----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

|   | Indiana                                                        |   | 35-0225010                           |   |
|--------|----------------------------------------------------------------|--------|--------------------------------------|--------|
|   | (State or other jurisdiction of incorporation or organization) |   | (IRS Employer Identification Number) |   |

|   | 905 West Boulevard North, Elkhart, IN    |   | 46514      |   |
|--------|------------------------------------------|--------|------------|--------|
|   | (Address of principal executive offices) |   | (Zip Code) |   |

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Table of Contents

TABLE OF CONTENTS

|       |                                                                                                                                                                                                                                     |                                                                                        | Page   |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
| PART I.    | FINANCIAL INFORMATION                                                                                                                                                                                                                    |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                  | Financial Statements                                                                        |   |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       |                             Unaudited Condensed Consolidated Statements of Earnings               | 3                                                                                           |
|       |                     - For the Three Months Ended April 3, 2011 and April 4, 2010                                                          |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       |                             Unaudited Condensed Consolidated Balance Sheets                       | 4                                                                                           |
|       |                             - As of April 3, 2011 and December 31, 2010                           |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       |                             Unaudited Condensed Consolidated Statements of Cash Flows             | 5                                                                                           |
|       |                             - For the Three Months Ended April 3, 2011 and April 4, 2010               |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       |                             Unaudited Condensed Consolidated Statements of Comprehensive Earnings | 6                                                                                           |
|       |                     - For the Three Months Ended April 3, 2011 and April 4, 2010                                                          |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       |                             Notes to Unaudited Condensed Consolidated Financial Statements   | 7                                                                                           |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 2.                                                                                                                                                                                                                                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 3.                                                                                                                                                                                                                                  | Quantitative and Qualitative Disclosures about Market Risk                                  | 19     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 4.                                                                                                                                                                                                                                  | Controls and Procedures                                                                     | 19     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
| PART II.   | OTHER INFORMATION                                                                                                                                                                                                                        |                                                                                        |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                  | Legal Proceedings                                                                           | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 1A.                                                                                                                                                                                                                                 | Risk Factors                                                                                | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 2                                                                                                                                                                                                                                   | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 3                                                                                                                                                                                                                                   | Defaults Upon Senior Securities                                                             | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 4                                                                                                                                                                                                                                   | Removed and Reserved                                                                        | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 5                                                                                                                                                                                                                                   | Other Information                                                                           | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
|       | Item 6.                                                                                                                                                                                                                                  | Exhibits                                                                                    | 20     |
|       |                                                                                                                                                                                                                                     |                                                                                        |   |
| SIGNATURES |                                                                                                                                                                                                                                     | 21                                                                                          |

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Table of Contents

| Item 1.     Financial Statements |
|------------------------------------------------------|

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED

|                                          |   | Three Months Ended |    |
|-----------------------------------------------|--------|--------------------|---------|
|                                          |   | April 3,2011       |    |   | April 4, 2010 |   |
|                                          |   |               |    |   |   |   |
| Net sales                                     |   | $                  | 151,518 |   |   | $ | 129,403 |   |
| Costs and expenses:                           |   |               |    |   |   |   |   |   |
| Cost of goods sold                            |   |               | 122,358 |   |   |   | 98,924 |   |
| Selling, general, and administrative expenses |   |               | 18,372  |   |   |   | 19,549 |   |
| Research and development expenses             |   |               | 5,029   |   |   |   | 4,583 |   |
| Operating earnings                            |   |               | 5,759   |   |   |   | 6,347 |   |
| Other (expense)/income:                       |   |               |    |   |   |   |   |   |
| Interest expense                              |   |               | (492    | ) |   |   | (235 | ) |
| Interest income                               |   |               | 196     |   |   |   | 53 |   |
| Other                                         |   |               | 1,130   |   |   |   | (484 | ) |
| Total other income/(expense)                  |   |               | 834     |   |   |   | (666 | ) |
|                                          |   |               |    |   |   |   |   |   |
| Earnings before income taxes                  |   |               | 6,593   |   |   |   | 5,681 |   |
| Income tax expense                            |   |               | 1,477   |   |   |   | 1,250 |   |
| Net earnings                                  |   | $                  | 5,116   |   |   | $ | 4,431 |   |
|                                          |   |               |    |   |   |   |   |   |
| Net earnings per share - Note J          |   |               |    |   |   |   |   |   |
| Basic                                         |   | $                  | 0.15    |   |   | $ | 0.13 |   |
|                                          |   |               |    |   |   |   |   |   |
| Diluted                                       |   | $                  | 0.15    |   |   | $ | 0.13 |   |
|                                          |   |               |    |   |   |   |   |   |
| Cash dividends declared per share             |   | $                  | 0.03    |   |   | $ | 0.03 |   |
|                                          |   |               |    |   |   |   |   |   |
| Average common shares outstanding:            |   |               |    |   |   |   |   |   |
| Basic                                         |   |               | 34,293  |   |   |   | 33,955 |   |
| Diluted                                       |   |               | 35,075  |   |   |   | 34,749 |   |

