SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                   FORM 10-QSB

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
    SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1998

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
    SECURITIES AND EXCHANGE ACT OF 1934



                          Commission File Number 0-5633


                           ENVIRONMENT ONE CORPORATION
                           ---------------------------
                 (Name of small business issuer in its charter)


           New York                                             14-1505298  
--------------------------------------------------------------------------------
(State or other  jurisdiction  of                           (IRS Employer
incorporation of organization)                             Identification No.)


   2773 Balltown Road, Niskayuna, NY                            12309-1090
--------------------------------------------------------------------------------
(Address of principal executive offices)                        (Zip Code)


                    Issuer's telephone number (518) 346-6161



Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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  [   ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of Common Stock, par value $.10 as of March 31, 1998:
4,295,827.

Transitional Small Business Disclosure Format (check one):

                             Yes  [   ]    No  [ X ]
<PAGE>
                           Environment One Corporation
                                   FORM 10-QSB



                                      INDEX



                                                                                

Part I. Financial Information-

Item 1. Financial Statements

         Consolidated Balance Sheets March 31, 1998 and December 31, 1997

         Consolidated Statements of Income for the Three Months Ended March 31,
                  1998 and 1997

         Consolidated Statements of Cash Flows for the Three Months Ended March
                  31, 1998 and 1997

         Notes to Consolidated Financial Statements

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

Part II. Other Information                                                      

Signatures                                                                      





<PAGE>
                              Part I - Financial Information

Item 1. Financial Statements
<TABLE>
<CAPTION>
                           Environment One Corporation
                           Consolidated Balance Sheets
                      March 31, 1998 and December 31, 1997


                     Assets                            3/31/98           12/31/97
                                                    ------------      ------------
<S>                                                 <C>               <C> 
Current Assets
     Cash and Cash Equivalents                      $  3,911,828         1,976,368
     Accounts Receivable, Net                          3,349,153         5,226,859
     Inventories
             Raw Materials                             1,435,246         1,399,533
             Work in Process                             327,853           385,013
             Finished Goods                              549,969           483,906
                                                    ------------      ------------
                                                       2,313,068         2,268,452
Other Current Assets                                     355,503           401,837
                                                    ------------      ------------
     Total Current Assets                              9,929,552         9,873,516
                                                    ------------      ------------

Property, Plant and Equipment
     Land                                                334,491           334,491
     Buildings                                         2,337,099         2,324,333
     Machinery and Equipment                           5,501,228         5,371,630
     Construction in Progress                             19,762            95,393
     Less: Accumulated Depreciation                   (5,003,005)       (4,868,005)
                                                    ------------      ------------
     Net Property, Plant and Equipment                 3,189,575         3,257,842
Other Assets                                             424,481           429,382
                                                    ------------      ------------
Total Assets                                          13,543,608        13,560,740
                                                    ============      ============

      Liabilities and Shareholders' Equity

Current Liabilities
     Current Installments - Long Term Debt               338,100           338,100
     Accounts Payable                                  1,699,130         1,812,407
     Accrued Expenses                                  1,180,169         1,366,913
                                                    ------------      ------------
          Total Current Liabilities                    3,217,399         3,517,420

Deferred Compensation                                    953,429           953,429
Minority Interest                                         63,787            68,760
Long Term Debt                                         1,077,869         1,162,394
                                                    ------------      ------------
      Total Liabilities                                5,312,484         5,702,003
                                                    ------------      ------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                           Environment One Corporation
                           Consolidated Balance Sheets
                      March 31, 1998 and December 31, 1997


                                                      3/31/98            12/31/97
                                                    ------------      ------------
<S>                                                 <C>               <C> 

Shareholders' Equity
     Common Stock at Par Value                           431,621           425,772
     Additional Paid in Capital                        8,577,493         7,969,197
     Retained Earnings  / (Accumulated Deficit)          256,268          (116,119)
                                                    ------------      ------------
                                                       9,265,382         8,278,850
     Less: Treasury Stock at Cost                     (1,034,258)         (420,113)
                                                    ------------      ------------
       Total Shareholders' Equity                      8,231,124         7,858,737
                                                    ------------      ------------

Total Liabilities and Shareholders' Equity          $ 13,543,608        13,560,740
                                                    ============      ============
</TABLE>
(See Accompanying Notes to Consolidated Financial Statements)
<PAGE>
<TABLE>
<CAPTION>
                             Environment One Corporation
                          Consolidated Statements of Income
                  For the Three Months Ended March 31, 1998 and 1997


