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CTS Corporation has announced second quarter 2016 results.
- Sales were $98.7 million, up 2.1% from the first quarter of 2016 and down 1.4% from the second quarter of 2015. Second quarter of 2016 sales to automotive customers decreased 1.6% from the first quarter of 2016. The company’s single crystal acquisition, completed on March 11, 2016, added $3.1 million of sales. in the second quarter of 2016. Excluding sales from the single crystal acquisition, sales of electronic components increased 2.4% from the first quarter of 2016.
- Net earnings were $14.5 million or $0.44 per diluted share, which included a gain on the sale of the Company’s Canadian facility of $0.21 per diluted share, net of costs related to the sale. Net earnings were $19.1 million or $0.57 per diluted share in the second quarter of 2015, which included $0.32 of one-time net favorable tax items and $0.05 for restructuring.
- Adjusted EPS was $0.26 per diluted share versus $0.26 in the first quarter of 2016 and $0.30 in the second quarter of 2015. The year-over-year impact on adjusted EPS was driven by higher net interest expense and a higher tax rate.
- New business awards were $135 million in the second quarter.
“We are pleased with another strong quarter of new business awards as we make progress on our organic growth efforts,” said Kieran O’Sullivan, CEO of CTS Corporation. “On the operations front, gross margins improved both year-over-year and sequentially as we continue to focus on operational execution. The integration of our single crystal acquisition is progressing well. We also reduced our debt significantly from the first quarter when the acquisition was completed.”
Management continues to monitor trends in CTS’ end markets and reaffirms its prior guidance. Full year 2016 sales are expected to be in the range of $390 to $410 million, which includes sales related to the single crystal acquisition. Adjusted earnings per diluted share for 2016 are expected to be in the range of $0.95 to $1.06.
CTS is a leading designer and manufacturer of products that Sense, Connect and Move. CTS manufactures sensors, actuators and electronic components in North America, Europe and Asia, and supplies these products to OEMs in the aerospace, communications, defense, industrial, information technology, medical and transportation markets.