----

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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 and Six Months Ended July 4, 2010 and June 28, 2009                                                                     |                                                                                        |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       |                      Unaudited Condensed Consolidated Balance Sheets                                                           | 4                                                                                           |
|       |                      - As of July 4, 2010 and December 31, 2009                                                                     |                                                                                        |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       |                      Unaudited Condensed Consolidated Statements of Cash Flows                                                 | 5                                                                                           |
|       |                      - For the Six Months Ended July 4, 2010 and June 28, 2009                                                 |                                                                                        |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       |                      Unaudited Condensed Consolidated Statements of Comprehensive Earnings/(Loss)                              | 6                                                                                           |
|       |                      - For the Three and Six Months Ended July 4, 2010 and  June 28, 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                                  | 24     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       | Item 4.                                                                                                                                                                                                                                 | Controls and Procedures                                                                     | 24     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
| PART II.   | OTHER INFORMATION                                                                                                                                                                                                                       |                                                                                        |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                 | Legal Proceedings                                                                           | 24     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       | Item 1A.                                                                                                                                                                                                                                | Risk Factors                                                                                | 25     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       | Item 4.                                                                                                                                                                                                                                 | Submission of Matters to a Vote of Security Holders                                         | 25     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
|       | Item 6.                                                                                                                                                                                                                                 | Exhibits                                                                                    | 25     |
|       |                                                                                                                                                                                                                                    |                                                                                        |   |
| SIGNATURES |                                                                                                                                                                                                                                    | 26                                                                                          |

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Table of Contents

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS/(LOSS) - UNAUDITED

|                                             |   | Three Months Ended |    |   | Six Months Ended |   |
|--------------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
|                                             |   | July 4, 2010       |    |   | June 28, 2009    |   |   | July 4, 2010 |   |   | June 28, 2009 |   |
|                                             |   |               |    |   |             |   |   |   |   |   |   |   |
| Net sales                                        |   | $                  | 138,851 |   |             | $      | 120,398 |   |   | $ | 268,254 |   |   | $ | 238,529 |   |
| Costs and expenses:                              |   |               |    |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                               |   |               | 108,511 |   |             |   | 98,520 |   |   |   | 207,435 |   |   |   | 196,822 |   |
| Selling, general and administrative expenses     |   |               | 18,283  |   |             |   | 15,243 |   |   |   | 37,832 |   |   |   | 31,863 |   |
| Research and development expenses                |   |               | 4,316   |   |             |   | 3,466 |   |   |   | 8,899 |   |   |   | 6,819 |   |
|     Restructuring charge - Note I |   |               | — |   |             |   | — |   |   |   | — |   |   |   | 2,243 |   |
|     Goodwill impairment           |   |               | — |   |             |   | — |   |   |   | — |   |   |   | 33,153 |   |

| Operating earnings/(loss)                   |   |   | 7,741  |   |   |   | 3,169  |   |   |   | 14,088 |   |   |   | (32,371 | )      |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Other (expense)/income:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Interest expense                            |   |   | (228   | )      |   |   | (471   | )      |   |   | (463   | )      |   |   | (1,359  | )      |
| Interest income                             |   |   | 81     |   |   |   | 31     |   |   |   | 134    |   |   |   | 101     |   |
| Other                                       |   |   | (337   | )      |   |   | (25    | )      |   |   | (821   | )      |   |   | (346    | )      |
| Total other expense                         |   |   | (484   | )      |   |   | (465   | )      |   |   | (1,150 | )      |   |   | (1,604  | )      |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Earnings/(loss) before income taxes    |   |   | 7,257  |   |   |   | 2,704  |   |   |   | 12,938 |   |   |   | (33,975 | )      |
| Income tax expense                     |   |   | 1,365  |   |   |   | 9,729  |   |   |   | 2,615  |   |   |   | 8,699   |   |
| Net earnings/(loss)                         |   | $      | 5,892  |   |   | $      | (7,025 | )      |   | $      | 10,323 |   |   | $      | (42,674 | )      |
| Net earnings/(loss) per share - Note J |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Basic                                       |   | $      | 0.17   |   |   | $      | (0.21  | )      |   | $      | 0.30   |   |   | $      | (1.26   | )      |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Diluted                                     |   | $      | 0.17   |   |   | $      | (0.21  | )      |   | $      | 0.30   |   |   | $      | (1.26   | )      |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Cash dividends declared per share           |   | $      | 0.03   |   |   | $      | 0.03   |   |   | $      | 0.06   |   |   | $      | 0.06    |   |
| Average common shares outstanding:          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Basic                                       |   |   | 34,048 |   |   |   | 33,779 |   |   |   | 34,001 |   |   |   | 33,762  |   |
| Diluted                                     |   |   | 34,874 |   |   |   | 33,779 |   |   |   | 34,811 |   |   |   | 33,762  |   |

