CTS to Consolidate Berne Manufacturing Operations

Automotive product operations in Berne will be moved to the company's facilities in Elkhart and Mexico. Electronic components operations will be moved to Singapore. The company says some of its electronic component related service functions will remain in Berne.

Source: Inside INdiana Business

Press Release

ELKHART, Ind.--Jan. 6, 2006--CTS Corporation (NYSE:CTS) today announced that it intends to consolidate its Berne, Indiana manufacturing operations into three of its other existing facilities. The consolidation process is expected to largely be completed in the second half of 2006.

Automotive product operations at Berne will be transferred to CTS' automotive facilities in Matamoros, Mexico and Elkhart, Indiana. Electronic components operations in Berne will be moved to CTS' Singapore facility. Some electronic component related service functions are expected to remain in Berne.

The planned consolidation will result in an estimated pre-tax restructuring charge and related costs of approximately $4.5 million to $5 million. Of this amount, approximately $3 million is expected to be taken in the first quarter and $1.5 million in the second quarter of 2006. The remainder will be recorded over the rest of the year. Breakeven on the consolidation is expected in about one year, with annualized pre-tax savings projected to be in the range of $4.5 million to $5.5 million. Pre-tax savings are expected to begin in the third quarter of 2006 and to be in the range of $1.5 million to $2.0 million for the second half of the year.

About CTS

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, computer, communications, medical and industrial 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.

Source: CTS Corp.