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 June 28, 1998 

                                       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

The  number  of  shares of common  stock  outstanding  as of July 31,  1998 was:
13,756,858 shares.

<PAGE>
                                 FORM 10-Q INDEX
                          COLUMBUS McKINNON CORPORATION
                                  JUNE 28, 1998


                                                                      Page #
                                                                      ------

PART I. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

          Condensed  consolidated  balance  sheets - 
           June 28, 1998 and March 31, 1998                                 2

          Condensed consolidated statements of income and 
           retained earnings - Three months ended June 28, 1998 
           and June 29, 1997                                                3

          Condensed consolidated statements of cash flows -
           Three months ended June 28, 1998 and June 29, 1997               4

          Condensed consolidated statements of comprehensive
           income - Three months ended June 28, 1998 and June 29, 1997      5

          Notes to condensed consolidated financial statements -
           June 28, 1998                                                    6

Item 2.   Management's  Discussion and Analysis of Results of Operations 
           and Financial Condition                                         11


PART II.  OTHER INFORMATION

Item 1.   Legal Proceedings                                                16

Item 2.   Changes in Securities - none.                                    16

Item 3.   Defaults upon Senior Securities - none.                          16

Item 4.   Submission of Matters to a Vote of Security Holders - none.      16

Item 5.   Other Information - none.                                        16

Item 6.   Exhibits and Reports on Form 8-K                                 16







                                      - 1 -
<PAGE>


PART I.   FINANCIAL INFORMATION

Item 1.   Condensed Consolidated Financial Statements (Unaudited)

                          COLUMBUS McKINNON CORPORATION
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                                                         June 28,      March 31,
                                                           1998          1998  
                                                         --------      ---------
                                                               (In thousands)
ASSETS:
Current assets:
  Cash and cash equivalents                              $  4,548     $  22,841
  Trade accounts receivable                               131,909       113,509
  Unbilled revenues                                        19,891        19,634
  Inventories                                             105,566       107,673
  Net assets held for sale                                 10,429        10,396
  Prepaid expenses                                          6,856         9,969
                                                          -------       -------
Total current assets                                      279,199       284,022
Net property, plant, and equipment                         81,059        81,927
Goodwill and other intangibles, net                       365,444       368,137
Marketable securities                                      17,691        16,665
Deferred taxes on income                                    7,895         7,534
Other assets                                                6,649         5,463
                                                          -------       -------
Total assets                                             $757,937      $763,748
                                                         ========      ========

LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
  Notes payable to banks                                 $  1,516      $  2,801
  Trade accounts payable                                   42,415        53,901
  Excess billings                                           1,808         3,290
  Accrued liabilities                                      47,527        43,065
  Current portion of long-term debt                         1,412         1,456
                                                          -------       -------
Total current liabilities                                  94,678       104,513
Senior debt, less current portion                         247,400       247,388
Subordinated debt                                         199,468       199,468
Other non-current liabilities                              44,264        45,857
                                                          -------       -------
Total liabilities                                         585,810       597,226
Shareholders' equity:
  Common stock                                                137           137
  Additional paid-in capital                               96,961        96,544
  Retained earnings                                        81,330        76,187
  ESOP debt guarantee                                      (2,984)       (3,203)
  Unearned restricted stock                                  (466)         (538)
  Total accumulated other comprehensive income (loss)      (2,851)       (2,605)
                                                          -------       -------
Total shareholders' equity                                172,127       166,522
                                                          -------       -------
Total liabilities and shareholders' equity               $757,937      $763,748
                                                         ========      ========
See accompanying notes to condensed consolidated financial statements.
                                     - 2 -
<PAGE>
                          COLUMBUS McKINNON CORPORATION
        CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
                                   (UNAUDITED)



                                                            Three Months Ended
                                                            ------------------
                                                          June 28,      June 29,
                                                           1998           1997 
                                                          --------      --------
                                                          (In thousands, except
                                                               per share data)


Net sales                                                $170,503      $124,442
Cost of products sold                                     127,049        89,239
                                                          -------       -------
Gross profit                                               43,454        35,203

Selling expenses                                           12,480        11,165
General and administrative expenses                         6,896         6,343
Amortization of intangibles                                 3,760         2,549
                                                          -------       -------
                                                           23,136        20,057
                                                          -------       -------

Income from operations                                     20,318        15,146
Interest and debt expense                                   8,618         6,525
Interest and other income                                     372           316
                                                          -------       -------
Income before income taxes                                 12,072         8,937
Income tax expense                                          5,989         4,506
                                                          -------       -------
Net income                                                  6,083         4,431
Retained earnings - beginning of period                    76,187        60,999
Cash dividends of $0.07 per share                            (940)         (933)
                                                          -------       -------
Retained earnings - end of period                         $81,330       $64,497
                                                          =======       =======

Earnings per share data, both basic and diluted             $0.45         $0.33
                                                            =====         =====

See accompanying notes to condensed consolidated financial statements.


