Tuesday, November 13, 2007

CTS to eliminate 103 positions by end of year

Inside INdiana Business reports that CTS Corp. in Elkhart will eliminate 103 positions during the fourth quarter of this year:

CTS Corporation (NYSE:CTS) today 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.

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