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Table of Contents

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                 |   | July 4, 2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|-------------------|--------|
| ASSETS                                                                                               |   |         |    |   |              |   |
| Current Assets                                                                                       |   |         |    |   |              |   |
|   Cash and cash equivalents                                                                |   | $            | 65,234  |   |              | $      | 51,167 |   |
|   Accounts receivable, less allowances (2010 - $1,971;  2009- $2,119)            |   |         | 84,588  |   |              |   | 71,718 |   |
|   Inventories, net - Note D                                                                |   |         | 68,786  |   |              |   | 54,348 |   |
|   Other current assets                                                                     |   |         | 18,160  |   |              |   | 16,502 |   |
|      Total current assets                                                   |   |         | 236,768 |   |              |   | 193,735 |   |
| Property, plant and equipment, less accumulated depreciation (2010 - $253,021; 2009 - $264,651) |   |         | 79,338  |   |              |   | 81,120 |   |
| Other Assets                                                                                         |   |         |    |   |              |   |   |   |
|   Prepaid pension asset                                                                    |   |         | 30,542  |   |              |   | 29,373 |   |
|   Goodwill – Note L                                                                  |   |         | 500     |   |              |   | 500 |   |
|   Other intangible assets, net – Note L                                              |   |         | 32,672  |   |              |   | 33,938 |   |
|   Deferred income taxes                                                                    |   |         | 67,010  |   |              |   | 68,331 |   |
|   Other                                                                                    |   |         | 617     |   |              |   | 660 |   |
|      Total other assets                                                     |   |         | 131,341 |   |              |   | 132,802 |   |
| Total Assets                                                                                         |   | $            | 447,447 |   |              | $      | 407,657 |   |

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                               |   |   |     |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Current Liabilities                                                                                                                                                                                      |   |   |     |   |   |   |
|   Accounts payable                                                                                                                                                                             |   | $      | 68,190   |   |   | $      | 52,344 |   |
|   Accrued liabilities                                                                                                                                                                          |   |   | 39,181   |   |   |   | 38,172 |   |
|      Total current liabilities                                                                                                                                                  |   |   | 107,371  |   |   |   | 90,516 |   |
| Long-term debt  - Note E                                                                                                                                                                       |   |   | 65,900   |   |   |   | 50,400 |   |
| Other long-term obligations                                                                                                                                                                              |   |   | 17,294   |   |   |   | 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; 54,493,690 shares issued at  July 4, 2010 and     54,213,931 shares issued at December 31, 2009 |   |   | 285,202  |   |   |   | 282,491 |   |
|   Additional contributed capital                                                                                                                                                               |   |   | 36,334   |   |   |   | 37,675 |   |
|   Retained earnings                                                                                                                                                                            |   |   | 325,860  |   |   |   | 317,582 |   |
|   Accumulated other comprehensive loss                                                                                                                                                         |   |   | (93,505  | )      |   |   | (93,285 | ) |
|                                                                                                                                                                                                     |   |   | 553,891  |   |   |   | 544,463 |   |
|   Cost of common stock held in treasury (2010 and 2009 – 20,320,759 shares)                                                                                                              |   |   | (297,009 | )      |   |   | (297,009 | ) |
|   Total shareholders’ equity                                                                                                                                                             |   |   | 256,882  |   |   |   | 247,454 |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                         |   | $      | 447,447  |   |   | $      | 407,657 |   |
|   See notes to unaudited condensed consolidated financial statements.                                                                                                                          |   |   |     |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                                       | Six  Months Ended |    |
|--------------------------------------------------------------------------------------------|-----------------------------|---------|
|                                                                                       | July 4, 2010                |    |   | June 28, 2009 |   |
| Cash flows from operating activities:                                                      |                        |    |   |   |   |
| Net earnings/(loss)                                                                        | $                           | 10,323  |   |   |   | (42,674 | ) |
| Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities: |                        |    |   |   |   |   |   |
|        Depreciation and amortization                    |                        | 8,832   |   |   |   | 10,494 |   |
| Prepaid pension asset                                                                      |                        | (3,905  | ) |   |   | (3,902 | ) |
|        Equity-based compensation – Note B         |                        | 2,167   |   |   |   | 1,802 |   |
|        Restructuring and impairment charges – Note I   |                        | — |   |   |   | 2,243  |   |
|        Goodwill impairment – Note L                    |                        | — |   |   |   | 33,153  |   |

|        Amortization of retirement benefit adjustments – Note F |   | 2,500      |   |   |   | 2,644      |   |
|---------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
|        Other                                                              |   | (538       | )      |   |   | 7,395      |   |
|        Changes in assets and liabilities, net of acquisitions        |   |       |   |   |   |       |   |
|       Accounts receivable                                                 |   | (13,770    | )      |   |   | 21,852     |   |
|       Inventories                                                         |   | (14,675    | )      |   |   | 9,530      |   |
|       Other current assets                                                |   | (1,683     | )      |   |   | 772        |   |
|       Accounts payable and accrued liabilities                            |   | 17,095     |   |   |   | (27,612    | )      |
| Total adjustments                                                                                       |   | (3,977     | )      |   |   | 58,371     |   |
| Net cash provided by operating activities                                                               |   | 6,346      |   |   |   | 15,697     |   |
|                                                                                                    |   |       |   |   |   |       |   |
| Cash flows from investing activities:                                                                   |   |       |   |   |   |       |   |
| Earnout payment related to a 2008 acquisition                                                           |   | (500       | )      |   |   | —    |   |
| Capital expenditures                                                                                    |   | (6,207     | )      |   |   | (2,850     | )      |
| Proceeds from sales of assets                                                                           |   | 960        |   |   |   | 1,309      |   |
| Net cash used in investing activities                                                                   |   | (5,747     | )      |   |   | (1,541     | )      |
|                                                                                                    |   |       |   |   |   |       |   |
| Cash flows from financing activities:                                                                   |   |       |   |   |   |       |   |
| Payment of 2.125% Debentures                                                                            |   | —    |   |   |   | (32,500    | )      |
| Payments of long-term debt – Note E                                                               |   | (1,565,150 | )      |   |   | (1,433,650 | )      |
| Proceeds from borrowings of long-term debt – Note E                                               |   | 1,580,650  |   |   |   | 1,436,650  |   |
| Payments of short-term notes payable                                                                    |   | (1,631     | )      |   |   | (6,510     | )      |
| Proceeds from borrowings of short-term notes payable                                                    |   | 1,631      |   |   |   | 6,510      |   |
| Dividends paid                                                                                          |   | (2,038     | )      |   |   | (2,024     | )      |
| Exercise of stock options                                                                               |   | 92    |   |   |   | —    |   |