                                     - 3 -
<PAGE>
                          COLUMBUS McKINNON CORPORATION
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

                                                            Three Months Ended
                                                            ------------------
                                                         June 28,       June 29,
                                                           1998           1997
                                                         --------       --------
                                                               (In thousands)
OPERATING ACTIVITIES:
Net income                                               $  6,083      $  4,431
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                             6,604         4,760
  Other                                                       815           (79)
  Changes in operating assets and liabilities net 
   of effects from businesses purchased:
    Trade accounts receivable                             (18,401)       (2,908)
    Unbilled revenues and excess billings                  (1,739)           -
    Inventories                                             2,107         1,609
    Prepaid expenses                                         (214)        2,628
    Other assets                                             (436)         (226)
    Trade accounts payable                                (11,486)       (5,438)
    Accrued and non-current liabilities                     5,035         3,620
                                                          -------        ------
Net cash (used in) provided by operating activities       (11,632)        8,397
                                                          -------        ------

INVESTING ACTIVITIES:
Purchase of marketable securities, net of sales            (1,055)         (927)
Capital expenditures                                       (1,976)       (1,509)
Other                                                        (337)         (368)
                                                          -------        ------
Net cash used in investing activities                      (3,368)       (2,804)
                                                          -------        ------

FINANCING ACTIVITIES:
Net payments under revolving line-of-credit agreements     (1,285)       (1,433)
Repayment of debt                                             (32)         (867)
Dividends paid                                               (940)         (933)
Reduction of ESOP debt guarantee                              219           407
Other                                                        (841)           -
                                                          -------        ------
Net cash used in financing activities                      (2,879)       (2,826)
Effect of exchange rate changes on cash                      (414)         (595)
                                                          -------        ------
Net increase in cash and cash equivalents                 (18,293)        2,172
Cash and cash equivalents at beginning of period           22,841         8,907
                                                          -------        ------
Cash and cash equivalents at end of period                $ 4,548       $11,079
                                                          =======       =======

See accompanying notes to condensed consolidated financial statements.

                                     - 4 -
<PAGE>
                          COLUMBUS McKINNON CORPORATION
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                   (UNAUDITED)

                                                           Three Months Ended
                                                           ------------------
                                                         June 28,       June 29,
                                                          1998            1997
                                                         --------       --------
                                                              (In thousands)

Net income                                               $  6,083      $  4,431
                                                         --------      --------
Other comprehensive income (loss), net of tax:
  Foreign currency translation adjustments                   (217)         (738)
  Unrealized gains on investments:
    Unrealized holding gains arising during the period         47           497
    Less:  reclassification adjustment for gains 
           included in net income                             (76)          (89)
                                                         --------      --------
                                                              (29)          408
                                                         --------      --------
Total other comprehensive income (loss)                      (246)         (330)
                                                         --------      --------
Comprehensive income                                     $  5,837      $  4,101
                                                         ========      ========

See accompanying notes to condensed consolidated financial statements.


                                      - 5-
<PAGE>
                          COLUMBUS McKINNON CORPORATION
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                                  JUNE 28, 1998


1.   The accompanying unaudited condensed consolidated financial statements have
     been prepared in accordance with 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 the Company at June
     28,  1998,  and the  results of its  operations  and its cash flows for the
     three  month  period  ended  June 28,  1998 and June 29,  1997,  have  been
     included.  Results for the period  ended June 28, 1998 are not  necessarily
     indicative of the results that may be expected for the year ended March 31,
     1999.  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, 1998.


