SECURITIES AND EXCHANGE COMMISSION
                           Washington, D.C.   20549
                                   Form 10-Q


(Mark One)
 _____
/_X__/ Quarterly report pursuant to Section 13 or 15(d) of the Securities 
       Exchange Act of 1934
       For the quarterly period ended    June 30, 1998        or
                                     ------------------------
 _____
/____/ Transition report pursuant to Section 13 or 15(d) of the Securities 
       Exchange Act of 1934
       For the transition period from ____________ to ____________

 Commission file number                  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)             (Zip Code)

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.

Common Stock, $0.83 1/3 par value -- 1,343,671 shares as of August 3, 1998. 
<PAGE>       



                        DRIVER-HARRIS COMPANY

                              I N D E X


PART I FINANCIAL INFORMATION                                PAGE
-----------------------------                               ----
Item 1.  Financial Statements

     Condensed Consolidated Balance Sheets
     June 30, 1998 and December 31, 1997 . . . . . . . . . .  3

     Condensed Consolidated Statements of
     Income - Three and Six Months ended June 30,    
     1998 and June 30, 1997. . . . . . . . . . . . . . . . . .4

     Condensed Consolidated Statements of Cash Flows -
     Six Months ended June 30, 1998 and June 30, 1997 . . . . 5

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

Item 2.  Management's Discussion and Analysis of
     Financial Condition and Results of Operations. . . . . . .6

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 . . . . . . . . . . . . . . . . . . . . . . . . . .7
----------
<PAGE>
<TABLE>

         DRIVER-HARRIS COMPANY AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                       (Amounts in thousands)

                                              June 30,   December 31,
                                                1998         1997
                                              --------   ------------
ASSETS                                       (Unaudited)
Current assets:   
<S>                                          <C>           <C>  
Cash                                         $   369       $    848
Accounts receivable - net                      9,293          9,325
Inventories:
     Materials                                   727            536
     Work in process                             265            254
     Finished products                         4,039          3,920
                                               -----         ------
                                               5,031          4,710
Prepaid expenses                                 905            497
                                               -----         ------ 
Total current assets                          15,598         15,380

Other assets                                       8             16
Property, plant & equipment - net              5,081          5,328  
                                               -----         ------ 
   			                                       $20,687       $ 20,724
                                              ======         ======
LIABILITIES		
Current Liabilities:
     Short-term borrowings                   $ 3,253       $  4,179
     Current portion of long-term debt           543            515
     Accounts payable                          6,604          5,176
     Accrued expenses                          2,048          1,293
     Income taxes payable                         37            108
                                              ------         ------
Total current liabilities                     12,485         11,271 

Long-term debt                                 2,337          2,524
Deferred Grants                                  781            796
Deferred foreign income taxes                    146            147
Postretirement benefit liabilities               553            574
Sundry liabilities 		                        			 130		    149 

Stockholders' equity:
     Common stock                              1,226          1,223
     Additional paid-in capital                2,258          2,228
     Retained earnings                         1,925          3,030 
     Accumulated other comprehensive loss     (1,154)        (1,218)  
                                              ------          -----
Stockholders' equity                           4,255          5,263
                                               -----          -----
                                             $20,687       $ 20,724
                                              ======         ======
</TABLE>
See accompanying notes.
<PAGE>
                   DRIVER-HARRIS COMPANY AND SUBSIDIARIES
       UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
            (Dollar amounts in thousands, except per share data)
                     					  
                             
<TABLE>
                            THREE MONTHS ENDED         SIX MONTHS ENDED 
 					    JUNE 30  			JUNE 30
                            1998         1997          1998      1997
                            ----         ----           ----      ----
<S>                        <C>         <C>            <C>       <C>
Net sales                  $ 9,590     $10,581        $19,110   $21,513
Other revenues                  48          89             97       214
                            ------       -----          -----    ------
Total Revenues               9,638      10,670         19,207    21,727

Cost of sales 	           8,854       9,052         17,283    18,198
 				    ------      ------         ------    ------
 				       784       1,618          1,924     3,529
Selling, general and
     administrative expenses 1,424       1,664          2,695     3,275
 				    ------      ------         ------    ------
                              (640)        (46)          (771)      254

Other charges (credits):
Interest                       106         229            363       499
Foreign exchange (gain) loss   (14)       (178)           (29)     (248)
                             -----       -----          -----     -----
(Loss) Income before
 income taxes                 (732)        (97)        (1,105)        3  

Income taxes                     -          36              -        81
                             -----       -----          -----     -----
NET LOSS                    $ (732)     $ (133)       $(1,105)   $  (78) 
                             =====       =====          =====     =====


BASIC NET LOSS PER SHARE     $(.54)     $(.10)         $(.82)    $(.06) 
 				       ====       ====           ====      ====
DILUTED NET LOSS PER SHARE   $(.54)     $(.10)         $(.82)    $(.06)
					 ====       ====           ====      ====


Basic earnings per share-weighted
   average shares							1,341,504   1,340,421 
Diluted earnings per share-weighted
   average shares                                     1,355,404   1,348,209