                                                    Three Months Ended March 31,
                                                 ------------------------------- 
                                                     1998               1997
                                                 -----------        -----------
<S>                                              <C>                <C>
Revenue                                          $ 5,431,521          4,547,725
                                                 -----------        -----------

Costs and Expenses

          Cost of Sales                            3,134,768          2,934,433

          Selling and Marketing                      779,627            601,876

          General and Administrative                 916,443            738,377

          Interest Expense, Net                        3,605             41,984

          Other Income, Net                           (3,209)            (2,489)
                                                 -----------        -----------

Total Expenses, Net                                4,831,234          4,314,181
                                                 -----------        -----------


Net Income Before Taxes                              600,287            233,544

Income Tax Expense                                   227,900             88,600
                                                 -----------        -----------

Net Income                                       $   372,387            144,944
                                                 ===========        ===========

Per Share Amounts:

Basic Earnings per Common Share                  $      0.09               0.03
Diluted Earnings per Common Share                       0.08               0.03
                                                 ===========        ===========

</TABLE>
(See Accompanying Notes to Consolidated Financial Statements)
<PAGE>
<TABLE>
<CAPTION>
                                   Environment One Corporation
                              Consolidated Statements of Cash Flows
                        For the Three Months Ended March 31,1998 and 1997


                                                                    Three Months Ended March 31,
                                                                  ------------------------------ 
                                                                      1998                1997
<S>                                                               <C>              <C>    
Cash Flows-Operating Activities:

Net Income                                                        $   372,387          144,944

Adjustments to Reconcile Net Earnings
to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization                                         139,901          144,117
Decrease (Increase) - Accounts Receivable, Net                      1,877,706          425,143
Decrease (Increase) - Inventories                                     (44,616)        (199,549)

Decrease (Increase) - Prepaid Expenses                                 46,334         (119,026)
Decrease (Increase) - Other L/T Assets                                      0            6,044

Increase (Decrease) - Accounts Payable                               (113,277)        (438,660)

Increase (Decrease) - Accrued Expenses and Other Liabilities         (186,744)        (234,068)

Increase (Decrease) - Minority Interest                                (4,973)          11,803
                                                                  -----------      -----------

Net Cash Provided (Used) by Operating Activities                    2,086,718         (259,252)
                                                                  -----------      -----------
Cash Flows Used in Investing Activities:
Capital Expenditures                                                  (66,733)        (122,899)
                                                                  -----------      -----------

Cash Flows From Financing Activities:

Increase (Decrease) - Book Overdraft                                        0           87,904

Increase (Decrease) - Note Payable to Bank                                  0          379,000

Increase (Decrease) - Long Term Debt                                  (84,525)         (84,524)

Issuance of Common Stock                                                    0            7,101
                                                                  -----------      -----------

Net Cash Provided (Used) by Financing Activities                      (84,525)         389,481
                                                                  -----------      -----------

Net Increase (Decrease) in Cash and Cash Equivalents                1,935,460            7,330

Cash and Cash Equivalents at Beginning of Period                    1,976,368           62,637
                                                                  -----------      -----------

Cash and Cash Equivalents at End of Period                        $ 3,911,828           69,967
                                                                  ===========      ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                   Environment One Corporation
                              Consolidated Statements of Cash Flows
                        For the Three Months Ended March 31,1998 and 1997


                                                                    Three Months Ended March 31,
                                                                  ------------------------------ 
                                                                      1998                1997
<S>                                                               <C>              <C>    
Supplemental disclosure of non-cash financing activity:

  Issuance of 58,489 in 1998 and 65,681 in 1997
   shares of common stock held in trust,
   recorded as treasury stock as part of the Company's
   deferred compensation plan for certain executive officers      $   614,135          369,461
                                                                  ===========      ===========

Cash paid during the year for:
   Interest                                                       $    33,332           46,406
                                                                  ===========      ===========
   Income Taxes                                                   $   252,874          274,811
                                                                  ===========      ===========
</TABLE>
(See Accompanying Notes to Consolidated Financial Statements)
<PAGE>
                           Environment One Corporation
                   Notes to Consolidated Financial Statements
               For the Three Months Ended March 31, 1998 and 1997

                                   (Unaudited)

         1.  In  the  opinion  of   management,   the   accompanying   unaudited
consolidated  financial statements contain all adjustments,  which are only of a
normal   recurring   nature,   necessary  to  fairly  present   Environment  One
Corporation's  financial  position as of March 31, 1998 and December 31, 1997 as
well as the  results of  operations  and cash flows for the three  months  ended
March 31, 1998 and 1997.  Operating  results for any quarter are not necessarily
indicative of results for any future periods.

