----

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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

|       |                                                                                                                                                                                                                                      |                                                                                        | Page   |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
| PART I.    | FINANCIAL INFORMATION                                                                                                                                                                                                                     |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                   | Financial Statements                                                                        | 3      |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Statements of Earnings/(Loss)               | 3                                                                                           |
|       |                    - For the Three Months Ended April 4, 2010 and March 29, 2009                                                                |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Balance Sheets                              | 4                                                                                           |
|       |                            - As of April 4, 2010 and December 31, 2009                                  |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Statements of Cash Flows               | 5                                                                                           |
|       |                            - For the Three Months Ended April 4, 2010 and March 29, 2009                |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Statements of Comprehensive Earnings/(Loss) | 6                                                                                           |
|       |                    - For the Three Months Ended April 4, 2010 and  March 29, 2009                                                     |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Notes to Unaudited Condensed Consolidated Financial Statements               | 7                                                                                           |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 2.                                                                                                                                                                                                                                   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 3.                                                                                                                                                                                                                                   | Quantitative and Qualitative Disclosures about Market Risk                                  | 22     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 4.                                                                                                                                                                                                                                   | Controls and Procedures                                                                     | 22     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
| PART II.   | OTHER INFORMATION                                                                                                                                                                                                                         |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                   | Legal Proceedings                                                                           | 22     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 1A.                                                                                                                                                                                                                                  | Risk Factors                                                                                | 24     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 2.                                                                                                                                                                                                                                   | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 24     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 6.                                                                                                                                                                                                                                   | Exhibits                                                                                    | 24     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
| SIGNATURES |                                                                                                                                                                                                                                      | 25                                                                                          |

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Table of Contents

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS/(LOSS) - UNAUDITED

|                                          |   | Three Months Ended |    |
|-----------------------------------------------|--------|--------------------|---------|
|                                          |   | April 4,2010       |    |   | March 29, 2009 |   |
|                                          |   |               |    |   |   |   |
| Net sales                                     |   | $                  | 129,403 |   |   | $ | 118,131 |   |
| Costs and expenses:                           |   |               |    |   |   |   |   |   |
| Cost of goods sold                            |   |               | 98,924  |   |   |   | 98,302 |   |
| Selling, general, and administrative expenses |   |               | 19,549  |   |   |   | 16,620 |   |
| Research and development expenses             |   |               | 4,583   |   |   |   | 3,353 |   |
| Restructuring charge – Note I           |   |               | — |   |   |   | 2,243 |   |
| Goodwill impairment – Note L            |   |               | — |   |   |   | 33,153 |   |
| Operating earnings/(loss)                     |   |               | 6,347   |   |   |   | (35,540 | )  |
| Other (expense)/income:                       |   |               |    |   |   |   |   |   |
| Interest expense                              |   |               | (235    | ) |   |   | (888 | ) |
| Interest income                               |   |               | 53      |   |   |   | 70 |   |
| Other                                         |   |               | (484    | ) |   |   | (321 | ) |
| Total other expense                           |   |               | (666    | ) |   |   | (1,139 | ) |
|                                          |   |               |    |   |   |   |   |   |
| Earnings/(loss) before income taxes           |   |               | 5,681   |   |   |   | (36,679 | ) |
| Income tax expense/(benefit)                  |   |               | 1,250   |   |   |   | (1,030 | ) |
| Net earnings/(loss)                           |   | $                  | 4,431   |   |   | $ | (35,649 | ) |
|                                          |   |               |    |   |   |   |   |   |
| Net earnings/(loss) per share - Note J   |   |               |    |   |   |   |   |   |
| Basic                                         |   | $                  | 0.13    |   |   | $ | (1.06 | ) |
|                                          |   |               |    |   |   |   |   |   |
| Diluted                                       |   | $                  | 0.13    |   |   | $ | (1.06 | ) |
|                                          |   |               |    |   |   |   |   |   |
| Cash dividends declared per share             |   | $                  | 0.03    |   |   | $ | 0.03 |   |
|                                          |   |               |    |   |   |   |   |   |
| Average common shares outstanding:            |   |               |    |   |   |   |   |   |
| Basic                                         |   |               | 33,955  |   |   |   | 33,744 |   |
| Diluted                                       |   |               | 34,749  |   |   |   | 33,744 |   |

