----

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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 Nine Months Ended October 3, 2010 and September 27, 2009                                                 |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Balance Sheets                              | 4                                                                                           |
|       |                            - As of October 3, 2010 and December 31, 2009                                |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Statements of Cash Flows                    | 5                                                                                           |
|       |                            - For the Nine Months Ended October 3, 2010 and September 27, 2009           |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       |                            Unaudited Condensed Consolidated Statements of Comprehensive Earnings/(Loss) | 6                                                                                           |
|       |                    - For the Three and Nine Months Ended October 3, 2010 and  September 27, 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                                  | 25     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 4.                                                                                                                                                                                                                                   | Controls and Procedures                                                                     | 25     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
| PART II.   | OTHER INFORMATION                                                                                                                                                                                                                         |                                                                                        |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 1.                                                                                                                                                                                                                                   | Legal Proceedings                                                                           | 25     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 1A.                                                                                                                                                                                                                                  | Risk Factors                                                                                | 26     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
|       | Item 6.                                                                                                                                                                                                                                   | Exhibits                                                                                    | 26     |
|       |                                                                                                                                                                                                                                      |                                                                                        |   |
| SIGNATURES |                                                                                                                                                                                                                                      | 27                                                                                          |

----

Table of Contents

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS/(LOSS) - UNAUDITED

|                                         |   | Three Months Ended   |    |   | Nine Months Ended  |   |
|----------------------------------------------|--------|----------------------|---------|--------|--------------------|--------|
|                                         |   | October 3, 2010 |    |   | September 27, 2009 |   |   | October 3, 2010 |   |   | September 27, 2009 |   |
|                                         |   |                 |    |   |               |   |   |   |   |   |   |   |
| Net sales                                    |   | $                    | 139,362 |   |               | $      | 126,565 |   |   | $ | 407,616 |   |   | $ | 365,094 |   |
| Costs and expenses:                          |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                           |   |                 | 109,393 |   |               |   | 100,380 |   |   |   | 316,828 |   |   |   | 297,202 |   |
| Selling, general and administrative expenses |   |                 | 17,112  |   |               |   | 16,494 |   |   |   | 54,944 |   |   |   | 48,357 |   |
| Research and development expenses            |   |                 | 5,086   |   |               |   | 3,408 |   |   |   | 13,985 |   |   |   | 10,227 |   |
| Restructuring charge – Note I          |   |                 | — |   |               |   | — |   |   |   | — |   |   |   | 2,243 |   |
| Goodwill impairment                          |   |                 | — |   |               |   | — |   |   |   | — |   |   |   | 33,153 |   |
| Operating earnings/(loss)                    |   |                 | 7,771   |   |               |   | 6,283 |   |   |   | 21,859 |   |   |   | (26,088 | ) |
| Other (expense)/income:                      |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                             |   |                 | (254    | )      |               |   | (256 | ) |   |   | (717 | ) |   |   | (1,615 | ) |
| Interest income                              |   |                 | 105     |   |               |   | 17 |   |   |   | 239 |   |   |   | 118 |   |
| Other                                        |   |                 | 1,738   |   |               |   | (390 | ) |   |   | 917 |   |   |   | (736 | ) |
| Total other income/(expense)                 |   |                 | 1,589   |   |               |   | (629 | ) |   |   | 439 |   |   |   | (2,233 | ) |
|                                         |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings/(loss) before income taxes     |   |                 | 9,360   |   |               |   | 5,654 |   |   |   | 22,298 |   |   |   | (28,321 | ) |
| Income tax expense                      |   |                 | 2,445   |   |               |   | 1,173 |   |   |   | 5,060 |   |   |   | 9,872 |   |
| Net earnings/(loss)                          |   | $                    | 6,915   |   |               | $      | 4,481 |   |   | $ | 17,238 |   |   | $ | (38,193 | ) |
| Net earnings/(loss) per share - Note J  |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                        |   | $                    | 0.20    |   |               | $      | 0.13 |   |   | $ | 0.51 |   |   | $ | (1.13 | ) |
|                                         |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                      |   | $                    | 0.20    |   |               | $      | 0.13 |   |   | $ | 0.50 |   |   | $ | (1.13 | ) |
|                                         |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends declared per share            |   | $                    | 0.03    |   |               | $      | 0.03 |   |   | $ | 0.09 |   |   | $ | 0.09 |   |
| Average common shares outstanding:           |   |                 |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                        |   |                 | 34,181  |   |               |   | 33,873 |   |   |   | 34,060 |   |   |   | 33,799 |   |
| Diluted                                      |   |                 | 34,827  |   |               |   | 34,513 |   |   |   | 34,816 |   |   |   | 33,799 |   |

