CTS Delivers Solid Operating Results Despite Soft Sales


Reading time ( words)

CTS Corporation (CTS) has announced third quarter 2015 results.

  • Sales were $90.6 million, down 9.3% compared to the third quarter of 2014, driven primarily by lower volumes and unfavorable foreign exchange impact.
  • GAAP loss was $4.8 million, or $0.15 per share, compared to earnings of $8.1 million, or $0.24 per diluted share from continuing operations in the third quarter of 2014.
  • GAAP loss includes a non-recurring charge of $14.5 million or $0.28 per diluted share for remediation of a legacy environmental issue, restructuring-related charges of $0.06 and unfavorable foreign tax items of $0.04.
  • Adjusted EPS was $0.23, compared to $0.29 in the third quarter of 2014.

Third quarter sales to automotive customers declined $4.5 million year-over-year due to lower sales of older automotive products and unfavorable foreign exchange impact. Sales of electronic components were down $4.8 million primarily driven by lower sales to HDD customers and softness in the telecom infrastructure market. CTS received $95 million in new business awards in the third quarter, bringing the year-to-date new business awards to $455 million.

“We experienced soft volumes and unfavorable foreign exchange impact but delivered solid operating results by focusing on a combination of productivity projects, savings from restructuring actions and cost management. We are continuing our long term growth focus with another quarter of solid new business awards,” said Kieran O’Sullivan, CEO of CTS Corporation. “We are addressing a legacy environmental issue and working closely with the EPA on remediation, while remaining focused on executing our business strategy. We expect sequential sales growth in the fourth quarter of 2015.”

2015 Guidance

Management expects full year 2015 adjusted earnings per diluted share to be in the range of $0.95 to $1.05, consistent with previous guidance, but full year 2015 sales will be challenged to achieve the low end of the previous guidance range of $390 to $405 million. This includes the unfavorable currency impact at current rates.

About CTS

CTS is a leading designer and manufacturer of electronic components and sensors to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia.

Share

Print


Suggested Items

KYZEN’s Popular Cleaning Series Continues

11/25/2020 | I-Connect007 Editorial Team
Wondering what to look for in a PCB cleaning agent? In just 10 minutes, you will learn from Jack Reinke what impacts your waste stream as part of the latest installment of KYZEN’s Tech2Tech series. This special webinar is held live at two times: 7:18 a.m. and 5:33 p.m. PST December 3, 2020.

IPC Standards Development: Business Challenges and an Inside View

10/28/2020 | Graham Naisbitt, Gen3 Systems
With increasing frequency, standardising the standards, such as ISO 9201, imposes certain rules that must be met to ensure “fair play” amongst the supply chain. There will be those familiar with hearing about “false positives/negatives” and “never trust the salesman,” so mitigating these is no easy task. However, there is the chance for each 5-30 Task Group to review industry requirements and set out the work program for the ensuing period. With that in mind, much of what follows is based on comments we learn about from our industry around the world, many of whom are not yet IPC members. Yes, this is a membership recruitment drive, unashamedly, as well as a search for volunteers willing to help create the standards of tomorrow.

Real Time with… SMTAI 2020: Women’s Leadership Program Cruises Through Important Topics

10/09/2020 | Michelle Te, I-Connect007
The virtual environment didn’t stop a large gathering of women (and men) from learning, sharing, and enjoying the Women’s Leadership Program during SMTAI 2020. Michelle Te shares her experience.



Copyright © 2020 I-Connect007. All rights reserved.