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Table of Contents

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                 |   | April 4,2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| ASSETS                                                                                               |   |         |    |   |              |   |
| Current Assets                                                                                       |   |         |    |   |              |   |
|   Cash and cash equivalents                                                                |   | $            | 58,764  |   |              | $      | 51,167 |   |
|   Accounts receivable, less allowances (2010 - $2,459; 2009- $2,119)                       |   |         | 74,073  |   |              |   | 71,718 |   |
|   Inventories, net - Note D                                                                |   |         | 60,000  |   |              |   | 54,348 |   |
|   Other current assets                                                                     |   |         | 18,004  |   |              |   | 16,502 |   |
|      Total current assets                                                   |   |         | 210,841 |   |              |   | 193,735 |   |
| Property, plant and equipment, less accumulated depreciation (2010 - $263,578; 2009 - $264,651) |   |         | 78,600  |   |              |   | 81,120 |   |
| Other Assets                                                                                         |   |         |    |   |              |   |   |   |
|   Prepaid pension asset                                                                    |   |         | 31,198  |   |              |   | 29,373 |   |
|   Goodwill – Note L                                                                  |   |         | 500     |   |              |   | 500 |   |
|   Other intangible assets, net – Note L                                              |   |         | 33,305  |   |              |   | 33,938 |   |
|   Deferred income taxes                                                                    |   |         | 67,543  |   |              |   | 68,331 |   |
|   Other                                                                                    |   |         | 452     |   |              |   | 660 |   |
|      Total other assets                                                     |   |         | 132,998 |   |              |   | 132,802 |   |
| Total Assets                                                                                         |   | $            | 422,439 |   |              | $      | 407,657 |   |