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CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                 |   | April 3,2011 |    |   | December 31, 2010 |   |
|------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| ASSETS                                                                                               |   |         |    |   |              |   |
| Current Assets                                                                                       |   |         |    |   |              |   |
|   Cash and cash equivalents                                                                |   | $            | 74,163  |   |              | $      | 73,315 |   |
|   Accounts receivable, less allowances (2011 - $1,310; 2010 - $1,269)                      |   |         | 96,405  |   |              |   | 95,930 |   |
|   Inventories, net - Note D                                                                |   |         | 87,949  |   |              |   | 76,885 |   |
|   Other current assets                                                                     |   |         | 21,725  |   |              |   | 20,525 |   |
|      Total current assets                                                   |   |         | 280,242 |   |              |   | 266,655 |   |
| Property, plant and equipment, less accumulated depreciation (2011 - $249,478; 2010 - $244,662) |   |         | 79,976  |   |              |   | 78,213 |   |
| Other Assets                                                                                         |   |         |    |   |              |   |   |   |
|   Prepaid pension asset                                                                    |   |         | 46,226  |   |              |   | 44,075 |   |
|   Goodwill – Note L                                                                  |   |         | 500     |   |              |   | 500 |   |
|   Other intangible assets, net – Note L                                              |   |         | 31,808  |   |              |   | 31,432 |   |
|   Deferred income taxes                                                                    |   |         | 59,521  |   |              |   | 59,956 |   |
|   Other                                                                                    |   |         | 1,716   |   |              |   | 1,753 |   |
|      Total other assets                                                     |   |         | 139,771 |   |              |   | 137,716 |   |
| Total Assets                                                                                         |   | $            | 499,989 |   |              | $      | 482,584 |   |

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                         |   |   |     |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Current Liabilities                                                                                                                                                                                |   |   |     |   |   |   |
|   Accounts payable                                                                                                                                                                       |   | $      | 79,409   |   |   | $      | 75,384 |   |
|   Accrued liabilities                                                                                                                                                                    |   |   | 41,416   |   |   |   | 44,716 |   |
|      Total current liabilities                                                                                                                                            |   |   | 120,825  |   |   |   | 120,100 |   |
| Long-term debt  - Note E                                                                                                                                                                 |   |   | 80,300   |   |   |   | 70,000 |   |
| Other long-term obligations                                                                                                                                                                        |   |   | 17,368   |   |   |   | 18,234 |   |
| Shareholders’ Equity                                                                                                                                                                         |   |   |     |   |   |   |   |   |
|   Preferred stock - authorized 25,000,000 shares without par value; none issued                                                                                                          |   |   | —  |   |   |   | — |   |
|   Common stock - authorized 75,000,000 shares without par value; 54,649,451 shares issued    at April 3, 2011 and 54,517,560 shares issued at December 31, 2010 |   |   | 286,493  |   |   |   | 285,515 |   |
|   Additional contributed capital                                                                                                                                                         |   |   | 38,233   |   |   |   | 37,775 |   |
|   Retained earnings                                                                                                                                                                      |   |   | 339,610  |   |   |   | 335,524 |   |
|   Accumulated other comprehensive loss                                                                                                                                                   |   |   | (85,831  | )      |   |   | (87,555 | ) |
|                                                                                                                                                                                               |   |   | 578,505  |   |   |   | 571,259 |   |
|   Cost of common stock held in treasury (2011 and 2010 – 20,320,759 shares)                                                                                                        |   |   | (297,009 | )      |   |   | (297,009 | ) |
|   Total shareholders’ equity                                                                                                                                                       |   |   | 281,496  |   |   |   | 274,250 |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                   |   | $      | 499,989  |   |   | $      | 482,584 |   |
|   See notes to unaudited condensed consolidated financial statements.                                                                                                                    |   |   |     |   |   |   |   |   |

