CTS Announces Realignment Of Operations And Workforce Reduction

Elkhart, IN — CTS Corporation recently announced plans to realign certain manufacturing operations and eliminate approximately 103 net positions during the fourth quarter 2007. The realignment is intended to create synergies by further enhancing CTS' shared services model to include manufacturing support functions at its locations that serve more than one business. In addition, certain production lines are slated for transfer to better serve key customers and leverage existing capacity. These actions will result in a pre-tax restructuring charge and related costs of approximately $3.0 to $3.5 million with the majority representing severance-related expense.

Approximately $2.8 million of the total expected cost is anticipated to be taken in the fourth quarter of 2007, with the remainder to be recorded in the first quarter 2008. Breakeven on the realignment is expected in about one year, with annualized pre-tax savings projected to approximate the cost of the actions.

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.

SOURCE: CTS