| Other                                                |   | (24    | )      |   |   | (914          | )      |
|------------------------------------------------------|--------|--------|--------|--------|--------|---------------|--------|
| Net cash provided by/(used in) financing activities  |   | 13,530 |   |   |   | (32,438       | )      |
|                                                 |   |   |   |   |   |          |   |
| Effect of exchange rate on cash and cash equivalents |   | (62    | )      |   |   | 489           |   |
| Net increase/(decrease) in cash and cash equivalents |   | 14,067 |   |   |   |  (17,793 | )      |
|                                                 |   |   |   |   |   |          |   |
| Cash and cash equivalents at beginning of year       |   | 51,167 |   |   |   | 44,628        |   |
| Cash and cash equivalents at end of period           | $      | 65,234 |   |   | $      | 26,835        |   |
|                                                 |   |   |   |   |   |          |   |
| Supplemental cash flow information                   |   |   |   |   |   |          |   |
| Cash paid during the period for:                     |   |   |   |   |   |          |   |
| Interest                                             | $      | 398    |   |   | $      | 533           |   |
| Income taxes—net                               | $      | 2,303  |   |   | $      | 4,198         |   |

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Table of Contents

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

|                                                        |   | Three Months Ended |   |   | Six Months Ended |
|-------------------------------------------------------------|--------|--------------------|--------|--------|------------------|
|                                                        |   | July 4, 2010       |   |   | June 28, 2009    |   |   | July 4, 2010 |   |   | June 28, 2009 |   |
| Net earnings/(loss)                                         |   | $                  | 5,892  |   |             | $ | (7,025 | ) |   | $ | 10,323 |   |   | $ | (42,674 | ) |
| Other comprehensive earnings/(loss):                        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative translation adjustment                           |   |               | (203   | )      |             |   | 2,249 |   |   |   | (1,636 | ) |   |   | 2,277 |   |
| Amortization of retirement benefit adjustments (net of tax) |   |               | 687    |   |             |   | 660 |   |   |   | 1,416 |   |   |   | 1,474 |   |
| Comprehensive earnings/(loss)                               |   | $                  | 6,376  |   |             | $ | (4,116 | ) |   | $ | 10,103 |   |   | $ | (38,923 | ) |

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Table of Contents

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED

|                   | Three Months Ended |   | Six Months Ended   |   |
|------------------------|--------------------|--------|--------------------|--------|
|  ($ in thousands) |               |   | July 4, 2010  |   |   |   | June 28, 2009  |   |   |   | July 4, 2010  |   |   |   | June 28, 2009  |   |
| Stock options          |               | $      | 1                  |   |   | $ | 13 |   |   | $ | 3 |   |   | $ | 32 |   |
| Restricted stock units |               |   | 905                |   |   |   | 846 |   |   |   | 2,164 |   |   |   | 1,770 |   |
| Total                  |               | $      | 906                |   |   | $ | 859 |   |   | $ | 2,167 |   |   | $ | 1,802 |   |

|                               |   | 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   |      |   |   | 713,513   |   |   |   | 128,350 |   |
| Restricted stock units outstanding |   |      | 550,427   |   |      |   | 281,403   |      |   |   | —   |   |   |   | — |   |
| Options exercisable                |   |      | —   |   |      |   | 276,850   |      |   |   | 713,513   |   |   |   | 128,350 |   |
| Awards available for grant         |   |      | 2,716,516 |   |      |   | 281,000   |      |   |   | —   |   |   |   | — |   |

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Table of Contents

|                             |   | July 4, 2010 |      |   | June 28, 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                        |   |         | (17,000   | )      |                           | $      | 7.70 |   |   |   | — |   |   | $ | — |   |
| Expired                          |   |         | (43,375   | )      |                           | $      | 44.79 |   |   |   | (96,925 | ) |   | $ | 21.37 |   |
| Forfeited                        |   |         | —   |   |                           | $      | — |   |   |   | — |   |   | $ | — |   |
| Outstanding at end of period     |   |         | 1,118,713 |   |                           | $      | 12.61 |   |   |   | 1,197,338 |   |   | $ | 13.98 |   |
| Exercisable at end of period     |   |         | 1,118,713 |   |                           | $      | 12.61 |   |   |   | 1,176,588 |   |   | $ | 13.98 |   |

