SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.   20549

 Form 10-Q



[ X ]  Quarterly report pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934

       For the quarterly period ended September 30, 1999


[   ] Transition report pursuant to Section 13 or 15(d)
 of the Securities Exchange Act of 1934

       For the transition period from ____________ to ____________


 Commission file number: 1-1212

DRIVER-HARRIS COMPANY
    (Exact name of registrant as specified in its charter)

          New Jersey                                22-0870220
(State or other jurisdiction of             	  (I.R.S. Employer
incorporation or organization)             	 Identification No.)


308 Middlesex Street
 Harrison, New Jersey 07029
           (Address of principal executive offices)


Registrant's telephone no., including area code		 (973) 483-4802


    Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.

          Yes [  X  ]                     No [    ]

    Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.

 		Class					Outstanding at November 1, 1999
	Common Stock, $0.83 1/3 Par Value				1,372,333
<PAGE>

                        DRIVER-HARRIS COMPANY

INDEX TO FORM 10-Q


PART I FINANCIAL INFORMATION                                PAGE

Item 1.  Consolidated Financial Statements

     Condensed Consolidated Balance Sheets
     September 30, 1999 and December 31, 1998. . . . . . . .  3

     Condensed Consolidated Statements of
     Income - Three and Nine Months ended September 30,
     1999 and September 30, 1998 . . . . . . . . . . . . . . .4

     Condensed Consolidated Statements of Cash Flows -
     Nine Months ended September 30, 1999 and
     September 30, 1998. . . . . . . . . . . . . . .  . . . . 5

     Notes to Consolidated Financial Statements . . . . . . . 6

Item 2.  Management's Discussion and Analysis of
     Financial Condition and Results of Operations. . . . . . 8

PART II  OTHER INFORMATION
---------------------------
Item 6.  Exhibits and Reports on Form 8-K.
(a) Exhibits
         Exhibit 27 - Financial Data Schedule
     (b) Reports on Form 8-K
  	    None filed in quarter


SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . 10
----------
<PAGE>
         DRIVER-HARRIS COMPANY AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                    (Dollar Amounts in thousands)
<TABLE>
                                           September 30,   December 31,
                                                1999         1998
                                              --------   ------------
ASSETS                                       (Unaudited)
Current assets:
<S>                                          <C>           <C>
Cash                                         $    94       $    362
Accounts receivable - net                      9,827          9,966
Inventories:
     Materials                                   749            585
     Work in process                             198            152
     Finished products                         2,173          3,223
                                               -----         ------
                                               3,120          3,960
Prepaid expenses                                 642          1,054
                                               -----         ------
Total current assets                          13,683         15,342

Property, plant & equipment - net              4,557          5,222
                                              ------         ------
  			                                        $18,240       $ 20,564
                                              ======         ======
LIABILITIES
Current Liabilities:
     Short-term borrowings                   $ 3,701       $  4,677
     Current portion of long-term debt           459            599
     Accounts payable                          5,723          5,974
     Accrued expenses                          1,781          1,777
     Income taxes payable                         48             77
                                              ------         ------
Total current liabilities                     11,712         13,104

Long-term debt                                 2,012          2,142
Deferred Grants                                  679            781
Deferred foreign income taxes                    168            184
Postretirement benefit liabilities               548            573
Sundry liabilities 				                        	  84      		    111

Stockholders' equity:
     Common stock                              1,235          1,233
     Additional paid-in capital                2,333          2,282
     Retained earnings                           867            950
     Accumulated other comprehensive loss     (1,398)          (796)
                                              ------          -----
Stockholders' equity                           3,037          3,669
                                               -----          -----
                                             $18,240       $ 20,564
                                              ======         ======
See accompanying notes.
</TABLE>
<PAGE>
                   DRIVER-HARRIS COMPANY AND SUBSIDIARIES
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
            (Dollar amounts in thousands, except per share data)

<TABLE>


                            THREE MONTHS ENDED         NINE MONTHS ENDED
                          					SEPTEMBER 30  		          SEPTEMBER 30
                            1999         1998          1999      1998
                            ----         ----           ----      ----
<S>                        <C>         <C>            <C>       <C>
Net sales                  $8,981      $10,972        $27,377   $30,082
Other revenues                 26           37             94       134
                            -----        -----          -----    ------
Total Revenues              9,007       11,009         27,471    30,216