</TABLE>
See accompanying notes.
<PAGE>







                     DRIVER-HARRIS COMPANY AND SUBSIDIARIES
           UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                         (Amounts in thousands)
<TABLE>
                                                     SIX MONTHS ENDED
                                                         June 30
                                                     ----------------
                                                      1998       1997
                                                      ----       ----	
	  OPERATING ACTIVITIES
   <S>                                              <C>        <C>
   Net loss                                         $(1,105)   $  (78)
     Adjustments to reconcile net income                     
       to net cash provided:
          Depreciation and amortization                 268       318
          Receivables                                  (632)   (2,473)
          Inventories                                  (216)   (1,511)
          Accounts payable and accrued expenses       2,272     3,596  
          Sundry                                         39        88
                                                    -------    ------
     CASH PROVIDED BY(USED IN) OPERATING ACTIVITIES     626       (60)

INVESTING ACTIVITIES
         Capital expenditures                          (137)     (753)
         Sundry                                          8        43   
                                                    -------     -----
     CASH USED IN INVESTING ACTIVITIES                 (129)     (710)

FINANCING ACTIVITIES
          Change in deferred grants                     (15)      101 
          Change in short-term debt                    (842)      317 
          Issuance of long-term debt                     35       274
          Reduction of long-term debt                  (203)      (14)
          Sundry                                         47        49
                                                     ------     -----	
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES        (978)      727 

Effect of exchange rate changes on cash                   2        (2) 
                                                     ------     -----
Net change in cash                                     (479)      (45) 
Cash at beginning of year                               848       402
                                                     ------     -----		         
     CASH AT END OF PERIOD                          $   369   $   357
                                                     ======     =====		      

</TABLE>
See accompanying notes.                 
<PAGE>





NOTES TO FINANCIAL STATEMENTS

1 - Basis of Presentation
These financial statements have been prepared in accordance with the 
instructions to Form 10-Q and therefore do not include all information, 
disclosures, and notes necessary for a fair presentation of financial 
position, results of operations, and cash flows in conformity with 
generally accepted accounting principles.  Reference should be made to 
the financial statements contained in the Company's Annual Report on 
Form 10-K for the year ended December 31, 1997.  These financial 
statements include all adjustments which are, in the opinion of management,
necessary to a fair presentation of the results for the interim period.

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 carried at zero value on its balance sheet.  
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.  Income from Harrison will not be recorded 
until amounts are received.

3 - Comprehensive Income
	As of January 1, 1998, the Company adopted Financial Accounting 
Standard 130, Reporting Comprehensive Income.  Statement 130 establishes 
new rules for the reporting and display of comprehensive income and its 
components; however, the adoption of this Statement had no impact on the 
Company's net (loss) income or stockholders' equity.  Statement 130 
requires foreign currency translation adjustments, which prior to adoption 
were reported separately in shareholders' equity, to be included in other 
comprehensive income.  Prior year financial statements have been 
reclassified to conform to the requirements of Statement 130.

	The components of comprehensive income for the six month periods ended 
June 30, 1998 and 1997 are as follows:
<TABLE>
									1998		1997
 <S>                                           <C>          <C>
	Net loss     					                            $(1,105)     $ (78)
	Foreign currency translation adjustment            64       (761)
									-----		 ----
	Comprehensive loss                            $(1,041)     $(839)
</TABLE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF 
OPERATIONS

Financial Condition
Harrison is presently restructuring its operations and as such, the Company
does not contemplate that amounts due under the license agreements will be 
paid in the near future.  The Company believes it has adequate cash and 
other options available in the foreseeable future should these amounts 
ultimately not be fully collected.

Results of Operations
Net sales to customers decreased by 11.2% during the first six months of 
1998 compared to the same period in 1997. 1997 included $1,060,000 in 
sales from the Australian subsidiary, which was sold in the third quarter 
of 1997.  Also, the foreign rate impact of the value of the Irish Punt to 
the U.S. Dollar resulted in a 7.9% decrease in translated sales for the 
six months of 1998 compared to 1997.  Although units shipped increased 
by 5% over the same period in 1997, the gross profit percentage decreased 
to 9.6% compared to 15.4%in 1997 due primarily to continuing pressure on
selling prices resulting from aggressive price cutting within the cable
industry, particularly in the U.K., the Company's primary market.  Other
revenues decreased since no fees from Harrison have been recorded since
the first quarter of 1997.  Selling, general and administrative
expenses decreased to 14.1% in 1998 compared to 15.2% in 1997.  These
expenses were high in 1997 due to start-up costs at a new production
facility in ireland and restructuring costs at the new U.K. distribution
company.

Income taxes for 1997 result from foreign taxable income at the Company's 
Irish subsidiary. The Company has tax loss carryforwards of approximately 
$6,400,000 available to offset future U.S. taxable income, which expire 
between 1999 and 2010.

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: August 12, 1998                    By: s/s  Thomas J. Carey
---------------------				   ------------------------ 
							    Chief Financial Officer