<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549


                                    FORM 11-K
                                  ANNUAL REPORT


                          Pursuant to Section 15(d) of
                       The Securities Exchange Act of 1934


                   For the fiscal year ended December 31, 1998



A.   Full Title of the Plan:

                  The LaBarge, Inc. Employees Savings Plan



B. Name of the issuer of securities held pursuant to the Plan and the address of
its principal executive offices:


                  LaBarge, Inc.
                  9900A Clayton Road
                  St. Louis, MO 63124




This filing has a total of 20 pages.


<PAGE>   2


                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
LaBarge, Inc. Employees Savings Plan Administrative Committee has duly caused
this Annual Report to be signed by the undersigned thereunto duly authorized.


                                        THE LABARGE, INC. EMPLOYEES SAVINGS PLAN



                                        By: /s/ William J. Maender
                                            ____________________________________
                                            William J. Maender
                                            Chairman, Administrative Committee






Date:    6/29/99

<PAGE>   3





                              REQUIRED INFORMATION




     Financial Statements.


     Exhibits.


23.       Consent of KPMG LLP.
<PAGE>   4



                      LABARGE, INC. EMPLOYEES SAVINGS PLAN

                       Financial Statements and Schedules

                           December 31, 1998 and 1997

                  (With Independent Auditors' Report Thereon)





<PAGE>   5





                      LABARGE, INC. EMPLOYEES SAVINGS PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  PAGE

<S>                                                                                               <C>
TABLE OF CONTENTS:
Independent Auditors' Report                                                                      1
Financial Statements:
Statement of Net Assets Available for Plan Benefits,
With Fund Information, December 31, 1998                                                          2
Statement of Net Assets Available for Plan Benefits,
With Fund Information, December 31, 1997                                                          3
Statement of Changes in Net Assets Available for Plan Benefits,
With Fund Information, Year ended December 31, 1998                                               4
Statement of Changes in Net Assets Available for Plan Benefits,
With Fund Information, Year ended December 31, 1997                                               5
Notes to Financial Statements                                                                  6-11
                                                                                SCHEDULES
  Line 27a:
Schedule of Assets Held for Investment Purposes, December 31, 1998                  1            12
Schedule of Assets Which Were Both Acquired and Disposed of
Within the Plan Year                                                                              *
  Line 27b - Schedule of Loans or Fixed Income Obligations                                        *
  Line 27c - Schedule of Leases in Default or Classified as Uncollectible                         *
  Line 27d - Schedule of Reportable Transactions, Year ended December 31, 1998      2            13
  Line 27e - Schedule of Nonexempt Transactions                                                   *
</TABLE>


   *    There were no assets held for investment purposes which were both
        acquired and disposed of and no nonexempt transactions with
        parties-in-interest within the plan year ended December 31, 1998 which
        require separate disclosure.  Additionally, there were no loans or
        fixed income obligations and no leases in default or classified as
        uncollectible at December 31, 1998.


DEFINITIONS:


<TABLE>
    <S>                 <C>  <C>
    Plan                -    LaBarge, Inc. Employees Savings Plan

    Trustee             -    A. G. Edwards Trust Company

    ERISA               -    Employee Retirement Income Security Act of 1974

    Company             -    LaBarge, Inc.

    Plan Administrator  -    LaBarge, Inc. Plan Administration Committee
</TABLE>





<PAGE>   6
   KPMG
   10 South Broadway
   Suite 900
   St. Louis MO 63102-1761


                          INDEPENDENT AUDITORS' REPORT


   Plan Administration Committee
   LaBarge, Inc. Employees Savings Plan

   We have audited the accompanying statements of net assets available for
   plan benefits, with fund information, of the LaBarge, Inc. Employees
   Savings Plan as of December 31, 1998 and 1997 and the related
   statements of changes in net assets available for plan benefits, with
   fund information, for the years then ended.  These financial statements
   are the responsibility of the Plan Administrator.  Our responsibility
   is to express an opinion on these financial statements based on our
   audits.

