UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
                                    FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE
ACT 1934

For the quarterly period ended December 30, 2007

                                       or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934.

For the transition period from                     to
                               -------------------    --------------------

Commission File Number:       0-27618
                              -------

                          COLUMBUS MCKINNON CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

             NEW YORK                                   16-0547600
--------------------------------------------------------------------------------
 (State or other jurisdiction of           (I.R.S. Employer Identification No.)
  incorporation or organization)

  140 JOHN JAMES AUDUBON PARKWAY, AMHERST, NY                14228-1197
--------------------------------------------------------------------------------
   (Address of principal executive offices)                  (Zip code)

                                 (716) 689-5400
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

--------------------------------------------------------------------------------
      (Former name, former address and former fiscal year, if changed since
       last report.)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. : [X] Yes [ ] No

Indicate by checkmark  whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Act.

Large accelerated filer [ ]   Accelerated filer [X]    Non-accelerated filer [ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ] Yes [X] No

The number of shares of common  stock  outstanding  as of January  31, 2008 was:
18,961,663 shares.


<PAGE>


                                 FORM 10-Q INDEX
                          COLUMBUS MCKINNON CORPORATION
                                DECEMBER 30, 2007


                                                                          PAGE #
                                                                          ------
PART I.  FINANCIAL INFORMATION

Item 1.    Condensed Consolidated Financial Statements (Unaudited)

           Condensed consolidated balance sheets -
              December 30, 2007 and March 31, 2007                             2

           Condensed consolidated statements of operations
              and retained earnings - Three months and nine
              months ended December 30, 2007 and December 31, 2006             3

           Condensed consolidated statements of cash flows -
              Nine months ended December 30, 2007 and December 31, 2006        4

           Condensed consolidated statements of comprehensive
              income - Three months and nine months ended
              December 30, 2007 and December 31, 2006                          5

           Notes to condensed consolidated financial statements -
              December 30, 2007                                                6

Item 2.    Management's Discussion and Analysis of Results of Operations
              and Financial Condition                                         15

Item 3.    Quantitative and Qualitative Disclosures About Market Risk         21

Item 4.    Controls and Procedures                                            21

PART II.  OTHER INFORMATION

Item 1.    Legal Proceedings - none.                                          22

Item 1A.   Risk Factors                                                       22

Item 2.    Unregistered Sales of Equity Securities and
              Use of Proceeds - none.                                         22

Item 3.    Defaults upon Senior Securities - none.                            22

Item 4.    Submission of Matters to a Vote of Security Holders - none.        22

Item 5.    Other Information - none.                                          22

Item 6.    Exhibits                                                           22


                                     - 1 -
<PAGE>

PART I.     FINANCIAL INFORMATION

Item 1.     Condensed Consolidated Financial Statements (Unaudited)

                          COLUMBUS MCKINNON CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                 DECEMBER 30,         MARCH 31,
                                                     2007               2007
                                                  ----------         ----------

ASSETS:                                                   (IN THOUSANDS)
Current assets:
      Cash and cash equivalents                   $   61,073         $   48,655
      Trade accounts receivable                       93,928             97,269
      Unbilled revenues                               11,181             15,050
      Inventories                                     91,612             77,179
      Prepaid expenses                                17,753             18,029
                                                  ----------         ----------
Total current assets                                 275,547            256,182
Property, plant, and equipment, net                   56,684             55,231
Goodwill and other intangibles, net                  186,705            185,903
Marketable securities                                 30,213             28,920
Deferred taxes on income                              20,549             34,460
Other assets                                           6,595              4,942
                                                  ----------         ----------
Total assets                                      $  576,293         $  565,638
                                                  ==========         ==========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
      Notes payable to banks                      $   10,356         $    9,598
      Trade accounts payable                          36,014             35,896
      Accrued liabilities                             57,698             52,344
      Restructuring reserve                               15                599
      Current portion of long-term debt                  460                297
                                                  ----------         ----------
Total current liabilities                            104,543             98,734
Senior debt, less current portion                      6,072             26,168
Subordinated debt                                    133,000            136,000
Other non-current liabilities                         53,019             63,411
                                                  ----------         ----------
Total liabilities                                    296,634            324,313
                                                  ----------         ----------
Shareholders' equity
      Common stock                                       189                188
      Additional paid-in capital                     177,296            174,654
      Retained earnings                              114,018             85,237
      ESOP debt guarantee                             (2,995)            (3,417)
      Accumulated other comprehensive loss            (8,849)           (15,337)
                                                  ----------         ----------
Total shareholders' equity                           279,659            241,325
                                                  ----------         ----------
Total liabilities and shareholders' equity        $  576,293         $  565,638
                                                  ==========         ==========

     SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.



                                     - 2 -
<PAGE>

<TABLE>
<CAPTION>

                          COLUMBUS MCKINNON CORPORATION
      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
                                   (UNAUDITED)



                                                       THREE MONTHS ENDED               NINE MONTHS ENDED
                                                       ------------------               -----------------
                                                  DECEMBER 30,     DECEMBER 31,      DECEMBER 30,      DECEMBER 31,
                                                      2007             2006              2007              2006
                                                      ----             ----              ----              ----
                                                                (IN THOUSANDS, EXCEPT PER SHARE DATA)


<S>                                               <C>              <C>               <C>               <C>
Net sales                                         $   155,196      $   142,044       $   454,716       $   432,963
Cost of products sold                                 108,522          103,421           318,116           313,040
                                                  -----------      -----------       -----------       -----------
Gross profit                                           46,674           38,623           136,600           119,923
                                                  -----------      -----------       -----------       -----------

Selling expenses                                       17,818           14,989            51,208            45,095
General and administrative expenses                     9,516            8,566            27,839            26,195
Restructuring charges                                     149              128               894              (278)
Amortization of intangibles                                29               44                82               131
                                                  -----------      -----------       -----------       -----------
                                                       27,512           23,727            80,023            71,143
                                                  -----------      -----------       -----------       -----------

Income from operations                                 19,162           14,896            56,577            48,780
Interest and debt expense                               3,445            4,034            11,250            12,722
Cost of bond redemptions                                  177              359             1,620             4,942
Investment income                                        (261)          (3,774)             (812)           (4,560)
Other income                                             (835)            (151)           (2,312)           (1,444)
                                                  -----------      -----------       -----------       -----------
Income before income tax expense                       16,636           14,428            46,831            37,120
Income tax expense                                      6,781            5,510            18,281            14,673
                                                  -----------      -----------       -----------       -----------
Income from continuing operations                       9,855            8,918            28,550            22,447
Income from discontinued operations (net of tax)          139              208               417               565
                                                  -----------      -----------       -----------       -----------
Net income                                              9,994            9,126            28,967            23,012
Retained earnings - beginning of period               104,024           65,038            85,237            51,152
Change in accounting principle (note 6)                     -                -              (186)                -
                                                  -----------      -----------       -----------       -----------
Retained earnings - end of period                 $   114,018      $    74,164       $   114,018       $    74,164
                                                  ===========      ===========       ===========       ===========

Basic income per share:
   Income from continuing operations              $      0.52      $      0.48       $      1.53       $      1.21
   Income from discontinued operations                   0.01             0.01              0.02              0.03
                                                  -----------      -----------       -----------       -----------
   Net income                                     $      0.53      $      0.49       $      1.55       $      1.24
                                                  ===========      ===========       ===========       ===========

Diluted income per share:
   Income from continuing operations              $      0.51      $      0.47       $      1.49       $      1.19
   Income from discontinued operations                   0.01             0.01              0.02              0.03
                                                  -----------      -----------       -----------       -----------
   Net income                                     $      0.52      $      0.48       $      1.51       $      1.22
                                                  ===========      ===========       ===========       ===========


     SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

</TABLE>


                                     - 3 -
<PAGE>

<TABLE>
<CAPTION>

                          COLUMBUS MCKINNON CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                                                                NINE MONTHS ENDED
                                                                                -----------------
                                                                         DECEMBER 30,      DECEMBER 31,
                                                                             2007              2006
                                                                         -----------       -----------
                                                                                 (IN THOUSANDS)
OPERATING ACTIVITIES:
<S>                                                                      <C>               <C>
Income from continuing operations                                        $   28,550        $   22,447
Adjustments to reconcile income from
   continuing operations to net cash
   provided by operating activities:
     Depreciation and amortization                                            6,378             6,306
     Deferred income taxes                                                   13,911            12,526
     Gain on sale of real estate/investments                                   (433)           (4,745)
     Loss on early retirement of bonds                                        1,244             4,069
     Stock compensation expense                                                 944             1,040
     Amortization/write-off of deferred financing costs                         814             1,385
     Changes in operating assets and liabilities:
           Trade accounts receivable and unbilled revenues                    8,351             4,178
           Inventories                                                      (13,317)          (10,890)
           Prepaid expenses                                                     349            (1,564)
           Other assets                                                      (1,045)             (297)
           Trade accounts payable                                              (502)           (2,033)
           Accrued and non-current liabilities                               (7,259)           (5,192)
                                                                         ----------        ----------
Net cash provided by operating activities                                    37,985            27,230
                                                                         ----------        ----------

