ELKHART, IN -- CTS today announced fourth-quarter EMS sales decreased 8% year-over-year, in part caused by flooding in Thailand that damaged a company plant.

Contract assembly sales fell 5% sequentially to $73.3 million on weakness in the communications, computer and medical markets, partially offset by increases in industrial and defense and aerospace. The segment had operating earnings of $3.1 million, up increased $2.1 million from 2010 primarily on a $3.4 million insurance claim for fire-related property damage, partially offset by the impact of lower sales related to the disruptions of the Thailand floods.

Fourth quarter Components and Sensors segment sales grew 8% from last year driven by a 17% increase in automotive sensor and actuator sales and partially offset by a 5% decrease in electronic component product sales.

For the period ended Dec. 31, overall company revenues fell 1% year-over-year to $144 million, hurt by an estimated $11 million to $13 million in lost sales due to the Thailand flooding. Fourth quarter net profits were $5.9 million, up from $4.8 million last year. The company took restructuring charges of $2.4 million during the period.

For the year, overall revenue rose 6.5% to $588.5 million. EMS segment revenue rose 14% over 2010, primarily driven by industrial sales, which grew 28%, and defense and aerospace sales, which increased by 20%. The results came despite a series of trials through the year. Besides the Thailand floods, in the second quarter, CTS’ Scotland facility experienced a fire-related disruption. CTS recorded a $2.2 million business interruption insurance recovery shown in operating expense which offsets expenses recorded in cost of sales, and recorded fire-related insurance recovery for property damage of $3.4 million.

Components and Sensors segment revenue decreased 1% year-over-year.

Full-year cash flow from operations was $22.2 million and capital expenditures were $15.6 million.

Chairman and chief executive Vinod M. Khilnani said, “We expect 2012 to benefit from key new program launches and deliver double-digit top and bottom line growth." The firm added that while the overall macro economies globally are showing weakness, various new product launches are expected to drive growth. CTS guided for 2012 sales to increase 10% to 13% over 2011

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