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CTS Corporation announced 4th quarter and full year 2014 results.
Fourth Quarter 2014 Results
- Sales were $100.4 million, down 2.0% compared to the fourth quarter of 2013.
- GAAP earnings were $7.0 million, or $0.21 per diluted share, compared to $4.1 million, or $0.12 per diluted share from continuing operations in the fourth quarter of 2013.
- Adjusted EPS was $0.24, flat with fourth quarter of 2013 from continuing operations.
Fourth quarter sales to automotive customers declined 2.1% year-over-year. Sales of electronic components declined 1.7% year-over-year. CTS received $171 million in new business wins in the fourth quarter.
Full Year 2014 Results
- Sales were $404.0 million, down 1.3% compared to 2013.
- GAAP earnings were $26.5 million, or $0.78 per diluted share, compared to $2.0 million, or $0.06 per diluted share from continuing operations in 2013.
- Adjusted EPS was $0.97 versus $0.75 from continuing operations in 2013.
2014 sales to automotive customers increased 1.0% year-over-year. Prior year sales to automotive customers included $5.5 million for a special one-time order. Excluding this order, sales to automotive customers were up 3.1% in 2014 compared to 2013. Sales of electronic components declined 5.9% year-over-year. CTS recorded $484 million in new business wins for the full year 2014.
“We are pleased with the results for 2014. We delivered strong earnings growth despite softer than anticipated sales,” said Kieran O’Sullivan, CEO of CTS Corporation. “The fourth quarter new business wins are an indication of the traction we are getting on driving growth. We expect 2015 growth to be modest until the new business we have won over the last two years begins to have a more significant impact on sales in 2017 and beyond.”
Management expects full year 2015 sales in the range of $400 to $430 million and adjusted earnings per diluted share in the range of $0.98 to $1.10. Results are anticipated to improve sequentially throughout the year, with a stronger second half. Management is concerned about the current trends in currency rates, especially the Euro and Chinese Renminbi. This can impact sales by as much as 2-3% for 2015.
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.”