2.   Inventories consisted of the following:
                                                 June 28,      March 31,
                                                   1998          1998   
                                                 --------      ---------
                                                     (in thousands)
     At cost - FIFO basis:
        Raw materials                           $  47,185     $  52,158
        Work-in-process                            20,511        22,188
        Finished goods                             42,040        37,089
                                                 --------      --------
                                                  109,736       111,435
     LIFO cost less than FIFO cost                 (4,170)       (3,762)
                                                 --------      --------
                                                $ 105,566     $ 107,673
                                                =========     =========

     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.   Property,  plant,  and equipment is net of $33,720,000  and  $30,876,000 of
     accumulated depreciation at June 28, 1998 and March 31, 1998, respectively.

4.   Goodwill and other intangibles, net includes $18,739,000 and $14,979,000 of
     accumulated amortization at June 28, 1998 and March 31, 1998, respectively.

5.   General and Product  Liability - The accrued general and product  liability
     costs which are included in other non-current liabilities are the actuarial
     present value of estimated reserves based on an amount determined from loss
     reports and individual cases filed with the Company and an amount, based on
     past experience, for losses incurred but not reported. The accrual in these
     condensed  consolidated  financial  statements was determined by applying a
     discount factor based on interest rates  customarily  used in the insurance
     industry.

                                     - 6 -
<PAGE>
     Yale was  self-insured  for  product  liability  claims up to a maximum  of
     $500,000 per occurrence and maintained  product liability  insurance with a
     $100 million cap per  occurrence  through July 31, 1997 when Yale was added
     to the Company's  coverage as described above. The Company has been advised
     that a customer has alleged that one of Yale's  products was the cause of a
     fire that occurred in January 1995 at a manufacturing  facility,  resulting
     in losses in excess of Yale's policy  limits.  A formal  complaint has been
     filed seeking damages in excess of $500 million. However, it is the opinion
     of  management  that there was no  manufacturing  defect and that the claim
     will in all likelihood be settled within the Company's policy limits.

6.   To manage its  exposure  to  interest  rate  fluctuations,  the Company has
     interest rate swaps with a notional  amount of $22 million  through January
     2, 1999 and $3.5 million  from  January 2, 1999 through July 2, 2002,  both
     based on LIBOR at 5.9025%.  The Company also has LIBOR-based  interest rate
     caps on $40 million of debt through  December 16, 1998 and on an additional
     $49.5   million  of  debt  through   December  16,  1999  at  9%  and  10%,
     respectively.  Net payments or receipts  under the swap and cap  agreements
     are recorded as adjustments to interest expense. The carrying amount of the
     Company's debt instruments approximates the fair values.


7.   The  following  table  sets  forth the  computation  of basic  and  diluted
     earnings per share before extraordinary charge for debt extinguishment:



                                                           Three Months Ended
                                                           ------------------
                                                         June 28,       June 29,
                                                           1998           1997
                                                         --------       --------

     Numerator for basic and diluted earnings per share:
       Income before extraordinary charge              $6,083,000    $4,431,000
                                                       ==========    ==========

     Denominators:
       Weighted-average common stock outstanding -
         denominator for basic EPS                     13,432,000    13,328,000
       
       Effect of dilutive employee stock options           87,000        27,000
                                                       ----------    ----------

       Adjusted weighted-average common stock 
         outstanding and assumed conversions - 
         denominator for diluted EPS                   13,519,000    13,355,000
                                                       ==========    ==========
     
 
8.   Income tax expense for the three month periods ended June 28, 1998 and June
     29, 1997 exceeds the customary  relationship between income tax expense and
     income before income taxes due to nondeductible amortization of goodwill of
     $3,760,000, and $2,549,000, respectively.

                                     - 7 -
<PAGE>
9.   On March 31,  1998 the Company  acquired  all of the  outstanding  stock of
     LICO, Inc.  ("LICO"),  a leading  designer,  manufacturer  and installer of
     custom conveyor and automated  material  handling systems primarily for the
     automotive industry and, to a lesser extent, the steel and other industrial
     markets.  The total cost of the  acquisition,  which was accounted for as a
     purchase,  was  approximately  $155 million of cash,  which was financed by
     proceeds  from the  Company's  new  revolving  debt  facility and a private
     placement of senior subordinated notes, both of which also closed effective
     March 31, 1998.

     On January 7, 1998 the Company  acquired  all of the  outstanding  stock of
     Univeyor A/S  ("Univeyor"),  a  Denmark-based  designer,  manufacturer  and
     distributor of automated  material handling systems,  and has accounted for
     the   acquisition  as  a  purchase.   The  cost  of  the   acquisition  was
     approximately $15 million of cash financed by the Company's  revolving debt
     facility, plus certain debt.