INVESTING ACTIVITIES:
Proceeds from sale of marketable securities                                  12,876            22,077
Purchases of marketable securities                                          (14,273)          (20,025)
Capital expenditures                                                         (7,421)           (6,825)
Proceeds from sale of facilities and surplus real estate                      5,504             2,051
Proceeds from discontinued operations note receivable                           417               565
                                                                         ----------        ----------
Net cash used by investing activities                                        (2,897)           (2,157)
                                                                         ----------        ----------

FINANCING ACTIVITIES:
Proceeds from stock options exercised                                         1,309             2,334
Net (repayments) borrowings under revolving line-of-credit agreements          (182)            2,294
Repayment of debt and payment of debt premiums                              (27,728)          (43,668)
Deferred financing costs incurred                                                (2)             (456)
Other                                                                           422               438
                                                                         ----------        ----------
Net cash used by financing activities                                       (26,181)          (39,058)
EFFECT OF EXCHANGE RATE CHANGES ON CASH                                       3,511               512
                                                                         ----------        ----------
Net change in cash and cash equivalents                                      12,418           (13,473)
Cash and cash equivalents at beginning of period                             48,655            45,598
                                                                         ----------        ----------
Cash and cash equivalents at end of period                               $   61,073        $   32,125
                                                                         ==========        ==========

     SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

</TABLE>


                                     - 4 -
<PAGE>

<TABLE>
<CAPTION>

                          COLUMBUS MCKINNON CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                   (UNAUDITED)

                                                          THREE MONTHS ENDED               NINE MONTHS ENDED
                                                          ------------------               -----------------
                                                     DECEMBER 30,    DECEMBER 31,     DECEMBER 30,     DECEMBER 31,
                                                         2007            2006             2007             2006
                                                         ----            ----             ----             ----
                                                                              (IN THOUSANDS)

<S>                                                   <C>             <C>              <C>              <C>
Net income                                            $    9,994      $    9,126       $   28,967       $   23,012
Other comprehensive income, net of tax:
   Foreign currency translation adjustments                1,262             425            6,637            3,081
   Unrealized gain (loss) on investments:
     Unrealized holding (losses) gains arising
       during the period                                    (211)          1,999             (104)           2,328
     Reclassification adjustment for
       gains included in net income                            -          (3,544)             (45)          (4,013)
                                                      ----------      ----------       ----------       ----------
                                                            (211)         (1,545)            (149)          (1,685)
                                                      ----------      ----------       ----------       ----------
Total other comprehensive income                           1,051          (1,120)           6,488            1,396
                                                      ----------      ----------       ----------       ----------
Comprehensive income                                  $   11,045      $    8,006       $   35,455       $   24,408
                                                      ==========      ==========       ==========       ==========


     SEE ACCOMPANYING NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

</TABLE>


                                     - 5 -
<PAGE>


                          COLUMBUS MCKINNON CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT SHARE DATA)
                                DECEMBER 30, 2007

1.       DESCRIPTION OF BUSINESS

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with U.S.  generally accepted  accounting  principles for
interim  financial  information.  In the opinion of management,  all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation of the financial  position of Columbus  McKinnon  Corporation  (the
Company) at December  30,  2007 and the results of its  operations  and its cash
flows for the three and nine-month  periods ended December 30, 2007 and December
31, 2006, have been included. Results for the period ended December 30, 2007 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended March 31, 2008.  The balance sheet at March 31, 2007 has been derived from
the audited consolidated financial statements at that date, but does not include
all of the  information  and  footnotes  required  by  U.S.  generally  accepted
accounting   principles   for  complete   financial   statements.   For  further
information,  refer  to the  consolidated  financial  statements  and  footnotes
thereto included in the Columbus McKinnon Corporation annual report on Form 10-K
for the year ended March 31, 2007.

The  Company  is a  leading  manufacturer  and  marketer  of  material  handling
products,  systems and services which lift,  secure,  position and move material
ergonomically,  safely, precisely and efficiently.  Key products include hoists,
cranes,  chain and forged attachments.  The Company's material handling products
are  sold,   domestically  and  internationally,   principally  to  third  party
distributors  through  diverse  distribution  channels,  and to a lesser  extent
directly to manufacturers and other end-users. The Company's integrated material
handling  solutions  businesses  deal  primarily  with end  users  and sales are
concentrated,  domestically  and  internationally  (primarily  Europe),  in  the
consumer  products,  manufacturing,  warehousing  and, to a lesser  extent,  the
steel, construction, automotive and other industrial markets.

2.       INVENTORIES

Inventories consisted of the following:
                                             DECEMBER 30,        MARCH 31,
                                                 2007              2007
                                              ----------        ----------
At cost - FIFO basis:
Raw materials............................     $   51,360        $   45,006
Work-in-process..........................         12,350             9,050
Finished goods...........................         43,821            36,606
                                              ----------        ----------
                                                 107,531            90,662
LIFO cost less than FIFO cost............        (15,919)          (13,483)
                                              ----------        ----------
Net inventories..........................     $   91,612        $   77,179
                                              ==========        ==========

An actual  valuation of inventory  under the LIFO method can be made only at the
end of each  year  based  on the  inventory  levels  and  costs  at  that  time.
Accordingly, interim LIFO calculations must necessarily be based on management's
estimates of expected  year-end  inventory  levels and costs.  Because these are
subject to many forces beyond management's control,  interim results are subject
to the final year-end LIFO inventory valuation.

3.       RESTRUCTURING CHARGES

During the  nine-month  period ended  December 30,  2007,  the Company  recorded
restructuring costs of $894 for facility  demolition costs and severance.  These
costs are related to two separate  businesses within the Solutions segment.  The
liability as of December 30, 2007 was $15, consisting primarily of environmental
remediation costs which were accrued in accordance with SFAS No. 143.


                                     - 6 -
<PAGE>

4.       NET PERIODIC BENEFIT COST

The following  table sets forth the components of net periodic  pension cost for
the Company's defined benefit pension plans:
<TABLE>
<CAPTION>

                                            THREE MONTHS ENDED                  NINE MONTHS ENDED
                                            ------------------                  -----------------
                                       DECEMBER 30,    DECEMBER 31,        DECEMBER 30,    DECEMBER 31,
                                           2007            2006                2007            2006
                                           ----            ----                ----            ----
<S>                                       <C>             <C>                 <C>             <C>
      Service costs...................    $1,094          $1,049              $3,282          $3,147
      Interest cost...................     2,019           1,879               6,057           5,636
      Expected return on plan assets..    (2,043)         (1,831)             (6,129)         (5,492)
      Net amortization................       450             623               1,350           1,869
                                          ------          ------              ------          ------
      Net periodic pension cost.......    $1,520          $1,720              $4,560          $5,160
                                          ======          ======              ======          ======

</TABLE>

The following  table sets forth the  components  of net periodic  postretirement
benefit cost for the Company's defined benefit postretirement plans:
<TABLE>
<CAPTION>

                                            THREE MONTHS ENDED                  NINE MONTHS ENDED
                                            ------------------                  -----------------
                                       DECEMBER 30,    DECEMBER 31,        DECEMBER 30,    DECEMBER 31,
                                           2007            2006                2007            2006
                                           ----            ----                ----            ----
<S>                                       <C>             <C>                 <C>             <C>
      Service costs...................    $    -          $    2              $    2          $    5
      Interest cost ..................       147             160                 439             482
      Amortization of plan net losses.        96             100                 288             300
                                          ------          ------              ------          ------
      Net periodic postretirement cost    $  243          $  262              $  729          $  787
                                          ======          ======              ======          ======

</TABLE>

For  additional  information  on  the  Company's  defined  benefit  pension  and
postretirement  benefit plans,  refer to Note 11 in the  consolidated  financial
statements and footnotes thereto included in the Company's annual report on Form
10-K for the year ended March 31, 2007.

5.       FOREIGN DEBT GUARANTEE

Effective August 1, 2007, the Company issued a guarantee to a third party lender
which  secures  any  borrowing  by  one of the  Company's  wholly-owned  foreign
subsidiaries  under  the  subsidiary's  credit  facility.  The  credit  facility
provides availability up to a maximum of approximately  $11,750. The outstanding
borrowings on this credit  facility were  approximately  $10,240 at December 30,
2007.