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                                                    |   | Three Months Ended |     |
|---------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                    |   | April 3, 2011 |     |   | April 4, 2010 |   |
| Cash flows from operating activities:                                                                   |   |               |     |   |   |   |
| Net earnings                                                                                            |   | $                  | 5,116    |   |   | $ | 4,431 |   |
| Adjustments to reconcile net earnings to net cash provided by/(used in) operating activities:           |   |               |     |   |   |   |   |   |
|        Depreciation and amortization                                 |   |               | 4,401    |   |   |   | 4,351 |   |
| Prepaid pension asset                                                                                   |   |               | (2,151   | ) |   |   | (1,826 | ) |
|        Equity-based compensation – Note B                      |   |               | 1,180    |   |   |   | 1,261 |   |
|        Amortization of retirement benefit adjustments – Note F |   |               | 1,270    |   |   |   | 1,356 |   |
|        Other                                                              |   |               | (1,228   | ) |   |   | (715 | ) |
|        Changes in assets and liabilities, net of acquisition         |   |               |     |   |   |   |   |   |
|       Accounts receivable                                                 |   |               | 1,111    |   |   |   | (2,383 | ) |
|       Inventories                                                         |   |               | (8,897   | ) |   |   | (5,686 | ) |
|       Other current assets                                                |   |               | (951     | ) |   |   | (1,506 | ) |
|       Accounts payable and accrued liabilities                            |   |               | (2,357   | ) |   |   | 6,045 |   |
| Total adjustments                                                                                       |   |               | (7,622   | ) |   |   | 897 |   |
| Net cash (used in)/provided by operating activities                                                     |   |               | (2,506   | ) |   |   | 5,328 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                   |   |               |     |   |   |   |   |   |
| Capital expenditures                                                                                    |   |               | (3,168   | ) |   |   | (1,533 | ) |
| Payment for acquisition, net of cash acquired                                                           |   |               | (2,930   | ) |   |   | — |   |
| Earnout payment related to a 2008 acquisition                                                           |   |               | —  |   |   |   | (500 | ) |
| Proceeds from sale of assets                                                                            |   |               | —  |   |   |   | 155 |   |
| Net cash used in investing activities                                                                   |   |               | (6,098   | ) |   |   | (1,878 | ) |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                   |   |               |     |   |   |   |   |   |
| Payments of long-term debt – Note E                                                               |   |               | (946,800 | ) |   |   | (762,300 | ) |
| Proceeds from borrowings of long-term debt – Note E                                               |   |               | 957,100  |   |   |   | 767,900 |   |
| Payments of short-term notes payable                                                                    |   |               | (683     | ) |   |   | (430 | ) |
| Proceeds from borrowings of short-term notes payable                                                    |   |               | 683      |   |   |   | 430 |   |
| Dividends paid                                                                                          |   |               | (1,026   | ) |   |   | (1,019 | ) |
| Exercise of stock options                                                                               |   |               | 431      |   |   |   | 92 |   |
| Other                                                                                                   |   |               | 133      |   |   |   | (144 | ) |
| Net cash provided by financing activities                                                               |   |               | 9,838    |   |   |   | 4,529 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Effect of exchange rate on cash and cash equivalents                                                    |   |               | (386     | ) |   |   | (382 | ) |
| Net increase in cash and cash equivalents                                                               |   |               | 848      |   |   |   | 7,597 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                          |   |               | 73,315   |   |   |   | 51,167 |   |
| Cash and cash equivalents at end of period                                                              |   | $                  | 74,163   |   |   | $ | 58,764 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Supplemental cash flow information                                                                      |   |               |     |   |   |   |   |   |
| Cash paid during the period for:                                                                        |   |               |     |   |   |   |   |   |
| Interest                                                                                                |   | $                  | 422      |   |   | $ | 217 |   |
| Income taxes—net                                                                                  |   | $                  | 83       |   |   | $ | 978 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - UNAUDITED