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Table of Contents

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

|                                                                                                 |   | October 3,2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| ASSETS                                                                                               |   |           |    |   |              |   |
| Current Assets                                                                                       |   |           |    |   |              |   |
|   Cash and cash equivalents                                                                |   | $              | 73,031  |   |              | $      | 51,167 |   |
|   Accounts receivable, less allowances (2010 - $1,705;  2009- $2,119)            |   |           | 90,136  |   |              |   | 71,718 |   |
|   Inventories, net - Note D                                                                |   |           | 76,562  |   |              |   | 54,348 |   |
|   Other current assets                                                                     |   |           | 19,325  |   |              |   | 16,502 |   |
|      Total current assets                                                   |   |           | 259,054 |   |              |   | 193,735 |   |
| Property, plant and equipment, less accumulated depreciation (2010 - $247,564; 2009 - $264,651) |   |           | 79,409  |   |              |   | 81,120 |   |
| Other Assets                                                                                         |   |           |    |   |              |   |   |   |
|   Prepaid pension asset                                                                    |   |           | 32,621  |   |              |   | 29,373 |   |
|   Goodwill – Note L                                                                  |   |           | 500     |   |              |   | 500 |   |
|   Other intangible assets, net – Note L                                              |   |           | 32,056  |   |              |   | 33,938 |   |
|   Deferred income taxes                                                                    |   |           | 66,662  |   |              |   | 68,331 |   |
|   Other                                                                                    |   |           | 579     |   |              |   | 660 |   |
|      Total other assets                                                     |   |           | 132,418 |   |              |   | 132,802 |   |
| Total Assets                                                                                         |   | $              | 470,881 |   |              | $      | 407,657 |   |

| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                           |   |   |     |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Current Liabilities                                                                                                                                                                                  |   |   |     |   |   |   |
|   Accounts payable                                                                                                                                                                         |   | $      | 70,534   |   |   | $      | 52,344 |   |
|   Accrued liabilities                                                                                                                                                                      |   |   | 41,201   |   |   |   | 38,172 |   |
|      Total current liabilities                                                                                                                                              |   |   | 111,735  |   |   |   | 90,516 |   |
| Long-term debt  - Note E                                                                                                                                                                   |   |   | 77,100   |   |   |   | 50,400 |   |
| Other long-term obligations                                                                                                                                                                          |   |   | 16,902   |   |   |   | 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; 54,504,141 shares issued    at October 3, 2010 and 54,213,931 shares issued at December 31, 2009 |   |   | 285,350  |   |   |   | 282,491 |   |
|   Additional contributed capital                                                                                                                                                           |   |   | 36,886   |   |   |   | 37,675 |   |
|   Retained earnings                                                                                                                                                                        |   |   | 331,750  |   |   |   | 317,582 |   |
|   Accumulated other comprehensive loss                                                                                                                                                     |   |   | (91,833  | )      |   |   | (93,285 | ) |
|                                                                                                                                                                                                 |   |   | 562,153  |   |   |   | 544,463 |   |
|   Cost of common stock held in treasury (2010 and 2009 – 20,320,759 shares)                                                                                                          |   |   | (297,009 | )      |   |   | (297,009 | ) |
|   Total shareholders’ equity                                                                                                                                                         |   |   | 265,144  |   |   |   | 247,454 |   |
| Total Liabilities and Shareholders’ Equity                                                                                                                                                     |   | $      | 470,881  |   |   | $      | 407,657 |   |
|   See notes to unaudited condensed consolidated financial statements.                                                                                                                      |   |   |     |   |   |   |   |   |