6.       INCOME TAXES

Income tax expense as a percentage of income from continuing  operations  before
income tax expense  was 40.8%,  38.2%,  39.0%,  and 39.5% in the fiscal 2008 and
2007 quarters and the nine-month  periods then ended,  respectively.  The fiscal
2008  percentages  vary from the U.S.  statutory note due to a $479 deferred tax
asset valuation  allowance recorded in the third quarter related to our Univeyor
business.  The nine month fiscal 2007 percentage varies from the U.S.  statutory
rate due to $1,040 of  non-deductible  stock option expense in the period. As of
December  30,  2007,   the  Company  had  U.S.   federal  net   operating   loss
carry-forwards of approximately $6,200 representing approximately $2,200 of cash
tax savings in future periods.

On April 1, 2007,  the Company  adopted the  provisions  of Financial  Standards
Accounting  Board  ("FASB")   Interpretation  ("FIN")  No.  48  "Accounting  for
Uncertainty in Income Taxes," ("FIN 48") an  interpretation of FASB Statement of
Financial Accounting Standards ("SFAS") No. 109. FIN 48 clarifies the accounting
for uncertainty in income taxes  recognized  under SFAS 109. FIN 48 prescribes a
recognition   threshold  and  measurement   attribute  for  financial  statement
recognition and measurement of a tax position taken or expected to be taken in a
tax  return  and also  provides  guidance  on various  related  matters  such as
derecognition, interest and penalties, and disclosure.


                                     - 7 -
<PAGE>

Upon adoption of FIN 48, the Company  recorded a reduction in retained  earnings
for the cumulative  effect  adjustment of $186 to its $2,600 of unrecognized tax
benefits,  all of  which  would  favorably  impact  the  effective  tax  rate if
recognized.   During  the  second   quarter  of  fiscal  2008,  the  balance  of
unrecognized  tax benefits  increased  $223 as a result of certain  intercompany
transactions  that have not been audited by the various tax  jurisdictions and a
matter that arose  during a state  income tax audit.  There was no change in the
balance of unrecognized tax benefits during the first or third quarter of fiscal
2008.

The Company does not anticipate that total unrecognized tax benefits will change
significantly  due to the  settlement of audits or the expiration of statutes of
limitations prior to December 30, 2008.

The Company  had $207  accrued for the  payment of  interest  and  penalties  at
December 30, 2007. The Company recognizes  interest expense or penalties related
to uncertain tax  positions as a part of income tax expense in its  Consolidated
Statement of Operations.  The Company is currently open to audit by the Internal
Revenue Service for the years ending March 31, 2004 through 2007.

7.       EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>

                                                       THREE MONTHS ENDED             NINE MONTHS ENDED
                                                       ------------------             -----------------
                                                   DECEMBER 30,   DECEMBER 31,    DECEMBER 30,   DECEMBER 31,
                                                       2007           2006            2007           2006
                                                       ----           ----            ----           ----

Numerator for basic and diluted earnings per share:
<S>                                                  <C>            <C>             <C>            <C>
  Net income                                         $  9,994       $  9,126        $ 28,967       $ 23,012
                                                     ========       ========        ========       ========

Denominators:
  Weighted-average common stock outstanding -
     denominator for basic EPS                         18,753         18,544          18,702         18,491

  Effect of dilutive employee stock options               447            410             442            438
                                                     --------       --------        --------       --------

  Adjusted weighted-average common stock
     outstanding and assumed conversions -
     denominator for diluted EPS                       19,200         18,954          19,144         18,929
                                                     ========       ========        ========       ========

</TABLE>

During the first nine months of fiscal 2008, a total of 123,550  shares of stock
were issued upon the exercising of stock options  related to the Company's stock
option plans,  and 11,801  shares of stock were issued under the Company's  Long
Term  Incentive Plan to the Company's  non-executive  directors as part of their
annual compensation.

8.       BUSINESS SEGMENT INFORMATION

As a result of the way the Company manages the business, its reportable segments
are strategic business units that offer products with different characteristics.
The  most  defining  characteristic  is the  extent  of  customized  engineering
required on a  per-order  basis.  In  addition,  the  segments  serve  different
customer bases through  differing  methods of distribution.  The Company has two
reportable  segments:  Products and Solutions.  The Company's  Products  segment
sells hoists, industrial cranes, chain, attachments, and other material handling
products  principally to third party distributors  through diverse  distribution
channels,  and to a lesser extent directly to end-users.  The Solutions  segment
sells  engineered  material  handling  systems such as conveyors and lift tables
primarily to end-users in the  consumer  products,  manufacturing,  warehousing,
and,  to a  lesser  extent,  the  steel,  construction,  automotive,  and  other
industrial  markets.   Intersegment  sales  are  not  significant.  The  Company
evaluates  performance  based on  operating  income of the  respective  business
units.


                                     - 8 -
<PAGE>

Segment  information  as of and for the nine months ended  December 30, 2007 and
December 31, 2006, is as follows:
<TABLE>
<CAPTION>

                                                             NINE MONTHS ENDED DECEMBER 30, 2007
                                                             -----------------------------------
                                                        PRODUCTS          SOLUTIONS           TOTAL
                                                        --------          ---------           -----
<S>                                                   <C>                <C>               <C>
 Sales to external customers......................    $   417,556        $    37,160       $   454,716
 Income from operations...........................         57,380               (803)           56,577
 Depreciation and amortization....................          5,739                639             6,378
 Total assets.....................................        537,479             38,814           576,293

                                                             NINE MONTHS ENDED DECEMBER 31, 2006
                                                             -----------------------------------
                                                        PRODUCTS          SOLUTIONS           TOTAL
                                                        --------          ---------           -----
 Sales to external customers......................    $   384,039        $    48,924       $   432,963
 Income from operations...........................         49,991             (1,211)           48,780
 Depreciation and amortization....................          5,657                649             6,306
 Total assets.....................................        515,053             36,536           551,589

</TABLE>


                                     - 9 -
<PAGE>

9.       SUMMARY FINANCIAL INFORMATION

The  following  information  sets  forth  the  condensed  consolidating  summary
financial  information of the parent and guarantors,  which guarantee the 8 7/8%
Senior  Subordinated  Notes,  and the  nonguarantors.  The guarantors are wholly
owned and the guarantees are full, unconditional, joint and several.
<TABLE>
<CAPTION>

                                                       Parent     Guarantors  Nonguarantors  Eliminations  Consolidated
                                                   --------------------------------------------------------------------
AS OF DECEMBER 30, 2007
Current assets:
<S>                                                  <C>          <C>           <C>           <C>          <C>
 Cash and cash equivalents                           $   19,408   $   (1,292)   $  42,957     $        -   $   61,073
 Trade accounts receivable and unbilled revenues         59,096          159       45,854              -      105,109
 Inventories                                             38,986       20,566       34,220         (2,160)      91,612
 Other current assets                                     8,081        1,576        8,096              -       17,753
                                                   --------------------------------------------------------------------
  Total current assets                                  125,571       21,009      131,127         (2,160)     275,547
 Property, plant, and equipment, net                     25,545       11,237       19,902              -       56,684
 Goodwill and other intangibles, net                     88,757       57,035       40,913              -      186,705
 Intercompany                                            51,067      (61,797)     (62,865)        73,595            -
 Other assets                                            82,398      193,540       31,275       (249,856)      57,357
                                                   --------------------------------------------------------------------
  Total assets                                       $  373,338   $  221,024    $ 160,352     $ (178,421)  $  576,293
                                                   ====================================================================


Current liabilities                                  $   35,836   $   18,143    $  52,135     $   (1,571)  $  104,543
Long-term debt, less current portion                    133,000        2,881        3,191              -      139,072
Other non-current liabilities                            16,847       11,303       24,869              -       53,019
                                                   --------------------------------------------------------------------
  Total liabilities                                     185,683       32,327       80,195         (1,571)     296,634

Shareholders' equity                                    187,655      188,697       80,157       (176,850)     279,659
                                                   --------------------------------------------------------------------
  Total liabilities and shareholders' equity         $  373,338   $  221,024    $ 160,352     $ (178,421)  $  576,293
                                                   ====================================================================



FOR THE NINE MONTHS ENDED DECEMBER 30, 2007
Net sales                                            $  218,182   $  130,388    $ 135,943     $  (29,797)  $  454,716
Cost of products sold                                   159,021       96,563       92,329        (29,797)     318,116
                                                   --------------------------------------------------------------------
Gross profit                                             59,161       33,825       43,614              -      136,600
                                                   --------------------------------------------------------------------
Selling, general and administrative expenses             35,096       13,293       30,658              -       79,047
Restructuring charges                                       551            -          343              -          894
Amortization of intangibles                                  80            2            -              -           82
                                                   --------------------------------------------------------------------
                                                         35,727       13,295       31,001              -       80,023
                                                   --------------------------------------------------------------------
Income from operations                                   23,434       20,530       12,613              -       56,577
Interest and debt expense                                 7,432        2,994          824              -       11,250
Other (income) and expense, net                             678         (298)      (1,884)             -       (1,504)
                                                   --------------------------------------------------------------------
Income before income tax expense                         15,324       17,834       13,673              -       46,831
Income tax expense                                        6,818        7,209        4,254              -       18,281
                                                   --------------------------------------------------------------------
Income from continuing operations                         8,506       10,625        9,419              -       28,550
Income from discontinued operations                         417            -            -              -          417
                                                   --------------------------------------------------------------------
Net income                                           $    8,923   $   10,625    $   9,419     $        -   $   28,967
                                                   ====================================================================