     The following  table presents pro forma summary  information  for the three
     month period  ended June 29, 1997 as if the LICO and Univeyor  acquisitions
     and  related  borrowings  had  occurred  as of April 1, 1997,  which is the
     beginning  of  fiscal  1998.  The pro forma  information  is  provided  for
     informational purposes only. It is based on historical information and does
     not necessarily  reflect the actual results that would have occurred nor is
     it  necessarily  indicative of future results of operations of the combined
     enterprise:

                                                     Three Months Ended
                                                     ------------------
                                                       June 29, 1997
                                                       -------------
                                          (In thousands,  except per share data)
     Pro forma:
         Net sales                                       $  155,040
         Income from operations                              15,814
         Net income                                           3,148
         Earnings per share, both basic and diluted            0.24


10.  The summary  financial  information  of the parent,  domestic  subsidiaries
     (guarantors) and foreign  subsidiaries  (nonguarantors)  of the 8.5% senior
     subordinated notes follows:


<TABLE>

                                                               Domestic      Foreign     Elimina-   Consoli-
(In thousands)                                      Parent   Subsidiaries  Subsidiaries   tions      dated
                                                  ------------------------------------------------------------
<S>                                               <C>         <C>            <C>        <C>         <C>      
AS OF JUNE 28, 1998
Current assets:
 Cash and cash equivalents                        $    6,367  $     (3,200)  $    1,381 $        -  $   4,548
 Trade accounts receivable                            52,143        61,892       17,874          -    131,909
 Unbilled revenues                                         -        19,891            -          -     19,891
 Inventories                                          44,988        37,919       22,840       (181)   105,566
 Other current assets                                  1,981        11,647        3,657          -     17,285
                                                  ------------------------------------------------------------
  Total current assets                               105,479       128,149       45,752       (181)   279,199
Net property, plant, and equipment                    33,707        31,295       16,057          -     81,059
Goodwill and other intangibles, net                   44,079       273,026       48,339          -    365,444
Intercompany                                         241,610      (407,481)     (62,640)   228,511         (0)
Other assets                                         218,964       166,924       (1,657)  (351,996)    32,235
                                                  ------------------------------------------------------------
  Total assets                                    $  643,839  $    191,913   $   45,851 $ (123,666) $ 757,937
                                                  ============================================================

                                     - 8 -
<PAGE>
Current liabilities                               $   37,442  $     40,374   $   17,813 $     (951) $  94,678
Long-term debt, less current portion                 443,921           483        2,464          -    446,868
Other non-current liabilities                         11,373        30,161        2,730          -     44,264
                                                  ------------------------------------------------------------
  Total liabilities                                  492,736        71,018       23,007       (951)   585,810

Shareholders' equity                                 151,103       120,895       22,844   (122,715)   172,127
                                                  ------------------------------------------------------------
  Total liabilities and shareholders' equity      $  643,839  $    191,913   $   45,851 $ (123,666) $ 757,937
                                                  ============================================================

FOR THE THREE MONTHS ENDED JUNE 28, 1998
Net sales                                          $  66,761     $  82,100    $  24,759 $   (3,117) $ 170,503
Cost of products sold                                 47,435        64,782       17,949     (3,117)   127,049
                                                  ------------------------------------------------------------
Gross profit                                          19,326        17,318        6,810          -     43,454
                                                  ------------------------------------------------------------
Selling, general and administrative expenses           8,663         6,187        4,526          -     19,376
Amortization of intangibles                              488         2,745          527          -      3,760
                                                  ------------------------------------------------------------
                                                       9,151         8,932        5,053          -     23,136
                                                  ------------------------------------------------------------
Income from operations                                10,175         8,386        1,757          -     20,318
Interest and debt expense                              8,463            27          128          -      8,618
Interest and other income                                469            29         (126)         -        372
                                                  ------------------------------------------------------------
Income before income taxes                             2,181         8,388        1,503          -     12,072
Income tax expense                                     1,065         4,121          803          -      5,989
                                                  ------------------------------------------------------------
Net income                                         $   1,116     $   4,267    $     700 $        - $    6,083
                                                  ============================================================

FOR THE THREE MONTHS ENDED JUNE 28, 1998
OPERATING ACTIVITIES:
Net cash (used in) provided by operating
  activities                                       $  (7,188)     $ (3,462)   $  (1,011) $      29 $  (11,632)
                                                  ------------------------------------------------------------