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                |   |   |     |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Current Liabilities                                                                                                                                                                                       |   |   |     |   |   |   |
|   Accounts payable                                                                                                                                                                              |   | $      | 59,531   |   |   | $      | 52,344 |   |
|   Accrued liabilities                                                                                                                                                                           |   |   | 36,697   |   |   |   | 38,172 |   |
|      Total current liabilities                                                                                                                                                   |   |   | 96,228   |   |   |   | 90,516 |   |
| Long-term debt  - Note E                                                                                                                                                                        |   |   | 56,000   |   |   |   | 50,400 |   |
| Other long-term obligations                                                                                                                                                                               |   |   | 19,016   |   |   |   | 19,287 |   |
| Shareholders’ Equity                                                                                                                                                                                |   |   |     |   |   |   |   |   |
|   Preferred stock - authorized 25,000,000 shares without par value; none issued                                                                                                                 |   |   | —  |   |   |   | — |   |
|   Common stock - authorized 75,000,000 shares without par value; 54,300,840 shares issued at  April 4, 2010     and 54,213,931 shares issued at December 31, 2009 |   |   | 283,576  |   |   |   | 282,491 |   |
|   Additional contributed capital                                                                                                                                                                |   |   | 37,623   |   |   |   | 37,675 |   |
|   Retained earnings                                                                                                                                                                             |   |   | 320,994  |   |   |   | 317,582 |   |
|   Accumulated other comprehensive loss                                                                                                                                                          |   |   | (93,989  | )      |   |   | (93,285 | ) |
|                                                                                                                                                                                                      |   |   | 548,204  |   |   |   | 544,463 |   |
|   Cost of common stock held in treasury (2010 and 2009 – 20,320,759 shares)                                                                                                               |   |   | (297,009 | )      |   |   | (297,009 | ) |
|   Total shareholders’ equity                                                                                                                                                              |   |   | 251,195  |   |   |   | 247,454 |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                          |   | $      | 422,439  |   |   | $      | 407,657 |   |
|   See notes to unaudited condensed consolidated financial statements.                                                                                                                           |   |   |     |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                                                    |   | Three Months Ended |     |
|---------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                    |   | April 4, 2010      |     |   | March 29, 2009 |   |
|                                                                                                    |   |               |     |   |   |   |
| Cash flows from operating activities:                                                                   |   |               |     |   |   |   |
| Net earnings/(loss)                                                                                     |   | $                  | 4,431    |   |   | $ | (35,649 | ) |
| Adjustments to reconcile net earnings/(loss) to net cash provided by/(used in) operating activities:    |   |               |     |   |   |   |   |   |
|        Depreciation and amortization                                 |   |               | 4,351    |   |   |   | 5,265 |   |
| Prepaid pension asset                                                                                   |   |               | (1,826   | ) |   |   | (1,951 | ) |
|        Equity-based compensation – Note B                      |   |               | 1,261    |   |   |   | 943 |   |
|        Restructuring and impairment charges – Note I           |   |               | —  |   |   |   | 2,243 |   |
|        Goodwill impairment – Note L                            |   |               | —  |   |   |   | 33,153 |   |
|        Amortization of retirement benefit adjustments – Note F |   |               | 1,356    |   |   |   | 1,322 |   |
|        Other                                                              |   |               | (715     | )  |   |   | (80 | ) |
|        Changes in assets and liabilities, net of acquisitions        |   |               |     |   |   |   |   |   |
|       Accounts receivable                                                 |   |               | (2,383   | ) |   |   | 17,326 |   |
|       Inventories                                                         |   |               | (5,686   | ) |   |   | 315 |   |
|       Other current assets                                                |   |               | (1,506   | ) |   |   | (1,732 | ) |
|       Accounts payable and accrued liabilities                            |   |               | 6,045    |   |   |   | (25,157 | ) |
| Total adjustments                                                                                       |   |               | 897      |   |   |   | 31,647 |   |
| Net cash provided by/(used in) operating activities                                                     |   |               | 5,328    |   |   |   | (4,002 | ) |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                   |   |               |     |   |   |   |   |   |
| Earnout payment related to a 2008 acquisition                                                           |   |               | (500     | ) |   |   | — |   |
| Capital expenditures                                                                                    |   |               | (1,533   | ) |   |   | (1,425 | ) |
| Proceeds from sales of assets                                                                           |   |               | 155      |   |   |   | 198 |   |
| Net cash used in investing activities                                                                   |   |               | (1,878   | ) |   |   | (1,227 | ) |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                   |   |               |     |   |   |   |   |   |
| Payments of long-term debt – Note E                                                               |   |               | (762,300 | ) |   |   | (615,800 | ) |
| Proceeds from borrowings of long-term debt – Note E                                               |   |               | 767,900  |   |   |   | 621,300 |   |
| Payments of short-term notes payable                                                                    |   |               | (430     | ) |   |   | (4,672 | ) |
| Proceeds from borrowings of short-term notes payable                                                    |   |               | 430      |   |   |   | 4,869 |   |
| Dividends paid                                                                                          |   |               | (1,019   | ) |   |   | (1,012 | ) |
| Exercise of stock options                                                                               |   |               | 92       |   |   |   | — |   |
| Other                                                                                                   |   |               | (144     | ) |   |   | (17 | ) |
| Net cash provided by financing activities                                                               |   |               | 4,529    |   |   |   | 4,668 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Effect of exchange rate on cash and cash equivalents                                                    |   |               | (382     | ) |   |   | 555 |   |
| Net increase/(decrease) in cash and cash equivalents                                                    |   |               | 7,597    |   |   |   | (6 | ) |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                          |   |               | 51,167   |   |   |   | 44,628 |   |
| Cash and cash equivalents at end of period                                                              |   | $                  | 58,764   |   |   | $ | 44,622 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |
| Supplemental cash flow information                                                                      |   |               |     |   |   |   |   |   |
| Cash paid during the period for:                                                                        |   |               |     |   |   |   |   |   |
| Interest                                                                                                |   | $                  | 217      |   |   | $ | 271 |   |
| Income taxes - net                                                                                      |   | $                  | 978      |   |   | $ | 1,946 |   |
|                                                                                                    |   |               |     |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS/ (LOSS) - UNAUDITED

|                                                             |   | Three Months Ended |   |
|------------------------------------------------------------------|--------|--------------------|--------|
|                                                             |   | April 4, 2010 |   |   | March 29,2009 |   |
| Net earnings/(loss)                                              |   | $                  | 4,431  |   |   | $ | (35,649 | ) |
| Other comprehensive earnings/(loss):                             |   |               |   |   |   |   |   |   |
| Cumulative translation adjustment                                |   |               | (1,433 | ) |   |   | 28 |   |
| Amortization of retirement benefit adjustments (net of tax) |   |               | 729    |   |   |   | 814 |   |
| Comprehensive earnings/(loss)                                    |   | $                  | 3,727  |   |   | $ | (34,807 | ) |