|                           |   | July 4, 2010 |    |   | June 28, 2009                        |   |
|--------------------------------|--------|--------------|---------|--------|--------------------------------------|--------|
|                           |   | Options      |    |   | Weighted-averageGrant-DateFair Value |   |   | Options |   |   | Weighted-averageGrant-DateFair Value |   |
| Nonvested at beginning of year |   |         | 20,750  |   |                                 | $      | 6.24 |   |   |   | 74,525 |   |   | $ | 6.36 |   |
| Vested                         |   |         | (20,750 | )      |                                 | $      | 6.24 |   |   |   | (53,775 | ) |   | $ | 6.41 |   |
| Forfeited                      |   |         | — |   |                                 | $      | — |   |   |   | — |   |   | $ | — |   |
| Nonvested at end of period     |   |         | — |   |                                 | $      | — |   |   |   | 20,750 |   |   | $ | 6.24 |   |

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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 7/4/10   |                | Life (Years) |                | Price |   | At 7/4/10 |   | Price |
| $        | 7.70 – 11.11                                                                                                                                                                                                       |        |                | 710,163      |                |   |   | 3.14 |   |   | $ | 9.41 |   |   |   | 710,163 |   |   | $ | 9.41 |   |
|     | 13.68 – 16.24                                                                                                                                                                                                      |        |                | 227,800      |                |   |   | 3.23 |   |   |  $ | 14.12 |   |   |   | 227,800 |   |   |  $ | 14.12 |   |
|     | 23.00 – 25.10                                                                                                                                                                                                      |        |                | 180,250      |                |   |   | 0.79 |   |   | $ | 23.23 |   |   |   | 180,250 |   |   |  $ | 23.23 |   |
|     |                                     42.69 |        |                | 500          |                |   |   | 0.36 |   |   |  $ | 42.69 |   |   |   | 500 |   |   |  $ | 42.69 |   |

|                                        |   | July 4, 2010 |     |   | June 28, 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 |   |   |   | 390,850 |   |   | $ | 6.09 |   |
| Converted                                   |   |         | (280,495 | )      |                                 | $      | 8.97 |   |   |   | (205,591 | ) |   | $ | 10.56 |   |
| Forfeited                                   |   |         | (13,920  | )      |                                 | $      | 6.62 |   |   |   | (12,780 | ) |   | $ | 11.87 |   |
| Outstanding at end of period                |   |         | 831,830  |   |                                 | $      | 8.34 |   |   |   | 872,837 |   |   | $ | 8.70 |   |
| Weighted-average remaining contractual life |   | 5.32 years   |     |   |                                 |   |   |   | 4.9 years |   |   |   |   |   |

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| ($ in thousands) |   | Carrying Value at July 4, 2010 |   |   | Quoted Prices in Active Markets for Identical (Level 1) |   |    | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|------------------|--------|--------------------------------|--------|--------|---------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|
| Long-term debt   |   | $                              | 65,900 |   |                                                    | $      | — |                                         |   | $      | 65,900                                   |   |   | $ | — |   |

| ($ in thousands) |   | Carrying Value at December 31, 2009 |   |   | Quoted Prices in Active Markets for Identical (Level 1) |   |    | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|------------------|--------|-------------------------------------|--------|--------|---------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|
| Long-term debt   |   | $                                   | 50,400 |   |                                                    | $      | — |                                         |   | $      | 50,400                                   |   |   | $ | — |   |

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| ($ in thousands)       |   | July 4,2010 |   |   | December 31,2009 |   |
|------------------------|--------|-------------|--------|--------|------------------|--------|
| Finished goods         |   | $           | 5,807  |   |             | $      | 7,220 |   |
| Work-in-process        |   |        | 16,791 |   |             |   | 12,941 |   |
| Raw materials          |   |        | 46,188 |   |             |   | 34,187 |   |
| Total inventories, net |   | $           | 68,786 |   |             | $      | 54,348 |   |

| ($ in thousands)                                                                                       |   | July 4,2010 |   |   | December 31,2009 |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|------------------|--------|
| Revolving credit agreement, weighted-average interest rate of 1.0% (2010), and 1.1% (2009) due in 2011 |   | $           | 65,900 |   |             | $      | 50,400 |   |

|                                     |   | Three Months Ended |    |   | Six Months Ended |   |
|------------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| ($ in thousands)                         |   | July 4, 2010       |    |   | June 28, 2009    |   |   | July 4, 2010 |   |   | June 28, 2009 |   |
| PENSION PLANS                            |   |               |    |   |             |   |   |   |   |   |   |   |
| Service cost                             |   | $                  | 744     |   |             | $      | 779 |   |   | $ | 1,491 |   |   | $ | 1,558 |   |
| Interest cost                            |   |               | 3,310   |   |             |   | 3,440 |   |   |   | 6,642 |   |   |   | 6,872 |   |
| Expected return on plan assets (1)  |   |               | (6,079  | )      |             |   | (6,101 | ) |   |   | (12,162 | ) |   |   | (12,197 | ) |
| Settlement cost                          |   |               | — |   |             |   | — |   |   |   | 234 |   |   |   | — |   |
| Amortization of prior service cost       |   |               | 153     |   |             |   | 126 |   |   |   | 510 |   |   |   | 252 |   |
| Amortization of loss                     |   |               | 991     |   |             |   | 1,221 |   |   |   | 1,990 |   |   |   | 2,442 |   |
| Net pension income                       |   | $                  | (881    | )      |             | $      | (535 | ) |   | $ | (1,295 | ) |   | $ | (1,073 | ) |