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Table of Contents

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

|                                                                                                    | Nine Months Ended |       |
|---------------------------------------------------------------------------------------------------------|-------------------|------------|
|                                                                                                    | October 3,2010    |       |   | September 27,2009 |   |
| Cash flows from operating activities:                                                                   |              |       |   |   |   |
| Net earnings/(loss)                                                                                     | $                 | 17,238     |   |   |   | (38,193 | ) |
| Adjustments to reconcile net earnings/(loss) to net cash provided by operating activities:              |              |       |   |   |   |   |   |
|        Depreciation and amortization                                 |              | 13,244     |   |   |   | 14,919 |   |
| Prepaid pension asset                                                                                   |              | (5,985     | ) |   |   | (5,853 | ) |
|        Equity-based compensation – Note B                      |              | 2,911      |   |   |   | 2,711 |   |
|        Restructuring and impairment charges – Note I           |              | —    |   |   |   | 2,243 |   |
|        Goodwill impairment – Note L                                 |              | —    |   |   |   | 33,153 |   |
|        Amortization of retirement benefit adjustments – Note F |              | 3,646      |   |   |   | 3,942 |   |
|        Other                                                              |              | (987       | ) |   |   | 7,389 |   |
|        Changes in assets and liabilities, net of acquisitions        |              |       |   |   |   |   |   |
|       Accounts receivable                                                 |              | (17,929    | ) |   |   | 20,045 |   |
|       Inventories                                                         |              | (21,587    | ) |   |   | 11,031 |   |
|       Other current assets                                                |              | (2,697     | ) |   |   | 1,600 |   |
|       Accounts payable and accrued liabilities                            |              | 20,241     |   |   |   | (18,936 | ) |
| Total adjustments                                                                                       |              | (9,143     | ) |   |   | 72,244 |   |
| Net cash provided by operating activities                                                               |              | 8,095      |   |   |   | 34,051 |   |
|                                                                                                    |              |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                   |              |       |   |   |   |   |   |
| Earnout payment related to a 2008 acquisition                                                           |              | (500       | ) |   |   | — |   |
| Capital expenditures                                                                                    |              | (10,505    | ) |   |   | (4,681 | ) |
| Proceeds from sales of assets                                                                           |              | 1,530      |   |   |   | 1,309 |   |
| Net cash used in investing activities                                                                   |              | (9,475     | ) |   |   | (3,372 | ) |
|                                                                                                    |              |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                   |              |       |   |   |   |   |   |
| Payment of 2.125% Debentures                                                                            |              | —    |   |   |   | (32,500 | ) |
| Payments of long-term debt – Note E                                                               |              | (2,488,950 | ) |   |   | (2,141,050 | ) |
| Proceeds from borrowings of long-term debt – Note E                                               |              | 2,515,650  |   |   |   | 2,142,550 |   |
| Payments of short-term notes payable                                                                    |              | (2,258     | ) |   |   | (7,755 | ) |
| Proceeds from borrowings of short-term notes payable                                                    |              | 2,258      |   |   |   | 7,755 |   |
| Dividends paid                                                                                          |              | (3,063     | ) |   |   | (3,040 | ) |
| Other                                                                                                   |              | 69         |   |   |   | (929 | ) |
| Net cash provided by/(used in) financing activities                                                     |              | 23,706     |   |   |   | (34,969 | ) |
|                                                                                                    |              |       |   |   |   |   |   |
| Effect of exchange rate on cash and cash equivalents                                                    |              | (462       | ) |   |   | (9 | ) |
| Net increase/(decrease) in cash and cash equivalents                                                    |              | 21,864     |   |   |   |  (4,299 | ) |
|                                                                                                    |              |       |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                          |              | 51,167     |   |   |   | 44,628 |   |
| Cash and cash equivalents at end of period                                                              | $                 | 73,031     |   |   | $ | 40,329 |   |
|                                                                                                    |              |       |   |   |   |   |   |
| Supplemental cash flow information                                                                      |              |       |   |   |   |   |   |
| Cash paid during the period for:                                                                        |              |       |   |   |   |   |   |
| Interest                                                                                                | $                 | 633        |   |   | $ | 728 |   |
| Income taxes—net                                                                                  | $                 | 2,370      |   |   | $ | 5,915 |   |
|                                                                                                    |              |       |   |   |   |   |   |

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Table of Contents

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

|                                                        |   | Three Months Ended |   |   | Nine Months Ended  |
|-------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|
|                                                        |   | October 3, 2010    |   |   | September 27, 2009 |   |   | October 3, 2010 |   |   | September 27, 2009 |   |
| Net earnings/(loss)                                         |   | $                  | 6,915  |   |               | $ | 4,481 |   |   | $ | 17,238 |   |   | $ | (38,193 | ) |
| Other comprehensive earnings/(loss):                        |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative translation adjustment                           |   |               | 1,090  |   |               |   | (352 | ) |   |   | (546 | ) |   |   | 1,925 |   |
| Amortization of retirement benefit adjustments (net of tax) |   |               | 582    |   |               |   | 779 |   |   |   | 1,998 |   |   |   | 2,253 |   |
| Comprehensive earnings/(loss)                               |   | $                  | 8,587  |   |               | $ | 4,908 |   |   | $ | 18,690 |   |   | $ | (34,015 | ) |

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Table of Contents

|                   |   | Three Months Ended |    |   | Nine Months Ended  |   |
|------------------------|--------|--------------------|---------|--------|--------------------|--------|
| ($ in thousands)       |   | October 32010      |    |   | September 27, 2009 |   |   | October 3.2010 |   |   | September 27,2009 |   |
| Stock options          |   | $                  | — |   |               | $      | 2 |   |   | $ | 3 |   |   | $ | 34 |   |
| Restricted stock units |   |               | 746     |   |               |   | 907 |   |   |   | 2,908 |   |   |   | 2,677 |   |
| Total                  |   | $                  | 746     |   |               | $      | 909 |   |   | $ | 2,911 |   |   | $ | 2,711 |   |

|                               |   | 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   |      |   |   | 709,013   |   |   |   | 128,350 |   |
| Restricted stock units outstanding |   |      | 515,494   |   |      |   | 265,004   |      |   |   | —   |   |   |   | — |   |
| Options exercisable                |   |      | —   |   |      |   | 276,850   |      |   |   | 709,013   |   |   |   | 128,350 |   |
| Awards available for grant         |   |      | 2,751,449 |   |      |   | 268,500   |      |   |   | —   |   |   |   | — |   |