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Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

| ($ in thousands)       |   | April 4,2010 |   |   | March 29,2009 |   |
|------------------------|--------|--------------|--------|--------|---------------|--------|
| Stock options          |   | $            | 2      |   |          | $      | 19 |   |
| Restricted stock units |   |         | 1,259  |   |          |   | 924 |   |
| Total                  |   | $            | 1,261  |   |          | $      | 943 |   |

|                               |   | 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          |   |      | —   |   |      |   | 276,850   |      |   |   | 718,513   |   |   |   | 159,850 |   |
| Restricted stock units outstanding |   |      | 685,950   |   |      |   | 418,845   |      |   |   | —   |   |   |   | — |   |
| Options exercisable                |   |      | —   |   |      |   | 256,100   |      |   |   | 718,513   |   |   |   | 159,850 |   |
| Awards available for grant         |   |      | 2,701,050 |   |      |   | 281,000   |      |   |   | —   |   |   |   | — |   |

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Table of Contents

|                             |   | April 4, 2010 |      |   | March 29, 2009                 |   |
|----------------------------------|--------|---------------|-----------|--------|--------------------------------|--------|
|                             |   | Options       |      |   | Weighted-AverageExercise Price |   |   | Options |   |   | Weighted-AverageExercise Price |   |
| Outstanding at beginning of year |   |          | 1,179,088 |   |                           | $      | 13.72 |   |   |   | 1,294,263 |   |   | $ | 14.53 |   |
| Exercised                        |   |          | (12,000   | )      |                           | $      | 7.70 |   |   |   | — |   |   |   | — |   |
| Expired                          |   |          | (11,875   | )      |                           | $      | 30.96 |   |   |   | (9,500 | ) |   | $ | 22.38 |   |
| Forfeited                        |   |          | —   |   |                           |   | — |   |   |   | — |   |   |   | — |   |
| Outstanding at end of period     |   |          | 1,155,213 |   |                           | $      | 13.61 |   |   |   | 1,284,763 |   |   | $ | 14.47 |   |
| Exercisable at end of period     |   |          | 1,134,463 |   |                           | $      | 13.61 |   |   |   | 1,210,238 |   |   | $ | 14.59 |   |

|                           |   | April 4, 2010 |    |   | March 29, 2009                       |   |
|--------------------------------|--------|---------------|---------|--------|--------------------------------------|--------|
|                           |   | Options       |    |   | Weighted-averageGrant-DateFair Value |   |   | Options |   |   | Weighted-averageGrant-DateFair Value |   |
| Nonvested at beginning of year |   |          | 20,750  |   |                                 | $      | 6.24 |   |   |   | 74,525 |   |   |  $ | 12.54 |   |
| Vested                         |   |          | — |   |                                 |   | — |   |   |   | — |   |   |   | — |   |
| Forfeited                      |   |          | — |   |                                 |   | — |   |   |   | — |   |   |   | — |   |
| Nonvested at end of period (1) |   |          | 20,750  |   |                                 | $      | 6.24 |   |   |   | 74,525 |   |   |  $ | 12.54 |   |

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Table of Contents

|     |                |        | Options Outstanding |         | Options Exercisable |
|----------|---------------------|-------------|---------------------|--------------|---------------------|
|     |                |        |                |         |                |   | Weighted Average |   |   |   |   |   |   |   |   |
| Range of |                | Number      |                | Remaining    |                | Weighted Average |   | Number |   | Weighted Average |
| Exercise |                | Outstanding |                | Contractual  |                | Exercise |   | Exercisable |   | Exercise |
| Prices   |                | at 4/4/10   |                | Life (Years) |                | Price |   | At 4/4/10 |   | Price |
| $        | 7.70 – 11.11  |        |                | 715,163      |                |   |   | 3.38 |   |   | $ | 9.40 |   |   |   | 715,163 |   |   | $ | 9.40 |   |
|     | 13.68 – 16.24 |        |                | 227,800      |                |   |   | 3.48 |   |   |  $ | 14.12 |   |   |   | 207,050 |   |   |  $ | 14.16 |   |
|     | 23.00 – 25.10 |        |                | 180,250      |                |   |   | 1.05 |   |   | $ | 23.23 |   |   |   | 180,250 |   |   |  $ | 23.23 |   |
|     | 42.69 – 50.00 |        |                | 32,000       |                |   |   | 0.23 |   |   |  $ | 49.89 |   |   |   | 32,000 |   |   |  $ | 49.89 |   |