   We conducted our audits in accordance with generally accepted auditing
   standards.  Those standards require that we plan and perform the audit
   to obtain reasonable assurance about whether the financial statements
   are free of material misstatement.  An audit includes examining, on a
   test basis, evidence supporting the amounts and disclosures in the
   financial statements.  An audit also includes assessing the accounting
   principles used and significant estimates made by the Plan
   Administrator, as well as evaluating the overall financial statement
   presentation.  We believe that our audits provide a reasonable basis
   for our opinion.

   In our opinion, the financial statements referred to above present
   fairly, in all material respects, the net assets available for plan
   benefits of the LaBarge, Inc. Employees Savings Plan as of December 31,
   1998 and 1997, and the changes in net assets available for plan
   benefits for the years then ended, in conformity with generally
   accepted accounting principles.

   Our audits were performed for the purpose of forming an opinion on the
   basic financial statements taken as a whole.  The supplemental
   information in Schedules 1 and 2 is presented for the purpose of
   additional analysis and is not a required part of the basic financial
   statements but is supplementary information required by the Department
   of Labor's Rules and Regulations for Reporting and Disclosure under the
   ERISA.  The fund information in the statements of net assets available
   for plan benefits and the statements of changes in net assets available
   for plan benefits is presented for purposes of additional analysis
   rather than to present the net assets available for plan benefits and
   changes in net assets available for plan benefits of each fund.  The
   supplemental schedules and fund information have been subjected to the
   auditing procedures applied in the audits of the basic financial
   statements and, in our opinion, are fairly stated in all material
   respects in relation to the basic financial statements taken as a
   whole.

                                        /s/ KPMG LLP
                                        __________________________________
                                        KPMG LLP

   May 21, 1999




<PAGE>   7





                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
   Statement of Net Assets Available for Plan Benefits, With Fund Information
                                December 31, 1998




<TABLE>
<CAPTION>
                                                                                                     LABARGE
                                             EQUITY                           MONEY   INTERMEDIATE   COMMON
                                             INDEX      GROWTH    BALANCED   MARKET       BOND        STOCK     LOAN
                                              FUND       FUND       FUND      FUND        FUND        FUND      FUND      TOTAL
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
<S>                                        <C>         <C>        <C>        <C>      <C>           <C>        <C>      <C>
Assets:
     Investments:
          Registered investment
           company shares                  $3,859,642  2,980,053  1,937,398       --       709,080         --       --   9,486,173
          Money market accounts                    --         --         --  617,543            --        947       --     618,490
          LaBarge, Inc. common stock               --         --         --       --            --  2,373,423       --   2,373,423
          Loans to participants                    --         --         --       --            --         --  698,153     698,153
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
                     Total investments      3,859,642  2,980,053  1,937,398  617,543       709,080  2,374,370  698,153  13,176,239
     Receivables:
          Employer contributions                   --         --         --       --            --     65,559       --      65,559
          Participant contributions            39,875     31,262     14,500    5,760         5,915      3,025       --     100,337
          Participant loans                    21,523     26,462      5,082    1,234         1,803        553       --      56,657
          Interest and dividends                   19         13          7    2,787             4         17       --       2,847
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
                     Net assets available
                        for plan benefits  $3,921,059  3,037,790  1,956,987  627,324       716,802  2,443,524  698,153  13,401,639
                                           ==========  =========  =========  =======  ============  =========  =======  ==========
</TABLE>

See accompanying notes to financial statements.