INVESTING ACTIVITIES:
Purchase of marketable securities, net                (1,055)            -            -          -     (1,055)
Capital expenditures                                  (1,515)         (169)        (292)         -     (1,976)
Other                                                      -          (337)           -          -       (337)
                                                  ------------------------------------------------------------
Net cash used in investing activities                 (2,570)         (506)        (292)         -     (3,368)
                                                  ------------------------------------------------------------

FINANCING ACTIVITIES:
Net payments under revolving
  line-of-credit agreements                                -             -       (1,285)         -     (1,285)
Repayment of debt                                       (304)            -          272          -        (32)
Dividends paid                                          (940)            -            -          -       (940)
Other                                                   (622)            -            -          -       (622)
                                                  ------------------------------------------------------------
Net cash used in financing activities                 (1,866)            -       (1,013)         -     (2,879)
                                                  ------------------------------------------------------------
Effect of exchange rate changes on cash                    -             -         (385)       (29)      (414)
                                                  ------------------------------------------------------------
Net change in cash and cash equivalents              (11,624)       (3,968)      (2,701)         -    (18,293)
Cash and cash equivalents at beginning of period      17,991           768        4,082          -     22,841
                                                  ------------------------------------------------------------
Cash and cash equivalents at end of period         $   6,367      $ (3,200)   $   1,381  $       - $    4,548
                                                  ============================================================
</TABLE>

11.  The  Financial  Accounting  Standards  Board issued  Statement of Financial
     Accounting  Standards No. 130 "Reporting  Comprehensive  Income," which the
     Company has adopted for the interim  reporting period ending June 28, 1998.
     Statement  No.  130  establishes  new rules for  reporting  and  display of
     comprehensive income and its components. This includes unrealized gains and
     losses on the Company's  available-for-sale  securities,  foreign  currency
     translation adjustments,  and minimum pension liability adjustments,  which
     previously were reported in  shareholders'  equity and will now be included
     and disclosed in total comprehensive income. Compliance with this Statement
     does not impact financial position, net income or cash flows.

                                     - 9 -
<PAGE>
     The FASB also issued FAS Statement No. 131  "Disclosures  about Segments of
     an Enterprise  and Related  Information,"  which the Company will adopt for
     the year ended March 31, 1999.  Statement No. 131  superseded FAS Statement
     No.  14  "Financial  Reporting  for  Segments  of a  Business  Enterprise."
     Statement  No.  131  establishes  new  standards  for  determining  segment
     criteria and annual and interim reporting of that data. It also establishes
     new  disclosures  about  products,  geographic  areas and major  customers.
     Currently, the company reports one operating segment under Statement No. 14
     and, while the impact of compliance with Statement No. 131 has not yet been
     determined,  the Company  may be  required to report at least two  segments
     upon its adoption.





                                     - 10 -
<PAGE>
Item 2.             MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

OVERVIEW

Excluding  the recent  acquisitions  of LICO and  Univeyor on March 31, 1998 and
January 7, 1998, respectively, the Company's products are sold, domestically and
internationally,  principally  to third party  distributors  in  commercial  and
consumer distribution channels, and to a lesser extent directly to manufacturers
and  other   end-users.   Commercial   distribution   channels  include  general
distributors,   specialty  distributors,   service-after-sale  distributors  and
original  equipment   manufacturers   ("OEMs").  The  general  distributors  are
comprised  of  industrial  distributors,   rigging  shops  and  crane  builders.
Specialty distributors include catalog houses, material handling specialists and
entertainment equipment riggers. The service-after-sale  network includes repair
parts  distribution  centers,  chain service centers,  and hoist repair centers.
Company  products  are  also  sold  to  OEMs,  and  to  the  U.S.  and  Canadian
governments. Consumer distribution channels include mass merchandisers, hardware
distributors,   trucking  and   transportation   distributors,   farm   hardware
distributors  and rental outlets.  LICO and Univeyor sales are made primarily to
end-users.  LICO's sales are  concentrated in the domestic  automotive  industry
and, to a lesser extent, the steel,  construction and other industrial  markets.
Univeyor's  sales  are  made to  automotive,  consumer  products  manufacturing,
warehousing and other industrial markets, primarily in Europe.

