CTS Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2012. For the quarter, the company reported net sales of $138,298,000 against $143,999,000 for the same period a year ago. Operating earnings was $12,239,000 against $7,200,000 for the same period a year ago. Earnings before income taxes were $12,724,000 against $7,210,000 for the same period a year ago. Net earnings were $8,832,000 against $5,856,000 for the same period a year ago. Net earnings per basic and diluted share were $0.26 against $0.17 for the same period a year ago. Adjusted earnings per share were $0.18 against $0.22 for the same period a year ago. The year-over-year decrease is primarily due to a higher effective tax rate in fourth quarter 2012, including a delayed U.S. research tax credit not signed into law as anticipated in 2012, but signed in early 2013, and a delay in the formal approval of a China high-technology incentive tax credit.

For the full year, the company reported net sales of $576,918,000 against $588,506,000 for the same period a year ago. Operating earnings was $26,688,000 against $25,240,000 for the same period a year ago. Earnings before income taxes were $26,942,000 against $26,337,000 for the same period a year ago. Net earnings were $20,333,000 against $20,967,000 for the same period a year ago. Net earnings per diluted share were $0.59 against $0.60 for the same period a year ago. Adjusted earnings per share were $0.64 against $0.67 for the same period a year ago, primarily due to the delay in receiving certain tax benefits of approximately $0.06 per share. Full-year 2012 cash from operations improved to $41.7 million from $22.2 million in the prior year primarily from reduced inventories and as the disruptions from the Thailand flood are now behind us. Capital expenditures were $13.5 million, or 2.3% of sales, compared to $15.6 million, or 2.6% of sales, in the prior year.

The company provided earnings guidance for the first quarter and full year of 2013. The company anticipates full-year 2013 sales to increase in the range of 12% to 15% over 2012 and diluted earnings per share to be in the range of $0.73 to $0.78. The 2013 diluted earnings per share estimate include approximately $0.05 per share of CEO transition-related costs. The company expects its gross margin percent to continue to improve another 100 to 150 basis points in 2013. D&R is expected to add sales of approximately $50 million in 2013, with EBITDA of about 8 million.

For the first quarter of 2013, results are expected to show normal seasonality with gradual improvements during the year.