|                                        |   | April 4, 2010 |      |   | March 29, 2009                       |   |
|---------------------------------------------|--------|---------------|-----------|--------|--------------------------------------|--------|
|                                        |   | RSUs          |      |   | Weighted-averageGrant-DateFair Value |   |   | RSUs |   |   | Weighted-averageGrant-DateFair Value |   |
| Outstanding at beginning of year            |   |          | 854,745   |   |                                 | $      | 8.47 |   |   |   | 700,358 |   |   | $ | 10.76 |   |
| Granted                                     |   |          | 271,500   |   |                                 | $      | 7.52 |   |   |   | 6,000 |   |   | $ | 5.26 |   |
| Converted                                   |   |          | (21,450   | )      |                                 | $      | 9.44 |   |   |   | (38,950 | ) |   | $ | 6.47 |   |
| Forfeited                                   |   |          | —   |   |                                 | $      | — |   |   |   | (6,450 | ) |   | $ | 12.11 |   |
| Outstanding at end of period                |   |          | 1,104,795 |   |                                 | $      | 8.46 |   |   |   | 660,958 |   |   | $ | 10.95 |   |
| Weighted-average remaining contractual life |   | 4.6 years     |      |   |                                 |   |   |   | 5.5 years |   |   |   |   |   |

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Table of Contents

| ($ in thousands) |   | Carrying Value at April 4, 2010 |   |   | 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 4, 2010 |    |
|------------------|--------|---------------------------------|--------|--------|---------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|--------|--------------------------------------|---------|
| Long-term debt   |   | $                               | 56,000 |   |                                                    | $      | — |                                         |   | $      | 56,000                                   |   |   | $                                    | — |   |   | $ | — |   |

| ($ in thousands)       |   | April 4,2010 |   |   | December 31,2009 |   |
|------------------------|--------|--------------|--------|--------|------------------|--------|
| Finished goods         |   | $            | 6,553  |   |             | $      | 7,220 |   |
| Work-in-process        |   |         | 13,956 |   |             |   | 12,941 |   |
| Raw materials          |   |         | 39,491 |   |             |   | 34,187 |   |
| Total inventories, net |   | $            | 60,000 |   |             | $      | 54,348 |   |

| ($ in thousands)                                                                                       |   | April 4,2010 |   |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------------|--------|
| Revolving credit agreement, weighted-average interest rate of 0.9% (2010), and 1.1% (2009) due in 2011 |   | $            | 56,000 |   |             | $      | 50,400 |   |

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|                                           |   | Pension Plans |   |   | Other PostretirementBenefit Plans |   |
|------------------------------------------------|--------|---------------|--------|--------|-----------------------------------|--------|
| ($ in thousands)                               |   | April 4,2010  |   |   | March 29, 2009                    |   |   | April 4, 2010 |   |   | March 29, 2009 |   |
| Service cost                                   |   | $             | 747    |   |                              | $      | 779 |   |   | $ | 3 |   |   | $ | 3 |   |
| Interest cost                                  |   |          | 3,332  |   |                              |   | 3,432 |   |   |   | 75 |   |   |   | 78 |   |
| Expected return on plan assets (1)   |   |          | (6,083 | )      |                              |   | (6,096 | ) |   |   | — |   |   |   | — |   |
| Settlement cost                                |   |          | 234    |   |                              |   | — |   |   |   | — |   |   |   | — |   |
| Amortization of prior service cost             |   |          | 357    |   |                              |   | 126 |   |   |   | — |   |   |   | — |   |
| Amortization of loss/(gain)                    |   |          | 999    |   |                              |   | 1,221 |   |   |   | — |   |   |   | (25 | )  |
| (Income)/expense, net                          |   | $             | (414   | )      |                              | $      | (538 | ) |   | $ | 78 |   |   | $ | 56 |   |