                                     - 10 -
<PAGE>

                                                       Parent     Guarantors  Nonguarantors  Eliminations  Consolidated
                                                   --------------------------------------------------------------------
FOR THE NINE MONTHS ENDED DECEMBER 30, 2007
OPERATING ACTIVITIES:
Net cash provided (used) by operating activities     $   30,010   $   (3,697)   $  11,672     $        -   $   37,985
                                                   --------------------------------------------------------------------

INVESTING ACTIVITIES:
Purchase of marketable securities, net                        -            -       (1,397)             -       (1,397)
Capital expenditures                                     (4,495)      (1,664)      (1,262)             -       (7,421)
Proceeds from sale of facilities and surplus real
     estate                                                   -        5,504            -              -        5,504
Proceeds from discontinued operations note
     receivable                                             417            -            -              -          417
                                                   --------------------------------------------------------------------
Net cash (used) provided by investing activities         (4,078)       3,840       (2,659)             -       (2,897)
                                                   --------------------------------------------------------------------

FINANCING ACTIVITIES:
Proceeds from stock options exercised                     1,309            -            -              -        1,309
Net payments under revolving line-of-credit
     agreements                                               -            -         (182)             -         (182)
Repayment of debt                                       (26,619)         (84)      (1,025)             -      (27,728)
Other                                                       420            -            -              -          420
                                                   --------------------------------------------------------------------
Net cash used by financing activities                   (24,890)         (84)      (1,207)             -      (26,181)
EFFECT OF EXCHANGE RATE CHANGES ON CASH                       -         (189)       3,700              -        3,511
                                                   --------------------------------------------------------------------
Net change in cash and cash equivalents                   1,042         (130)      11,506              -       12,418
Cash and cash equivalents at beginning of period         18,366       (1,162)      31,451              -       48,655
                                                   --------------------------------------------------------------------
Cash and cash equivalents at end of period           $   19,408   $   (1,292)   $  42,957     $        -   $   61,073
                                                   ====================================================================




AS OF MARCH 31, 2007
Current assets:
 Cash and cash equivalents                           $   18,366   $   (1,162)   $  31,451     $        -   $   48,655
 Trade accounts receivable and unbilled revenues         64,849           45       47,425              -      112,319
 Inventories                                             34,548       17,175       27,616         (2,160)      77,179
 Other current assets                                     6,237        2,707        9,085              -       18,029
                                                   --------------------------------------------------------------------
  Total current assets                                  124,000       18,765      115,577         (2,160)     256,182
 Property, plant, and equipment, net                     24,662       11,508       19,061              -       55,231
 Goodwill and other intangibles, net                     88,703       57,037       40,163              -      185,903
 Intercompany                                            66,971      (77,385)     (63,602)        74,016            -
 Other assets                                            93,609      194,922       29,647       (249,856)      68,322
                                                   --------------------------------------------------------------------
  Total assets                                       $  397,945   $  204,847    $ 140,846     $ (178,000)  $  565,638
                                                   ====================================================================


Current liabilities                                  $   36,388   $   15,376    $  48,120     $   (1,150)  $   98,734
Long-term debt, less current portion                    158,125            -        4,043              -      162,168
Other non-current liabilities                            27,646       11,143       24,622              -       63,411
                                                   --------------------------------------------------------------------
  Total liabilities                                     222,159       26,519       76,785         (1,150)     324,313

Shareholders' equity                                    175,786      178,328       64,061       (176,850)     241,325
                                                   --------------------------------------------------------------------
  Total liabilities and shareholders' equity         $  397,945   $  204,847    $ 140,846     $ (178,000)  $  565,638
                                                   ====================================================================


                                     - 11 -
<PAGE>


                                                       Parent     Guarantors  Nonguarantors  Eliminations  Consolidated
                                                   --------------------------------------------------------------------
FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
Net sales                                            $  208,814   $  125,574    $ 134,320     $  (35,745)  $  432,963
Cost of products sold                                   153,144       94,092      101,139        (35,335)     313,040
                                                   --------------------------------------------------------------------
Gross profit                                             55,670       31,482       33,181           (410)     119,923
                                                   --------------------------------------------------------------------
Selling, general and administrative expenses             31,715       12,650       26,925              -       71,290
Restructuring charges                                      (331)           -           53              -         (278)
Amortization of intangibles                                  79            2           50              -          131
                                                   --------------------------------------------------------------------
                                                         31,463       12,652       27,028              -       71,143
                                                   --------------------------------------------------------------------
Income (loss) from operations                            24,207       18,830        6,153           (410)      48,780
Interest and debt expense                                 9,453        2,975          294              -       12,722
Other (income) and expense, net                           4,591         (407)      (5,246)             -       (1,062)
                                                   --------------------------------------------------------------------
Income (loss) before income tax expense (benefit)        10,163       16,262       11,105           (410)      37,120
Income tax expense (benefit)                              5,264        6,444        3,175           (210)      14,673
                                                   --------------------------------------------------------------------
Income (loss) from continuing operations                  4,899        9,818        7,930           (200)      22,447
Income from discontinued operations                         565            -            -              -          565
                                                   --------------------------------------------------------------------
Net income (loss)                                    $    5,464   $    9,818    $   7,930     $     (200)  $   23,012
                                                   ====================================================================


FOR THE NINE MONTHS ENDED DECEMBER 31, 2006
OPERATING ACTIVITIES:
Net cash provided by operating activities            $   24,998   $    1,424    $     808     $        -   $   27,230
                                                   --------------------------------------------------------------------

INVESTING ACTIVITIES:
Sale of marketable securities, net                            -            -        2,052              -        2,052
Capital expenditures                                     (4,195)        (710)      (1,920)             -       (6,825)
Proceeds from sale of facilities and surplus real
     estate                                               1,655          396            -              -        2,051
Proceeds from discontinued operations note
     receivable                                             565            -            -              -          565
                                                   --------------------------------------------------------------------
Net cash (used) provided by investing activities         (1,975)        (314)         132              -       (2,157)
                                                   --------------------------------------------------------------------

FINANCING ACTIVITIES:
Proceeds from stock options exercised                     2,334            -            -              -        2,334
Net borrowings under revolving line-of-credit
     agreements                                               -            -        2,294              -        2,294
(Repayment) borrowings of debt                          (46,321)           -        2,653              -      (43,668)
Deferred financing costs incurred                          (456)           -            -              -         (456)
Other                                                       438            -            -              -          438
                                                   --------------------------------------------------------------------
Net cash (used) provided by financing activities        (44,005)           -        4,947              -      (39,058)
EFFECT OF EXCHANGE RATE CHANGES ON CASH                       -         (135)         647              -          512
                                                   --------------------------------------------------------------------
Net change in cash and cash equivalents                 (20,982)         975        6,534              -      (13,473)
Cash and cash equivalents at beginning of period         27,531       (1,461)      19,528              -       45,598
                                                   --------------------------------------------------------------------
Cash and cash equivalents at end of period           $    6,549   $     (486)   $  26,062     $        -   $   32,125
                                                   ====================================================================

</TABLE>

                                     - 12 -
<PAGE>



10.      LOSS CONTINGENCIES

Like many industrial manufacturers,  the Company is involved in asbestos-related
litigation.  In  continually  evaluating  costs  associated  with its  estimated
asbestos-related  liability,  the  Company  reviews,  among  other  things,  the
incidence of past and recent claims, the historical case dismissal rate, the mix
of the claimed  illnesses  and  occupations  of the  plaintiffs,  its recent and
historical  resolution of the cases, the number of cases pending against it, the
status and  results of  broad-based  settlement  discussions,  and the number of
years such  activity  might  continue.  Based on this  review,  the  Company has
estimated its share of liability to defend and resolve probable asbestos-related
personal injury claims. This estimate is highly uncertain due to the limitations
of the available data and the  difficulty of forecasting  with any certainty the
numerous variables that can affect the range of the liability.  The Company will
continue to study the variables in light of additional  information  in order to
identify  trends that may become evident and to assess their impact on the range
of liability that is probable and estimable.

