|   | [X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.  For the quarterly period ended March 31, 2011 |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. | For the transition period from | to |
|--------|----------------------|-------------------------------------------------------------------------------------------|--------------------------------|----|

| Texas                                                          |   | 76-0509661                                                |
|----------------------------------------------------------------|--------|-----------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification Number)                   |
|                                                           |   |                                                      |
| 7272 Pinemont, Houston, Texas 77040                            |   | (713) 996-4700                                            |
| (Address of principal executive offices)                       |   | Registrant’s telephone number, including area code. |

----

| DXP ENTERPRISES, INC., AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(In Thousands, Except Share and Per Share Amounts)                                                                                                                                                                                                      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                          |   |   |   |
|                                                                                                                                                                                                                                                                                                                                          | March 31, 2011 |   | December 31, 2010 |
|      ASSETS                                                                                                                                                                                                                                                                                                          |   |   |   |
| Current assets:                                                                                                                                                                                                                                                                                                                               |   |   |   |
|   Cash                                                                                                                                                                                                                                                                                                                              | $                     3,348 |   | $                        770 |
|   Trade accounts receivable, net of allowances for doubtful accounts                                                                                                                                                                                                                                                                |   |   |   |
|     of $3,683 in 2011 and $3,540 in 2010                                                                                                                                                                                                                                                                                  | 110,734 |   | 99,781 |
|   Inventories, net                                                                                                                                                                                                                                                                                                                  | 79,075 |   | 75,887 |
|   Prepaid expenses and other current assets                                                                                                                                                                                                                                                                                         | 3,215 |   | 2,550 |
|   Federal income tax receivable                                                                                                                                                                                                                                                                                                     | - |   | 402 |
|   Deferred income taxes                                                                                                                                                                                                                                                                                                             | 4,100 |   | 5,919 |
|      Total current assets                                                                                                                                                                                                                                                                                            | 200,472 |   | 185,309 |
| Property and equipment, net                                                                                                                                                                                                                                                                                                                   | 14,612 |   | 14,917 |
| Goodwill                                                                                                                                                                                                                                                                                                                                      | 84,942 |   | 84,942 |
| Other intangibles, net of accumulated amortization of $21,209 in 2011  and $19,603 in 2010                                                                                                                                                                                                                                          | 30,630 |   | 32,236 |
| Non-current deferred income taxes                                                                                                                                                                                                                                                                                                             | 2,587 |   | 2,289 |
| Other assets                                                                                                                                                                                                                                                                                                                                  | 943 |   | 931 |
|      Total assets                                                                                                                                                                                                                                                                                                    | $                 334,186 |   | $                 320,624 |
|      LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                      |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                          |   |   |   |
|   Current portion of long-term debt                                                                                                                                                                                                                                                                                                 | $                   10,925 |   | $                   10,930 |
|   Trade accounts payable                                                                                                                                                                                                                                                                                                            | 62,238 |   | 55,019 |
|   Accrued wages and benefits                                                                                                                                                                                                                                                                                                        | 11,619 |   | 11,826 |
|   Customer advances                                                                                                                                                                                                                                                                                                                 | 9,732 |   | 10,271 |
|   Federal income taxes payable                                                                                                                                                                                                                                                                                                      | 1,524 |   | - |
|   Other accrued liabilities                                                                                                                                                                                                                                                                                                         | 8,441 |   | 4,837 |
|      Total current liabilities                                                                                                                                                                                                                                                                                       | 104,479 |   | 92,883 |
| Long-term debt, less current portion                                                                                                                                                                                                                                                                                                          | 98,897 |   | 103,621 |
| Shareholders’ equity:                                                                                                                                                                                                                                                                                                                   |   |   |   |
|   Series A preferred stock, 1/10th vote per share; $1.00 par value;   liquidation preference of $100 per share ($112 at March 31, 2011);   1,000,000 shares authorized; 1,122 shares issued and outstanding                                                                                           |   1 |   |   1 |
|   Series B convertible preferred stock, 1/10th vote per share;  $1.00   par value; $100 stated value; liquidation preference of $100 per   share ($1,500 at March 31, 2011);   1,000,000 shares authorized;   15,000  shares issued and outstanding |    15 |   |    15 |
|   Common stock, $0.01 par value, 100,000,000 shares authorized;    14,097,360 in 2011 and 14,079,608 in 2010 shares outstanding                                                                                                                                                                                 |  140 |   |  140 |
| Paid-in capital                                                                                                                                                                                                                                                                                                                               | 72,986 |   | 72,616 |
| Retained earnings                                                                                                                                                                                                                                                                                                                             | 57,668 |   | 51,348 |
|      Total shareholders’ equity                                                                                                                                                                                                                                                                                | 130,810 |   | 124,120 |
|      Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                | $                 334,186 |   | $                 320,624 |
|  See notes to condensed consolidated financial statements.                                                                                                                                                                                                                                                                               |