|                                                             |   | Three Months Ended |   |
|------------------------------------------------------------------|--------|--------------------|--------|
|                                                             |   | April 3, 2011 |   |   | April 4,2010 |   |
| Net earnings                                                     |   | $                  | 5,116  |   |   | $ | 4,431 |   |
| Other comprehensive earnings/(loss):                             |   |               |   |   |   |   |   |   |
| Cumulative translation adjustment                                |   |               | 988    |   |   |   | (1,433 | ) |
| Amortization of retirement benefit adjustments (net of tax) |   |               | 736    |   |   |   | 729 |   |
| Comprehensive earnings                                           |   | $                  | 6,840  |   |   | $ | 3,727 |   |

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Table of Contents

| ($ in thousands)       |   | April 3,2011 |    |   | April 4,2010 |   |
|------------------------|--------|--------------|---------|--------|--------------|--------|
| Stock options          |   | $            | — |   |         | $      | 2 |   |
| Restricted stock units |   |         | 1,180   |   |         |   | 1,259 |   |
| Total                  |   | $            | 1,180   |   |         | $      | 1,261 |   |

|                               |   | 2009 Plan |      |   | 2004 Plan |   |      | 2001 Plan |   |   | 1996 Plan |   |
|------------------------------------|--------|-----------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|-----------|--------|
| Awards originally available        |   |      | 3,400,000 |   |      |   | 6,500,000 |      |   |   | 2,000,000 |   |   |   | 1,200,000 |   |
| Stock options outstanding          |   |      | —   |   |      |   | 264,700   |      |   |   | 648,875   |   |   |   | 117,850 |   |
| Restricted stock units outstanding |   |      | 662,138   |   |      |   | 235,118   |      |   |   | —   |   |   |   | — |   |
| Options exercisable                |   |      | —   |   |      |   | 264,700   |      |   |   | 648,875   |   |   |   | 117,850 |   |
| Awards available for grant         |   |      | 2,501,079 |   |      |   | 268,500   |      |   |   | —   |   |   |   | — |   |

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Table of Contents

|                             |   | April 3, 2011 |      |   | April 4, 2010                  |   |
|----------------------------------|--------|---------------|-----------|--------|--------------------------------|--------|
|                             |   | Options       |      |   | Weighted-AverageExercise Price |   |   | Options |   |   | Weighted-AverageExercise Price |   |
| Outstanding at beginning of year |   |          | 1,093,063 |   |                           | $      | 12.61 |   |   |   | 1,179,088 |   |   | $ | 13.72 |   |
| Exercised                        |   |          | (54,513   | )      |                           | $      | 7.83 |   |   |   | (12,000 | ) |   | $ | 7.70 |   |
| Expired                          |   |          | (7,125    | )      |                           | $      | 23.00 |   |   |   | (11,875 | ) |   | $ | 30.96 |   |
| Outstanding at end of period     |   |          | 1,031,425 |   |                           | $      | 12.79 |   |   |   | 1,155,213 |   |   | $ | 13.61 |   |
| Exercisable at end of period     |   |          | 1,031,425 |   |                           | $      | 12.79 |   |   |   | 1,134,463 |   |   | $ | 13.61 |   |

|     |                |        | Options Outstanding |         | Options Exercisable |
|----------|---------------------|-------------|---------------------|--------------|---------------------|
|     |                |        |                |         |                |   | Weighted Average |   |   |   |   |   |   |   |   |
| Range of |                | Number      |                | Remaining    |                | Weighted Average |   | Number |   | Weighted Average |
| Exercise |                | Outstanding |                | Contractual  |                | Exercise |   | Exercisable |   | Exercise |
| Prices   |                | at 4/3/11   |                | Life (Years) |                | Price |   | at 4/3/11 |   | Price |
| $        | 7.70 – 11.11  |        |                | 637,000      |                |   |   | 2.46 |   |   | $ | 9.52 |   |   |   | 637,000 |   |   | $ | 9.52 |   |
| $        | 13.68 – 16.24 |        |                | 224,300      |                |   |   | 2.44 |   |   |  $ | 14.13 |   |   |   | 224,300 |   |   |  $ | 14.13 |   |
| $        | 23.00 – 25.10 |        |                | 170,125      |                |   |   | 0.05 |   |   | $ | 23.25 |   |   |   | 170,125 |   |   |  $ | 23.25 |   |

