Auto parts supplier CTS, at center of Toyota recall, posts lower 4th-quarter earnings

CTS, at center of Toyota recall, posts lower 4Q

ELKHART, Ind. — Auto parts maker CTS Corp., which is at the center of a big Toyota recall over gas pedals CTS supplied, said Wednesday that its earnings fell 10 percent in the fourth quarter.

Toyota has recalled 2.3 million vehicles due to problems with sticking pedals made by CTS. CTS said Wednesday that there were fewer than a dozen reports of problems with its pedals, but Toyota decided to halt sales while it looks for a fix.

CTS reported net income of $4.1 million, or 12 cents per share, down from $5 million, or 15 cents per share, in the 2008 fourth quarter.

Sales slid 19 percent to $133 million, due mostly to a big decline in its electronics unit.

Sales in its automotive unit, which includes its gas pedal business, grew $13.6 million, or 44 percent, in the quarter. The company said the increase was a sign of the gradual recovery in the auto industry after the deep recession.

For all of 2009, CTS recorded a loss of $34 million, or $1.01 per share, compared with profit of $28.1 million or 81 cents per share, the year before.

CTS said it expects 2010 earnings between 45 cents and 53 cents per share, with sales up 10 percent to 15 percent.

Shares of CTS fell 21 cents, or 2.4 percent, to close at $8.42.