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|                              |   | Three Months Ended |    |   | Six Months Ended |   |
|-----------------------------------|--------|--------------------|---------|--------|------------------|--------|
| ($ in thousands)                  |   | July 4, 2010       |    |   | June 28, 2009    |   |   | July 4, 2010 |   |   | June 28, 2009 |   |
| OTHER POSTRETIREMENT BENEFIT PLAN |   |               |    |   |             |   |   |   |   |   |   |   |
| Service cost                      |   | $                  | 3       |   |             | $      | 2 |   |   | $ | 6 |   |   | $ | 5 |   |
| Interest cost                     |   |               | 75      |   |             |   | 79 |   |   |   | 150 |   |   |   | 157 |   |
| Amortization of gain              |   |               | — |   |             |   | (25 | ) |   |   | — |   |   |   | (50 | ) |
| Net postretirement expense        |   | $                  | 78      |   |             | $      | 56 |   |   | $ | 156 |   |   | $ | 112 |   |

| ($ in thousands)                  |   | EMS     |    |    | Components and Sensors |    |    | Total   |   |
|-----------------------------------|--------|---------|---------|---------|------------------------|---------|---------|---------|--------|
| Second Quarter of 2010            |   |    |    |    |                   |    |    |    |   |
| Net sales to external customers   |   | $       | 66,624  |    |                   | $       | 72,227  |    |   | $ | 138,851 |   |
| Segment operating (loss)/earnings |   |  $ | (201    | )  |                   |  $ | 7,942   |    |   |  $ | 7,741 |   |
| Total assets                      |   |  $ | 128,248 |    |                   |  $ | 319,199 |    |   |  $ | 447,447 |   |
|                              |   |    |    |    |                   |    |    |    |   |   |   |   |
| Second Quarter of 2009            |   |    |    |    |                   |    |    |    |   |   |   |   |
| Net sales to external customers   |   | $       | 70,807  |    |                   | $       | 49,591  |    |   | $ | 120,398 |   |
| Segment operating earnings        |   |  $ | 1,081   |    |                   |  $ | 2,088   |    |   |  $ | 3,169 |   |
| Total assets                      |   |  $ | 125,491 |    |                   |  $ | 268,864 |    |   |  $ | 394,355 |   |
|                              |   |    |    |    |                   |    |    |    |   |   |   |   |
| First Six Months of 2010          |   |    |    |    |                   |    |    |    |   |   |   |   |
| Net sales to external customers   |   | $       | 122,583 |    |                   | $       | 145,671 |    |   | $ | 268,254 |   |
| Segment operating (loss)/earnings |   |  $ | (2,879  | )       |                   |  $ | 16,967  |    |   |  $ | 14,088 |   |
| Total assets                      |   |  $ | 128,248 |    |                   |  $ | 319,199 |    |   |  $ | 447,447 |   |
|                              |   |    |    |    |                   |    |    |    |   |   |   |   |
| First Six Months of 2009          |   |    |    |    |                   |    |    |    |   |   |   |   |
| Net sales to external customers   |   | $       | 146,629 |    |                   | $       | 91,900  |    |   | $ | 238,529 |   |
| Segment operating earnings/(loss) |   |  $ | 4,345   |    |                   |  $ | (1,320  | )  |   |  $ | 3,025 |   |
| Total assets                      |   |  $ | 125,491 |    |                   |  $ | 268,864 |    |   |  $ | 394,355 |   |

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|                                |   | Three Months Ended |    |   | Six Months Ended |   |
|-------------------------------------|--------|--------------------|---------|--------|------------------|--------|
| ($ in thousands)                    |   | July 4, 2010       |    |   | June 28, 2009    |   |   | July 4, 2010 |   |   | June 28, 2009 |   |
| Total segment operating earnings    |   | $                  | 7,741   |   |             | $      | 3,169 |   |   | $ | 14,088 |   |   | $ | 3,025 |   |
| Restructuring and related charges   |   |               | — |   |             |   | — |   |   |   | — |   |   |   | (2,243 | ) |
| Goodwill impairment                 |   |               | — |   |             |   | — |   |   |   | — |   |   |   | (33,153 | ) |
| Interest expense                    |   |               | (228    | )      |             |   | (471 | ) |   |   | (463 | ) |   |   | (1,359 | ) |
| Interest income                     |   |               | 81      |   |             |   | 31 |   |   |   | 134 |   |   |   | 101 |   |
| Other expense                       |   |               | (337    | )      |             |   | (25 | ) |   |   | (821 | ) |   |   | (346 | ) |
| Earnings/(loss) before income taxes |   | $                  | 7,257   |   |             | $      | 2,704 |   |   | $ | 12,938 |   |   | $ | (33,975 | ) |

