CTS Corporation (NYSE: CTS) today announced first quarter 2012 revenues of $147.0 million, a decrease of 3% from the same period last year and a 2% increase from the fourth quarter 2011 revenues. First quarter 2012 net earnings were $2.3 million, or $0.07 per diluted share, compared to $5.1 million, or $0.15 per diluted share, in the same period last year. First quarter 2012 was affected by the following items:
- Timing of Thailand flood-related insurance reimbursements. The first quarter benefited from some insurance recoveries that related to 2011 expenses, due to a normal timing lag in recovery. CTS expects approximately $4.0 million, or $0.08 per share, in first quarter business interruption expenses to be reimbursed in the second quarter of 2012. Similarly, the second quarter flood-related expenses are expected to be reimbursed during the third quarter.
- The Company’s second pedal module for a global vehicle platform was introduced and we also began to ramp up our new piezoceramic product for hard disk drive (HDD) applications.
- Non-cash pension expense was approximately $1.0 million, or $0.02 per share, higher in the first quarter due to lower discount rates and asset returns.
- Delayed recovery of approximately $0.8 million, or $0.02 per share, in certain engineering prototype expense and rare earth cost increases from customers.
- The Valpey-Fisher acquisition was completed with integration activities on track.
First quarter 2012 Components and Sensors segment sales grew $4.4 million, or 6%, from the same period last year. Automotive sensor and actuator sales increased $1.8 million, or 4%, year-over-year primarily due to introduction of a new global pedal module. Electronic component sales increased $2.6 million, or 10%, from the new piezoceramic HDD product launch and incremental sales from the Valpey-Fisher acquisition, partially reduced by lower demand from telecom equipment providers. EMS first quarter sales decreased $8.9 million, or 11%, year-over-year primarily resulting from the continued impact of the Thailand flood. Some production at the Thailand facility has begun with volumes scheduled to ramp up over the next few months reaching normal capacity utilization by the end of second quarter 2012.