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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.”
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.
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.