         2. Net earnings per share  computations  are based on basic and diluted
number of shares of Common Stock  outstanding  for the periods  ending March 31,
1998 and  1997.  The  basic  and  diluted  number  of  shares  of  Common  Stock
outstanding  for the periods  ending March 31, 1998 and 1997 are  4,294,527  and
4,495,400 for 1998 and 4,218,121 and 4,388,470 for 1997.


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


Results of Operations

The following  information  should be read in conjunction  with the consolidated
financial  statements  and notes  thereto  included in Item 1 of this  Quarterly
Report,  and  the  consolidated  financial  statements  and  notes  thereto  and
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  contained in the Company's Annual Report on Form 10-KSB for the year
ended December 31, 1997.

Revenue for the period  increased  $884,000,  or 19.4% over the same period last
year.  Increases  from the quarter  ended  March 31, 1997 were  recorded in both
Sewer Systems and Detection Systems businesses.

Revenue from the Company's Sewer Systems business  continues to show improvement
over prior  periods.  Management  is of the opinion  that the addition of a more
powerful  distribution  network,  increases  in the number and size of municipal
projects,  continued  growth in the overall market and  realignment of its sales
territories accounts for this growth and bodes well for future growth.

As part  of the  Detection  Systems  business  revenue  increase,  sales  of the
Company's  Generator  Condition  Monitor showed  significant  improvement as the
Company was able to complete shipment on two large international projects during
the period.  Sales of the Company's  Hydrogen Control Cabinet also improved over
the prior period due to continued  market  acceptance and completion of delivery
on a large international project.
<PAGE>
Cost of Sales  increased  $200,000  when  compared to the same period last year.
Expressed in percent of sales,  cost of sales  decreased from 64.5% in the first
three  months of 1997 to 57.7% in the three  months  ended March 31,  1998.  The
improvement  in gross  margin  is  mainly  attributable  to  product  sales  mix
resulting  from  strong  sales  of  the  Company's  Detection  Systems  business
products.   Increased  expenses  in  indirect  non-labor  categories  of  scrap,
maintenance,  professional  services and miscellaneous  manufacturing costs were
recognized during the period ending March 31, 1998.

Selling and Marketing costs increased  $178,000 compared to the first quarter of
1997.  The majority of this increase  resulted from  increased  expenditures  in
travel  and  living,  advertising,  promotion,  trade  shows  and  miscellaneous
marketing costs as the Company continues its effort to support the Sewer Systems
business distribution network.

General and Administrative costs, including research and development, increased
$178,000  over the  same  period  last  year.  Research  and  development  costs
increased  $36,000  while  other  general  and  administrative  costs  increased
$142,000.

Increased   expenditures   in  other  general  and   administrative   costs  are
attributable  to increases in legal,  consultant  and directors  fees along with
miscellaneous expenses.  Partially offsetting these increases was a reduction in
the accrual for growth  performance  sharing  expense.  In the first  quarter of
1996, the Company  implemented a new growth performance sharing plan to take the
place of its profit  sharing plan.  Targets for growth in sales and  operational
earnings  along with return on assets were  established  and are  reviewed on an
annual basis.  Quarterly  expense  accruals are made based on the performance of
the Company.

Interest expense  decreased  $38,000 over the first three months of 1997. During
the period in 1998, the Company had no borrowing  against its line of credit and
only incurred interest expense on long term debt.


                        Financial Position and Liquidity
                   (all figures rounded to the nearest 000's)


Cash  needs  for the first  three  months  of 1998  were met  primarily  by cash
provided by operations. Highlighting the operating cash category was a reduction
of $1,900,000 in accounts receivable.  Capital expenditures  declined to $67,000
from $123,000 during the same period last year. Short term borrowing remained at
$0 while during the same period last year the Company increased its borrowing by
$379,000.