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Table of Contents

|                                        |   | April 3, 2011 |     |   | April 4, 2010                        |   |
|---------------------------------------------|--------|---------------|----------|--------|--------------------------------------|--------|
|                                        |   | RSUs          |     |   | Weighted-averageGrant-DateFair Value |   |   | RSUs |   |   | Weighted-averageGrant-DateFair Value |   |
| Outstanding at beginning of year            |   |          | 807,601  |   |                                 | $      | 8.39 |   |   |   | 854,745 |   |   | $ | 8.47 |   |
| Granted                                     |   |          | 214,100  |   |                                 | $      | 11.92 |   |   |   | 271,500 |   |   | $ | 7.52 |   |
| Converted                                   |   |          | (102,960 | )      |                                 | $      | 8.30 |   |   |   | (21,450 | ) |   | $ | 9.44 |   |
| Forfeited                                   |   |          | (21,485  | )      |                                 | $      | 8.79 |   |   |   | — |   |   | $ | — |   |
| Outstanding at end of period                |   |          | 897,256  |   |                                 | $      | 9.24 |   |   |   | 1,104,795 |   |   | $ | 8.46 |   |
| Weighted-average remaining contractual life |   | 5.5 years     |     |   |                                 |   |   |   | 4.6 years |   |   |   |   |   |

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| ($ in thousands)       |   | April 3,2011 |   |   | December 31,2010 |   |
|------------------------|--------|--------------|--------|--------|------------------|--------|
| Finished goods         |   | $            | 10,627 |   |             | $      | 8,594 |   |
| Work-in-process        |   |         | 18,917 |   |             |   | 16,394 |   |
| Raw materials          |   |         | 58,405 |   |             |   | 51,897 |   |
| Total inventories, net |   | $            | 87,949 |   |             | $      | 76,885 |   |

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| ($ in thousands)                                                                                       |   | April 3,2011 |   |   | December 31,2010 |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------------|--------|
| Revolving credit agreement, weighted-average interest rate of 1.8% (2011), and 1.1% (2010) due in 2015 |   | $            | 80,300 |   |             | $      | 70,000 |   |

|                                           |   | Pension Plans |    |   | Other PostretirementBenefit Plans |   |
|------------------------------------------------|--------|---------------|---------|--------|-----------------------------------|--------|
| ($ in thousands)                               |   | April 3,2011  |    |   | April 4, 2010                     |   |   | April 3, 2011 |   |   | April 4,2010 |   |
| Service cost                                   |   | $             | 722     |   |                              | $      | 747 |   |   | $ | 4 |   |   | $ | 3 |   |
| Interest cost                                  |   |          | 3,227   |   |                              |   | 3,332 |   |   |   | 72 |   |   |   | 75 |   |
| Expected return on plan assets (1)   |   |          | (6,059  | )      |                              |   | (6,083 | ) |   |   | — |   |   |   | — |   |
| Settlement cost                                |   |          | — |   |                              |   | 234 |   |   |   | — |   |   |   | — |   |
| Amortization of prior service cost             |   |          | 153     |   |                              |   | 357 |   |   |   | — |   |   |   | — |   |
| Amortization of loss/(gain)                    |   |          | 1,119   |   |                              |   | 999 |   |   |   | (2 | ) |   |   | — |   |
| (Income)/expense, net                          |   | $             | (838    | )      |                              | $      | (414 | ) |   | $ | 74 |   |   | $ | 78 |   |

