CTS Corp. Swings to ProfitPosted: Updated:
Elkhart-based CTS Corp. (NYSE: CTS) is reporting second quarter net income of $6.4 million, compared to a loss of $10.3 million for the same period the previous year. Chief Executive Officer Kieran O'Sullivan, who was named board chairman in February, believes the electronic component manufacturer will "achieve substantial earnings growth" this year. July 28, 2014
ELKHART, Ind. - CTS Corporation (NYSE: CTS) today announced second quarter 2014 results:
Revenues were $103.0 million, up 2.3% versus the first quarter of 2014; down 2.3% compared to the second quarter of 2013.
GAAP earnings from continuing operations were $6.4 million, or $0.19 per diluted share, compared to a loss of $10.3 million, or $0.31 per diluted share, in second quarter of 2013.
Adjusted EPS from continuing operations was $0.25 compared to $0.22 in the second quarter of 2013.
Sales of sensors and mechatronic products grew 3% year-over-year. Sales of electronic components declined 12% due mainly to softness in sales of frequency and HDD products. CTS received $89 million of new business wins in the second quarter. Year-to-date, CTS has won $225 million in new business.
"We are pleased with the earnings delivered in the second quarter despite the pressure on sales. During our transition, we continue to fine tune our product portfolio in 2014 and are addressing execution issues related to our electronic components products," said Kieran O’Sullivan, CEO of CTS Corporation. "We remain confident in and committed to our strategy. We are making progress on improving our cost structure and expect to achieve substantial earnings growth in 2014."
Management is adjusting its full-year 2014 guidance for sales due to the challenges with electronic components products. Sales for 2014 are expected to be in the range of $400 to $415 million. Adjusted earnings per diluted share are expected to be at the lower end of our guidance range of $0.96 and $1.02.
As previously announced, the Company has scheduled a conference call on Tuesday, July 29, 2014 at 11:00 a.m. (EDT). The dial-in number for the conference call is 888-359-3624 (719-325-2463, if calling from outside the U.S.). The conference I.D. number is 5350505. There will be a replay of the conference call from 2:00 p.m. (EDT) on Tuesday, July 29, 2014 through 2:00 p.m. (EDT) on Tuesday, August 5, 2014. The telephone number for the replay is 888-203-1112 (719-457-0820, if calling from outside the U.S.). The access code is 5350505. Also, please note that a live audio webcast of the conference call will be available and can be accessed directly from the website of CTS Corporation www.ctscorp.com.
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. CTS' stock is traded on the NYSE under the ticker symbol "CTS.