                                       2
<PAGE>   8






                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
   Statement of Net Assets Available for Plan Benefits, With Fund Information
                                December 31, 1997




<TABLE>
<CAPTION>
                                                                                                     LABARGE
                                           AGGRESSIVE                         MONEY   INTERMEDIATE   COMMON
                                             GROWTH     GROWTH    BALANCED   MARKET       BOND        STOCK     LOAN
                                              FUND       FUND       FUND      FUND        FUND        FUND      FUND      TOTAL
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
                                           <C>         <C>        <C>        <C>      <C>           <C>        <C>      <C>
Assets:
     Investments:
          Registered investment
            company shares                 $2,926,283  2,109,804  1,927,851       --       828,240         --       --   7,792,178
          Money market accounts                    14         30         21  944,757           708      2,267       --     947,797
          LaBarge, Inc. common stock               --         --         --       --            --  3,644,775       --   3,644,775
          Loans to participants                    --         --         --       --            --         --  594,675     594,675
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
                     Total investments      2,926,297  2,109,834  1,927,872  944,757       828,948  3,647,042  594,675  12,979,425
     Receivables:
          Employer contributions                   --         --         --      980            --     52,881       --      53,861
          Participant contributions            38,265     22,555     14,368    7,507         7,438      2,342       --      92,475
          Participant loans                     5,448      5,135      4,858    1,241         2,919      1,196       --      20,797
          Interest and dividends                   39         26         17    4,659         4,315         14       --       9,070
                                           ----------  ---------  ---------  -------  ------------  ---------  -------  ----------
                     Net assets available
                     for plan benefits     $2,970,049  2,137,550  1,947,115  959,144       843,620  3,703,475  594,675  13,155,628
                                           ==========  =========  =========  =======  ============  =========  =======  ==========
</TABLE>

See accompanying notes to financial statements.



                                       3
<PAGE>   9






                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
         Statement of Changes in Net Assets Available for Plan Benefits,
                             With Fund Information
                          Year ended December 31, 1998




<TABLE>
<CAPTION>                                                                                                      LABARGE
                                AGGRESSIVE   EQUITY                            MONEY   INTERMEDIATE   COMMON
                                  GROWTH      INDEX      GROWTH    BALANCED   MARKET       BOND        STOCK      LOAN
                                   FUND        FUND       FUND       FUND      FUND        FUND        FUND       FUND      TOTAL
                                ----------- ---------- ---------- ---------- --------- ------------ ----------- -------- -----------
<S>                             <C>         <C>        <C>        <C>        <C>       <C>          <C>         <C>      <C>
Investment income (loss):
Interest and dividends          $      719     20,402     19,882     51,758    41,949       50,470         819   62,512     248,511
Net appreciation (depreciation)
in fair market value of
Investments                        417,471    361,566    527,642    148,510        --        3,610  (1,283,546)      --     175,253
                                ----------  ---------  ---------  ---------  --------  -----------  ----------  -------  ----------
Total investment income (loss)     418,190    381,968    547,524    200,268    41,949       54,080  (1,282,727)  62,512     423,764

Participant contributions          217,402    233,241    329,178    161,654    61,186       71,781      28,570       --   1,103,012
Employer contributions                  --         --         --         --        --           --     256,178       --     256,178
Participant distributions         (304,018)  (153,307)  (161,729)  (108,162) (381,425)     (95,052)   (262,646) (55,170) (1,521,509)
Administrative expenses             (3,990)    (5,304)    (4,633)       324     2,942       (1,726)     (3,047)      --     (15,434)
Interfund transfers             (3,297,633) 3,464,461    189,900   (244,212)  (56,472)    (155,901)      3,721   96,136          --
                                ----------  ---------  ---------  ---------  --------  -----------  ----------  -------  ----------
Increase (decrease) in net
assets available for plan
benefits                        (2,970,049) 3,921,059    900,240      9,872  (331,820)    (126,818) (1,259,951) 103,478     246,011
Net assets available for
plan benefits: Beginning
of year                          2,970,049         --  2,137,550  1,947,115   959,144      843,620   3,703,475  594,675  13,155,628
                                ----------  ---------  ---------  ---------  --------  -----------  ----------  -------  ----------
End of year                     $       --  3,921,059  3,037,790  1,956,987   627,324      716,802   2,443,524  698,153  13,401,639
                                ==========  =========  =========  =========  ========  ===========  ==========  =======  ==========
</TABLE>

See accompanying notes to financial statements.



