ key automotive customers. Sales are expected to begin recovering in the fourth quarter as Japanese automotive production ramps up and inventories are replenished. Third quarter results were also negatively impacted by approximately $0.03 per share for a combination of higher commodity costs and a retirement-related pension charge. Offsetting these unfavorable items was a favorable adjustment of $0.05 per share for insurance recovery for fire-related property damage at CTS’ Scotland EMS facility.
