ELKHART, IN -- CTS Corp. reported first-quarter EMS sales rose 42% from last year to $79.5 million on broad-based market strength.

First-quarter operating income for the contract electronics assembly unit fell 7.9% to $5.8 million. EMS sales were up 55% in defense and aerospace, 39% in industrial, 31% in communications and 14% in medical.

Sales of electronic component products increased 5% year-over-year on improved distribution, electromagnetic filter product demand and new customers. Sales of sensor and actuator products decreased 6% due to timing of certain customer program changeovers and delayed customer orders due to Japan. Overall segment sales fell 2% year-over-year.

For the period ended April 4, overall net income increased 16% to $5.1 million, on a 17% hike in revenues, to $151.5 million.

CTS chairman and chief executive Vinod Khilnani said in a press statement, “We are pleased with our first quarter performance, despite some order push outs due to the Japan earthquake and precious metal headwinds.”

CTS management reaffirmed its full-year guidance for a 9% to 13% rise in sales. The company does not currently expect any material impact on 2011 earnings related to the Japan disaster, but expects some impact in the second quarter due to production delays. However, it anticipates to recapture that income as inventories are replenished later in the year.

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