Elkhart, IN…CTS Corporation (NYSE: CTS) CTS Automotive Products has been awarded a new production program for a smart actuator. The actuator will be provided to a global diesel engine manufacturer as a key part of a turbocharger system for light utility vehicles primarily for the Asian markets. Production is anticipated to begin in late 2012 with total revenues over the six-year program life to be approximately $40 million, initially starting at $3 million and ramping to $10 million annually by 2015.
The market for smart actuator technology in commercial and passenger vehicles is growing and is estimated to reach approximately $1 billion within the next few years. With a significant segment of this market in Asia, this win is expected to provide an excellent platform for other customer opportunities in the region. The awarded program is part of the family of brushless, motor-based, smart actuators that CTS has developed in response to growing market opportunities. The CTS smart actuator is being recognized globally for its precision control and durability in extreme engine environments, while also helping customers meet rigorous emissions and fuel economy standards.
CTS’ commercial markets strategy initiative resulted in its first smart actuator win for light-duty commercial markets in early 2008. More recently, CTS has won two more large programs, serving other sizes of diesel engines for commercial on-highway applications. Earlier this year, CTS also won smart actuator business for stationary industrial diesel engine applications from a manufacturer of heavy equipment, adding approximately $1.0 million of revenues annually. Total expected annual revenues from all commercial market initiative wins, so far, are expected to generate approximately $15 million of new revenue in 2012, ramping to $35 million annually starting in 2014.
CTS is a designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, computer, communications, medical, defense and aerospace and industrial markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS.
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