RESULTS OF OPERATIONS

Three Months Ended June 28, 1998 and June 29, 1997
Net sales in the fiscal 1999 quarter ended June 28, 1998 were  $170,503,000,  an
increase of  $46,061,000  or 37.0% over the fiscal 1998  quarter  ended June 29,
1997.  Sales growth  during the current  quarter was due  primarily to the March
1998 LICO acquisition and January 1998 Univeyor acquisition.  In addition to the
effects of the acquisitions, the Company also experienced increased sales volume
in the quarter  through certain of its commercial  distribution  channels due to
steady  demand  in  the  marketplace.   This  was  offset  by  softness  in  the
international and consumer market channels.  Softness continues to be due to the
impact of the Asian  economic  situation  and also due to a shift in demand from
small retail hardware stores to larger do-it-yourself  superstores, to which the
Company  supplies  only a small  share.  In  addition,  list price  increases of
approximately  4% were  introduced in both  December 1997 and  November/December
1996 affecting many of the Company's  hoist,  chain and forged  products sold in
its  domestic  commercial  markets.  Sales in the  commercial  and the  consumer
distribution  channel  groups were as follows,  in thousands of dollars and with
percentage changes for each group:
 
                              Three Months Ended
                              ------------------
                            June 28,        June 29,             Change
                              1998            1997          Amount        %
                            --------       --------         ------       ---
                                   (In thousands, except percentages)
Commercial sales:
    Domestic             $   137,524     $    89,633    $    47,891    53.4
    International             26,517          27,441           (924)   (3.4)
                          ----------      ----------     ----------
                             164,041         117,074         46,967    40.1
Consumer sales                 6,462           7,368           (906)  (12.3)
                          ----------      ----------     ----------
Net sales                $   170,503     $   124,442    $    46,061    37.0
                         ===========     ===========    ===========

                                     - 11 -
<PAGE>
The Company's  gross profit margins were  approximately  25.5% and 28.3% for the
fiscal 1999 and 1998 quarters, respectively. The decrease in gross profit margin
in the current  quarter  resulted  from the  inclusion  of the LICO and Univeyor
operations.  These design and engineer-to-order  businesses typically experience
gross profit  margins of  approximately  20%,  which is lower than the Company's
margins in its product-oriented businesses.

Selling  expenses were  $12,480,000  and $11,165,000 in the fiscal 1999 and 1998
quarters,  respectively. The 1999 expenses were impacted by the addition of LICO
and Univeyor  activities.  As a percentage of  consolidated  net sales,  selling
expenses were 7.3%, and 9.0% in the fiscal 1999 and 1998 quarters, respectively.
The more favorable percentage in the fiscal 1999 quarter is primarily due to low
selling  expenses  relative to sales for LICO and Univeyor,  which is normal for
these businesses.

General and  administrative  expenses  were  $6,896,000,  and  $6,343,000 in the
fiscal 1999 and 1998 quarters,  respectively. The 1999 expenses were impacted by
the addition of LICO and Univeyor  activities.  As a percentage of  consolidated
net sales, general and administrative  expenses were 4.0% and 5.1% in the fiscal
1999 and 1998  quarters,  respectively.  The  improved  percentage  results from
continued  integration of acquisitions and the fixed nature of costs in relation
to the increased sales.

Amortization of intangibles was $3,760,000 and $2,549,000 in the fiscal 1999 and
1998 quarters, respectively. The fiscal 1999 increase is due to the amortization
of goodwill resulting from the acquisitions of LICO and Univeyor.

As a result of the above, income from operations  increased  $5,173,000 or 34.2%
in the fiscal 1999 quarter,  compared to the fiscal 1998 quarter.  This is based
on income from operations of $20,319,000 and $15,146,000 or 11.9% and 12.2% as a
percentage  of  consolidated  net sales in the  fiscal  1999 and 1998  quarters,
respectively.

Interest and debt expense was $8,618,000,  and $6,525,000 in the fiscal 1999 and
1998 quarters,  respectively.  The fiscal 1999 increase is primarily due to debt
incurred to finance the LICO  acquisition.  As a percentage of consolidated  net
sales,  interest and debt expense was 5.1%, and 5.2% in the fiscal 1999 and 1998
quarters, respectively.

Interest and other income was $372,000, and $316,000 in the fiscal 1999 and 1998
quarters,  respectively.  The fiscal 1999  increase is due to  increases  in the
investment  return on marketable  securities held for settlement of a portion of
the Company's general and products liability claims.