Cost of sales 	             7,802        9,720         23,701    27,003
 				                       -----       ------         ------    ------
 				                       1,205        1,289          3,770     3,213
Selling, general and
 administrative expenses    1,035        1,491          3,377     4,186
 				                       -----       ------         ------    ------
                              170         (202)           393      (973)

Other charges (credits):
Interest                      171          178            493       541
Foreign exchange (gain)       (63)         (12)           (38)      (41)
                             -----       -----          -----     -----
Income/(Loss) before
 income taxes                  62         (368)           (62)   (1,473)

Income taxes                   12            -             21         -
                             ----        -----          -----     -----
NET INCOME/(LOSS)           $  50       $ (368)       $   (83)  $(1,473)
                             ====        =====          =====     =====


BASIC NET INCOME/(LOSS)
 PER SHARE                  $ .04        $(.28)         $(.06)    $(1.10)
                    				     ====         ====           ====      ====
DILUTED NET INCOME/(LOSS)
 PER SHARE                  $ .04*       $(.28)*        $(.06)*   $(1.10)*
				                         	===         ====           ====      ====


Basic earnings per share-weighted
   average shares					                              		1,361,021  1,342,046
Diluted earnings per share-weighted
   average shares                                     1,365,786  1,355,220

	* Adjusted weighted average shares not used since effect on earnings
	  per share would be anti-dilutive.

See accompanying notes.
</TABLE>
<PAGE>

                     DRIVER-HARRIS COMPANY AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                         (Dollar Amounts in thousands)
<TABLE>
                                                    NINE MONTHS ENDED
                                                      SEPTEMBER 30
                                                     ----------------
                                                      1999       1998
                                                      ----       ----
								        (Unaudited)
OPERATING ACTIVITIES
   <S>                                              <C>        <C>
   Net loss                                         $  (83)    $(1,473)
     Adjustments to reconcile net loss
       to net cash provided:
          Depreciation and amortization                407         411
          Receivables                                 (539)       (224)
          Inventories                                  557         895
          Prepaid expenses                             298        (142)
          Accounts payable and accrued expenses        422       1,198
          Sundry                                        72         114
                                                    -------     ------
     CASH PROVIDED BY(USED IN)OPERATING ACTIVITIES   1,134         779

INVESTING ACTIVITIES
         Capital expenditures                         (173)       (208)
         Sundry                                         35          16
                                                    -------     ------
     CASH USED IN INVESTING ACTIVITIES                (138)       (192)

FINANCING ACTIVITIES
          Change in short-term debt                   (604)     (1,128)
          Proceeds from issuance of long-term debt     157          31
          Reduction of long-term debt                 (348)       (326)
          Sundry                                         -          34
                                                     ------     ------
NET CASH (USED IN) FINANCING ACTIVITIES               (795)     (1,389)

Effect of exchange rate changes on cash               (469)        216
                                                     ------     ------
Net change in cash                                    (268)       (586)
Cash at beginning of year                              362         848
                                                     ------     ------

     CASH AT END OF PERIOD                          $   94     $   262
                                                     ======     ======


See accompanying notes.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS

1 - Basis of Presentation
	The accompanying unaudited condensed financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial statements and with
the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements.  In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating
results for the three and nine month periods ended September 30,
1999 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1999.

	The balance sheet at December 31, 1998 has been derived from
the audited financial statements at that date but does not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.

	For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual
report on Form 10-K for the year ended December 31, 1998.

2 - Investments in Related Company and other subsidiaries
     The Company owns Irish Driver-Harris Co. Ltd.,("IDH"),
located in Ireland and the U.K.  The Company also owns 50% of
Harrison Alloys Inc. ("Harrison") which is recorded on the equity
method of accounting and carried at no value on the balance sheets
at September 30, 1999 and December 31, 1998.  The company will not
recognize any income from its investment in Harrison until
Harrison's income exceeds Harrison's losses.  Although Harrison is
required to pay to the Company license fees and commissions
totaling $500,000 per year to 2003, no payments have been received
since December 1996 and therefore no income has been recorded.  On
October 25, 1999, Harrison filed for the protection of the Courts
to execute a reorganization under Chapter 11 of the Federal
Bankruptcy Code.