                                       4
<PAGE>   10






                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
        Statement of Changes in Net Assets Available for Plan Benefits,
                             With Fund Information
                          Year ended December 31, 1997




<TABLE>
<CAPTION>
                                                                                                    LABARGE
                                     AGGRESSIVE                            MONEY    INTERMEDIATE    COMMON
                                       GROWTH       GROWTH     BALANCED    MARKET       BOND        STOCK       LOAN
                                        FUND         FUND        FUND       FUND        FUND         FUND        FUND       TOTAL
                                     -----------  ----------  ----------  --------  ------------  -----------  --------  -----------
<S>                                  <C>          <C>         <C>         <C>       <C>           <C>          <C>       <C>
Investment income (loss):
Interest and dividends               $  124,971      21,972      42,555    52,064        45,098          780     49,238     336,678
Net appreciation (depreciation)
in fair market value of
investments                             202,838     419,608     267,915        --         3,106   (1,651,644)        --    (758,177)
                                     ----------   ---------   ---------   -------   -----------   ----------   --------  ----------
Total investment income
(loss)                                  327,809     441,580     310,470    52,064        48,204   (1,650,864)    49,238    (421,499)
Participant contributions               351,346     208,307     143,707    67,807        88,148       19,937         --     879,252
Employer contributions                       --          --          --        --            --      195,730         --     195,730
Participant distributions              (121,558)    (24,357)    (46,787)  (51,860)      (23,533)    (148,970)  (49,757)    (466,822)
Administrative expenses                 (10,474)     (5,209)     (1,518)      691        (3,139)      (7,181)        --     (26,830)
Interfund transfers                    (115,188)     44,404      (1,782)   (5,394)       (5,278)      10,069     73,169          --
                                     ----------   ---------   ---------   -------   -----------   ----------   --------  ----------
Increase (decrease) in net assets
available for plan benefits             431,935     664,725     404,090    63,308       104,402   (1,581,279)    72,650     159,831
Net assets available for plan
benefits: Beginning of year           2,538,114   1,472,825   1,543,025   895,836       739,218    5,284,754    522,025  12,995,797
                                     ----------   ---------   ---------   -------   -----------   ----------   --------  ----------
End of year                          $2,970,049   2,137,550   1,947,115   959,144       843,620    3,703,475    594,675  13,155,628
                                     ==========   =========   =========   =======   ===========   ==========   ========  ==========

</TABLE>

See accompanying notes to financial statements.


                                       5

<PAGE>   11






(1)  DESCRIPTION OF THE PLAN

     The following description of the Plan provides only general information.
     Participants should refer to the plan document for a more complete
     description of the Plan's provisions.

     (a)  GENERAL

         The Plan is a defined contribution plan sponsored by the Company
         covering substantially all employees with 60 days of service and is
         subject to the provisions of ERISA.

     (b)  CONTRIBUTIONS

         Employees may elect to contribute, on a pre-tax basis, up to 15% of
         covered compensation in various investment funds of the Plan.  The
         Company contributes an amount equal to 50% of the first $25 per month
         of employee contributions plus 25% of the employee contribution in
         excess of $25.  The Company provides matching contributions in an
         amount not to exceed 8% of the participant's compensation.  Each year
         the Company may also, at its option, contribute an additional
         discretionary amount as determined by the Company's Board of Directors
         as a profit-sharing contribution.  There were no discretionary
         profit-sharing contributions for 1998 or 1997.

     (c)  PARTICIPANTS' ACCOUNTS

         Each participant account is credited with the participant's
         contribution, the Company's matching contribution, and an allocation
         of the Company's discretionary profit-sharing contribution and fund
         earnings net of administrative charges.  Allocations are based upon
         covered compensation or account balances as defined in the plan
         agreement.

