CTS Restarts Thailand EMS Operations; Expects Q1 EPS $0.05-0.07 vs $0.16 Est; 2012 EPS $0.75-0.80 vs $0.78 Est
Courtesy of Benzinga.
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.