CTS Reports Q2 Revenue Up 6% to $146.9M
ELKHART, IN – CTS Corp. today posted second-quarter 2011 revenue of $146.9 million, up 6% year-over-year.
Net earnings were $4.1 million, down 30.5% compared to the second quarter of 2010.
Earnings decreased year-over-year primarily as a result of lower expected automotive sales from the disruption caused by the Japan earthquake. However, these sales shortfalls are anticipated to begin to recover in the fourth quarter, as OEM production ramps up and inventories are replenished, the firm says.
Components and Sensors segment sales decreased $4.2 million (6%) from the same quarter last year, primarily due to a 10% decrease in automotive product sales. Electronic component product sales were flat year-over-year. The company estimates second-quarter impact from the Japan earthquake on this segment’s sales was a decrease of approximately $6 million to $7 million.
EMS segment sales were up $12.3 million (18%) year-over-year, with increases reported across all markets served. This growth resulted from new program launches with existing and new customers, primarily driven by a 46% increase of sales into industrial markets.
“While our second-quarter results were in line with expectations, we look forward to a stronger second half as we begin to launch new programs like piezoceramic elements for disk drive applications, a global pedal program and increased sales to our key Japanese automotive OEMs, who will begin to ramp up their production. Our key initiatives to further improve our cost structure include expanding our low cost facilities in Mexico and Thailand, and starting up a new manufacturing facility in India, which is slated to be operational later this year,” said Vinod M. Khilnani, CTS Chairman and CEO.
The firm maintains full-year 2011 guidance of a sales increase in the range of 9% to 13% over 2010.
CTS designs and manufactures electronic components and sensors, and provides electronics manufacturing services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets.