         Participants may transfer amounts between funds on quarterly
         enrollment dates throughout the year.  The Plan Administrator will
         record these transfers in the participant's account and direct the
         Trustee to reinvest the amounts to reflect these changes.  Money
         market accounts are maintained for each fund to provide for short-term
         investments while transfers are in process.  At year-end, the
         investments are presented net of any transfers in process as directed
         by the participants.

         A participant's interest in transfers and trading activity in the
         LaBarge Common Stock Fund is based on a weighted average formula which
         considers the fair market value of the stock (traded on the American
         Stock Exchange) for each of 20 consecutive trading dates immediately
         preceding the valuation date.

                                                                     (Continued)

                                       6




<PAGE>   12
                      LABARGE INC. EMPLOYEES SAVINGS PLAN
                         Notes to Financial Statements
                           December 31, 1998 and 1997


     (d)  VESTING

         Participants are immediately vested in their contributions plus any
         earnings thereon.  Participants are fully vested with respect to a
         calendar quarter employer matching contribution if that participant is
         employed by the Company on the last day of such calendar quarter.
         Upon a participant's attainment of his/her normal retirement date
         (65th birthday), or upon death or total disability, his/her entire
         account balance as of the most recent valuation date will become 100%
         vested.  In the event a participant terminates employment, vesting in
         the Company's profit-sharing contribution allocated to the
         participant's account is 100% after five full years of continuous
         service.

     (e)  LOANS TO PARTICIPANTS

         Participants are allowed to transfer portions of their account
         balances into the Loan Fund and borrow from the Loan Fund at the
         prevailing market rate (prime plus .5%).  Loans will be limited to the
         lesser of (i) 50% of a participant's vested plan account balance as of
         the last day of the calendar quarter for which the loan is being made,
         or (ii) $50,000.  Loans to participants include interest-bearing
         promissory notes at rates from 6.5% to 9.5% with final due dates
         through October 2003.

     (f)  PAYMENT OF BENEFITS

         Upon termination or retirement of service, a participant's account is
         distributed in the form of a lump-sum payment or installment payments
         over a period of time.  Distributions are made as soon as practical
         after the close of the plan quarter in which the termination of
         employment occurs or is deferred until age 70-1/2 at the participant's
         election.

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     (a)  BASIS OF PRESENTATION

         The accompanying financial statements of the Plan have been prepared
         on the accrual basis and present the net assets available for plan
         benefits and changes in those net assets.

     (b)  INVESTMENTS

         Participants may elect to have a portion of their account balances
         invested in the following separate investment funds within the Plan:

         o    Aggressive Growth Fund, which shall have as its
              principal objective long-term growth by investing primarily in
              medium-sized and smaller growth companies;

         o    Equity Index Fund, which shall have at its principal
              objective long-term capital growth by investing in the same
              stocks and in substantially the same percentage as the S&P 500
              Composite Stock Price Index;

         o    Growth Fund, which shall have as its principal
              objective long-term growth by investing in stocks of companies
              that are undervalued relative to the stock market as a whole;

                                                                     (Continued)

                                       7
<PAGE>   13
                      LABARGE INC. EMPLOYEES SAVINGS PLAN
                         Notes to Financial Statements
                           December 31, 1998 and 1997



         o    Balanced Fund, which shall have as its principal objective
              conservation of principal, current income, and long-term growth of
              principal and income by investing in stocks and fixed income
              securities;

         o    Money Market Fund, which shall have as its principal
              objective the preservation of principal and the earning of
              interest at rates prevailing on short-term fixed income
              investments;

         o    Intermediate Bond Fund, which shall have as its
              principal objective the preservation of principal and the
              production of income by investing in government securities and
              high-quality corporate bonds;

         o    LaBarge Common Stock Fund, which shall be exclusively
              invested in common stock of the Company; and

         o    Loan Fund, which shall account for all principal and
              interest outstanding on loans to plan participants.