| ($ 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 |   |

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|  ($ 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(Numerator) |    |    | Shares(in thousands) (Denominator) |   |    | Per Share Amount |   |
|---------------------------------------------|--------|-------------------------|---------|---------|------------------------------------|--------|---------|------------------|--------|
| Second Quarter 2010                         |   |                    |    |    |                               |   |    |             |   |
| Basic EPS                                   |   | $                       | 5,892   |    |                               |   | 34,048  |             |   | $ | 0.17 |   |
| Effect of dilutive securities:              |   |                    |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                    | — |    |                               |   | 826     |             |   |   |   |   |
| Diluted EPS                                 |   |  $                 | 5,892   |    |                               |   | 34,874  |             |   | $ | 0.17 |   |
|                                        |   |                    |    |    |                               |   |    |             |   |   |   |   |
| Second Quarter 2009                         |   |                    |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                       | (7,025  | )  |                               |   | 33,779  |             |   | $ | (0.21 | ) |
| Effect of dilutive securities:              |   |                    |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                    | — |    |                               |   | — |             |   |   |   |   |
| Diluted EPS                                 |   | $                       | (7,025  | )  |                               |   | 33,779  |             |   | $ | (0.21 | )  |
|                                        |   |                    |    |    |                               |   |    |             |   |   |   |   |
| First Six Months of 2010                    |   |                    |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                       | 10,323  |    |                               |   | 34,001  |             |   | $ | 0.30 |   |
| Effect of dilutive securities:              |   |                    |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                    | — |    |                               |   | 810     |             |   |   |   |   |
| Diluted EPS                                 |   |  $                 | 10,323  |    |                               |   | 34,811  |             |   | $ | 0.30 |   |
|                                        |   |                    |    |    |                               |   |    |             |   |   |   |   |
| First Six Months of 2009                    |   |                    |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                       | (42,674 | )  |                               |   | 33,762  |             |   | $ | (1.26 | )  |
| Effect of dilutive securities:              |   |                    |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                    | — |    |                               |   | — |             |   |   |   |   |
| Diluted EPS                                 |   | $                       | (42,674 | )  |                               |   | 33,762  |             |   | $ | (1.26 | )  |

|                                                                      |   | Three Months Ended |    | Six Months Ended |   |
|---------------------------------------------------------------------------|--------|--------------------|---------|------------------|--------|
| (Number of Shares in Thousands)                                           |   | July 4, 2010       |    | June 28, 2009    |   | July 4, 2010 |   | June 28, 2009 |   |
| Stock options where the assumed proceeds exceeds the average market price |   |               | 602     |             |   | 1,197 |   |   | 602 |   |   | 1,241 |   |
| Restricted stock units                                                    |   |               | — |             |   | 637 |   |   | — |   |   | 566 |   |
| Securities related to the subordinated convertible debt                   |   |               | — |             |   | 786 |   |   | — |   |   | 1,476 |   |

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|                                       |   | July 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 |   |                     | $      | (18,785 | ) |   | $ | 51,084 |   |   | $ | (17,544 | ) |
| Patents                                    |   |                  | 10,319 |   |                     |   | (10,319 | ) |   |   | 10,319 |   |   |   | (10,319 | ) |
| Other intangibles                          |   |                  | 500    |   |                     |   | (127 | ) |   |   | 500 |   |   |   | (102 | ) |
| Total                                      |   |                  | 61,903 |   |                     |   | (29,231 | ) |   |   | 61,903 |   |   |   | (27,965 | ) |
| Goodwill                                   |   |                  | 500    |   |                     |   | — |   |   |   | 500 |   |   |   | — |   |
| Total other intangible assets and goodwill |   | $                     | 62,403 |   |                     | $      | (29,231 | ) |   | $ | 62,403 |   |   | $ | (27,965 | ) |

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

| ·   | Total sales in the second quarter of 2010 of $138.9 million were reported through two segments, Components and Sensors and EMS.  Sales increased by $18.5 million, or 15.3%, in the second quarter of 2010 from the second quarter of 2009.  Sales in the Components and Sensors segment increased by 45.6% versus the second quarter of 2009, while sales in the EMS segment decreased by 5.9%. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross margin as a percent of sales was 21.9% in the second quarter of 2010 compared to 18.2% in the second quarter of 2009 due to favorable segment sales mix and improved absorption of fixed costs on higher sales volumes. Components and Sensors segment sales, which inherently generates a higher gross margin, increased to 52.0% of total company sales in the second quarter of 2010 compared to 41.2% of total sales in the same period of 2009. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling, general and administrative (“SG&A”) expenses were $18.3 million, or 13.2% of sales, in the second quarter of 2010 versus $15.2 million, or 12.7% of sales, in the second quarter of 2009.  This increase of $3.1 million primarily relates to higher sales. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Research and development (“R&D”) expenses were $4.3 million, or 3.1% of sales, in the second quarter of 2010 compared to $3.5 million, or 2.9% of sales, in the second quarter of 2009.  The slight increase as a percentage of sales was primarily to develop and launch new growth initiatives. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The second quarter 2010 effective tax rate was 18.8% compared to 359.8% in the second quarter of 2009.  The 2009 rate included a tax expense of $9.1 million related to cash repatriation.  Excluding this item, the second quarter 2009 adjusted tax rate was 24.1%. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings were $5.9 million, or $0.17 per diluted share, in the second quarter of 2010 compared with a loss of $7.0 million, or $0.21 per share, in the second quarter of 2009 which included a tax expense of $0.27 per share related to cash repatriation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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 |   |
|-----------------------------------|--------|--------------------------|--------|---------|--------|---------|--------|-------------------|--------|
| Second Quarter 2010               |   |                     |   |    |   |    |   |              |   |
| Sales                             |   | $                        | 72,227 |    |   | $       | 66,624 |              |   | $ | 138,851 |   |
| Segment operating earnings/(loss) |   | $                   | 7,942  |    |   | $  | (201   | )            |   | $  | 7,741 |   |
| % of sales                        |   |                     | 11.0   | %  |   |    | (0.3   | )%           |   |   | 5.6 | %  |
|                              |   |                     |   |    |   |    |   |              |   |   |   |   |
| Second Quarter 2009               |   |                     |   |    |   |    |   |              |   |   |   |   |
| Sales                             |   | $                        | 49,591 |    |   | $       | 70,807 |              |   | $ | 120,398 |   |
| Segment operating earnings        |   | $                        | 2,088  |    |   | $  | 1,081  |              |   | $  | 3,169 |   |
| % of sales                        |   |                     | 4.2    | %  |   |    | 1.5    | %            |   |   | 2.6 | %  |

