Commenting on fourth quarter 2011 results, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, stated, “As we move past the impact of the flooding in Thailand and the Japan earthquake, we expect 2012 to benefit from key new program launches and deliver double-digit top and bottom line growth. We continue our commitment to a strong R&D program to further strengthen our highly engineered product portfolio. The recent dividend increase, stock buybacks and Valpey-Fisher acquisition reflect our confidence in the future to enhance shareholder value.”
While the overall macro economies globally are showing weakness, various new product launches are expected to drive growth. As a result, management anticipates full-year 2012 sales to increase in the range of 10% to 13% over 2011 and diluted earnings per share to be in the range of $0.75 to $0.80. Included in 2012 earnings is a net adverse impact of approximately $0.05 per share from a combination of higher expected effective tax rate, higher pension costs and an expected property damage insurance recovery.
SEGMENT INFORMATION(Dollars in millions)
|Fourth Quarter||Fourth Quarter||Third Quarter|
|Components and Sensors||$||70.7||$||6.5||$||65.4||$||6.7||$||69.1||$||4.2|
|Electronics Manufacturing Services (EMS) *||73.3||3.1||79.6||1.0||77.0||3.6|
|Segment Operating Earnings||9.6||7.7||7.8|
|Expenses not allocated to business segments:|
|- Restructuring and related charges||(2.4||)||(1.7||)||-|
|* Fourth quarter 2011 includes $3.4 million and third quarter 2011 includes $2.7 million of insurance recoveries for fire-related property damage.|
Components & Sensors: Components and Sensors fourth quarter 2011 sales increased $5.3 million, or 8%, from the fourth quarter of 2010. The increase resulted from 17% higher automotive product sales and new product launches, partially offset by 5% reduction in electronic component product sales. Segment operating earnings decreased $0.1 million from the same period last year primarily from higher commodity prices, increased research and development expense and impact from the Thailand floods.Components and Sensors fourth quarter 2011 sales increased $1.6 million, or 2%, from the third quarter of 2011. Automotive sensor and actuator product sales grew $4.9 million, or 12%, from stronger demand and new product launches. Sales of electronic component products decreased $3.3 million, or 12%, broadly across product lines, although sales increased for the new piezo products for hard disk drive (“HDD”) applications. Segment operating earnings increased $2.4 million from the third quarter of 2011 primarily from higher sales and improved margins.
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