----

|                                                                              | Three Months EndedMarch 31,                                                                     |
|-----------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|
|                                                                              | 2011                                                                                            |   | 2010 |
| Sales                                                                             | $          183,087                            |   | $          146,992 |
| Cost of sales                                                                     | 130,660                                                                                         |   | 105,037 |
| Gross profit                                                                      | 52,427                                                                                          |   | 41,955 |
| Selling, general and administrative expense                                       | 40,885                                                                                          |   | 35,208 |
| Operating income                                                                  | 11,542                                                                                          |   | 6,747 |
| Other income                                                                      | 21                                                                                              |   | 203 |
| Interest expense                                                                  | (1,022)                                                                                         |   | (994) |
| Income before income taxes                                                        | 10,541                                                                                          |   | 5,956 |
| Provision for income taxes                                                        | 4,198                                                                                           |   | 2,364 |
| Net income                                                                        | 6,343                                                                                           |   | 3,592 |
| Preferred stock dividend                                                          | (23)                                                                                            |   | (23) |
| Net income attributable to common shareholders                                    | $             6,320            |   | $              3,569 |
|                                                                              |                                                                                            |   |   |
| Basic income per share                                                            | $               0.44 |   | $                0.27 |
| Weighted average common shares outstanding                                        | 14,279                                                                                          |   | 13,159 |
| Diluted income per share                                                          | $               0.42 |   | $                0.26 |
| Weighted average common and common   equivalent shares outstanding |  15,119                                                                                    |   |  14,028 |
|  See notes to condensed consolidated financial statements.                   |
|                                                                              |

----

|                                                                                                                                        | THREE MONTHS ENDEDMARCH 31                                                                                                           |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                        | 2011                                                                                                                                 |   | 2010 |
| OPERATING ACTIVITIES:                                                                                                                       |                                                                                                                                 |   |   |
| Net income                                                                                                                                  | $                     6,343 |   | $                     3,592 |
|   Adjustments to reconcile net income to net cash provided                                                                        |                                                                                                                                 |   |   |
|    by operating activities:                                                                                                  |                                                                                                                                 |   |   |
|     Depreciation                                                                                                        |   785                                                                                                                      |   |   923 |
|     Amortization of intangibles                                                                                         | 1,606                                                                                                                                |   | 1,299 |
|     Compensation expense for restricted stock                                                                           | 280                                                                                                                                  |   | 252 |
|     Tax benefit related to exercise of stock options and      vesting of restricted stock |  (97)                                                                                                                           |   |  (101) |
|     Deferred income taxes                                                                                               | 1,521                                                                                                                                |   | 77 |
|     Gain on sale of property and equipment                                                                              | -                                                                                                                                    |   | (188) |
|     Changes in operating assets and liabilities:                                                                        |                                                                                                                                 |   |   |
|       Trade accounts receivable                                                                               | (10,953)                                                                                                                             |   | (6,144) |
|       Inventories                                                                                             | (3,188)                                                                                                                              |   | 1,487 |
|       Prepaid expenses and other current assets                                                               | (579)                                                                                                                                |   | (648) |
|       Accounts payable and accrued expenses                                                                   | 12,002                                                                                                                               |   | 5,265 |
|       Net cash provided by operating activities                                                               | 7,720                                                                                                                                |   | 5,814 |
|                                                                                                                                        |                                                                                                                                 |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                       |                                                                                                                                 |   |   |
| Purchase of property and equipment                                                                                                          | (487)                                                                                                                                |   | (169) |
| Proceeds from the sale of business                                                                                                          | -                                                                                                                                    |   | 1,428 |
|   Net cash provided by (used in) investing activities                                                                             | (487)                                                                                                                                |   | 1,259 |
|                                                                                                                                        |                                                                                                                                 |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                       |                                                                                                                                 |   |   |
| Proceeds from debt                                                                                                                          | 39,043                                                                                                                               |   | 33,935 |
| Principal payments on revolving line of credit and other long-term  debt                                                          |  (43,772)                                                                                                                       |   |  (39,244) |
| Dividends paid in cash                                                                                                                      | (23)                                                                                                                                 |   | (23) |
| Tax benefit related to exercise of stock options and vesting of  restricted stock                                                 |  97                                                                                                                             |   |  101 |
|   Net cash used in financing activities                                                                                           | (4,655)                                                                                                                              |   | (5,231) |
| INCREASE IN CASH                                                                                                                            | 2,578                                                                                                                                |   | 1,842 |
| CASH AT BEGINNING OF PERIOD                                                                                                                 | 770                                                                                                                                  |   | 2,344 |
| CASH AT END OF PERIOD                                                                                                                       | $                    3,348       |   | $                    4,186 |
|                                                                                                                                        |                                                                                                                                 |   |   |
|                                                                                                                                        |                                                                                                                                 |   |   |
| See notes to condensed consolidated financial statements.                                                                                   |

