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newsrelease
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CTS
CORPORATION Elkhart, Indiana 46514 (574)
523-3800
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March 10, 2009
FOR RELEASE: Immediately
CTS Announces Initiatives to Further Improve its Cost Structure
Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that it has
completed restructuring actions in the first quarter of 2009 which are expected
to save the Company approximately $5 million annually in salaries and benefits.
About 95 positions throughout North America, Europe and Asia have been
eliminated to reorganize certain functions to operate more effectively and to
streamline operations. The pretax charge for first quarter employee-related
separation costs is approximately $1.9 million, or $0.04 per diluted share.
The restructuring actions, while difficult for affected employees, were necessary based on the business downturn in the current challenging economic environment. Management believes that the decisive proactive restructuring steps taken in the second half of 2008 and in the first quarter of 2009, in addition to implementing selective four-day work weeks and employee furloughs, will position the Company to remain financially strong. Combined with actions recently taken, total worldwide headcount has been reduced approximately 17%.
About CTS
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, computer, communications, medical, defense and aerospace and
industrial markets. CTS manufactures products in North America, Europe and Asia.
CTS' stock is traded on the NYSE under the ticker symbol "CTS.”
Safe Harbor Statement
This press release contains statements that are, or may be deemed to be,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include, but are
not limited to, any financial or other guidance, statements that reflect our
current expectations concerning future results and events and any other
statements that are not based solely on historical fact. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date hereof. These forward-looking statements are made subject to
certain risks, uncertainties and other factors, which could cause our actual
results, performance or achievements to differ materially from those presented
in the forward-looking statements, including, without limitation: changes in the
economy generally and in respect to the businesses in which CTS operates,
including those resulting from the current global financial and credit crisis;
pricing pressures and reduction in demand for CTS’ products, especially if
economic conditions do not recover or continue to worsen in CTS’ served markets,
including but not limited to: the automotive, computer equipment, or
communications markets; disruption, uncertainty, or volatility in the credit
markets that could adversely impact the availability of credit already arranged
by CTS and the availability and cost of credit in the future; the financial
condition of our customers, including the ability of customers (especially those
that may be highly leveraged and those with inadequate liquidity) to maintain
their credit availability or ongoing viability; the Company’s successful
execution of restructurings and profit improvement plans; risks associated with
CTS’ international operations, including trade and tariff barriers; currency
fluctuations and their effects on our results of operations and financial
position; changes in performance of equity and debt markets that could affect
the valuation of the assets in CTS’ pension plans and the accounting for pension
assets, liabilities, and expenses; political and geopolitical risks; rapid
technological change in the automotive, communications and computer industries;
reliance on key customers; and CTS’ ability to protect its intellectual
property. For more detailed information on the risks and uncertainties
associated with CTS’ business, see the reports CTS files with the SEC, available
at
http://www.ctscorp.com/investor_relations/investor.htm. CTS undertakes no
obligation to publicly update its forward-looking statements to reflect new
information or events or circumstances that arise after the date hereof,
including market or industry changes.
| Contact: |
Donna L. Belusar, Senior Vice President and Chief
Financial Officer |
| CTS Corporation, 905 West Boulevard North, Elkhart, IN 46514 | |
| Telephone: (574) 523-3800, Fax: (574) 293-6146 | |