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): September 28, 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 7.01 Regulation 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 measures. 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 9.01Financial 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
By:	/s/ Richard G. Cutter
	Richard G. Cutter
	Vice President General Counsel and Secretary

Date: September 28, 2006

EXHIBIT INDEX

Exhibit No.	Exhibit Description
99.1	Investor Presentation Material

EX-99.1

Segment

Automotive

25%

Communications

22%

Other

9%

Computer

29%

Electronic

Components

 and

Sensors

Electronics

Manufacturing

Services

Markets

Industrial &

Medical

15%

42%

58%

25%

7%

2%

7%

27%

2%

15%

1%

14%

Based on Last Four Quarters Through June 2006

Segment

Defense & Aerospace

Security

Consumer

Segments and Markets

 Target Adjusted Return on

Invested Capital (ROIC)

OPERATING

MARGIN

AFTER-TAX

(NOPAT

Margin)

    INVESTED CAPITAL TURNOVER

Both Segments Have Comparable ROIC Targets

2003

2004

2005

4%

2%

6%

8%

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0%

6.3%

7.9%

ROIC

10%

12%

4.0

EMS

Components

  & Sensors

®

®

Automotive

EC

EMS

Customers

WiMax Applications Expected to Add $10-$12M Incremental

Sales in 2008 (EMS $8-$10M)

WiMax Equipment:

Industry Capital Spend

WiMax allows broadband wireless access networks and equipment to talk to each other

Estimates per Transmedia – based on provider spending plans

•

CTS Electronic Components awarded design wins with three different OEMs

serving several providers.

Content:  Frequency and Timing Modules, Crystal Oscillators, Filters

•

CTS EMS provides high level assembly for a major WiMax OEM.

WiMax

Sales

$ in Millions

Medical Ultrasound

   Wide Format

Inkjet Printer Head

Undersea Energy

Exploration

Technology:

- Superior piezo ceramic material

-

 Photolithographic capabilities

-

 Ultra-Thin

- High dielectric

Electronic Components –

Piezo Electronic Elements

Components & Sensors

EMS

SALES

$ in Millions

ADJUSTED

 SEGMENT

 OPERATING

EARNINGS

% OF SALES

Segment Performance

CTS Corporation

Appendix 1

CTS Corporation
Definition of Financial Term -
Adjusted Return on Invested Capital
	Full Year
	2005			2004			2003
Operating earnings	$	40.3		$	31.1		$	13.8
Charges (credits) to reported operating earnings:
Restructuring and asset impairment charges								4.6
Gain on sale of excess equipment less LTCC severance		(1.2	)
Gain on sale of excess Canadian land					(2.7	)
Total adjustments to reported operating earnings		(1.2	)		(2.7	)		4.6
Adjusted operating earnings	$	39.1		$	28.4		$	18.4
Tax rate		25	%		23	%		25	%
Tax effected adjusted operating earnings	$	29.3		$	21.9		$	13.8
Invested Capital:
Current Year:
Shareholders' equity	$	329.6		$	310.7		$	294.2
Long-term debt		68.3			94.2			75.9
Notes payable and current portion of LT debt		13.4			3.3			-
Less: Cash		(12.0	)		(61.0	)		(25.4	)
Invested capital		399.3			347.2			344.7
Prior Year:
Shareholders' equity		310.7			294.2			265.0
Long-term debt		94.2			75.9			67.0
Notes payable and current portion of LT debt		3.3			-			28.3
Less: Cash		(61.0	)		(25.4	)		(9.2	)
Invested capital		347.2			344.7			351.1
Adjusted invested capital	$	373.3		$	346.0		$	347.9
Adjusted return on invested capital		7.9	%		6.3	%		4.0	%
Sales	$	617.5		$	531.3		$	463.0
Tax effected adjusted operating earnings		29.3			21.9			13.8
Tax effected adjusted operating margin as a
percentage of sales (a)		4.7	%		4.1	%		3.0	%
Sales	$	617.5		$	531.3		$	463.0
Adjusted invested capital		373.3			346.0			347.9
Invested capital turns (b)		1.65			1.54			1.33
Adjusted return on invested capital (a) x (b)		7.9	%		6.3	%		4.0	%

CTS Corporation
Reconciliation of Segment Operating Earnings (Loss) to Adjusted Segment Operating Earnings (Loss)
($ in millions)
	YTD Q2 2006						2005						2004						2003						2002						2001
				Components						Components						Components						Components						Components						Components
	EMS			& Sensors			EMS			& Sensors			EMS			& Sensors			EMS			& Sensors			EMS			& Sensors			EMS			& Sensors
Segment Net Sales to External Customers	$	177.1		$	139.3		$	364.5		$	253.0		$	270.3		$	261.0		$	210.1		$	252.9		$	186.9		$	270.9		$	211.6		$	366.1
Segment Operating earnings (loss)	$	3.6		$	18.3		$	10.1		$	30.2		$	7.8		$	23.3		$	11.0		$	7.4		$	10.8		$	(6.0	)	$	10.5		$	(8.3	)
Charges (credits) to reported operating earnings (loss):
Customer reimbursement																													(3.1	)
Gain on sale of excess equipment less LTCC severance											(1.2	)
Gain on sale of excess Canadian land																	(2.7	)
Total adjustments to reported operating earnings (loss)		-			-			-			(1.2	)		-			(2.7	)		-			-			-			(3.1	)		-			-
Adjusted operating earnings (loss), excluding above referenced items	$	3.6		$	18.3		$	10.1		$	29.0		$	7.8		$	20.6		$	11.0		$	7.4		$	10.8		$	(9.1	)	$	10.5		$	(8.3	)
Adjusted segment operating earnings (loss), excluding above referenced items, as a percentage of total sales		2.0	%		13.1	%		2.8	%		11.5	%		2.9	%		7.9	%		5.2	%		2.9	%		5.8	%		-3.4	%		5.0	%		-2.3	%