Based on actuarial  information,  the Company has estimated its asbestos-related
aggregate  liability  through March 31, 2025 and March 31, 2037 to range between
$5,000 and $15,000 using actuarial  parameters of continued  claims for a period
of 18 to 30 years. The Company's  estimation of its  asbestos-related  aggregate
liability  that is probable and  estimable,  in accordance  with U.S.  generally
accepted accounting principles approximates $8,400 which has been reflected as a
liability in the consolidated  financial statements as of December 30, 2007. The
recorded  liability  does not  consider  the impact of any  potential  favorable
federal  legislation.  This liability may fluctuate  based on the uncertainty in
the number of future  claims  that will be filed and the cost to  resolve  those
claims, which may be influenced by a number of factors, including the outcome of
the ongoing broad-based settlement negotiations,  defensive strategies,  and the
cost to resolve  claims  outside the  broad-based  settlement  program.  Of this
amount, management expects to incur asbestos liability payments of approximately
$380 over the next 12  months.  Because  payment of the  liability  is likely to
extend over many years,  management believes that the potential additional costs
for claims will not have a material after-tax effect on the financial  condition
of the Company or its liquidity, although the net after-tax effect of any future
liabilities recorded could be material to earnings in a future period.

The  Company's   non-asbestos   related  product  liability  reserves  decreased
approximately  $1,500 during the quarter ended  December 30, 2007 as a result of
decreases in the estimated losses for claims. Product liability costs, which are
reflected as cost of sales, were approximately $1,200 lower in the third quarter
of fiscal 2008 when compared to the fiscal 2007 third quarter.

11.      NEW ACCOUNTING STANDARDS

In September 2006, the FASB issued Statement of Financial  Accounting  Standards
(SFAS) No. 157,  "Fair Value  Measurements,"  ("SFAS 157") to define fair value,
establish a framework for  measuring  fair value in  accordance  with  generally
accepted  accounting  principles,   and  expand  disclosures  about  fair  value
measurements.  SFAS 157 will be  effective  for  fiscal  years  beginning  after
November 15, 2007.  The Company is assessing the impact the adoption of SFAS 157
will have on the  Company's  consolidated  financial  position  and  results  of
operations.

In September  2006,  the FASB issued SFAS No. 158,  "Employers'  Accounting  for
Defined  Benefit  Pension and Other  Postretirement  Plans, an amendment of FASB
Statements  No. 87, 88, 106, and 132(R)" ("SFAS 158").  Among other items,  SFAS
158 requires  recognition of the overfunded or underfunded status of an entity's
defined  benefit  postretirement  plan as an asset or liability in the financial
statements  and requires  recognition  of the funded  status of defined  benefit
postretirement  plans in  other  comprehensive  income.  We  adopted  all of the
currently  required  provisions of SFAS 158 in fiscal 2007.  This statement also
requires an entity to measure a defined benefit postretirement plan's assets and
obligations  that  determine its funded  status as of the end of the  employers'
fiscal  year.  This  requirement  is  effective  for fiscal  years  ending after
December 15, 2008. The Company does not expect the adoption of this  requirement
to have a material impact on the Company's consolidated financial statements.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial  Assets and  Financial  Liabilities  -- Including an Amendment of FASB
Statement No. 115" ("SFAS  159").  SFAS 159 allows the  irrevocable  election of
fair value as the  initial  and  subsequent  measurement  attribute  for certain
financial assets and liabilities and other items on an  instrument-by-instrument
basis.  Changes in fair value would be reflected in earnings as they occur.  The
objective of SFAS 159 is to improve  financial  reporting by providing  entities
with the  opportunity  to mitigate  volatility  in reported  earnings  caused by
measuring  related assets and  liabilities  differently  without having to apply


                                     - 13 -
<PAGE>

complex hedge accounting  provisions.  SFAS 159 is effective as of the beginning
of the first fiscal year  beginning  after  November  15,  2007.  The Company is
currently  evaluating  if it will  elect the fair  value  option  for any of its
eligible financial instruments and other items.

In  December  2007,  the FASB  issued  SFAS No.  141  (revised  2007)  "Business
Combinations"  ("SFAS  141(R)").  SFAS 141(R) requires the acquiring entity in a
business  combination  to  recognize  all the assets  acquired  and  liabilities
assumed in the transaction;  establishes the acquisition-date  fair value as the
measurement  objective  for all assets  acquired and  liabilities  assumed;  and
requires the acquirer to disclose  all of the  information  required to evaluate
and understand the nature and financial effect of the business combination. This
statement is effective  for  acquisition  dates on or after the beginning of the
first annual  reporting period beginning after December 15, 2008. The Company is
currently  evaluating  the impact the  adoption  of SFAS 141(R) will have on the
Company's consolidated financial statements.

12.      SUBSEQUENT EVENTS

During  January  2008 the  Company  used  cash on hand to  redeem  $3,145 of the
outstanding  8 7/8% Notes.  The  redemption  required a $134 premium  payment to
Noteholders and $40 of unamortized financing costs were written-off.




                                     - 14 -
<PAGE>

Item 2.              MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  RESULTS OF OPERATIONS AND FINANCIAL CONDITION
                          (DOLLAR AMOUNTS IN THOUSANDS)

EXECUTIVE OVERVIEW

We are a leading manufacturer and marketer of hoists,  cranes,  chain,  material
handling systems,  lift tables and industrial  components serving a wide variety
of  commercial  and  industrial  end-user  markets.  Our  products  are  used to
efficiently and ergonomically  move, lift, position or secure objects and loads.
Our Products segment sells a wide variety of powered and manually  operated wire
rope and chain hoists,  industrial crane systems,  chain, hooks and attachments,
actuators and rotary unions.  Our Solutions segment designs,  manufactures,  and
installs   application-specific   or  standard  material  handling  systems  and
solutions for end-users to improve work station and facility-wide work flow.

Founded  in 1875,  we have grown to our  current  size and  leadership  position
through  organic growth and the  acquisition of 14 businesses  between  February
1994 and April 1999.  We have  developed  our leading  market  position over our
132-year  history  by  emphasizing   technological   innovation,   manufacturing
excellence  and  superior  after-sale  service.  In addition,  the  acquisitions
significantly  broadened  our  product  lines  and  services  and  expanded  our
geographic reach, end-user markets and customer base. Ongoing operation of these
businesses   includes   improving  our  productivity  and  extending  our  sales
activities  to the  European  and Asian  marketplaces.  We are  executing  those
initiatives through our Lean Manufacturing  efforts, new product development and
expanded sales activities.  Shareholder value will be enhanced through continued
emphasis on improvement of the fundamentals including manufacturing  efficiency,
cost containment,  efficient capital investment,  market expansion and excellent
customer satisfaction.

We  maintain a strong  domestic  market  share with  significant  leading  North
American  market  positions  in  hoists,  lifting  and sling  chain,  and forged
attachments.  To broaden our product  offering in markets where we have a strong
competitive  position as well as to facilitate  penetration  into new geographic
markets,  we have heightened our new product  development  activities.  Over the
past two  years,  this  includes  the  introduction  of powered  hoist  lines in
accordance with international  standards,  to complement our current offering of
hoist products designed in accordance with U.S. standards. To further expand our
global sales, we are introducing  certain of our products that historically have
been distributed only in North America and also introducing new products through
our existing European distribution network. Furthermore, we are working to build
a  distribution  network in China to capture an  anticipated  growing demand for
material   handling   products  as  that  economy  continues  to  industrialize.
Additionally,  we are targeting the high growth sectors of energy and commercial
construction as growing users of our products.  We have recently reorganized and
expanded our management  team to align with these strategic  initiatives.  These
investments in  international  markets and new products are part of our focus on
our greatest  opportunities  for growth and  reducing  the impact of  industrial
cyclicality  on our  business.  As a result of these  efforts and the  continued
strong industrial  economy in our important  markets of interest,  we believe we
can  sustain  our  expected  Products  segment  growth  rate in the  mid-to-high
single-digit range for fiscal 2008. Management monitors U.S. Industrial Capacity
Utilization,  which  has  approximated  80%  for  the  past 1 1/2  years,  as an
indicator of  anticipated  demand for our product.  In addition,  we continue to
monitor the  potential  impact of other  global and domestic  trends,  including
energy costs, steel price fluctuations, interest rates and activity in a variety
of end-user markets around the globe.

Our  Lean   Manufacturing   efforts   continue  to   fundamentally   change  our
manufacturing  processes to be more  responsive  to customer  demand and improve
on-time  delivery and  productivity.  During fiscal 2007, in  furtherance of our
facility  rationalization  projects,  we  completed  the sale of one of our less
strategic  businesses,  a specialty crane  manufacturer,  and sold two pieces of
excess real estate,  generating $4.5 million of proceeds. During the nine months
of fiscal 2008, we completed the sale and partial  leaseback of a  manufacturing
facility in Charlotte, North Carolina,  generating $5.2 million of proceeds. The
proceeds have been used to repay our  outstanding  debt.  We recently  announced
that we are  evaluating  strategic  alternatives,  including  potential  sale of
Univeyor, our material handling systems business.