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Table of Contents

|                                                  |   | Quarter ended |    |   |          |    |
|-------------------------------------------------------|--------|---------------|---------|--------|---------------|---------|
|  ($ in thousands, except net earnings per share) |   | July 4, 2010  |    |   | June 28, 2009 |    |   | Increase(Decrease) |   |
| Net sales                                             |   | $             | 138,851 |   |          | $       | 120,398 |   |   | $ | 18,453 |   |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Gross margin                                          |   | $        | 30,340  |   |          | $  | 21,878 |   |   | $  | 8,462 |   |
| % of net sales                                        |   |          | 21.9    | %      |          |    | 18.2 | % |   |   | 3.7 | % |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Selling, general and administrative expenses          |   | $        | 18,283  |   |          | $  | 15,243 |   |   | $  | 3,040 |   |
| % of net sales                                        |   |          | 13.2    | %      |          |    | 12.7 | % |   |   | 0.5 | % |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Research and development expenses                     |   | $             | 4,316   |   |          | $  | 3,466 |   |   | $  | 850 |   |
| % of net sales                                        |   |          | 3.1     | %      |          |    | 2.9 | % |   |   | 0.2 | % |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Operating earnings                                    |   | $             | 7,741   |   |          | $  | 3,169 |   |   | $  | 4,572 |   |
| % of net sales                                        |   |          | 5.6     | %      |          |    | 2.6 | % |   |   | 3.0 | % |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Income tax expense                                    |   | $        | 1,365   |   |          | $  | 9,729 |   |   | $  | (8,364 | )  |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Net earnings/(loss)                                   |   | $             | 5,892   |   |          | $  | (7,025 | )  |   | $  | 12,917 |   |
| % of net sales                                        |   |          | 4.2     | %      |          |    | (5.8 | )% |   |   | 10.0 | % |
|                                                  |   |          |    |   |          |    |   |   |   |   |   |   |
| Net earnings/(loss) per diluted share                 |   | $             | 0.17    |   |          |  $ | (0.21) |   |   | $ | 0.38 |   |

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| For the Quarter Ended June 28, 2009 |   |   |   |
|-------------------------------------|--------|--------|--------|
| Calculation of effective tax rate   |   |   |   |
| Pretax earnings                     |   | $      | 2,704  |   |
| Income tax expense                  |   |   | 9,729  |   |
| Effective tax rate                  |   |   | 359.8  | % |
|                                |   |   |   |   |
| Calculation of adjusted tax rate    |   |   |   |   |
| Pretax earnings                     |   | $      | 2,704  |   |
|                                |   |   |   |   |
| Income tax expense                  |   | $      | 9,729  |   |
| Tax expense related to repatriation |   |   | (9,077 | ) |
| Adjusted tax expense                |   | $      | 652    |   |
| Adjusted tax rate                   |   |   | 24.1   | % |

| ($ in thousands)                  |   | Components & Sensors |    |     | EMS    |    |    | ConsolidatedTotal |   |
|-----------------------------------|--------|--------------------------|---------|----------|--------|---------|---------|-------------------|--------|
| First Six Months 2010             |   |                     |    |     |   |    |    |              |   |
| Sales                             |   | $                        | 145,671 |     |   | $       | 122,583 |              |   | $ | 268,254 |   |
| Segment operating earnings/(loss) |   | $                   | 16,967  |     |   | $  | (2,879  | )            |   | $  | 14,088 |   |
| % of sales                        |   |                     | 11.6    | %   |   |    | (2.3    | )%           |   |   | 5.3 | %  |
|                              |   |                     |    |     |   |    |    |              |   |   |   |   |
| First Six Months 2009             |   |                     |    |     |   |    |    |              |   |   |   |   |
| Sales                             |   | $                        | 91,900  |     |   | $       | 146,629 |              |   | $ | 238,529 |   |
| Segment operating (loss)/earnings |   | $                   | (1,320  | )   |   | $  | 4,345   |              |   | $  | 3,025 |   |
| % of sales                        |   |                     | (1.4    | )%  |   |    | 3.0     | %            |   |   | 1.3 | %  |