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Table of Contents

|                             |   | October 3, 2010 |      |   | September 27, 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                          |   |            | (47,875   | )      |                           | $      | 42.30 |   |   |   | (109,675 | ) |   | $ | 21.45 |   |
| Forfeited                        |   |            | —   |   |                           | $      | — |   |   |   | — |   |   | $ | — |   |
| Outstanding at end of period     |   |            | 1,114,213 |   |                           | $      | 12.59 |   |   |   | 1,184,588 |   |   | $ | 13.89 |   |
|                             |   |            |      |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable at end of period     |   |            | 1,114,213 |   |                           | $      | 12.59 |   |   |   | 1,163,838 |   |   | $ | 13.89 |   |

|                           |   | October 3, 2010 |    |   | September 27, 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 10/3/10  |                | Life (Years) |                | Price |   | At 10/3/10 |   | Price |
| $        | 7.70 – 11.11                                                                  |        |                | 708,663      |                |   |   | 2.89 |   |   | $ | 9.41 |   |   |   | 708,663 |   |   | $ | 9.41 |   |
| $        | 13.68 – 16.24                                                                 |        |                | 227,800      |                |   |   | 2.98 |   |   |  $ | 14.12 |   |   |   | 227,800 |   |   |  $ | 14.12 |   |
|  $  | 23.00 – 25.10                                                                 |        |                | 177,250      |                |   |   | 0.55 |   |   | $ | 23.24 |   |   |   | 177,250 |   |   |  $ | 23.24 |   |
|  $  |              42.69 |        |                | 500          |                |   |   | 0.11 |   |   |  $ | 42.69 |   |   |   | 500 |   |   |  $ | 42.69 |   |

|                                        |   | October 3, 2010 |     |   | September 27, 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                                     |   |            | 282,200  |   |                                 | $      | 7.59 |   |   |   | 390,850 |   |   | $ | 6.09 |   |
| Converted                                   |   |            | (282,895 | )      |                                 | $      | 9.01 |   |   |   | (217,991 | ) |   | $ | 10.70 |   |
| Forfeited                                   |   |            | (73,552  | )      |                                 | $      | 7.49 |   |   |   | (22,180 | ) |   | $ | 1132 |   |
| Outstanding at end of period                |   |            | 780,498  |   |                                 | $      | 8.39 |   |   |   | 851,037 |   |   | $ | 8.61 |   |
| Weighted-average remaining contractual life |   | 5.3 years       |     |   |                                 |   |   |   | 4.7 years |   |   |   |   |   |

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Table of Contents

| ($ in thousands) |   | Carrying Value at October 3, 2010 |   |   | Quoted Prices in Active Markets for Identical (Level 1) |   |    | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|------------------|--------|-----------------------------------|--------|--------|---------------------------------------------------------|--------|---------|----------------------------------------------|--------|--------|------------------------------------------|--------|
| Long-term debt   |   | $                                 | 77,100 |   |                                                    | $      | — |                                         |   | $      | 77,100                                   |   |   | $ | — |   |

| ($ 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)       |   | October 3,2010 |   |   | December 31,2009 |   |
|------------------------|--------|----------------|--------|--------|------------------|--------|
| Finished goods         |   | $              | 6,357  |   |             | $      | 7,220 |   |
| Work-in-process        |   |           | 17,331 |   |             |   | 12,941 |   |
| Raw materials          |   |           | 52,874 |   |             |   | 34,187 |   |
| Total inventories, net |   | $              | 76,562 |   |             | $      | 54,348 |   |

| ($ in thousands)                                                                                                  |   | October 3,2010 |   |   | December 31,2009 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------------|--------|
| Revolving credit agreement, weighted-average interest rate of 1.0% (2010), and 1.1%  (2009) due in 2011 |   | $              | 77,100 |   |             | $      | 50,400 |   |

|                                     |   | Three Months Ended   |    |   | Nine Months Ended  |   |
|------------------------------------------|--------|----------------------|---------|--------|--------------------|--------|
| ($ in thousands)                         |   | October 3, 2010 |    |   | September 27, 2009 |   |   | October 3, 2010 |   |   | September 27, 2009 |   |
| PENSION PLANS                            |   |                 |    |   |               |   |   |   |   |   |   |   |
| Service cost                             |   | $                    | 746     |   |               | $      | 788 |   |   | $ | 2,236 |   |   | $ | 2,346 |   |
| Interest cost                            |   |                 | 3,315   |   |               |   | 3,396 |   |   |   | 9,957 |   |   |   | 10,268 |   |
| Expected return on plan assets (1)  |   |                 | (6,086  | )      |               |   | (6,108 | ) |   |   | (18,247 | ) |   |   | (18,305 | ) |
| Settlement cost                          |   |                 | — |   |               |   | — |   |   |   | 234 |   |   |   | — |   |
| Amortization of prior service cost       |   |                 | 153     |   |               |   | 126 |   |   |   | 663 |   |   |   | 378 |   |
| Amortization of loss                     |   |                 | 993     |   |               |   | 1,198 |   |   |   | 2,983 |   |   |   | 3,640 |   |
| Net pension income                       |   | $                    | (879    | )      |               | $      | (600 | ) |   | $ | (2,174 | ) |   | $ | (1,673 | ) |