                                     - 15 -
<PAGE>

We keep a close watch on the costs of fringe benefits such as health  insurance,
workers  compensation  insurance and pension.  Combined,  those benefits cost us
over $35,000 in fiscal 2007 and we work  diligently to balance cost control with
the need to provide  competitive  employee benefits packages for our associates.
Another cost area of focus is steel. We utilize approximately $35,000 to $40,000
of steel annually in a variety of forms including rod, wire, bar, structural and
others. With increases in worldwide demand for steel and fluctuating scrap steel
prices,  as we experience  fluctuations  in our costs,  we reflect them as price
increases  to  our   customers.   We   implemented  a  price   increase  on  our
steel-intensive  products in  September  which fully  capture  recent steel cost
increases.  Additionally, in January 2008 we instituted an annual price increase
covering most of our product offering. We will continue to monitor our costs and
reevaluate our pricing policies.  We continue to operate in a highly competitive
business environment in the markets and geographies served. Our performance will
be impacted by our ability to address a variety of challenges and  opportunities
in those markets and geographies, including trends towards increased utilization
of the global labor force and the expansion of market  opportunities in Asia and
other emerging markets.

RESULTS OF OPERATIONS

THREE MONTHS AND NINE MONTHS ENDED DECEMBER 30, 2007 AND DECEMBER 31, 2006
Net sales in the fiscal 2008 quarter ended December 30, 2007 were  $155,196,  up
$13,152 or 9.3% from the fiscal 2007 quarter ended  December 31, 2006. Net sales
for the nine  months  ended  December  30,  2007 were  $454,716,  an increase of
$21,753 or 5.0% from the nine  months  ended  December  31,  2006.  Sales in the
Products segment  increased by $13,615 or 10.7% from the previous year's quarter
and $33,517 or 8.7% from the previous year's nine-month period then ended. These
increases are due to the continued strength of the U.S. and European  industrial
markets,  as well as the impact of price  increases of $6,100 in the nine months
ended December 30, 2007.  Translation of foreign  currencies,  particularly  the
Euro and Canadian dollar, into U.S. dollars contributed $3,700 and $7,500 toward
the Products  segment  increase in sales for the quarter and  nine-month  period
ended December 30, 2007, respectively.  Sales in the Solutions segment decreased
3.0% or $463 for the  quarter  and 24.0% or $11,764  for the nine  months  ended
December 30, 2007 when  compared  with the same  periods in the prior year.  The
decreases  in this  segment are  primarily  due to lower  volume in our European
conveyor  business  as revenue has been  intentionally  held back as a result of
historically  unacceptable  returns  on  certain  types  of  projects.  We  have
restructured  that  business  and are  converting  it into a more  products  and
services  orientated model while we evaluate strategic  alternatives,  including
its  potential  sale.  Translation  of  foreign  currencies  into  U.S.  dollars
contributed an additional  $1,000 and $1,900 toward the Solutions  segment sales
for the quarter and nine-months  ended December 30, 2007.  Sales in the segments
are summarized as follows:
<TABLE>
<CAPTION>
                               THREE MONTHS ENDED                               NINE MONTHS ENDED
                    -------------------------------------------    -------------------------------------------
                      DEC. 30,     DEC. 31,           CHANGE         DEC. 30,     DEC. 31,           CHANGE
                        2007         2006        AMOUNT      %         2007         2006        AMOUNT      %
                        ----         ----        ------     ---        ----         ----        ------     ---
<S>                 <C>          <C>           <C>         <C>     <C>           <C>          <C>        <C>
Products            $  140,478   $  126,863    $ 13,615    10.7    $  417,556    $ 384,039    $  33,517    8.7
Solutions               14,718       15,181        (463)   -3.0        37,160       48,924      (11,764) -24.0
                    ----------   ----------    --------            ----------    ---------    ---------
Net sales           $  155,196   $  142,044    $ 13,152     9.3    $  454,716    $ 432,963    $  21,753    5.0
                    ==========   ==========    ========            ==========    =========    =========
</TABLE>

Gross profit and gross profit  margins by reporting  segment are  summarized  as
follows:
<TABLE>
<CAPTION>
                             THREE MONTHS ENDED                               NINE MONTHS ENDED
                     ------------------------------------          --------------------------------------
                      DEC. 30, 2007        DEC. 31, 2006            DEC. 30, 2007          DEC. 31, 2006
                      -------------        -------------            -------------          -------------
                         $         %         $         %                $         %           $         %
                        ---       ---       ---       ---              ---       ---         ---       ---
<S>                  <C>         <C>     <C>         <C>           <C>          <C>      <C>          <C>
Products             $  44,199   31.5    $  37,654   29.7          $  130,530   31.3     $  114,967   29.9
Solutions                2,475   16.8          969    6.4               6,070   16.3          4,956   10.1
                     ---------           ---------                 ----------            ----------
Total Gross Profit   $  46,674   30.1    $  38,623   27.2          $  136,600   30.0     $  119,923   27.7
                     =========           =========                 ==========            ==========
</TABLE>

The increase in the gross profit  margin for the Products  segment is the result
of product mix,  the  realization  of  operational  leverage at increased  sales
volumes,  favorable  trends in our product  liability  and workers  compensation
costs,  ongoing  cost  containment  activities  and the  translation  of foreign
currencies into U.S.  dollars,  which  contributed  $1,400 and $3,000 toward the
Products segment increase in gross margin for the quarter and nine-months  ended
December 30, 2007,  respectively.  The Solutions  segment reflected gross margin
improvement  due to  restructuring  activities  and  focus  on  profitable  core
business undertaken at our Univeyor business.

                                     - 16 -
<PAGE>

Selling expenses were $17,818,  $14,989,  $51,208 and $45,095 in the fiscal 2008
and 2007  quarters  and the  nine-month  periods then ended,  respectively.  The
changes in selling expense dollars were impacted by our increased  investment to
support our strategic growth  initiatives  including  investments in new markets
and  strategic  sales  initiatives  ($1,400  and  $3,000  for  the  quarter  and
nine-month period ended December 30, 2007, respectively), translation of foreign
currencies  into U.S.  dollars  ($700 and $1,600 for the quarter and  nine-month
period ended December 30, 2007,  respectively)  and increased  variable  selling
costs as a result of higher sales volume.  As a percentage of  consolidated  net
sales,  selling expenses were 11.5%,  10.6%, 11.3%, and 10.4% in the fiscal 2008
and 2007 quarters and the nine-month periods then ended, respectively.

General and administrative  expenses were $9,516, $8,566, $27,839 and $26,195 in
the  fiscal  2008 and 2007  quarters  and the  nine-month  periods  then  ended,
respectively.  The change in administrative expenses was primarily the result of
increased  research  and  development  costs  ($210 and $640 for the quarter and
nine-month period ended December 30, 2007,  respectively) and the translation of
foreign  currencies  into  U.S.  dollars  ($350  and  $850 for the  quarter  and
nine-month  period ended  December 30, 2007,  respectively).  The quarter  ended
December  30,  2007  also  included  the  recognition  of  $135 of  stock  based
compensation expense related to our Long Term Incentive Plan. As a percentage of
consolidated  net sales,  general and  administrative  expenses were 6.1%, 6.0%,
6.1%, and 6.1% in the fiscal 2008 and 2007 quarters and the  nine-month  periods
then ended, respectively.

Restructuring  charges were $149,  $128, $894, and ($278) in the fiscal 2008 and
2007  quarters and the  nine-month  periods then ended,  respectively.  The 2008
restructuring charges include $551 of costs related to the partial demolition of
an older and  underutilized  domestic  facility  and $343 of costs  incurred  to
reduce  ongoing  operating  costs and  change  our  Univeyor  business  model to
increase  its focus on  offering  products  as  packaged  solutions  rather than
engineered-to-order  systems.  The reversal of  restructuring  charges in fiscal
2007 resulted from the sale of a previously closed facility and included $216 of
gain on the sale of the property that had been written down in previous periods.

Interest and debt expense was $3,445, $4,034, $11,250, and $12,722 in the fiscal
2008 and 2007 quarters and the nine-month periods then ended, respectively. This
decrease is the result of lower debt levels. As a percentage of consolidated net
sales,  interest and debt expense was 2.2%,  2.8%,  2.5%, and 2.9% in the fiscal
2008 and 2007 quarters and the nine-month periods then ended, respectively.

Cost of bond redemptions was $177, $359,  $1,620,  and $4,942 in the fiscal 2008
and  2007  quarters  and  the  nine-month  periods  then  ended,   respectively,
supporting our debt reduction initiatives.

Investment income was $261, $3,774, $812, and $4,560 in the fiscal 2008 and 2007
quarters and the nine-month  periods then ended,  respectively.  The fiscal 2007
quarter and nine month period  includes  $3,400 of realized gains on sale of the
investments  resulting from the reallocation of our captive insurance  company's
investment portfolio.