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| ($ in thousands)                  |   | EMS    |    |   | Components and Sensors |   |    | Total   |   |
|-----------------------------------|--------|--------|---------|--------|------------------------|--------|---------|---------|--------|
| 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 |   |
|                              |   |   |    |   |                   |   |    |    |   |   |   |   |
| First Quarter of 2009             |   |   |    |   |                   |   |    |    |   |   |   |   |
| Net sales to external customers   |   | $      | 75,822  |   |                   | $      | 42,309  |    |   | $ | 118,131 |   |
| Segment operating earnings/(loss) |   |   | 3,264   |   |                   |   | (3,408  | )  |   |   | (144 | )  |
| Total assets                      |   |   | 139,597 |   |                   |   | 296,063 |    |   |   | 435,660 |   |

| ($ in thousands)                                |   | First Quarter2010 |    |   | First Quarter2009 |   |
|-------------------------------------------------|--------|------------------------|---------|--------|-------------------|--------|
| Total segment operating earnings/(loss)         |   | $                      | 6,347   |   |              | $      | (144 | ) |
| Restructuring and restructuring-related charges |   |                   | — |   |              |   | (2,243 | ) |
| Goodwill impairment                             |   |                   | — |   |              |   | (33,153 | ) |
| Interest expense                                |   |                   | (235    | )      |              |   | (888 | ) |
| Interest income                                 |   |                   | 53      |   |              |   | 70 |   |
| Other expense                                   |   |                   | (484    | )      |              |   | (321 | ) |
| Earnings/(loss) before income taxes             |   | $                      | 5,681   |   |              | $      | (36,679 | ) |

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| ($ in millions)                                                 March 2009 Plan |   | PlannedCosts |    |   | Actual incurred throughMarch 29, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|---------------------------------------|--------|
| Workforce reduction                                                                                                                                                                                                                                                                                                                  |   | $            | 1.9     |   |                                  | $      | 2.1 |   |
| Asset impairments                                                                                                                                                                                                                                                                                                                    |   |         | — |   |                                  |   | 0.1 |   |
| Total restructuring and impairment charge                                                                                                                                                                                                                                                                                            |   | $            | 1.9     |   |                                  | $      | 2.2 |   |

|  ($ in millions)                                                March 2009 Plan |   |   |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|
| Restructuring liability at January 1, 2009                                                                                                                                                                                                                                                                                      |   | $      | — |   |
| Restructuring and restructuring-related charges, excluding asset impairments and write-offs                                                                                                                                                                                                                                     |   |   | 2.1     |   |
| Cost paid                                                                                                                                                                                                                                                                                                                       |   |   | (2.1    | ) |
| Restructuring liability at December 31, 2009                                                                                                                                                                                                                                                                                    |   | $      | — |   |

| ($ in thousands, except per share amounts) |   | Net Earnings/(loss) (Numerator) |    |    | Shares(in thousands) (Denominator) |   |    | Per Share Amount |   |
|--------------------------------------------|--------|---------------------------------|---------|---------|------------------------------------|--------|---------|------------------|--------|
| First Quarter 2010                         |   |                            |    |    |                               |   |    |             |   |
| Basic earnings per share                   |   | $                               | 4,431   |    |                               |   | 33,955  |             |   | $ | 0.13 |   |
| Effect of dilutive securities:             |   |                            |    |    |                               |   |    |             |   |   |   |   |
| Equity-based compensation plans            |   |                            | — |    |                               |   | 794     |             |   |   |   |   |
| Diluted earnings per share                 |   | $                               | 4,431   |    |                               |   | 34,749  |             |   | $ | 0.13 |   |
|                                       |   |                            |    |    |                               |   |    |             |   |   |   |   |
| First Quarter 2009                         |   |                            |    |    |                               |   |    |             |   |   |   |   |
| Basic loss per share                       |   | $                               | (35,649 | )  |                               |   | 33,744  |             |   | $ | (1.06 | ) |
| Effect of dilutive securities:             |   |                            |    |    |                               |   |    |             |   |   |   |   |
| Convertible debt                           |   |                            | — |    |                               |   | — |             |   |   |   |   |
| Equity-based compensation plans            |   |                            | — |    |                               |   | — |             |   |   |   |   |
| Diluted loss per share                     |   | $                               | (35,649 | )  |                               |   | 33,744  |             |   | $ | (1.06 | ) |