         Effective April 1, 1998, the Aggressive Growth Fund was eliminated
         from the investment funds in which participants could elect to invest
         their account balances.  All assets within the Aggressive Growth Fund
         were transferred to the Equity Index Fund as of April 1, 1998.

         The Aggressive Growth Fund, Equity Index Fund, Growth Fund, Balanced
         Fund, and Intermediate Bond Fund (all investing in registered
         investment company shares), and the LaBarge Common Stock Fund are
         stated at fair market value.  The fair market value of the Company's
         common stock is determined based on the quoted market value of the
         stock on the last day of trading for the period.  The Money Market
         Fund (trust prime money market account) is valued at cost plus
         interest, which approximates net realizable value.  The appreciation
         (depreciation) in fair market value of investments of the Plan
         represents the change in the difference between market value and cost
         of the investments during the year and realized gain or losses on the
         sale of investments based upon their historical cost on a specific
         identification basis.

         Interest income is recorded on the accrual basis.  Dividends are
         recorded on the ex-dividend date.  Purchases and sales of securities
         are recorded on a trade-date basis.

     (c)  TRUST FUND MANAGED BY THE TRUSTEE

         Under the terms of a trust agreement, the Trustee manages a trust fund
         on behalf of the Plan. The investments and changes therein of this
         trust fund have been reported to the Plan by the Trustee.

     (d)  ADMINISTRATIVE CHARGES

         The Plan gives the Company the option of paying all administrative
         expenses or charging them to the Plan.  All expenses incidental to the
         operation and management of the Plan have been charged to the Plan and
         paid with plan assets.


                                                                     (Continued)

                                       8
<PAGE>   14
                      LABARGE INC. EMPLOYEES SAVINGS PLAN
                         Notes to Financial Statements
                           December 31, 1998 and 1997



     (e)  BENEFITS PAID TO PARTICIPANTS

         Benefits are recorded when paid.

     (f)  USE OF ESTIMATES

         Certain amounts included in the financial statements are estimated
         based on currently available information and the Plan Administrator's
         judgment as to the outcome of future conditions and circumstances.
         While every effort is made to ensure the integrity of such estimates,
         including the use of third-party specialists where appropriate, actual
         results could differ from these estimates.

(3)  PLAN AMENDMENT

     The Plan was amended effective January 1, 1998 to change the employee
     eligibility requirements from the completion of one year of service to
     sixty consecutive days of service with the Company.

(4)  TAX STATUS

     The Plan Administrator has received a favorable determination letter dated
     April 8, 1994 from the Internal Revenue Service which indicates that the
     Plan and its underlying trust qualify under the applicable provisions of
     the Internal Revenue Code and, therefore, are exempt from federal income
     taxes.  The Plan has been subsequently amended.  In the opinion of the
     Plan Administrator, such amendments do not affect the tax status of the
     Plan.

(5)  PLAN TERMINATION

     Although it has not expressed an intent to do so, the Company has the
     right under the provisions of the Plan to discontinue its contributions at
     any time and to terminate the Plan subject to the provisions of ERISA.  In
     the event of plan termination, participants will become fully vested.

(6)  RELATED-PARTY TRANSACTIONS

     On various dates during 1998, the Plan purchased 61,850 shares of the
     Company's common stock at fair market value at prices ranging from $3.3125
     to $4.50 per share for investment in the Plan's LaBarge Common Stock Fund.

     On various dates during 1998, the Plan sold 3,405 shares of the Company's
     common stock at fair market value at prices ranging from $3.875 to $4.375
     per share of the Plan's LaBarge Common Stock Fund.

     The market value of the investment in the LaBarge Common Stock Fund was
     valued at $2.688 and $4.063 per share at December 31, 1998 and 1997,
     respectively.

