Sales in the third quarter were $122 million, up 8% compared to the same period in 2020.
Third quarter gross margin was 37.3%, up 490 basis points from 32.4% in the third quarter of 2020.
EBITDA margin of 21.7% was up 270 basis points from 19% in the same period last year.
Third quarter adjusted earnings per share of $0.46 were up 35% from $0.34 in the third quarter of 2020.
Operating cash flow of $21 million was down from $26 million in the third quarter of 2020.
New business awards of $179 million were solid and up from $127 million in the same period last year.
In the third quarter, our sales increased 8% to $122.4 million versus the prior period.
Excluding sales from the acquisition of Sensor Scientific, sales were up 6% organically.
Gross margin for the third quarter was 37.3%, up 490 basis points from the 32.4% in the prior year.
EBITDA margin of 31.7% was up 270 basis points from 19% in the third quarter of 2020.
Third quarter adjusted earnings per share of $0.46 were up 35% from $0.34 in the same period last year.
New business awards of $179 million were solid and up from $127 million in the same period last year.
We made tremendous progress on this front with the non-transportation related revenue moving closer to 50% of total revenue during the third quarter of 2021.
As a reminder, historically, our non-transportation related revenue was roughly 1/3 of sales, and our movement toward 50% of revenues is a meaningful shift that advanced our business across the board.
As I mentioned earlier, non-transportation sales now account for nearly 50% of our revenue, supported by our efforts to diversify the business.
We had various smaller wins for RF and 10 applications and continue to develop frequency solutions to support millimeter wave technology for 5G applications.
In the third quarter of 2021, we delivered operating cash flow of $21 million.
This past quarter, we repurchased approximately 148,000 shares for slightly less than $5 million as part of our previously announced stock buyback program.
Our sweet spot continues to be acquisition targets in the range of up to $50 million a year in sales, but we remain open for the right larger opportunities that will advance our long-term strategy.
Looking ahead, the semiconductor shortage is now expected to reduce vehicle builds by nine million to 10 million units this year.
For the U.S. light vehicle transportation market, the SAAR dropped closer to $12 million in September, and we expect approximately 13 to 13.5 million unit range for this year.
On hand days supply are now closer to 20 days, the lowest in recent history and down over 60% from the five-year average of 55 days.
European production is forecasted in the 16 million to 17 million unit range.
China volumes are expected to be in the 23 million to 24 million unit range for this year.
Our previous guidance was for sales in the range of $480 million to $500 million and adjusted earnings per share in the range of $1.70 to $1.90.
We are now updating our guidance for sales to be in the range of $495 million to $505 million, and adjusted earnings are expected to be in the range of $1.85 to $1.95.
This is our 125 anniversary, and we're very proud of our rich heritage and excited by what we can give back to our communities in the years ahead as we integrate the CTS Cares program into our culture.
Third quarter sales were $122.4 million, up 8% compared to the third quarter of 2020 and down 6% sequentially from the second quarter.
Sales to transportation customers declined by 5% compared to the third quarter of 2020 and 13% sequentially.
Conversely, sales to our other end markets increased 24% year-over-year and 3% sequentially, as the industrial, aerospace and defense end markets exhibited consecutive year-over-year double-digit growth.
As Kieran mentioned, this quarter, we have made significant advances in our diversification strategy as the sales to transportation end market represented 51% of our total revenue.
Changes in foreign exchange rate impacted our revenues favorably by approximately $1.3 million.
Our gross margin was 37.3% in the third quarter, up 490 basis points compared to the third quarter of 2020 and up 50 basis points sequentially from the second quarter of 2021.
In the third quarter, we achieved $0.03 in earnings per share in savings from our restructuring program.
We remain on track to achieve targeted annualized savings of $0.22 to $0.26 of earnings per share by the end of 2022.
SG&A and R&D expenses were $26 million or 22% of sales in the third quarter of 2021 versus $23 million or 20% of sales in the third quarter of 2020.
In the third quarter, we recorded a noncash charge of $106 million before tax as part of the U.S. pension plan termination process.
The third quarter tax rate was 28.9% as a result of the impact of the final pension settlement charge on our income statement.
We anticipate our 2021 tax rate to be in the range of 19% to 21%, excluding the impact of the pension settlement and other discrete items.
For the third quarter 2021, we reported a loss of $1.97 per share.
Adjusted earnings for the third quarter were $0.46 per diluted share compared to $0.34 per diluted share in the same period last year.
Our operating cash flow was $21 million for the third quarter of 2021 compared to $26 million in the same period last year.
Our cash position is strong with a cash balance of $129 million as of September 30, 2021, up from $92 million on December 31, 2020.
Our long-term debt balance is at $50 million, a slight decrease from the $55 million on December 31, 2020.
Our debt to capitalization ratio was at 9.9% at the end of the third quarter compared to 11.4% at the end of 2020.

Summary:
Third quarter adjusted earnings per share of $0.46 were up 35% from $0.34 in the third quarter of 2020.
In the third quarter, our sales increased 8% to $122.4 million versus the prior period.
Third quarter adjusted earnings per share of $0.46 were up 35% from $0.34 in the same period last year.
We are now updating our guidance for sales to be in the range of $495 million to $505 million, and adjusted earnings are expected to be in the range of $1.85 to $1.95.
Third quarter sales were $122.4 million, up 8% compared to the third quarter of 2020 and down 6% sequentially from the second quarter.
For the third quarter 2021, we reported a loss of $1.97 per share.
Adjusted earnings for the third quarter were $0.46 per diluted share compared to $0.34 per diluted share in the same period last year.