3 - Comprehensive Income
	The components of comprehensive income as presented under
Financial Accounting Standard 130, "Reporting Comprehensive
Income", for the three and nine months ended September 30, 1999
and 1998 are as follows:
<TABLE>
                                      Three Months    Nine Months
						                               1999    1998     1999     1998
 <S>                                 <C>   <C>     <C>     <C>
	Net income (loss)			                $ 50  $(368)  $ (83)  $(1,473)
	Foreign currency translation
          adjustment                  (3)   236     (602)     300
						                             -----	 -----     ----    -----
	Comprehensive income (loss)        $ 47  $(132)   $(685) $(1,173)
                                    ====   =====    =====    =====
</TABLE>
4.  1999 Stock Option Plan
	At the annual meeting on May 26, 1999, the Company's
Shareholders approved the adoption of the 1999 Driver-Harris
Incentive Stock Option Plan.  Two hundred thousand shares of stock
are reserved for issuance under the plan. On September 13, 1999, a
total of 17,000 options were awarded to Directors, Officers and
key employees.

5. Industry Segments and Geographic Areas
	The Company classifies its revenues based upon the location
(i.e. manufacture or purchase for resale-distribution) of the
facility and its function.  Such revenues are regularly reviewed
by the Directors and management and decisions are made on such
basis.

	The operating expenses and resultant net profit (loss) and
the assets are similarly reviewed and decisions made based upon
whether they relate to manufacturing or purchase for resale (i.e.
distribution).

<TABLE>
                                       Reporting Segments
	                           Parent Co.	Manufacturing	Distribution
                             (U.S.)    	(Ireland)	      (U.K.)	   Total

Nine months ended September 30, 1999:
Revenues
   <S>                     <C>           <C>          <C>         <C>
   External revenues	                   	$24,467	     $ 2,910     $27,377
   Inter-segment revenues	 $   224	          766		                    990
   Other revenues	              12	           67    	      15      	   94
   Elimination of inter-
     segment revenues	        (224)     	   (766)	                 	 (990)
Consolidated revenues	          12      	 24,534     	  2,925      27,471

Net Profit/(Loss)	            (428)	         419	         (74)     	  (83)

Assets
   Total assets	             1,509      	 17,638	       2,127     21,274
   Elimination of investment  (623)                              			(623)
   Elimination of inter-
     company receivables  	   (829)     	 (1,406)	      (116)    (2,351)
   Elimination of inter-
     company inventory		                            	    (60)     	 (60)
Total assets	                   57	       16,232	      1,951     18,240

Other Significant Items
   Depreciation expense		                    378	         29      	 407
   Interest expense	            61      	    388    	     44      	 493
   Expenditures for assets		                 173	                   173

Nine months ended September 30, 1998:
Revenues
   External revenues		                    24,035    	  6,047     30,082
   Inter-segment revenues	     165	        2,549	         81      2,795
   Other revenues	              34	          100    	      -      	 134
   Elimination of inter-
     segment revenues	        (165)     	 (2,549)   	    (81)    (2,795)
Consolidated revenues	          34	       24,135    	  6,047     30,216

Net (Loss)	                   (401)	        (510)   	   (562)    (1,473)

Other Significant Items
   Depreciation expense	                	    361    	     50      	 411
   Interest expense	            56	          423	         62      	 541
   Expenditures for assets		                  -           15        208
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

Financial Condition
	The ratio of current assets to current liabilities was 1.17
at September 30, 1999, the same ratio as at December 31, 1998.
With the steps the Company has taken to strengthen its
distribution segment by closing one subsidiary, Kestrel, and
transferring its assets to a second distribution subsidiary,
Kingston, and its refocus on specialty customers with higher
profit margins, the Company believes it has stabilized this
segment.  Although Harrison Alloys Inc. has filed for
reorganization under Chapter 11 of the Federal Bankruptcy Code,
the Company does not believe this event will have any direct
impact on Driver-Harris since the investment is carried at no
value on the balance sheet and no monies have been received from
Harrison since 1996.  The Company does not contemplate that
amounts due under its license agreement will be paid in the near
future.

	At September 30, 1999, the Company's subsidiaries had
approximately $6.2 million in available bank credit lines of which
$5.8 million was utilized.

	The Company believes it has adequate cash flow from
operations to meet its ongoing obligations including debt
repayments and capital commitments for the next twelve months.

Market Risks
Foreign Currency Fluctuations
	With operations in three different countries, the Company's
operating results may be adversely affected by significant
fluctuations in the relative values among the U.S. dollar, Irish
Punt and the British Pound Sterling.  The Company is periodically
involved in hedging currency between the Irish Punt and the
British Pound Sterling through the use of futures contracts which
are relatively short term in nature. On September 29, 1999, the
Company entered into $927,000 of foreign currency exchange
contracts for the hedging between the Irish Punt and the British
Pound Sterling.  These 30 day contracts were liquidated in
October, 1999.