                                                                     (Continued)

                                       9
<PAGE>   15





(7)  RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

     The following is a reconciliation of net assets available for plan
     benefits per the financial statements to the Form 5500:

<TABLE>
<CAPTION>
                                                                            DECEMBER 31,
                                                                          1998          1997
                                                                     --------------  ----------
<S>                                                                  <C>             <C>
Net assets available for plan benefits per the financial statements      13,401,639  13,155,628
Amounts allocated to withdrawing participants                               702,160     519,673
                                                                     --------------  ----------
Net assets available for plan benefits per the Form 5500                $12,699,479  12,635,955
                                                                     ==============  ==========
</TABLE>

     The following is a reconciliation of benefits paid to participants per the
     financial statements to the Form 5500:

<TABLE>
<CAPTION>
                                                                  YEAR ENDED DECEMBER 31,
                                                                    1998           1997
                                                                 ----------      -------
<S>                                                              <C>              <C>
Distributions to participants per the financial statements       $1,521,509      466,822
Add amounts allocated to withdrawing participants at
end of year                                                         702,160      519,673
Less amounts allocated to withdrawing participants at
beginning of year                                                   519,673           --
                                                                 ----------      -------
Benefits paid to participants per the Form 5500                  $1,703,996      986,495
                                                                 ==========      =======
</TABLE>

     Amounts allocated to withdrawing participants are recorded on the Form
     5500 for benefit claims that have been processed and approved for payments
     prior to December 31 but not yet paid as of that date.




                                       10

<PAGE>   16
                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
                         Notes to Financial Statements
                           December 31, 1998 and 1997



(8)  INVESTMENTS

     Investments of the Plan are comprised of the following:

     Investments that represent 5% or more of the Plan's net assets are
     separately identified.

<TABLE>
<CAPTION>
                                                                        DECEMBER 31,
                                                                      1998          1997
                                                                 --------------  ----------
<S>                                                              <C>             <C>
Investments at fair value as determined by quoted market price:
 Mutual funds:
  AIM Equity Funds Inc., Constellation                             $         --   2,926,283
  American Balanced Fund Inc. Income Fund                             1,937,398   1,927,851
  Fidelity Advisor Series II Growth Opportunity Fund Class T          2,980,053   2,109,804
  Intermediate Bond Fund of America                                     709,080     828,240
  Mainstay Funds Equity Index Fund Class A                            3,859,642          --
 LaBarge, Inc. common stock                                           2,373,423   3,644,775
                                                                 --------------  ----------
                                                                     11,859,596  11,436,953
                                                                 --------------  ----------
Investments at fair value:
 Money market accounts -
  Goldman Sachs Financial Square Pop-A Prime Obligations                618,490     947,797
 Loans to participants                                                  698,153     594,675
                                                                 --------------  ----------
                                                                      1,316,643   1,542,472
                                                                 --------------  ----------
                                                                    $13,176,239  12,979,425
                                                                 ==============  ==========
</TABLE>

         NET APPRECIATION (DEPRECIATION) IN FAIR VALUE

         During the years ended December 31, 1998 and 1997, the Plan's
         investments (including gains and losses on investments bought and
         sold, as well as held during the year) appreciated (depreciated) in
         value by $175,253 and $(758,177), respectively, as follows:

<TABLE>
<CAPTION>
                                                                   DECEMBER 31,
                                                                  1998          1997
                                                             --------------  -----------
<S>                                                          <C>             <C>
Mutual funds:
 AIM Equity Funds Inc., Constellation                              $417,471     202,838
 American Balanced Fund Inc. Income Fund                            148,510     267,915
 Fidelity Advisor Series II Growth Opportunity Fund Class T         527,642     419,608
 Intermediate Bond Fund of America                                    3,610       3,106
 Mainstay Funds Equity Index Fund Class A                           361,566          --
LaBarge, Inc. common stock                                      (1,283,546)  (1,651,644)
                                                             --------------  ----------
                                                                   $175,253    (758,177)
                                                             ==============  ==========
</TABLE>