Income taxes as a percentage of income before income taxes were 49.6%, and 50.4%
in the fiscal 1999 and 1998 quarters,  respectively. The percentages reflect the
effect of nondeductible amortization of goodwill resulting from acquisitions.
 
As a result of the  above,  net  income  increased  $1,652,000  or 37.3% for the
quarter.  As a percentage of consolidated net sales, net income was 3.6% in both
the fiscal 1999 and 1998 quarters.

LIQUIDITY AND CAPITAL RESOURCES

On March 31, 1998, the Company acquired all of the outstanding stock of LICO for
approximately  $155  million in cash,  which was  financed by proceeds  from the
Company's new revolving credit facility ("1998 Revolving Credit Facility") and a
private  placement of senior  subordinated  notes ("8.5% Notes"),  both of which
also closed  effective  March 31, 1998. The Company's  previously  existing Term
Loan A, Term Loan B and  revolving  credit  facility  were repaid and retired on
March 31, 1998.

                                     - 12 -
<PAGE>
On  January  7, 1998,  the  Company  acquired  all of the  outstanding  stock of
Univeyor  for  approximately  $15  million  of cash  financed  by the  Company's
revolving credit facility, plus the assumption of certain debt.

The new 1998 Revolving Credit Facility provides availability up to $300 million,
due March 31, 2003, against which $240 million was outstanding at June 28, 1998.
Interest  is payable at varying  Eurodollar  rates  based on LIBOR plus a spread
determined  by the  Company's  leverage  ratio,  revised to 112.5  basis  points
effective July 20, 1998. The 1998  Revolving  Credit  Facility is secured by all
equipment,  inventory,  receivables  and  subsidiary  stock  (limited to 65% for
foreign subsidiaries). To manage its exposure to interest rate fluctuations, the
Company has interest rate swaps and caps.

The  senior  subordinated  8.5%  Notes  issued on March  31,  1998  amounted  to
$199,468,000,  net of original  issue discount of $532,000 and are due March 31,
2008.  Interest is payable  semi-annually  based on an effective  rate of 8.45%,
considering  $1,902,000  of  proceeds  from  rate  hedging  in  advance  of  the
placement.   Provisions  of  the  8.5%  Notes   include,   without   limitation,
restrictions  on liens,  indebtedness,  asset  sales,  and  dividends  and other
restricted  payments.  Prior to April 1, 2003,  the 8.5% Notes are redeemable at
the option of the  Company,  in whole or in part,  at the  Make-Whole  Price (as
defined).  On or after  April 1, 2003 they are  redeemable  at prices  declining
annually  from 108.5% to 100% on and after  April 1, 2006.  In  addition,  on or
prior to April 1, 2001,  the  Company  may  redeem up to 35% of the  outstanding
notes at a  redemption  price of 108.5% with the  proceeds of equity  offerings,
subject  to  certain  restrictions.  In the  event of a Change  in  Control  (as
defined),  each holder of the 8.5% Notes may  require the Company to  repurchase
all or a portion of such holder's  8.5% Notes at a purchase  price equal to 101%
of the principal  amount thereof.  The 8.5% Notes are not subject to any sinking
fund requirements.

The Company believes that its cash on hand, cash flows,  and borrowing  capacity
under its  revolving  credit  facility  will be  sufficient  to fund its ongoing
operations, budgeted capital expenditures and business acquisitions for the next
twelve months.

Net cash used in operating activities was $11,630,000 for the three months ended
June 28, 1998 while net cash provided by operating activities was $8,397,000 for
the three months ended June 28, 1998. The $20,027,000 change is primarily due to
changes in working capital, reflecting fluctuations in the working capital needs
of LICO.

Net cash used in  investing  activities  increased to  $3,368,000  for the three
months ended June 28, 1998 from  $2,804,000  for the three months ended June 29,
1997. The $564,000 increase is due primarily to higher capital expenditures.

Net cash used in  financing  activities  increased to  $2,879,000  for the three
months ended June 28, 1998 from  $2,826,000  for the three months ended June 29,
1997. The $53,000  increase is primarily due to activities  associated  with the
LICO and Univeyor acquisitions.

                                     - 13 -
<PAGE>
CAPITAL EXPENDITURES

In addition to keeping its current equipment and plants properly maintained, the
Company is committed to replacing, enhancing, and upgrading its property, plant,
and  equipment  to 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 three months ended June 28, 1998 and June 29, 1997
were $1,976,000 and $1,509,000, respectively.