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|                              |   | Three Months Ended   |    |   | Nine Months Ended  |   |
|-----------------------------------|--------|----------------------|---------|--------|--------------------|--------|
| ($ in thousands)                  |   | October 3, 2010 |    |   | September 27, 2009 |   |   | October 3, 2010 |   |   | September 27, 2009 |   |
| OTHER POSTRETIREMENT BENEFIT PLAN |   |                 |    |   |               |   |   |   |   |   |   |   |
| Service cost                      |   | $                    | 3       |   |               | $      | 3 |   |   | $ | 10 |   |   | $ | 8 |   |
| Interest cost                     |   |                 | 75      |   |               |   | 78 |   |   |   | 225 |   |   |   | 235 |   |
| Amortization of gain              |   |                 | — |   |               |   | (25 | ) |   |   | — |   |   |   | (76 | ) |
| Net postretirement expense        |   | $                    | 78      |   |               | $      | 56 |   |   | $ | 235 |   |   | $ | 167 |   |

| ($ in thousands)                  |   | EMS     |    |   | Components and Sensors |    |    | Total  |   |
|-----------------------------------|--------|---------|---------|--------|------------------------|---------|---------|--------|--------|
| Third Quarter of 2010             |   |    |    |   |                   |    |    |   |   |
| Net sales to external customers   |   | $       | 67,592  |   |                   | $       | 71,770  |   |   | $ | 139,362 |   |
| Segment operating earnings        |   |  $ | 72      |   |                   |  $ | 7,699   |   |   |  $ | 7,771 |   |
| Total assets                      |   |  $ | 137,615 |   |                   |  $ | 333,266 |   |   |  $ | 470,881 |   |
|                              |   |    |    |   |                   |    |    |   |   |   |   |   |
| Third Quarter of 2009             |   |    |    |   |                   |    |    |   |   |   |   |   |
| Net sales to external customers   |   | $       | 70,737  |   |                   | $       | 55,828  |   |   | $ | 126,565 |   |
| Segment operating earnings        |   |  $ | 2,214   |   |                   |  $ | 4,069   |   |   |  $ | 6,283 |   |
| Total assets                      |   |  $ | 122,937 |   |                   |  $ | 283,743 |   |   |  $ | 406,680 |   |
|                              |   |    |    |   |                   |    |    |   |   |   |   |   |
| First Nine Months of 2010         |   |    |    |   |                   |    |    |   |   |   |   |   |
| Net sales to external customers   |   | $       | 190,175 |   |                   | $       | 217,441 |   |   | $ | 407,616 |   |
| Segment operating (loss)/earnings |   |  $ | (2,807  | )      |                   |  $ | 24,666  |   |   |  $ | 21,859 |   |
| Total assets                      |   |  $ | 137,615 |   |                   |  $ | 333,266 |   |   |  $ | 470,881 |   |
|                              |   |    |    |   |                   |    |    |   |   |   |   |   |
| First Nine Months of 2009         |   |    |    |   |                   |    |    |   |   |   |   |   |
| Net sales to external customers   |   | $       | 217,366 |   |                   | $       | 147,728 |   |   | $ | 365,094 |   |
| Segment operating earnings        |   |  $ | 6,559   |   |                   |  $ | 2,749   |   |   |  $ | 9,308 |   |
| Total assets                      |   |  $ | 122,937 |   |                   |  $ | 283,743 |   |   |  $ | 406,680 |   |

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|                                |   | Three Months Ended   |    |   | Nine Months Ended  |   |
|-------------------------------------|--------|----------------------|---------|--------|--------------------|--------|
| ($ in thousands)                    |   | October 3, 2010 |    |   | September 27, 2009 |   |   | October 3, 2010 |   |   | September 27, 2009 |   |
| Total segment operating earnings    |   | $                    | 7,771   |   |               | $      | 6,283 |   |   | $ | 21,859 |   |   | $ | 9,308 |   |
| Restructuring and related charges   |   |                 | — |   |               |   | — |   |   |   | — |   |   |   | (2,243 | ) |
| Goodwill impairment                 |   |                 | — |   |               |   | — |   |   |   | — |   |   |   | (33,153 | ) |
| Interest expense                    |   |                 | (254    | )      |               |   | (256 | ) |   |   | (717 | ) |   |   | (1,615 | ) |
| Interest income                     |   |                 | 105     |   |               |   | 17 |   |   |   | 239 |   |   |   | 118 |   |
| Other income/(expense)              |   |                 | 1,738   |   |               |   | (390 | ) |   |   | 917 |   |   |   | (736 | ) |
| Earnings/(loss) before income taxes |   | $                    | 9,360   |   |               | $      | 5,654 |   |   | $ | 22,298 |   |   | $ | (28,321 | ) |

