8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 9, 2006

CTS CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Indiana	1-4639	35-0225010
(State or Other Jurisdiction of Incorporation)	(Commission File Numbers)	(I.R.S. Employer Identification Nos.)
905 West Boulevard North
Elkhart, Indiana		46514
(Address of Principal Executive Offices)		(Zip Code)
Registrants' Telephone Number, Including Area Code:(574) 293-7511

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

q   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

q   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

q   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

q   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01Regulation FD Disclosure.

A copy of material which will be used in an investor presentation delivered by CTS representatives from time to time is furnished as Exhibit No. 99.1 hereto and is incorporated herein by reference. This material contains certain non-GAAP financial measure. CTS’ management believes that these non-GAAP financial measures are useful to investors in analyzing CTS financial performance and results of operations over time. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the appendix to Exhibit 99.1.

Item 9.01 Financial Statements and Exhibits.

(a)	Financial Statements of Business Acquired. Not applicable.
(b)	Pro Forma Financial Information. Not applicable.
(c)	Exhibits.
	The following exhibits are filed with this report:

Exhibit No.	Exhibit Description
99.1	Investor Presentation Material

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CTS CORPORATION

/s/ Vinod M. Khilnani  

By:Vinod M. Khilnani

Senior Vice President and

Chief Financial Officer

Date: August 9, 2006

EXHIBIT INDEX

Exhibit No.	Exhibit Description
99.1	Investor Presentation Material

EX-99.1

- Automotive Sensors

- Electronic Components

Electronics Manufacturing Services

14 - 18%

4  -  8%

6 - 10%

8  -  12%

 Annual Sales Growth

Overall Organic Growth Target

Product/Market Area

(2005 - 2008)

Components & Sensors:

10 - 14%

Business Growth Targets

Awarded 47 Platforms

Industry trend is to adopt integrated

pedals for increased control with
reduced costs.

Total

Available

Market

(Including Pedal Sensors)

$150

$223

$266

$326

$363

$305

CTS Accelerator Pedal Modules Offer

Performance, Quality and Cost Advantages

 CTS Sales $ in Millions

$393

Actual

Accelerator Pedal Module

CTS Sales $ in Millions

Asia Over 50% of

Growth

Actual

10 Year Projected Growth In Vehicle Sales

(17M Units)

China regulations driving

 local content

CTS Operations in

Taiwan and China

Asian Automotive Growth

Growth Focused on High

Margin Segments

95%

70%

Top 5 EMS Customers

Communications

Other

Industrial

Medical

Computer

 2006 Sales (1H06)

Aerospace/

Defense

More Complex

Less Complex

High Volume

/ Low Mix

Low Volume

/ High Mix

CTS

Markets

EMS Business

Expense Leverage Contributing to Earnings

Growth

Adjusted Operating Expenses

(Percent of Sales)

Cumulative

Free Cash Flow

$ in Millions

Strong Cash Earnings and Free Cash Flow

Cumulative

Cash Earnings

70.5

73.5

FY  2006

Estimate

Cumulative Free Cash Flow

Appendix

CTS Corporation
Reconciliation of Operating Expenses to Adjusted Operating Expenses
($ in millions)
	Full Year
	2005		2004		2003		2002
Selling, general and administrative expenses	$	68.0	$	63.5	$	56.9	$	63.3
Research and development expenses		17.1		19.0		21.5		24.1
Restructuring, restructuring-related, and asset impairment charges		-		-		4.6		18.3
Gain on sales of assets		(3.1)		(3.9)		-		-
Total reported operating expenses		82.0		78.6		83.0		105.7
Less restructuring and impairment charges				-		4.6		18.3
Less gain on sale of excess equipment less LTCC severance		(1.2)
Less gain on sale of excess Canadian land				(2.7)		-		-
Adjusted operating expenses	$	83.2	$	81.3	$	78.4	$	87.4
Adjusted operating expenses as percentage of total sales		13.5%		15.3%		16.9%		19.1%

Appendix

CTS Corporation
Cumulative Free Cash Flow
($ in millions)
	Cumulative Est.		Full Year Est.		Cumulative		YTD Q2		Cumulative		Full Year		Cumulative		Full Year		Full Year
	(2003 - 2006 est.)		2006 (as of 8/09/06)		(2003- 6 months 2006)		2006		(2003-2005)		2005		(2003-2004)		2004		2003
Net earnings					$	67.3	$	12.5	$	54.8	$	22.2	$	32.6	$	20.0	$	12.6
Depreciation and amortization						100.0		13.2		86.8		27.1		59.7		26.1		33.6
Restructuring and impairment charges						7.5		2.9		4.6		-		4.6		-		4.6
Gain on asset sales						(7.8)		(0.8)		(7.0)		(3.1)		(3.9)		(3.9)		-
Deferred income taxes						9.6		-		9.6		9.1		0.5		0.2		0.3
Equity-based compensation and other						7.1		2.1		5.0		2.7		2.3		1.7		0.6
Cumulative prepaid pension asset						(34.8)		(3.1)		(31.7)		(8.7)		(23.0)		(10.9)		(12.1)
Cash earnings						148.9		26.8		122.1		49.3		72.8		33.2		39.6
Working capital & other						(47.3)		(9.4)		(37.9)		(4.8)		(33.1)		(19.2)		(13.9)
Cash flow from operations						101.6		17.4		84.2		44.5		39.7		14.0		25.7
Capital expenditures						(42.5)		(5.8)		(36.7)		(15.0)		(21.7)		(12.7)		(9.0)
Free cash flow	$	70.5 - $73.5	$	23-$26	$	59.1	$	11.6	$	47.5	$	29.5	$	18.0	$	1.3	$	16.7

CTS Corporation
Projected Free Cash Flow
($ in millions)
	Year Ended December 31,2006 (1)
Cash flows provided from operations	$	41-$46
Capital expenditures	$	(18)-$(20)
Free cash flow	$	23-$26
(1)  Estimate as of 08/09/2006