Illinois-based CTS Corp. (NYSE: CTS) is reporting second quarter net income of $14.5 million, down from $19.1 million during the same period the previous year. The results come nearly two months after the company announced plans to phase out production operations in Elkhart.
Chief Executive Officer Kieran O’Sullivan says despite the dip, the quarter was strong for the company based on its "organic growth efforts."
"On the operations front, gross margins improved both year-over-year and sequentially as we continue to focus on operational execution," said O’Sullivan. "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."
In early June, CTS announced it would phase out its Elkhart production operations by the middle of 2018. The company said the plant will transition into a research and development center with about 230 employees being affected over the next three years. Though still incorporated in Indiana, the second quarter earnings report marks the first where the company lists Lisle, Illinois as its corporate headquarters. CTS Corp.’s main office had been located in Elkhart and a company spokesman tells Inside INdiana Business "this verbiage does not indicate any additional changes regarding the status of our Elkhart facility."