| ($ 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/(Loss)(Numerator) |    |    | Shares(in thousands) (Denominator) |   |    | Per Share Amount |   |
|---------------------------------------------|--------|--------------------------------|---------|---------|------------------------------------|--------|---------|------------------|--------|
| Third Quarter 2010                          |   |                           |    |    |                               |   |    |             |   |
| Basic EPS                                   |   | $                              | 6,915   |    |                               |   | 34,181  |             |   | $ | 0.20 |   |
| Effect of dilutive securities:              |   |                           |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                           | — |    |                               |   | 646     |             |   |   |   |   |
| Diluted EPS                                 |   |  $                        | 6,915   |    |                               |   | 34,827  |             |   | $ | 0.20 |   |
|                                        |   |                           |    |    |                               |   |    |             |   |   |   |   |
| Third Quarter 2009                          |   |                           |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                              | 4,481   |    |                               |   | 33,873  |             |   | $ | 0.13 |   |
| Effect of dilutive securities:              |   |                           |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                           | — |    |                               |   | 640     |             |   |   |   |   |
| Diluted EPS                                 |   | $                              | 4,481   |    |                               |   | 34,513  |             |   | $ | 0.13 |   |
|                                        |   |                           |    |    |                               |   |    |             |   |   |   |   |
| First Nine Months of 2010                   |   |                           |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                              | 17,238  |    |                               |   | 34,060  |             |   | $ | 0.51 |   |
| Effect of dilutive securities:              |   |                           |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                           | — |    |                               |   | 756     |             |   |   |   |   |
| Diluted EPS                                 |   |  $                        | 17,238  |    |                               |   | 34,816  |             |   | $ | 0.50 |   |
|                                        |   |                           |    |    |                               |   |    |             |   |   |   |   |
| First Nine Months of 2009                   |   |                           |    |    |                               |   |    |             |   |   |   |   |
| Basic EPS                                   |   | $                              | (38,193 | )  |                               |   | 33,799  |             |   | $ | (1.13 | )  |
| Effect of dilutive securities:              |   |                           |    |    |                               |   |    |             |   |   |   |   |
|   Equity-based compensation plans |   |                           | — |    |                               |   | — |             |   |   |   |   |
| Diluted EPS                                 |   | $                              | (38,193 | )  |                               |   | 33,799  |             |   | $ | (1.13 | )  |

|                                                                                 |   | Three Months Ended               |    | Nine Months Ended  |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------------------|--------|
| (Number of Shares in Thousands)                                                      |   | October 3,   2010 |    | September 27, 2009 |   | October 3,   2010 |   | September 27, 2009 |   |
| Stock options where the assumed proceeds exceeds the  average market price |   |                             | 866     |               |   | 919 |   |   | 866 |   |   | 1,134 |   |
| Restricted stock units                                                               |   |                             | — |               |   | — |   |   | — |   |   | 582 |   |
| Securities related to the subordinated convertible debt                              |   |                             | — |               |   | — |   |   | — |   |   | 984 |   |

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|                                       |   | October 3, 2010       |   |   | December 31, 2009        |   |
|--------------------------------------------|--------|-----------------------|--------|--------|--------------------------|--------|
| ($ in thousands)                           |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |   | Gross Carrying Amount |   |   | Accumulated Amortization |   |
| Amortized intangible assets:               |   |                  |   |   |                     |   |   |   |   |   |   |   |
| Customer lists/relationships               |   | $                     | 51,084 |   |                     | $      | (19,388 | ) |   | $ | 51,084 |   |   | $ | (17,544 | ) |
| Patents                                    |   |                  | 10,319 |   |                     |   | (10,319 | ) |   |   | 10,319 |   |   |   | (10,319 | ) |
| Other intangibles                          |   |                  | 500    |   |                     |   | (140 | ) |   |   | 500 |   |   |   | (102 | ) |
| Total                                      |   |                  | 61,903 |   |                     |   | (29,847 | ) |   |   | 61,903 |   |   |   | (27,965 | ) |
| Goodwill                                   |   |                  | 500    |   |                     |   | — |   |   |   | 500 |   |   |   | — |   |
| Total other intangible assets and goodwill |   | $                     | 62,403 |   |                     | $      | (29,847 | ) |   | $ | 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 third quarter of 2010 of $139.4 million were reported through two segments, Components and Sensors and EMS.  Sales increased by $12.8 million, or 10.1%, in the third quarter of 2010 from the third quarter of 2009.  Sales in the Components and Sensors segment increased by 28.6% versus the third quarter of 2009, while sales in the EMS segment decreased by 4.4%. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Gross margin as a percent of sales was 21.5% in the third quarter of 2010 compared to 20.7% in the third quarter of 2009 due to favorable segment sales mix and improved absorption of fixed costs on higher sales.  The Components and Sensors segment, which inherently generates a higher gross margin, increased to 51.5% of total company sales in the third quarter of 2010 compared to 44.1% of total sales in the same period of 2009. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Selling, general and administrative (“SG&A”) expenses were $17.1 million, or 12.3% of sales, in the third quarter of 2010 versus $16.5 million, or 13.0% of sales in the third quarter of 2009. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Research and development (“R&D”) expenses were $5.1 million, or 3.6% of sales, in the third quarter of 2010 compared to $3.4 million, or 2.7% of sales, in the third quarter of 2009.  This increase of $1.7 million reflects higher spending on new product development and new growth initiatives. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Income tax expense and effective tax rate for the third quarter of 2010 were $2.4 million and 26.1% respectively versus $1.2 million and 20.7% in the same quarter 2009. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Net earnings were $6.9 million, or $0.20 per diluted share, in the third quarter of 2010.  This compares with $4.5 million, or $0.13 per diluted share, in the third quarter of 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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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 |   |
|----------------------------|--------|--------------------------|--------|---------|--------|---------|--------|-------------------|--------|
| Third Quarter 2010         |   |                     |   |    |   |    |   |              |   |
| Sales                      |   | $                        | 71,770 |    |   | $       | 67,592 |              |   | $ | 139,362 |   |
| Segment operating earnings |   |                     | 7,699  |    |   | $  | 72     |              |   | $  | 7,771 |   |
| % of sales                 |   |                     | 10.7   | %  |   |    | 0.1    | %            |   |   | 5.6 | %  |
|                       |   |                     |   |    |   |    |   |              |   |   |   |   |
| Third Quarter 2009         |   |                     |   |    |   |    |   |              |   |   |   |   |
| Sales                      |   | $                        | 55,828 |    |   | $       | 70,737 |              |   | $ | 126,565 |   |
| Segment operating earnings |   |                     | 4,069  |    |   | $  | 2,214  |              |   | $  | 6,283 |   |
| % of sales                 |   |                     | 7.3    | %  |   |    | 3.1    | %            |   |   | 5.0 | %  |

