CTS Restarts Thailand EMS Operations
Comments on Timing of Flood Insurance Reimbursements and Earnings Guidance
ELKHART, Ind.--(BUSINESS WIRE)-- CTS Corporation (CTS) today announced that its EMS factory, located near Bangkok, Thailand, which was shut down due to major flooding in the fourth quarter 2011, has been fully restored and operational. Production for customers has begun to be transferred from its California facilities back to its Thailand operations in the second quarter. Normalized production levels for all customers are anticipated by the end of June.
Flood-related insurance reimbursements are lagging actual incurred expenses by several months. As a result, approximately $4 million, or $0.08 per share, of insurance reimbursements originally expected in the first quarter are now anticipated in the second quarter.
In addition, some customer-related reimbursements of approximately $0.02 per share and a slow start of the first quarter, with lower volumes in January and early February, will make the first quarter earnings weaker due to timing. CTS is now estimating first quarter 2012 diluted earnings per share of approximately $0.05 - $0.07, however, the expected 2012 full-year diluted earnings per share are still expected to remain unchanged in the range of $0.75 - $0.80.
While CTS only provides full-year guidance, management is providing an update for the first quarter due to the foregoing timing-related items.
CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS. To find out more, visit the CTS Web site at www.ctscorp.com.
Safe Harbor Statement
This press release contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events and any other statements that are not based solely on historical fact. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation: changes in the economy generally and in respect to the businesses in which CTS operates; unanticipated issues in integrating acquisitions; rapid technological change; general market conditions in the automotive, communications and computer industries, as well as conditions in the industrial, defense and aerospace and medical markets; reliance on key customers; unanticipated natural or other events such as the Japan earthquake and floods in Thailand; the ability to protect our intellectual property; pricing pressures and demand for our products; and risks associated with our international operations, including trade and tariff barriers, exchange rates and political and geographical risks. For more detailed information on the risks and uncertainties associated with CTS business, see the reports CTS files with the SEC available at http://www.ctscorp.com/investor_relations/investor.htm. CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.
Thomas A. Kroll, Vice President and Chief Financial Officer
or Mitchell J. Walorski, Director of Investor Relations
Source: CTS CorporationCopyright Business Wire 2012