Income tax expense as a percentage of income from continuing  operations  before
income tax expense  was 40.8%,  38.2%,  39.0%,  and 39.5% in the fiscal 2008 and
2007 quarters and the nine-month  periods then ended,  respectively.  The fiscal
2008  percentages  vary from the U.S.  statutory note due to a $479 deferred tax
asset  valuation  allowance  recorded in third  quarter  related to our Univeyor
business.  The nine month fiscal 2007 percentage varies from the U.S.  statutory
rate due to $1,040 of  non-deductible  stock option expense in the period. As of
December  30,  2007,   the  Company  had  U.S.   federal  net   operating   loss
carry-forwards of approximately $6,200 representing approximately $2,200 of cash
tax savings in future periods.

On April 1, 2007,  the Company  adopted the  provisions  of Financial  Standards
Accounting  Board  ("FASB")   Interpretation  ("FIN")  No.  48  "Accounting  for
Uncertainty in Income Taxes," ("FIN 48") an  interpretation of FASB Statement of
Financial Accounting Standards ("SFAS") No. 109. FIN 48 clarifies the accounting
for uncertainty in income taxes  recognized  under SFAS 109. FIN 48 prescribes a
recognition   threshold  and  measurement   attribute  for  financial  statement
recognition and measurement of a tax position taken or expected to be taken in a
tax  return  and also  provides  guidance  on various  related  matters  such as
derecognition, interest and penalties, and disclosure.


                                     - 17 -
<PAGE>

Upon adoption of FIN 48, the Company  recorded a reduction in retained  earnings
for the cumulative  effect  adjustment of $186 to its $2,600 of unrecognized tax
benefits,  all of  which  would  favorably  impact  the  effective  tax  rate if
recognized.   During  the  second   quarter  of  fiscal  2008,  the  balance  of
unrecognized  tax benefits  increased  $223 as a result of certain  intercompany
transactions  that have not been audited by the various tax  jurisdictions and a
matter that arose  during a state  income tax audit.  There was no change in the
balance of unrecognized tax benefits during the first or third quarter of fiscal
2008.

The Company does not anticipate that total unrecognized tax benefits will change
significantly  due to the  settlement of audits or the expiration of statutes of
limitations prior to December 30, 2008.

The Company  had $207  accrued for the  payment of  interest  and  penalties  at
December 30, 2007. The Company recognizes  interest expense or penalties related
to uncertain tax  positions as a part of income tax expense in its  Consolidated
Statement of Operations.  The Company is currently open to audit by the Internal
Revenue Service for the years ending March 31, 2004 through 2007.

LIQUIDITY AND CAPITAL RESOURCES

Cash and cash  equivalents  totaled $61,073 at December 30, 2007, an increase of
$12,418 from the March 31, 2007 balance of $48,655.

Net cash provided by operating  activities was $37,985 for the nine months ended
December  30, 2007  compared to $27,230 for the nine months  ended  December 31,
2006.  The $10,755  increase  is  primarily  the result of a $6,103  increase in
income from  continuing  operations  to $28,550 in fiscal  2008 from  $22,447 in
fiscal  2007,  an  increase  of  $4,173  of cash  from the  change  of  accounts
receivables and unbilled revenues as a result of improved collection activities,
and a $1,385  increase in the use of deferred tax assets for net operating  loss
carry-forwards.  The resulting  increase in cash from  operations  was partially
offset by a $2,427  increase in cash used for the change in inventory  resulting
from  support for  upcoming  new product  launches,  an increase for longer term
capital projects equipment and timing of offshore purchases.

Net cash used by  investing  activities  was  $2,897 for the nine  months  ended
December  30, 2007  compared to $2,157 for the nine months  ended  December  31,
2006.  The net cash  used in  investing  activities  for the nine  months  ended
December  30, 2007 was the result of $7,421 used for  capital  expenditures  and
$1,397 for the net  purchases  of  marketable  securities,  partially  offset by
$5,504 of proceeds from the sale of facilities  and surplus real estate and $417
of  proceeds  from  discontinued  operations.  The net  cash  used in  investing
activities  for the nine months ended December 31, 2006 was the result of $6,825
used for capital  expenditures,  partially offset by $2,051 of proceeds from the
sale of facilities and surplus real estate, $2,052 received from the net sale of
marketable securities, and $565 of proceeds from discontinued operations.

Net cash used by  financing  activities  was $26,181  for the nine months  ended
December  30, 2007  compared to $39,058 for the nine months  ended  December 31,
2006.  The net cash  used in  financing  activities  for the nine  months  ended
December  30,  2007  consisted  primarily  of  $27,910  of net debt  repayments,
partially  offset by $1,309 of proceeds  from stock options  exercised.  The net
cash used in financing  activities  for the nine months ended  December 31, 2006
consisted  primarily  of $41,374  of net debt  repayments,  partially  offset by
$2,334 of proceeds from stock options exercised.

We believe that our cash on hand, cash flows,  and borrowing  capacity under our
Revolving Credit Facility will be sufficient to fund our ongoing  operations and
budgeted capital  expenditures for at least the next twelve months.  This belief
is  dependent  upon a steady  economy and  successful  execution  of our current
business plan which includes focus on cash  generation for debt  repayment.  The
business plan includes continued  implementation of new market penetration,  new
product   development,   lean   manufacturing   and  improving  working  capital
utilization.

Our Revolving  Credit Facility  provides  availability  up to $75,000.  Provided
there is no default,  the Company may request an increase in the availability of
the Revolving Credit Facility by an amount not exceeding $50,000.  The Revolving
Credit Facility matures February 2011.


                                     - 18 -
<PAGE>

The unused portion of the Revolving  Credit  Facility  totaled  $63,586,  net of
outstanding  borrowings of zero and outstanding  letters of credit of $11,414 of
December 30, 2007. Interest is payable at a Eurodollar Rate or a prime rate plus
an applicable  margin  determined by our leverage ratio. At our current leverage
ratio, we qualify for the lowest applicable margin level,  which amounts to 87.5
basis  points for  Eurodollar  borrowings  and zero basis  points for prime rate
based  borrowings.  The  Revolving  Credit  Facility is secured by all  domestic
inventory,  receivables,  equipment, real property, subsidiary stock (limited to
65% for foreign  subsidiaries)  and  intellectual  property.  The  corresponding
credit  agreement  associated with the Revolving  Credit Facility places certain
debt covenant restrictions on us, including certain financial requirements and a
limitation on dividend payments.

The Senior  Subordinated 8 7/8% Notes (8 7/8% Notes) issued on September 2, 2005
amounted  to  $133,000  at  December  30,  2007 and are due  November  1,  2013.
Provisions of the 8 7/8% Notes include limitations on indebtedness, asset sales,
and  dividends and other  restricted  payments.  Until  November 1, 2008, we may
redeem up to 35% of the outstanding notes at a redemption price of 108.875% with
the proceeds of equity offerings,  subject to certain restrictions.  On or after
November 1, 2009,  the 8 7/8% Notes are redeemable at the option of the Company,
in whole or in part, at prices  declining  annually from 104.438% to 100% on and
after  November 1, 2011.  In the event of a Change of Control (as defined in the
indenture  for such  notes),  each  holder of the 8 7/8% Notes may require us to
repurchase  all or a portion of such  holder's 8 7/8% Notes at a purchase  price
equal to 101% of the principal  amount thereof.  The 8 7/8% Notes are guaranteed
by certain existing and future domestic  subsidiaries and are not subject to any
sinking fund requirements.  During the fiscal 2008 third quarter ending December
30, 2007 the Company  used cash on hand to redeem  $3,000 of the  outstanding  8
7/8% Notes.  The redemption  required a $138 premium  payment to Noteholders and
$39 of unamortized  financing  costs were  written-off.  During January 2008 the
Company used cash on hand to redeem an  additional  $3,145 of the  outstanding 8
7/8% Notes  which  required a $134  premium  payment to  Noteholders  and $40 of
unamortized financing costs were written-off.

On August 1, 2007 the Company used cash on hand to redeem all of the outstanding
Senior  Secured  10%  Notes  at a price  of 105% of the  principal  amount.  The
redemption  required  a  $1,106  premium  payment  to  Noteholders  and  $337 of
unamortized  financing costs were  written-off in the fiscal 2008 second quarter
ending September 30, 2007.

International  lines of credit are available to meet short-term  working capital
needs for our subsidiaries  operating outside of the United States. The lines of
credit are available on an offering basis,  meaning that transactions  under the
line of credit will be on such terms and  conditions,  including  interest rate,
maturity,  representations,  covenants and events of default, as mutually agreed
between  our  subsidiaries  and  the  local  bank at the  time of each  specific
transaction.  As of December  30,  2007,  amounts  available  under  significant
foreign credit lines totaled approximately $11,750 of which $10,240 was drawn.