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|                                                  |   | Quarter ended   |                                                            |   |               |    |
|-------------------------------------------------------|--------|-----------------|-----------------------------------------------------------------|--------|--------------------|---------|
|  ($ in thousands, except net earnings per share) |   | October 3, 2010 |                                                            |   | September 27, 2009 |    |   | Increase(Decrease) |   |
| Net sales                                             |   | $               | 139,362                                                         |   |               | $       | 126,565 |   |   | $ | 12,797 |   |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Gross margin                                          |   | $          | 29,969                                                          |   |               | $  | 26,185 |   |   | $  | 3,784 |   |
| % of net sales                                        |   |            | 21.5                                                            | %      |               |    | 20.7 | % |   |   | 0.8 | % |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Selling, general and administrative expenses          |   | $          | 17,112                                                          |   |               | $  | 16,494 |   |   | $  | 618 |   |
| % of net sales                                        |   |            | 12.3                                                            | %      |               |    | 13.0 | % |   |   | (0.7 | )% |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Research and development expenses                     |   | $               | 5,086                                                           |   |               | $  | 3,408 |   |   | $  | 1,678 |   |
| % of net sales                                        |   |            | 3.6                                                             | %      |               |    | 2.7 | % |   |   | 0.9 | % |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Operating earnings                                    |   | $               | 7,771                                                           |   |               | $  | 6,283 |   |   | $  | 1,488 |   |
| % of net sales                                        |   |            | 5.6                                                             | %      |               |    | 5.0 | % |   |   | 0.6 | % |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Interest and other income/(expense)                   |   | $               | 1,589                                                           |   |               | $  | (629 |  ) |   | $  | 2,218 |   |
| % of net sales                                        |   |            | 1.1                                                             | %      |               |    | (0.5 | )% |   |   | 1.6 | % |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Income tax expense                                    |   | $          | 2,445                                                           |   |               | $  | 1,173 |   |   | $  | 1,272 |   |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Net earnings                                          |   | $               | 6,915                                                           |   |               | $  | 4,481 |   |   | $  | 2,434 |   |
| % of net sales                                        |   |            |           5.0 | %      |               |    | 3.5 | % |   |   | 1.5 | % |
|                                                  |   |            |                                                            |   |               |    |   |   |   |   |   |   |
| Net earnings per diluted share                        |   | $               | 0.20                                                            |   |               |  $ | 0.13 |   |   | $ | 0.07 |   |

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| ($ in thousands)                  |   | Components & Sensors |    |    | EMS    |    |    | ConsolidatedTotal |   |
|-----------------------------------|--------|--------------------------|---------|---------|--------|---------|---------|-------------------|--------|
| First Nine Months 2010            |   |                     |    |    |   |    |    |              |   |
| Sales                             |   | $                        | 217,441 |    |   | $       | 190,175 |              |   | $ | 407,616 |   |
| Segment operating earnings/(loss) |   | $                   | 24,666  |    |   | $  | (2,807  | )            |   | $  | 21,859 |   |
| % of sales                        |   |                     | 11.3    | %  |   |    | (1.5    | )%           |   |   | 5.4 | %  |
|                              |   |                     |    |    |   |    |    |              |   |   |   |   |
| First Nine Months 2009            |   |                     |    |    |   |    |    |              |   |   |   |   |
| Sales                             |   | $                        | 147,728 |    |   | $       | 217,366 |              |   | $ | 365,094 |   |
| Segment operating earnings        |   | $                   | 2,749   |    |   | $  | 6,559   |              |   | $  | 9,308 |   |
| % of sales                        |   |                     | 1.9     | %  |   |    | 3.0     | %            |   |   | 2.5 | %  |