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|                                                                                                        |   | Three Months Ended |    |
|-------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
| (Number of shares in thousands)                                                                             |   | April 4,2010       |    |   | March 29,2009 |   |
| Stock options where the assumed proceeds exceed the average market price of common shares during the period |   |               | 901     |   |   |   | 1,285 |   |
| Restricted Stock Units                                                                                      |   |               | — |   |   |   | 495 |   |
| Securities related to the subordinated convertible debt                                                     |   |               | — |   |   |   | 2,167 |   |

|                                       |   | April 4, 2010         |   |   | December 31, 2009        |   |
|--------------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|
| ($ in thousands)                           |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |
| Amortized intangible assets:               |   |                  |   |   |                     |   |   |   |   |   |   |   |
| Customer lists/relationships               |   | $                     | 51,084 |   |                     | $      | (18,165 | ) |   | $ | 51,084 |   |   | $ | (17,544 | ) |
| Patents                                    |   |                  | 10,319 |   |                     |   | (10,319 | ) |   |   | 10,319 |   |   |   | (10,319 | ) |
| Other intangibles                          |   |                  | 500    |   |                     |   | (114 | ) |   |   | 500 |   |   |   | (102 | ) |
| Total                                      |   |                  | 61,903 |   |                     |   | (28,598 | ) |   |   | 61,903 |   |   |   | (27,965 | ) |
| Goodwill                                   |   |                  | 500    |   |                     |   | — |   |   |   | 500 |   |   |   | — |   |
| Total other intangible assets and goodwill |   | $                     | 62,403 |   |                     |   | (28,598 | ) |   | $ | 62,403 |   |   | $ | (27,965 | ) |

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

| ·   | Total sales in the first quarter of 2010 of $129.4 million were reported through two segments, Components and Sensors and EMS.  Sales increased by $11.3 million, or 9.5%, in the first quarter of 2010 from the first quarter of 2009.  Sales in the Components and Sensors segment increased by 73.6% versus the first quarter of 2009, while sales in the EMS segment decreased by 26.2% compared to the first quarter of 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross margin as a percent of sales was 23.6% in the first quarter of 2010 compared to 16.8% in the first quarter of 2009 primarily due to higher sales in our Components and Sensors segment resulting in a favorable segment sales mix, and an improved cost structure.  The Components and Sensors segment, which inherently generates a higher gross margin, increased to 56.8% of total company sales in the first quarter of 2010 compared to 35.8% of total sales in the same period of 2009. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling, general and administrative (“SG&A”) expenses were $19.5 million in the first quarter of 2010 compared to $16.6 million in the first quarter of 2009.  This increase reflects increased spending to support higher sales in the Components & Sensors segment and the reinstatement of certain compensation-related items that were temporarily suspended in the first quarter of 2009 due to the recessionary economic environment. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Research and development (“R&D”) expenses were $4.6 million in the first quarter of 2010 compared to $3.4 million in the first quarter of 2009.  R&D expenses are primarily focused on expanded applications and new product development, as well as current product and process enhancements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The effective tax rate for first quarter 2010 was 22.0% compared to (2.8%) in the first quarter of 2009.  The 2009 rate included the impact of our goodwill impairment.  Excluding this goodwill impairment the first quarter 2009 effective tax rate was 23.4%. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings were $4.4 million, or $0.13 per diluted share, in the first quarter of 2010 compared with a loss of $35.6 million, or $1.06 per share, in the first quarter of 2009.  The 2009 results included $33.2 million, or $0.98 per share, for non-cash goodwill impairment and $2.2 million, or $0.05 per share, of restructuring charges. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Inventory valuation, 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    |   |   |  Total |   |
|-----------------------------------|--------|--------------------------|--------|----------|--------|--------|--------|-------------|--------|
| First Quarter 2010                |   |                     |   |     |   |   |   |        |   |
| Sales                             |   | $                        | 73,444 |     |   | $      | 55,959 |        |   | $ | 129,403 |   |
| Segment operating earnings/(loss) |   |                     | 9,025  |     |   |   | (2,678 | )      |   |   | 6,347 |   |
| % of sales                        |   |                     | 12.3   | %   |   |   | (4.8   | )%     |   |   | 4.9 | %  |
|                              |   |                     |   |     |   |   |   |        |   |   |   |   |
| First Quarter 2009                |   |                     |   |     |   |   |   |        |   |   |   |   |
| Sales                             |   | $                        | 42,309 |     |   | $      | 75,822 |        |   | $ | 118,131 |   |
| Segment operating (loss)/earnings |   |                     | (3,408 | )   |   |   | 3,264  |        |   |   | (144 | )  |
| % of sales                        |   |                     | (8.1   | )%  |   |   | 4.3    | %      |   |   | (0.1 | )%  |

