CTS CORPORATION Elkhart, Indiana 46514 (574) 523-3800
September 3, 2009
FOR RELEASE: Immediately
CTS Awarded Production Program for Smart Actuators
Further Expands Automotive Products into Targeted Commercial Markets
Elkhart, IN…CTS Corporation (NYSE: CTS) today announced that CTS Automotive Products was awarded a major new production program for a smart actuator by a global diesel engine manufacturer. The smart actuator is used as a key part of a turbocharger system on diesel engines, primarily for medium-duty diesel trucks sold in the North American market. Production is anticipated to begin mid 2012 with total revenues over the life of the six-year program to be approximately $50 million.
The market for smart actuator technology in commercial and passenger vehicles is growing rapidly and is estimated at approximately $1 billion within the next few years. The awarded program is part of the family of brushless motor-based, smart actuators that CTS has developed in response to this growing market opportunity.
With constant market pressures to improve emissions, improve fuel economy and reduce engine costs, diesel manufacturers are increasingly looking at advanced turbo charging and exhaust gas recirculation technologies to meet these requirements. The CTS actuator is providing a path for diesel OEMs to more precisely control these devices with outstanding robustness in harsh environments.
Commenting on the new award, Vinod M. Khilnani, CTS Chairman and Chief Executive Officer said, “The awarded program represents the third significant smart actuator design that CTS will launch. Penetration of medium-duty diesel engine vehicle markets with our sensor and actuator products demonstrates our continued success in implementing our growth through diversification strategy.”
For more information on CTS’ actuators, please contact Eric Andrina, Actuator Product Manager, at (574) 389-2815.
About CTS Automotive Products
CTS Automotive Products is a global leader in the design, test and manufacture of automotive sensors, accelerator pedal modules, actuators and subsystems. Recognized for its customer responsiveness and expertise in high-volume automotive packaging, CTS Automotive Products is focused on delivering value-added products and services to its expanding worldwide customer base. The Company manufactures automotive and related products in Elkhart, Indiana; Toronto, Canada; Glasgow, Scotland; Ostrava, Czech Republic; Matamoros, Mexico; Kaohsiung, Taiwan; and Zhongshan, China.
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 and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. 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.
Donna L. Belusar, Senior Vice President and Chief
|CTS Corporation, 905 West Boulevard North, Elkhart, IN 46514|
|Telephone: (574) 523-3800, Fax: (574) 293-6146|