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|                                                  |   | Nine months ended    |    |   |               |    |
|-------------------------------------------------------|--------|----------------------|---------|--------|--------------------|---------|
|  ($ in thousands, except net earnings per share) |   | October 3, 2010 |    |   | September 27, 2009 |    |   | Increase(Decrease) |   |
| Net sales                                             |   | $                    | 407,616 |   |               | $       | 365,094 |   |   | $ | 42,522 |   |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Gross margin                                          |   | $               | 90,788  |   |               | $  | 67,892 |   |   | $  | 22,896 |   |
| % of net sales                                        |   |                 | 22.3    | %      |               |    | 18.6 | % |   |   | 3.7 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Selling, general and administrative expenses          |   | $               | 54,944  |   |               | $  | 48,357 |   |   | $  | 6,587 |   |
| % of net sales                                        |   |                 | 13.5    | %      |               |    | 13.2 | % |   |   | 0.3 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Research and development expenses                     |   | $               | 13,985  |   |               | $  | 10,227 |   |   | $  | 3,758 |   |
| % of net sales                                        |   |                 | 3.4     | %      |               |    | 2.8 | % |   |   | 0.6 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Restructuring charge                                  |   | $               | — |   |               | $  | 2,243 |   |   | $  | (2,243 | )  |
| % of net sales                                        |   |                 | — | %      |               |    | 0.6 | % |   |   | (0.6 | )% |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Goodwill impairment                                   |   | $               | — |   |               | $  | 33,153 |   |   | $  | (33,153 |  ) |
| % of net sales                                        |   |                 | — | %      |               |    | 9.1 | % |   |   | (9.1 | )% |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Operating earnings/(loss)                             |   | $               | 21,859  |   |               | $  | (26,088 | )  |   | $  | 47,947 |   |
| % of net sales                                        |   |                 | 5.4     | %      |               |    | (7.1 | )% |   |   | 12.5 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Interest and other income/(expense)                   |   | $                    | 439     |   |               | $  | (2,233 | ) |   | $  | 2,672 |   |
| % of net sales                                        |   |                 | 0.1     | %      |               |    | (0.6 | )% |   |   | 0.7 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Income tax expense                                    |   | $               | 5,060   |   |               | $  | 9,872 |   |   | $  | (4,812 | )  |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Net earnings/(loss)                                   |   | $               | 17,238  |   |               | $  | (38,193 | ) |   | $  | 55,431 |   |
| % of net sales                                        |   |                 | 4.2     | %      |               |    | (10.5 | )% |   |   | 14.7 | % |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |
| Net earnings/(loss) per diluted share                 |   | $                    | 0.50    |   |               |  $ | (1.13 | )  |   | $ | 1.63 |   |
|                                                  |   |                 |    |   |               |    |   |   |   |   |   |   |

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| For the Nine-month Period Ended September 27, 2009                       |
|--------------------------------------------------------------------------|
|                                                                     |   |   |   |
| Pre-tax loss                                                             |   | $ | (28,321 | ) |
| Income tax expense                                                       |   | $ | 9,872 |   |
| Effective tax rate                                                       |   |   | (34.9 | )% |
|                                                                     |   |   |   |   |
| Pre-tax loss                                                             |   | $ | (28,321 | ) |
| Add:                                                                     |   |   |   |   |
| Goodwill impairment charges                                              |   |   | 33,153 |   |
| Adjusted Pre-tax earnings                                                |   | $ | 4,832 |   |
|                                                                     |   |   |   |   |
| Income tax expense                                                       |   | $ | 9,872 |   |
| Subtract:                                                                |   |   |   |   |
| Tax expense related to cash repatriation and goodwill impairment charges |   |   | (8,872 | ) |
| Adjusted tax benefit                                                     |   | $ | 1,000 |   |
|                                                                     |   |   |   |   |
| Adjusted tax rate                                                        |   |   | 20.7 | % |
|                                                                     |   |   |   |   |

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Item 3.   Quantitative and Qualitative Disclosures About Market Risk

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

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

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Item 1A.   Risk Factors

Item 6.    Exhibits

| (10)(a)  |   | Letter Agreement dated February 19, 2010 by and among CTS Corporation, Toyota Motor Sales, U.S.A. Inc., Toyota Canada Inc. and Toyota Motor Engineering & Manufacturing North America, Inc.  |
|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (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: October 27, 2010                                            |   |  Dated: October 27, 2010                                     |   |

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