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| ($ in thousands)                  |   | EMS    |    |   | Components and Sensors |   |    | Total  |   |
|-----------------------------------|--------|--------|---------|--------|------------------------|--------|---------|--------|--------|
| First Quarter of 2011             |   |   |    |   |                   |   |    |   |   |
| Net sales to external customers   |   | $      | 79,487  |   |                   | $      | 72,031  |   |   | $ | 151,518 |   |
| Segment operating earnings        |   |   | 3       |   |                   |   | 5,756   |   |   |   | 5,759 |   |
| Total assets                      |   |   | 146,584 |   |                   |   | 353,405 |   |   |   | 499,989 |   |
|                              |   |   |    |   |                   |   |    |   |   |   |   |   |
| First Quarter of 2010             |   |   |    |   |                   |   |    |   |   |   |   |   |
| Net sales to external customers   |   | $      | 55,959  |   |                   | $      | 73,444  |   |   | $ | 129,403 |   |
| Segment operating (loss)/earnings |   |   | (2,678  | )      |                   |   | 9,025   |   |   |   | 6,347 |   |
| Total assets                      |   |   | 110,060 |   |                   |   | 312,379 |   |   |   | 422,439 |   |

| ($ in thousands)                 |   | April 3, 2011 |   |   | April 4, 2010 |   |
|----------------------------------|--------|---------------|--------|--------|---------------|--------|
| Total segment operating earnings |   | $             | 5,759  |   |          | $      | 6,347 |   |
| Interest expense                 |   |          | (492   | )      |          |   | (235 | ) |
| Interest income                  |   |          | 196    |   |          |   | 53 |   |
| Other income/(expense)           |   |          | 1,130  |   |          |   | (484 | ) |
| Earnings before income taxes     |   | $             | 6,593  |   |          | $      | 5,681 |   |

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|             |   |                            |   |   |                                                   |   |    |                                         |   |   |                                     |   |   |                                 |    |   |
|------------------|--------|---------------------------------|--------|--------|--------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------------------|---------|--------|
| ($ in thousands) |   | Carrying Value at April 3, 2011 |   |   | Quoted Prices in Active Markets for Identical(Level 1) |   |    | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |   | Loss for Quarter Ended April 3, 2011 |    |
| Long-term debt   |   | $                               | 80,300 |   |                                                   | $      | — |                                         |   | $      | 80,300                                   |   |   | $                                    | — |   |   | $ | — |   |

| ($ in thousands, except per share amounts) |   | Net Earnings (Numerator) |    |   | Shares(in thousands) (Denominator) |   |   | Per Share Amount |   |
|--------------------------------------------|--------|--------------------------|---------|--------|------------------------------------|--------|--------|------------------|--------|
| First Quarter 2011                         |   |                     |    |   |                               |   |   |             |   |
| Basic earnings per share                   |   | $                        | 5,116   |   |                               |   | 34,293 |             |   | $ | 0.15 |   |
| Effect of dilutive securities:             |   |                     |    |   |                               |   |   |             |   |   |   |   |
| Equity-based compensation plans            |   |                     | — |   |                               |   | 782    |             |   |   |   |   |
| Diluted earnings per share                 |   | $                        | 5,116   |   |                               |   | 35,075 |             |   | $ | 0.15 |   |
|                                       |   |                     |    |   |                               |   |   |             |   |   |   |   |
| First Quarter 2010                         |   |                     |    |   |                               |   |   |             |   |   |   |   |
| Basic loss per share                       |   | $                        | 4,431   |   |                               |   | 33,955 |             |   | $ | 0.13 |   |
| Effect of dilutive securities:             |   |                     |    |   |                               |   |   |             |   |   |   |   |
| Equity-based compensation plans            |   |                     | — |   |                               |   | 794    |             |   |   |   |   |
| Diluted loss per share                     |   | $                        | 4,431   |   |                               |   | 34,749 |             |   | $ | 0.13 |   |

|                                                                                                        |   | Three Months Ended |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|
| (Number of shares in thousands)                                                                             |   | April 3,2011       |   |   | April 4,2010 |   |
| Stock options where the assumed proceeds exceed the average market price of common shares during the period |   |               | 394    |   |   |   | 901 |   |

