Still reeling from softness in its communications end-markets, CTS Corp. is eliminating an additional 140 positions and expects to take a larger-than-expected restructuring charge in its third quarter ending September.
The Elkhart, Ind., component supplier will cut the 140 jobs mostly in its communications components business, with selective reductions in corporate and other business segments. In addition, the company will transfer final processing operations for piezoelectric sensors from Albuquerque, N.M., to a new plant in Tianjin, China, by the fourth quarter of 2003.
For CTS, this is the second round of job cuts in the last two months. In August, the company announced it would cut 150 positions in its communications components business as well as discontinue customizing older and low-margin products for customers.
CTS will incur a third-quarter restructuring charge of $18.5 million, up from the $15 million to $17 million identified in August. It expects a pre-tax savings of $15 million to $17 million in 2003, up from $11 million reported earlier.The company expects to be profitable the fourth quarter of 2002.