Debt Instruments
	The Company's long term debt of $2,471,000 is primarily
fixed rate debt of which $1,185,000 is U.S. denominated with the
remaining balance primarily denominated in Irish Punt.  The
Company's remaining debt of $3,701,000 is comprised solely of
variable rate, short-term facilities denominated primarily in
Irish Punt which does not subject the Company to significant
interest rate risk as the borrowings are short term.  The Company
does not believe any reasonable hypothetical interest rate change
in the ensuing year would have a material impact on the Company's
Statement of Operations.

Impact of Year 2000
	Many computer systems currently record years in a two-digit
format.  Such computer systems, if not modified, will be unable to
properly recognize dates beyond the year 1999.  This inability to
recognize the year 2000 is commonly referred to as the "Year 2000
Issue".

	The holding company in the United States has no third party
issues and its internal systems are not complex and adequate
alternatives for preparation of external reports are available at
minimal cost and disruption.

	The Company's main operating subsidiary, located in Ireland
which performs the majority of computer functions, is presently in
the process of implementing its upgraded computer systems which
will be Year 2000 compliant.  The purchase cost of the new
software that will be capitalized and other related Year 2000
costs to be expensed as incurred are presently estimated to be
approximately $100,000.  The project is expected to be completed
in December 1999.  As part of this process, a duplicate server
will be commissioned in November 1999 to serve as back up should
the main system fail.  Stand-alone systems are currently being
configured to ensure continuity should the main computer system
fail.

	As to third parties, i.e., vendors, suppliers and customer
in Ireland, the United Kingdom and elsewhere, the subsidiaries'
assessment is in process.  Based upon information available at
this time, third parties of critical importance to the Company are
in the process of becoming Year 2000 compliant and the Company
believes the issue will not have a material impact upon the
financial position of the subsidiary and ultimately the Company.
However, there can be no assurance that presently unforeseen
difficulties will not arise and actual results could differ
materially.

Results of Operations

Nine Months of 1999 Compared to 1998:
Net sales to customers decreased by 9.0% during the first
nine months of 1999 compared to 1998. Manufacturing revenues
increased by 1.8% but distribution revenues declined by 52% as a
result of refocusing the distribution segment and the closing of
one distribution subsidiary. Units shipped in manufacturing
increased by 7.8% while the foreign rate impact of the value of
the Irish Punt and the English Pound to the U.S. Dollar resulted
in a 3% decrease in translated sales for the first nine months of
1999 compared to the similar period of 1998.  The gross profit
percentage increased to 13.5% in 1999 compared to 10.2% in 1998.
This is primarily attributable to the changes within distribution,
and to an improved product sales mix and moderately lower copper
prices.  Selling, general and administrative expenses decreased to
12.3% of net sales from 13.9% in the comparable period of the
preceding year due to ongoing efforts to reduce these costs and a
reduction in the group's administrative costs relating to its
refocused distribution activity.

Third Quarter of 1999 Compared to 1998:
Net sales to customers decreased by 18.1% during the third
quarter of 1999 compared to the same period in 1998.
Manufacturing revenues decreased by 5.7% and distribution revenues
declined by 63.3% as the distribution segment was refocused and
one distribution subsidiary was closed.  Manufacturing units
shipped declined less than one percent and the foreign rate impact
of the value of the Irish Punt and the English Pound to the U.S.
Dollar resulted in a 6% decrease in translated sales.  The gross
profit percentage increased to 13.2% compared to 11.4% in 1998,
due to the changes within distribution, and an improved product
sales mix.  Selling, general and administrative expenses decreased
to 11.5% of net sales from 13.6% as a result of reduced
administrative costs related to distribution activity.

The Company's foreign exchange gain of $38,000 for the nine
months ended September 30, 1999 results in part from the effect of
entering into foreign exchange contracts for the purpose of
hedging exposure to the British Pound Sterling by the Company's
Irish subsidiary and from the translation of Sterling denominated
receivables and payables into Irish Punt.

Income taxes for 1999 are due to taxable income at the
Company's Irish subsidiary. The Company has tax loss carryforwards
of approximately $7,100,000 available to offset future U.S.
taxable income, which expire between 1999 and 2011.
<PAGE>
SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

                                	DRIVER-HARRIS COMPANY




Date: November 15, 1999      By:      Thomas J. Carey
-----------------------				   ------------------------
                    							   Chief Financial Officer