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|                                       |   | April 3, 2011         |   |   | December 31, 2010        |    |
|--------------------------------------------|--------|-----------------------|--------|--------|--------------------------|---------|
| ($ in thousands)                           |   | Gross Carrying Amount |   |   | Accumulated Amortization |    |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |
| Amortized intangible assets:               |   |                  |   |   |                     |    |   |   |   |   |   |   |
| Customer lists/relationships               |   | $                     | 51,821 |   |                     | $       | (20,603 | ) |   | $ | 51,084 |   |   | $ | (19,999 | ) |
| Patents                                    |   |                  | 10,319 |   |                     |    | (10,319 | ) |   |   | 10,319 |   |   |   | (10,319 | ) |
| Other intangibles                          |   |                  | 770    |   |                     |    | (180 | ) |   |   | 500 |   |   |   | (153 | ) |
| Total                                      |   |                  | 62,910 |   |                     |    | (31,102 | ) |   |   | 61,903 |   |   |   | (30,471 | ) |
| Goodwill                                   |   |                  | 500    |   |                     |    | — |   |   |   | 500 |   |   |   | — |   |
| Total other intangible assets and goodwill |   | $                     | 63,410 |   |                     |  $ | (31,102 | ) |   | $ | 62,403 |   |   | $ | (30,471 | ) |

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”)

| ·   | Net sales in the first quarter of 2011 of $151.5 million were reported through two segments, Components and Sensors and Electronic Manufacturing Services (“EMS”).  Net sales increased by $22.1 million, or 17.1%, in the first quarter of 2011 from the first quarter of 2010.  Net sales in the Components and Sensors segment decreased by 1.9% versus the first quarter of 2010, while net sales in the EMS segment increased by 42.0%. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross margin as a percent of net sales was 19.2% in the first quarter of 2011 compared to 23.6% in the first quarter of 2010.  The decrease in gross margin resulted from a more pronounced shift in segment mix as the Components and Sensors segment percent of total sales declined to 47.5% of consolidated sales from 56.8% in the same period 2010.  This reduction resulted in part from first quarter 2010 having higher service volumes related to Toyota, as well as 2011 first quarter reflecting unfavorable product mix, higher commodity prices and initial ramp-up costs for new program introductions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling, general and administrative (“SG&A”) expenses were $18.4 million, or 12.1% of net sales, in the first quarter of 2011 versus $19.5 million, or 15.1% of net sales, in the first quarter of 2010. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Research and development (“R&D”) expenses were $5.0 million, or 3.3% of net sales, in the first quarter of 2011 compared to $4.6 million, or 3.5% of net sales, in the first quarter of 2010. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest and other income was $0.8 million in the first quarter of 2011 compared to $0.7 million interest and other expense in the same quarter of 2010.  The year over year improvement resulted primarily from a $1.6 million favorable foreign exchange rate driven impact, partially offset by higher interest expense. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Income tax expense and the effective tax rate of the first quarter of 2011 were $1.5 million and 22.4%, respectively, versus $1.3 million and 22.0% in the same quarter of 2010. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings were $5.1 million, or $0.15 per diluted share, in the first quarter of 2011.  This compares with $4.4 million, or $0.13 per diluted share, in the first quarter of 2010. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Inventory valuation, the allowance for doubtful accounts, and other accrued liabilities |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | Long-lived and intangible assets valuation, and depreciation/amortization periods |
|--------------------|-----------------------------------------------------------------------------------|

| ·   | Income taxes |
|--------------------|--------------|

| ·   | Retirement plans |
|--------------------|------------------|

| ·   | Equity-based compensation |
|--------------------|---------------------------|

| ($ in thousands)                  |   | Components & Sensors |   |    | EMS    |    |   | ConsolidatedTotal |   |
|-----------------------------------|--------|--------------------------|--------|---------|--------|---------|--------|-------------------|--------|
| First Quarter 2011                |   |                     |   |    |   |    |   |              |   |
| Net sales                         |   | $                        | 72,031 |    |   | $       | 79,487 |              |   | $ | 151,518 |   |
| Segment operating earnings        |   | $                        | 5,756  |    |   | $  | 3      |              |   | $  | 5,759 |   |
| % of Net sales                    |   |                     | 8.0    | %  |   |    | 0.0    | %            |   |   | 3.8 | %  |
|                              |   |                     |   |    |   |    |   |              |   |   |   |   |
| First Quarter 2010                |   |                     |   |    |   |    |   |              |   |   |   |   |
| Net sales                         |   | $                        | 73,444 |    |   | $       | 55,959 |              |   | $ | 129,403 |   |
| Segment operating earnings/(loss) |   | $                        | 9,025  |    |   | $  | (2,678 | )                 |   | $  | 6,347 |   |
| % of Net sales                    |   |                     | 12.3   | %  |   |    | (4.8   | )%                |   |   | 4.9 | %  |