Continued control over inventory,  operating  expenses and capital  expenditures
along  with  forecasted  cash  receipts  will  enable  the  Company  to meet its
day-to-day working capital requirements in the near term.
<PAGE>
  Cautionary Statement for the Purposes of the "Safe Harbor" Provisions of the
                Private Securities Litigation Reform Act of 1995


The Private  Securities  Litigation  Reform Act of 1995 (the  "Act")  provides a
"safe harbor" for  forward-looking  statements to encourage companies to provide
prospective  information about themselves while limiting unwarranted litigation,
provided  that  the  statements  are  identified  as  forward-looking   and  are
accompanied by meaningful cautionary statements regarding important factors that
could cause  actual  results to differ  materially  from those  projected in the
statement. The Company desires to take advantage of the "safe harbor" provisions
of the Act, and is including the  information set forth below in the Form 10-QSB
to point out the  inherent  difficulties  in  predicting  the  impact of certain
factors.

While the Company believes that its assumptions  underlying any  forward-looking
statements are reasonable,  the following information includes important factors
which could cause the Company's  actual  results to differ  materially  from any
result  which  might be  projected,  forecasted,  estimated,  or budgeted by the
Company in its forward-looking statements, whether contained in this Form 10-QSB
or otherwise.

1.   Heightened competition, including the intensification of price competition,
     the entry of new competitors, and the introduction of new products by new
     and existing competitors.
2.   Failure to obtain new customers or retain existing customers.
3.   Adverse publicity and news coverage impacting the Company's reputation and
     sales potential.
4.   Inability to carry out marketing and sales plans due to unforeseen factors.
5.   Significant economic downturns in the geographic market areas serviced by
     the Company.
6.   Higher service, administrative, or general expenses occasioned by the need
     for additional advertising, marketing, administrative, or management
     information systems expenditures.
7.   A lack of availability of raw materials, necessary manufacturing equipment,
     or contract manufacturers to meet the Company's needs.
8.   Underutilization of the Company's manufacturing resources, resulting in
     production inefficiencies and higher costs.
9.   Start-up expenses, inefficiencies, delays, and increased depreciation costs
     in connection with the start of production in new facilities and expansions
     of existing facilities.
10.  The acquisition of fixed and other assets, including inventory and
     receivables, and the making or incurring of any expenditures and expenses,
     including but not limited to depreciation and research and development
     expenses.
11.  Any revaluation of assets or related expenses and the amount of, and any
     changes to, tax rates.
12.  Loss or retirement of key executives.
13.  Any activities of parties with which the Company has agreements or
     understandings, including matters affecting any investment or joint venture
     in which the Company has an investment.
<PAGE>
14.  The amount, type, and cost of the financing available to the Company, and
     any changes to that financing.
15.  Adverse results in significant litigation or regulatory proceedings.
16.  Adverse changes in laws, regulations, interpretations, and enforcement
     policies affecting the company and its business operations.
17.  Natural disasters, work stoppages, and other events beyond the control of
     the Company.


The foregoing list of factors  should not be construed as exhaustive,  or as any
admission regarding the adequacy of disclosures made by the Company prior to the
filing of this Form 10-QSB.
<PAGE>

                           Environment One Corporation
                                   FORM 10-QSB


                           Part II - Other Information

                                Change in Control

On February 24, 1998 the Company  entered  into an Agreement  and Plan of Merger
among the Company, Precision Castparts Corp. (PCC), an Oregon Corporation, and a
wholly  owned  subsidiary  of PCC, EOC  Acquisition  Corp.  (Purchaser)  for the
Purchaser to acquire all shares  (fully  diluted) of common stock of the company
for $15.25 per share. This agreement is explained in the Company's  Solicitation
/  Recommendation  Statement on Form 14D-9 filed with the Commission on March 3,
1998. At the close of the tender offer on March 30, 1998,  approximately  86% of
the shares had been tendered. On April 2, 1998, PCC accepted the tendered shares
for payment.  PCC is  currently  in the process of calling a special  meeting of
shareholders to be held sometime in June, 1998. At that meeting,  PCC intends to
complete the merger of the Purchaser into the Company.


                                   SIGNATURES

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

                                                 ENVIRONMENT ONE CORPORATION


Date: May 13, 1998                               By:/s/Stephen V. Ardia
                                                    -------------------
                                                    Stephen V. Ardia
                                                    Chairman, President and CEO




Date: May 13, 1998                               By:/s/Philip W. Welsh
                                                    ------------------ 
                                                    Philip W. Welsh
                                                    Chief Financial Officer
                                                    Treasurer