CTS Corporation (NYSE: 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
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