----

|                                                      | THREE MONTHS ENDEDMARCH 31,                                                                                                          |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                      | 2011                                                                                                                                 |   | 2010 |
|                                                      |                                                                                                                                 |   |   |
| Net income                                                | $                     6,343 |   | $                     3,592 |
| Gain from interest rate swap, net of income taxes         | -                                                                                                                                    |   | 26 |
| Comprehensive income                                      | $                     6,343 |   | $                     3,618 |
|                                                      |                                                                                                                                 |   |   |
| See notes to condensed consolidated financial statements. |

----

----

| Number of shares authorized for grants         | 600,000   |
|------------------------------------------------|-----------|
| Number of shares granted                       | (557,262) |
| Number of shares forfeited                     | 60,051    |
| Number of shares available for future grants   | 102,789   |
| Weighted-average grant price of granted shares | $16.15    |

|                            | Number ofShares |   | Weighted AverageGrant Price |
|---------------------------------|-----------------|--------|-----------------------------|
| Non-vested at December 31, 2010 | 180,056         |   | $ 16.15                     |
| Granted                         | 62,600          |   | $ 22.11                     |
| Vested                          | (17,752)        |   | $ 11.34                     |
| Non-vested at March 31, 2011    | 224,904         |   | $ 18.19                     |

|            | March 31, 2011 |   | December 31, 2010 |
|-----------------|---------------------|--------|------------------------|
|            |                |   |                   |
| Finished goods  | $ 75,089            |   | $ 73,421               |
| Work in process | 3,986               |   | 2,466                  |
| Inventories     | $  79,075 |   | $  75,887    |

|                                |  Total |   |  Goodwill                  |   | OtherIntangibles          |
|-------------------------------------|-------------|--------|---------------------------------|--------|---------------------------|
| Balance as of December 31, 2010     | $ 117,178   |   | $    84,942 |   | $   32,236 |
| Acquired during the year            | -           |   |   -                   |   | -                         |
| Adjustments to prior year estimates | -           |   | -                               |   | -                         |
| Amortization                        | (1,606)     |   | -                               |   | (1,606)                   |
| Balance as of March 31, 2011        | $115,572    |   | $  84,942             |   | $  30,630       |

----

|                   | As of March 31, 2011                                         |   | As of December 31, 2010                                            |
|------------------------|--------------------------------------------------------------|--------|--------------------------------------------------------------------|
|                   | GrossCarryingAmount                                          |   |  AccumulatedAmortization                                      |   | GrossCarryingAmount |   |  AccumulatedAmortization |
| Vendor agreements      | $         2,496 |   | $          (862) |   | $         2,496 |   | $          (831) |
| Customer relationships | 47,363                                                       |   | (18,769)                                                           |   | 47,363 |   | (17,237) |
| Non-compete agreements | 1,980                                                        |   | (1,578)                                                            |   | 1,980 |   | (1,535) |
| Total                  | $       51,839            |   | $     (21,209)                            |   | $       51,839 |   | $     (19,603) |