In addition to the above facilities, our foreign subsidiaries have certain fixed
term bank loans.  As of December 30, 2007,  significant  secured  loans  totaled
$3,040.

CAPITAL EXPENDITURES

In addition to keeping our current equipment and plants properly maintained,  we
are committed to replacing,  enhancing,  and upgrading our property,  plant, and
equipment to support new product development,  reduce production costs, increase
flexibility to respond  effectively  to market  fluctuations  and changes,  meet
environmental  requirements,  enhance safety, and promote  ergonomically correct
work  stations.  Consolidated  capital  expenditures  for the nine months  ended
December 30, 2007 and December 31, 2006 were $7,421 and $6,825, respectively. We
expect capital spending for fiscal 2008 to be  approximately  $11 to $12 million
compared with $10.7 million in fiscal 2007. Incremental capital expenditures for
fiscal  2008 will be  primarily  directed  toward new  product  development  and
productivity improvement.

INFLATION AND OTHER MARKET CONDITIONS

Our costs are affected by inflation in the U.S. economy and, to a lesser extent,
in foreign economies including those of Europe,  Canada,  Mexico, South America,
and the Pacific Rim. We do not believe that general inflation has had a material
effect on results of  operations  over the periods  presented  primarily  due to
overall low inflation  levels of most costs over such periods and our ability to


                                     - 19 -
<PAGE>

generally pass on rising costs through price  increases.  However,  we have been
impacted  by  fluctuations  in steel  costs,  which vary by type of steel and we
continue to monitor  them. In addition,  U.S.  employee  benefits  costs such as
health insurance and workers compensation insurance as well as energy costs have
exceeded general inflation levels. We generally incorporate those cost increases
into our sales price increases and consider  surcharges on certain products,  as
determined  necessary.  In the future,  we may be further  affected by inflation
that we may not be able to pass on as price increases or surcharges.

SEASONALITY AND QUARTERLY RESULTS

Quarterly  results may be  materially  affected by the timing of large  customer
orders, periods of high vacation and holiday concentrations,  gains or losses on
early retirement of bonds, restructuring charges, divestitures and acquisitions.
Therefore,  the  operating  results for any  particular  fiscal  quarter are not
necessarily  indicative of results for any subsequent  fiscal quarter or for the
full fiscal year.

EFFECTS OF NEW ACCOUNTING PRONOUNCEMENTS

In September 2006, the FASB issued Statement of Financial  Accounting  Standards
(SFAS) No. 157,  "Fair Value  Measurements,"  ("SFAS 157") to define fair value,
establish a framework for  measuring  fair value in  accordance  with  generally
accepted  accounting  principles,   and  expand  disclosures  about  fair  value
measurements.  SFAS 157 will be  effective  for  fiscal  years  beginning  after
November 15, 2007.  The Company is assessing the impact the adoption of SFAS 157
will have on the  Company's  consolidated  financial  position  and  results  of
operations.

In September  2006,  the FASB issued SFAS No. 158,  "Employers'  Accounting  for
Defined  Benefit  Pension and Other  Postretirement  Plans, an amendment of FASB
Statements  No. 87, 88, 106, and 132(R)" ("SFAS 158").  Among other items,  SFAS
158 requires  recognition of the overfunded or underfunded status of an entity's
defined  benefit  postretirement  plan as an asset or liability in the financial
statements  and requires  recognition  of the funded  status of defined  benefit
postretirement  plans in  other  comprehensive  income.  We  adopted  all of the
currently  required  provisions of SFAS 158 in fiscal 2007.  This statement also
requires an entity to measure a defined benefit postretirement plan's assets and
obligations  that  determine its funded  status as of the end of the  employers'
fiscal  year.  This  requirement  is  effective  for fiscal  years  ending after
December 15, 2008. The Company does not expect the adoption of this  requirement
to have a material impact on the Company's consolidated financial statements.

In February  2007,  the FASB issued  SFAS No.  159,  "The Fair Value  Option for
Financial  Assets and  Financial  Liabilities  -- Including an Amendment of FASB
Statement No. 115" ("SFAS  159").  SFAS 159 allows the  irrevocable  election of
fair value as the  initial  and  subsequent  measurement  attribute  for certain
financial assets and liabilities and other items on an  instrument-by-instrument
basis.  Changes in fair value would be reflected in earnings as they occur.  The
objective of SFAS 159 is to improve  financial  reporting by providing  entities
with the  opportunity  to mitigate  volatility  in reported  earnings  caused by
measuring  related assets and  liabilities  differently  without having to apply
complex hedge accounting  provisions.  SFAS 159 is effective as of the beginning
of the first fiscal year  beginning  after  November  15,  2007.  The Company is
currently  evaluating  if it will  elect the fair  value  option  for any of its
eligible financial instruments and other items.

In  December  2007,  the FASB  issued  SFAS No.  141  (revised  2007)  "Business
Combinations"  ("SFAS  141(R)").  SFAS 141(R) requires the acquiring entity in a
business  combination  to  recognize  all the assets  acquired  and  liabilities
assumed in the transaction;  establishes the acquisition-date  fair value as the
measurement  objective  for all assets  acquired and  liabilities  assumed;  and
requires the acquirer to disclose  all of the  information  required to evaluate
and understand the nature and financial effect of the business combination. This
statement is effective  for  acquisition  dates on or after the beginning of the
first annual  reporting period beginning after December 15, 2008. The Company is
currently  evaluating  the impact the  adoption  of SFAS 141(R) will have on the
Company's consolidated financial statements.


                                     - 20 -
<PAGE>


SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This report may include  "forward-looking  statements" within the meaning of the
Private Securities  Litigation Reform Act of 1995. Such statements involve known
and unknown risks,  uncertainties  and other factors that could cause our actual
results  to differ  materially  from the  results  expressed  or implied by such
statements,  including  general  economic  and business  conditions,  conditions
affecting the industries served by us and our subsidiaries, conditions affecting
our customers and suppliers,  competitor responses to our products and services,
the  overall   market   acceptance   of  such   products   and   services,   our
asbestos-related  liability,  the integration of acquisitions  and other factors
disclosed in our periodic reports filed with the Commission.  Consequently  such
forward-looking  statements  should be regarded as our current plans,  estimates
and beliefs.  We do not undertake  and  specifically  decline any  obligation to
publicly  release  the  results  of  any  revisions  to  these   forward-looking
statements that may be made to reflect any future events or circumstances  after
the date of such  statements  or to reflect the  occurrence  of  anticipated  or
unanticipated events.


Item 3.     Quantitative and Qualitative Disclosures About Market Risk


There have been no material  changes in the market risks since the end of Fiscal
2007.


Item 4.     Controls and Procedures

As of December 30, 2007, an evaluation was performed  under the  supervision and
with  the  participation  of  the  Company's  management,  including  the  chief
executive  officer and chief  financial  officer,  of the  effectiveness  of the
design and operation of the Company's disclosure controls and procedures.  Based
on that  evaluation,  the Company's  management,  including the chief  executive
officer and chief  financial  officer,  concluded that the Company's  disclosure
controls and procedures  were  effective as of December 30, 2007.  There were no
changes in the Company's  internal  controls or other  factors  during our third
quarter ended December 30, 2007.




                                     - 21 -
<PAGE>

PART II.    OTHER INFORMATION

Item 1.     Legal Proceedings - none.

Item 1A.    Risk Factors

            No material changes from risk factors as previously disclosed in the
            Company's Form 10-K for the year ended March 31, 2007.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds - none.

Item 3.     Defaults upon Senior Securities - none.

Item 4.     Submission of Matters to a Vote of Security Holders - none.

Item 5.     Other Information - none.

Item 6.     Exhibits

(a) Exhibits:

            Exhibit 31.1 Certification of  Chief Executive  Officer  pursuant to
                         Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act
                         of 1934;  as adopted  pursuant  to  Section  302 of the
                         Sarbanes-Oxley Act of 2002.

            Exhibit 31.2 Certification of  Chief Financial  Officer  pursuant to
                         Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act
                         of 1934;  as adopted  pursuant  to  Section  302 of the
                         Sarbanes-Oxley Act of 2002.

            Exhibit 32   Certification  pursuant  to 18 U.S.C.  Section  1350 as
                         adopted  pursuant to Section 906 of the  Sarbanes-Oxley
                         Act of 2002.


                                     - 22 -
<PAGE>


                                   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 thereunto duly authorized.


                                        COLUMBUS MCKINNON CORPORATION
                                        -----------------------------
                                       (Registrant)




Date: FEBRUARY 8, 2008                  /S/ KAREN L. HOWARD
      ----------------                  ----------------------------------------
                                         Karen L. Howard
                                         Vice President and Chief Financial
                                           Officer (Principal Financial Officer)


                                     - 23 -