INFLATION AND OTHER MARKET CONDITIONS

The  Company's  costs are affected by inflation  in the U.S.  economy,  and to a
lesser extent, in foreign economies including those of Europe,  Canada,  Mexico,
and the Pacific  Rim.  The Company  does not believe  that  inflation  has had a
material effect on results of operations over the periods  presented  because of
low inflation levels over the periods and because the Company has generally been
able to pass on rising costs through  price  increases.  However,  in the future
there can be no assurance  that the  Company's  business will not be affected by
inflation or that it will be able to pass on cost increases.

YEAR 2000 CONVERSIONS

The Company's  corporate-wide Year 2000 initiative is being managed by a team of
internal  staff and  administered  by an outside  consultant.  The  Company  has
completed  the  assessment  phase of its Year  2000  compliance  project  and is
currently working on remediation of affected components.

The Company has determined that it needs to modify  significant  portions of its
corporate  business  information  software  so that  its  computer  system  will
function  properly  with  respect  to dates in the year  2000 and  beyond.  Both
internal and external resources have been dedicated to assessing and converting,
or replacing,  various  programs to make them Year 2000  compliant.  The Company
believes that, with modifications to existing software, the Year 2000 issue will
not pose significant operational problems for its computer systems.

The Company has completed a corporate-wide assessment of the Year 2000 readiness
of  microprocessor  controlled  equipment  such as robotics,  CNC machines,  and
security and environmental  systems.  Any necessary upgrades to ensure Year 2000
readiness are expected to be in place by the end of December 1998.

The Company has  initiated  communications  with its  suppliers and customers to
determine the extent to which  systems,  products or services are  vulnerable to
failure should those third parties fail to remediate their own Year 2000 issues.
While we  believe  that our  Year  2000  compliance  plan  adequately  addresses
potential  Year 2000 concerns and to date no  significant  Year 2000 issues have
been identified with our suppliers and customers, there can be no guarantee that
the systems of other companies on which our operations rely will be compliant on
a timely basis and will not have an effect on our operations.

The cost of the Year 2000  initiatives  is not  expected  to be  material to the
Company's results of operations or financial position.

                                     - 14 -
<PAGE>
EFFECTS OF NEW ACCOUNTING PRONOUNCEMENTS

The  Financial   Accounting   Standards  Board  issued  Statement  of  Financial
Accounting Standards No. 130 "Reporting Comprehensive Income," which the Company
has adopted for the interim reporting period ending June 28, 1998. Statement No.
130 establishes new rules for the reporting and display of comprehensive  income
and its components.  This includes  unrealized  gains or losses on the Company's
available-for-sale  securities,  foreign currency translation  adjustments,  and
minimum  pension  liability  adjustments,  which  previously  were  reported  in
shareholders'  equity, and will be included and disclosed in total comprehensive
income.  Compliance with this Statement does not impact financial position,  net
income or cash flows.

The FASB also issued FAS Statement  No. 131  "Disclosures  about  Segments of an
Enterprise and Related  Information,"  which the Company will adopt for the year
ended  March 31,  1999.  Statement  No.  131  superseded  FAS  Statement  No. 14
"Financial Reporting for Segments of a Business  Enterprise."  Statement No. 131
establishes  new  standards  for  determining  segment  criteria  and annual and
interim  reporting  of that data.  It also  establishes  new  disclosures  about
products,  geographic areas and major customers.  Currently, the Company reports
one operating segment under Statement No. 14 and, while the impact of compliance
with Statement No. 131 has not yet been determined,  the Company may be required
to report at least two segments upon its adoption.

                                     - 15 -
<PAGE>
PART II.    OTHER INFORMATION

Item 1.   Legal  Proceedings - none other than that previously  disclosed within
          "Notes to Condensed Consolidated Financial Statements" footnote number
          5 contained herein.

Item 2.   Changes in Securities - 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 and Reports on Form 8-K

           Exhibit 99.1 - Management EVA(R) Incentive Compensation Plan

       There are no reports on Form 8-K.


                                     - 16 -
<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: August 12, 1998             /s/ Robert L. Montgomery, Jr. 
      ---------------             -----------------------------------------
                                  Robert L. Montgomery, Jr.
                                  Executive Vice President and
                                  Chief Financial Officer (Principal Financial 
                                   Officer)




                                     - 17 -