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Electronics Production |

CTS finishes 2007 with a strong Q4

CTS has announced fourth quarter 2007 net earnings of $7.7 millions. Sales for the fourth quarter increased to $178.3 million, a 3% increase year-over-year.

The fourth quarter revenue increase from 2006 was driven by an 8% increase in Components and Sensors segment sales as automotive new product demand grew 6% and electronic components sales for infrastructure applications grew 27%. EMS segment sales were essentially flat compared to a strong fourth quarter 2006. Full-year 2007 revenue of $685.9 million increased 5% over 2006. Components and Sensors segment sales increased 4% year-over-year driven primarily by higher automotive sensor product demand, partially offset by reduced sales of legacy resistor products. EMS segment sales increased 5% year-over-year due to strong growth in industrial and defense and aerospace markets, partially offset by lower sales in the computer market. Full-year net earnings in 2007 were $25.4 million, compared to $24.2 million, in the prior year, an increase of 5%. Included in 2007 results was a $0.05 negative per share impact from restructuring and related costs in the fourth quarter, while 2006 included a $0.08 negative per share impact from restructuring and related costs. Full-year earnings per share, adjusted to exclude these items, were $0.71 in both 2006 and 2007. In addition, 2007 was unfavorably impacted by a $0.05 negative per share charge for Moorpark investigation costs. During 2007, the Company generated an operating cash flow of $48.6 million, up 3% from a strong cash flow in 2006. Capital expenditures were essentially unchanged, $16.1 million in 2007 and $15.8 million in 2006. The resulting 2007 free cash flow, which is net cash provided by operations less capital expenditures, was $32.5 million, the highest reported since 1997. The Company currently expects full-year 2008 sales to increase 5% to 8% over 2007 and diluted earnings per share to be in the range of $0.78 to $0.83. Approximately a $0.03 - $0.05 per share investment to support new growth initiatives, including the launch of sensor and actuator products for diesel and commercial market applications, is included in the 2008 estimate. Components & Sensors: Components and sensors fourth quarter 2007 sales increased by $5.4 million, or 8% from the fourth quarter of 2006, reflecting continued growth in new product demand in automotive markets and increased electronic component sales for infrastructure applications. Segment operating earnings of $8.2 million, or 11.6% of sales, improved $1.8 million over the fourth quarter of 2006 primarily from higher volume. Operating earnings, as a percent of sales, increased to 11.6% in the fourth quarter of 2007 from 9.7% in the same period last year. Segment sales increased by $2.3 million, or 3% over the third quarter of 2007, primarily from stronger automotive product demand. Segment operating earnings of $8.2 million increased $2.2 million over the third quarter of 2007 from higher volume, increased royalty income and cost control initiatives. EMS: EMS fourth quarter 2007 sales were essentially flat compared to a strong fourth quarter 2006. Segment operating earnings of $3.9 million were $1.2 million higher than the fourth quarter of 2006 as a result of improved product mix and operating efficiencies. Operating earnings, as a percent of sales, increased to 3.6% in the fourth quarter of 2007 from 2.6% in the same period last year. Fourth quarter 2007 EMS sales, compared to the third quarter 2007, were slightly higher by $1.2 million with essentially flat operating earnings.

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March 28 2024 10:16 am V22.4.20-2
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