|                                                                                                                     | Three Months EndedMarch 31,                                                   |
|--------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                                                                     | 2011                                                                          |   | 2010 |
| Basic:                                                                                                                   |                                                                          |   |   |
|   Weighted average shares outstanding                                                                          | 14,279,027                                                                    |   | 13,159,149 |
|   Net income                                                                                                   | $   6,343,000                                                  |   | $   3,592,000 |
|   Convertible preferred stock dividend                                                                         | (23,000)                                                                      |   | (23,000) |
|   Net income attributable to common shareholders                                                               | $   6,320,000                                                  |   | $   3,569,000 |
|   Per share amount                                                                                             | $            0.44 |   | $            0.27 |
|                                                                                                                     |                                                                          |   |   |
| Diluted:                                                                                                                 |                                                                          |   |   |
|   Weighted average shares outstanding                                                                          | 14,279,027                                                                    |   | 13,159,149 |
|   Net effect of dilutive stock options – based on the     treasury stock method |  -                                                                       |   |   28,623 |
|   Assumed conversion of convertible preferred stock                                                            | 840,000                                                                       |   | 840,000 |
|   Total                                                                                                        | 15,119,027                                                                    |   | 14,027,772 |
|   Net income attributable to common shareholders                                                               | $   6,320,000                                                  |   | $   3,569,000 |
|   Convertible preferred stock dividend                                                                         | 23,000                                                                        |   | 23,000 |
|   Net income for diluted earnings per share                                                                    | $   6,343,000                                                  |   | $   3,592,000 |
|   Per share amount                                                                                             | $            0.42 |   | $            0.26 |

----

|                                     | Three Months ended March 31, |
|------------------------------------------|------------------------------|
|                                     | ServiceCenters               |   | InnovativePumpingSolutions |   | SupplyChain Services |   |  Total |
|                                     |                         |   |   |   |   |   |   |
| 2011                                     |                         |   |   |   |   |   |   |
| Sales                                    | $   131,551   |   | $   16,685 |   | $   34,851 |   | $   183,087 |
| Operating income for reportable segments | 14,781                       |   | 2,858 |   | 1,914 |   | 19,553 |
| 2010                                     |                         |   |   |   |   |   |   |
| Sales                                    | $   103,294   |   | $   12,277 |   | $   31,421 |   | $   146,992 |
| Operating income for reportable segments | 8,551                        |   | 2,460 |   | 2,162 |   | 13,173 |

|                                         | Three Months EndedMarch 31, |
|----------------------------------------------|-----------------------------|
|                                         | 2011                        |   | 2010 |
| Operating income for reportable segments     | $ 19,553                    |   | $ 13,173 |
| Adjustment for:                              |                        |   |   |
|   Amortization of intangibles      |   1,606           |   |   1,299 |
|   Corporate and other expense, net | 6,405                       |   | 5,127 |
| Total operating income                       | 11,542                      |   |  6,747 |
| Interest expense, net                        | 1,022                       |   | 994 |
| Other expense (income), net                  | (21)                        |   | (203) |
| Income before income taxes                   | $ 10,541                    |   | $  5,956 |

----

|                                                                                     | Interest Rate Swap |
|------------------------------------------------------------------------------------------|--------------------|
|                                                                                     | 2011               |   | 2010 |
| Three Months Ended March 31                                                              |               |   |   |
| Fair value at January 1                                                                  | -                  |   | $    (42) |
| Realized and unrealized gains (losses)  included in other comprehensive income | -                  |   |  42 |
| Fair value at March 31                                                                   | -                  |   | $         - |

|   | NOTE 10:  ACQUISITIONS |
|--------|----------------------------------|

|             | Three MonthsEndedMarch 31, 2010 |
|------------------|---------------------------------|
| Net sales        | $ 165,440                       |
| Net income       | 4,304                           |
| Per share data   |                            |
| Basic earnings   | $0.33                           |
| Diluted earnings | $0.32                           |