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|                                                  |   | Quarter ended |    |   |               |    |
|-------------------------------------------------------|--------|---------------|---------|--------|--------------------|---------|
|  ($ in thousands, except net earnings per share) |   | April 3,2011  |    |   | April 4, 2010 |    |   | Increase(Decrease) |   |
| Net sales                                             |   | $             | 151,518 |   |               | $       | 129,403 |   |   | $ | 22,115 |   |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Gross margin                                          |   | $        | 29,160  |   |               | $       | 30,479 |   |   | $  | (1,319 | ) |
| % of net sales                                        |   |          | 19.2    | %      |               |    | 23.6 | % |   |   | (4.4 | )% |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Selling, general and administrative expenses          |   | $        | 18,372  |   |               | $       | 19,549 |   |   | $  | (1,177 | ) |
| % of net sales                                        |   |          | 12.1    | %      |               |    | 15.1 | % |   |   | (3.0 | )% |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Research and development expenses                     |   | $             | 5,029   |   |               | $       | 4,583 |   |   | $  | 446 |   |
| % of net sales                                        |   |          | 3.3     | %      |               |    | 3.5 | % |   |   | (0.2 | )% |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Operating earnings                                    |   | $             | 5,759   |   |               | $  | 6,347 |   |   | $  | (588 | ) |
| % of net sales                                        |   |          | 3.8     | %      |               |    | 4.9 | % |   |   | (1.1 | )% |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Interest and other income/(expense)                   |   | $             | 834     |   |               | $  | (666 | ) |   | $  | 1,500 |   |
| % of net sales                                        |   |          | 0.6     | %      |               |    | (0.5 | )% |   |   | 1.1 | % |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Income tax expense                                    |   | $        | 1,477   |   |               | $  | 1,250 |   |   | $  | 227 |   |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Net earnings                                          |   | $             | 5,116   |   |               | $  | 4,431 |   |   | $  | 685 |   |
| % of net sales                                        |   |          | 3.4     | %      |               |    | 3.4 | % |   |   | - |   |
|                                                  |   |          |    |   |               |    |   |   |   |   |   |   |
| Net earnings per diluted share                        |   | $             | 0.15    |   |               |  $ | 0.13 |   |   | $ | 0.02 |   |

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| ($ in thousands)                                                                                                  |   | April 3,2011 |   |   | December 31,2010 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------------|--------|
| Revolving credit agreement, weighted-average interest rate of 1.8% (2011), and 1.1%  (2010) due in 2015 |   | $            | 80,300 |   |             | $      | 70,000 |   |

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

| Item 4.     Controls and Procedures |
|---------------------------------------------------------|

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PART II - OTHER INFORMATION

| Item 1.      Legal Proceedings |
|---------------------------------------------------------|

Item 1A.   Risk Factors

Item 2.      Unregistered sales of Equity Securities and Use of Proceeds

Item 3.      Default Upon Senior Securities

Item 4.      (Removed and Reserved)

Item 5.      Other Information

Item 6.       Exhibits

| (10)(a) | 2010 – 2011 Performance Restricted Stock Unit Plan.                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                          |
| (31)(a) | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|    |                                                                                                                          |
| (31)(b) | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                      |
|    |                                                                                                                          |
| (32)(a) | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       |
|    |                                                                                                                          |
| (32)(b) | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

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SIGNATURES

| CTS Corporation                                                                    |   | CTS Corporation                                                   |   |
|------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                               |   |                                                              |   |
| /s/ Richard G. Cutter III                                                          |   | /s/ Donna L. Belusar                                              |   |
| Richard G. Cutter IIIVice President, Law and Business Affairs, Corporate Secretary |   | Donna L. BelusarSenior Vice President and Chief Financial Officer |   |
|                                                                               |   |                                                              |   |
| Dated: April 27, 2011                                                              |   |  Dated: April 27, 2011                                       |   |

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