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Table of Contents

|                                                  |   | Six months ended |    |   |          |    |
|-------------------------------------------------------|--------|------------------|---------|--------|---------------|---------|
|  ($ in thousands, except net earnings per share) |   | July 4, 2010     |    |   | June 28, 2009 |    |   | Increase(Decrease) |   |
| Net sales                                             |   | $                | 268,254 |   |          | $       | 238,529 |   |   | $ | 29,725 |   |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Gross margin                                          |   | $           | 60,819  |   |          | $  | 41,707 |   |   | $  | 19,112 |   |
| % of net sales                                        |   |             | 22.7    | %      |          |    | 17.5 | % |   |   | 5.2 | % |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Selling, general and administrative expenses          |   | $           | 37,832  |   |          | $  | 31,863 |   |   | $  | 5,969 |   |
| % of net sales                                        |   |             | 14.1    | %      |          |    | 13.4 | % |   |   | 0.7 | % |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Research and development expenses                     |   | $           | 8,899   |   |          | $  | 6,819 |   |   | $  | 2,080 |   |
| % of net sales                                        |   |             | 3.3     | %      |          |    | 2.9 | % |   |   | 0.4 | % |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Restructuring charge                                  |   | $           | — |   |          | $  | 2,243 |   |   | $  | (2,243 | )  |
| % of net sales                                        |   |             | — | %      |          |    | 0.9 | % |   |   | (0.9 | )% |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Goodwill impairment                                   |   | $           | — |   |          | $  | 33,153 |   |   | $  | (33,153 |  ) |
| % of net sales                                        |   |             | — | %      |          |    | 13.9 | % |   |   | (13.9 | )% |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Operating earnings/(loss)                             |   | $           | 14,088  |   |          | $  | (32,371 | )  |   | $  | 46,459 |   |
| % of net sales                                        |   |             | 5.3     | %      |          |    | (13.6 | )% |   |   | 18.9 | % |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Income tax expense                                    |   | $           | 2,615   |   |          | $  | 8,699 |   |   | $  | (6,084 | )  |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Net earnings/(loss)                                   |   | $           | 10,323  |   |          | $  | (42,674 |  ) |   | $  | 52,997 |   |
| % of net sales                                        |   |             | 3.8     | %      |          |    | (17.9 | )% |   |   | 21.7 | % |
|                                                  |   |             |    |   |          |    |   |   |   |   |   |   |
| Net earnings/(loss) per diluted share                 |   | $                | 0.30    |   |          |  $ | (1.26 | )  |   | $ | 1.56 |   |

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| For the Six-month Period Ended June 28, 2009                             |   |   |    |
|--------------------------------------------------------------------------|--------|--------|---------|
|                                                                     |   |   |    |
| Pre-tax (loss)                                                           |   | $      | (33,975 | ) |
| Income tax expense                                                       |   | $      | 8,699   |   |
| Effective tax rate                                                       |   |   | (25.6   | )% |
|                                                                     |   |   |    |   |
| Pre-tax (loss)                                                           |   | $      | (33,975 | ) |
| Add:                                                                     |   |   |    |   |
| Goodwill impairment charges                                              |   |   | 33,153  |   |
| Adjusted Pre-tax (loss)                                                  |   | $      | (822    | ) |
|                                                                     |   |   |    |   |
| Income tax expense                                                       |   | $      | 8,699   |   |
| Subtract:                                                                |   |   |    |   |
| Tax expense related to cash repatriation and goodwill impairment charges |   |   | (8,872  | ) |
| Adjusted tax (benefit)                                                   |   | $      | (173    | ) |
|                                                                     |   |   |    |   |
| Adjusted tax rate                                                        |   |   | 21.0    | % |
|                                                                     |   |   |    |   |

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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 4.   Submission of Matters to a Vote by Security Holders

| Director Nominee     |   | For    |       |   | Withheld |   |      | Broker Non-Vote |   |
|----------------------|--------|--------|------------|--------|----------|--------|-----------|-----------------|--------|
| Walter S. Catlow     |   |   | 28,540,371 |   |     |   | 790,779   |            |   |   | 1,967,841 |   |
| Lawrence J. Ciancia  |   |   | 28,628,407 |   |     |   | 702,743   |            |   |   | 1,967,841 |   |
| Thomas G. Cody       |   |   | 28,538,631 |   |     |   | 792,519   |            |   |   | 1,967,841 |   |
| Patricia K. Collawn  |   |   | 26,671,764 |   |     |   | 2,659,386 |            |   |   | 1,967,841 |   |
| Roger R. Hemminghaus |   |   | 28,744,320 |   |     |   | 586,830   |            |   |   | 1,967,841 |   |
| Michael A. Henning   |   |   | 28,635,327 |   |     |   | 695,823   |            |   |   | 1,967,841 |   |
| Vinod M. Khilnani    |   |   | 28,399,892 |   |     |   | 931,258   |            |   |   | 1,967,841 |   |
| Robert A. Profusek   |   |   | 28,651,133 |   |     |   | 680,017   |            |   |   | 1,967,841 |   |

| For        | Against | Abstained | Broker Non-Vote |
|------------|---------|-----------|-----------------|
| 31,216,051 | 62,253  | 20,687    | ------          |

Item 6.   Exhibits

|    |   |                                                                                                                    |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------|
| (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: July 27, 2010                                               |   |  Dated: July 27, 2010                                        |   |

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