----

|   | ITEM 2: MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|--------|----------------------------------------------------------------------------------------------|

|                                        | Three Months Ended March 31,                                      |
|---------------------------------------------|-------------------------------------------------------------------|
|                                        | 2011                                                              |   | % |   | 2010 |   | % |
|                                        | (in thousands, except percentages and per share amounts)          |
| Sales                                       | $    183,087                                  |   | 100.0 |   | $    146,992 |   | 100.0 |
| Cost of sales                               | 130,660                                                           |   | 71.4 |   | 105,037 |   | 71.5 |
| Gross profit                                | 52,427                                                            |   | 28.6 |   | 41,955 |   | 28.5 |
| Selling, general and administrative expense | 40,885                                                            |   | 22.3 |   | 35,208 |   | 23.9 |
| Operating income                            | 11,542                                                            |   | 6.3 |   | 6,747 |   | 4.6 |
| Interest expense                            | (1,022)                                                           |   | (0.5) |   | (994) |   | (0.7) |
| Other income                                | 21                                                                |   | - |   | 203 |   | 0.1 |
| Income before income taxes                  | 10,541                                                            |   | 5.8 |   | 5,956 |   | 4.0 |
| Provision for income taxes                  | 4,198                                                             |   | 2.3 |   | 2,364 |   | 1.6 |
| Net income                                  | $        6,343            |   | 3.5 |   | $        3,592 |   | 2.4 |
| Per share amounts                           |                                                              |   |   |   |   |   |   |
|   Basic earnings per share        | $          0.44 |   |   |   | $          0.27 |   |   |
|   Diluted earnings per share      | $          0.42 |   |   |   | $          0.26 |   |   |

----

----

----

| For the Twelve Months endedMarch  31, 2011 | SeniorLeverage Ratio | Leverage Ratio |
|------------------------------------------------------|----------------------|----------------|
|                                                 |                 |           |
| Income before taxes                                  | $36,717              | $36,717        |
| Interest expense                                     | 5,236                | 5,236          |
| Depreciation and amortization                        | 9,737                | 9,737          |
| Stock compensation expense                           | 1,001                | 1,001          |
| Pro forma acquisition EBITDA                         | 1,873                | 1,873          |
| Reduction of closed locations accrual                | (555)                | (555)          |
| (A) Defined EBITDA                                   | $54,009              | $54,009        |
|                                                 |                 |           |
| As of March 31, 2011                                 |                 |           |
| Total long-term debt                                 | $109,822             | $109,822       |
| Letters of credit outstanding                        | 933                  | 933            |
| Less:  Subordinated Debt                   | (2,755)              | -              |
| Defined Indebtedness                                 | $108,000(B)          | $110,755(C)    |
|                                                 |                 |           |
| Senior Leverage Ratio (B)/(A)                        | 2.00                 |           |
| Leverage Ratio (C)/(A)                               |                 | 2.05           |

|                                                                                                                                                                                           | March 31, 2011                        |   | December 31, 2010                                 |   | Increase (Decrease)                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------|--------|---------------------------------------------------|--------|------------------------------------------------------------------------------------------|
|                                                                                                                                                                                           | (in Thousands)                        |   |                                              |
| Current portion of long-term debt                                                                                                                                                              | $     10,925 |   | $       10,930 |   |   $            (5) |
| Long-term debt, less current portion                                                                                                                                                           | 98,897                                |   | 103,621                                           |   | (4,724)                                                                                  |
| Total long-term debt                                                                                                                                                                           | $   109,822            |   | $    114,551                  |   | $      (4,729)(2)                                          |
| Amount available                                                                                                                                                                               | $  62,774(1)                |   | $   50,020(1)                      |   |  $      12,754 (3)                                    |
|  (1) Represents amount available to be borrowed at the indicated date under the Facility.                                                                                                 |
| (2) The funds used to reduce debt were obtained from operations.                                                                                                                               |
| (3) The $12.8 million increase in the amount available is primarily a result of the increase in accounts receivable and inventories which increased the amount available under the asset test. |

----

|                      | March 31, |   | Increase |
|---------------------------|-----------|--------|----------|
|                      | 2011      |   | 2010     |   | (Decrease) |
|                      | (in Days) |
| Days of sales outstanding | 55.9      |   | 52.7     |   | 3.2 |
| Inventory turns           | 6.7       |   | 6.1      |   | 0.6 |

----

----

----

| 3.1 | Restated Articles of Incorporation, as amended (incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-8 (Reg. No. 333-61953), filed with Commission on August 20, 1998). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.2 | Bylaws (incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-4 (Reg. No. 333-10021), filed with the Commission on August 12, 1996). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and rule 15d-14(a) of the Securities Exchange Act, as amended.  (Filed herewith). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  (Filed herewith). |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----