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|                                                         |   | Three months ended |    |   |           |   |
|--------------------------------------------------------------|--------|--------------------|---------|--------|----------------|--------|
|  ($ in thousands, except net earnings/(loss) per share) |   | April 4, 2010 |    |   | March 29, 2009 |   |   | Increase(Decrease) |   |
| Net sales                                                    |   | $                  | 129,403 |   |           | $      | 118,131 |   |   | $ | 11,272 |   |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Gross margin                                                 |   |               | 30,479  |   |           |   | 19,829 |   |   |   | 10,650 |   |
| % of net sales                                               |   |               | 23.6    | %      |           |   | 16.8 | % |   |   | 6.8 | % |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                 |   |               | 19,549  |   |           |   | 16,620 |   |   |   | 2,929 |   |
| % of net sales                                               |   |               | 15.1    | %      |           |   | 14.1 | % |   |   | 1.0 | % |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Research and development expenses                            |   |               | 4,583   |   |           |   | 3,353 |   |   |   | 1,230 |   |
| % of net sales                                               |   |               | 3.5     | %      |           |   | 2.8 | % |   |   | 0.7 | % |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Restructuring charge                                         |   |               | — |   |           |   | 2,243 |   |   |   | (2,243 | )  |
| % of net sales                                               |   |               | — | %      |           |   | 1.9 | % |   |   | (1.9 | )% |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Goodwill impairment                                          |   |               | — |   |           |   | 33,153 |   |   |   | (33,153 | )  |
| % of net sales                                               |   |               | — | %      |           |   | 28.1 | % |   |   | (28.1 | )% |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Operating earnings/(loss)                                    |   |               | 6,347   |   |           |   | (35,540 | ) |   |   | 41,887 |   |
| % of net sales                                               |   |               | 4.9     | %      |           |   | (30.1 | )% |   |   | 35.0 | % |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Income tax expense/(benefit)                                 |   |               | 1,250   |   |           |   | (1,030 | )  |   |   | 2,280 |   |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Net earnings/(loss)                                          |   |               | 4,431   |   |           |   | (35,649 | ) |   |   | 40,080 |   |
| % of net sales                                               |   |               | 3.4     | %      |           |   | (30.2 | )% |   |   | 33.6 | % |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |
| Net earnings/(loss) per diluted share                        |   | $                  | 0.13    |   |           | $      | (1.06 | ) |   | $ | 1.19 |   |
|                                                         |   |               |    |   |           |   |   |   |   |   |   |   |

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| For the Quarter Ended March 29, 2009 |   |
|--------------------------------------|--------|
|                                 |   | As reported |   |   | Discrete item goodwill impairment |   |   | Net loss before goodwill impairment |   |
|                                 |   |   |   |   |   |   |   |   |   |
| Pre-tax loss                         |   | $ | (36,679 | ) |   | $ | (33,153 | ) |   | $ | (3,526 | ) |
| Tax benefit                          |   |   | (1,030 | ) |   |   | (205 | ) |   |   | (825 | ) |
| Net loss                             |   |   | (35,649 | ) |   |   | (32,948 | ) |   |   | (2,701 | ) |
| Effective tax rate                   |   |   | 2.8 | % |   |   |   |   |   |   |   |   |
| Adjusted effective tax rate          |   |   |   |   |   |   |   |   |   |   | 23.4 | % |

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Item 3.   Quantitative and Qualitative Disclosures About Market Risk

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

PART II - OTHER INFORMATION

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

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Item 1A.   Risk Factors

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

Item 6.   Exhibits

| (10)(a) |   | 2009 – 2010 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, Secretary and General Counsel |   | Donna L. BelusarSenior Vice President and Chief Financial Officer |   |
|                                                               |   |                                                              |   |
| Dated: April 28, 2010                                              |   |  Dated: April 28, 2010                                       |   |

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