                                       11

<PAGE>   17





                                                                      Schedule 1

                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
          Item 27(a) - Schedule of Assets Held for Investment Purposes
                               December 31, 1998


<TABLE>
<CAPTION>
                                                                  NUMBER OF
                                                                   SHARES                          CURRENT
                        DESCRIPTION OF INVESTMENTS                OR UNITS            COST          VALUE
-------------------------------------------------------------  ----------------  ----------------  ----------
<S>                                                            <C>               <C>               <C>
Money market accounts -
     Goldman Sachs Financial Square Pop-A Prime Obligations             618,490       $   618,490     618,490
Equity Mutual Funds:
     American Balanced Fund Inc. Income Fund                            122,932         1,822,684   1,937,398
     Fidelity Advisor Series II Growth Opportunity Fund                  59,352         2,187,721   2,980,053
     Class T
     Mainstay Funds Equity Index Fund Class A                            97,787         3,464,370   3,859,642
Fixed Income Fund -
     Intermediate Bond Fund of America                                   52,370           708,358     709,080
LaBarge Common Stock Fund -
     LaBarge Inc. common stock*                                         882,970         1,397,108   2,373,423
Loans to participants                                                         -           698,153     698,153
                                                                                 ----------------  ----------
     Total investments                                                                $10,896,884  13,176,239
                                                                                 ================  ==========

</TABLE>

* Represents a party-in-interest transaction allowable under ERISA regulations.


See  accompanying independent auditors' report.



                                       12
<PAGE>   18

                                                                      Schedule 2




                      LABARGE, INC. EMPLOYEES SAVINGS PLAN
                Item 27(d) - Schedule of Reportable Transactions
                          Year ended December 31, 1998


<TABLE>
                                                                                                             CURRENT
                                                                                                            VALUE OF
                                                                                                            ASSET ON
     IDENTITY OF                                                          PURCHASE    SELLING     COST     TRANSACTION  NET GAIN OR
    PARTY INVOLVED                    DESCRIPTION OF ASSET                  PRICE      PRICE    OF ASSET      DATE        (LOSS)
----------------------  ------------------------------------------------  ---------  ---------  ---------  -----------  -----------
<S>                     <C>                                               <C>        <C>        <C>        <C>          <C>
A.G. Edwards Trust Co.  AIM Equity Funds Inc. Constellation               $ 189,250         --    189,250      189,250           --
A.G. Edwards Trust Co.  AIM Equity Funds Inc. Constellation                      --  3,455,381  2,822,575    3,455,381      632,806
A.G. Edwards Trust Co.  American Balanced Fund Inc. Income Fund             351,613         --    351,613      351,613           --
A.G. Edwards Trust Co.  American Balanced Fund Inc. Income Fund                  --    352,176    314,423      352,176       37,753
A.G. Edwards Trust Co.  Fidelity Advisor Series II Growth Opportunity
                              Fund Class T                                  626,935         --    626,935      626,935           --
A.G. Edwards Trust Co.  Fidelity Advisor Series II Growth Opportunity
                              Fund Class T                                       --    180,383    126,106      180,383       54,277
A.G. Edwards Trust Co.  Goldman Sachs Financial Square Pop A              5,525,732         --  5,525,732    5,525,732           --
A.G. Edwards Trust Co.  Goldman Sachs Financial Square Pop A                     --  5,855,038  5,855,038    5,855,038           --
A.G. Edwards Trust Co.  Mainstay Funds Equity Index Fund Class A          3,953,739         --  3,935,739    3,935,739           --
A.G. Edwards Trust Co.  Mainstay Funds Equity Index Fund Class A                 --    492,297    489,368      492,297        2,929
----------------------  ----------------------------------------          =========  =========  =========  ===========  ===========
</TABLE>

See  accompanying independent auditors' report.


                                       13