UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                             Washington DC 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 period ended                  September 30, 1999
                      -------------------------------------------------------

                                      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:               O-1837
                         --------------------------------

                             FEDERAL SCREW WORKS
-----------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)


              Michigan                              38-0533740
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   (State or other jurisdiction of               (I.R.S. Employer
    incorporation or organization)                Identification No.)


   535 Griswold Street, Suite 2400, Detroit Michigan         48226
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       (Address of principal executive offices)            (Zip Code)


Registrant's telephone number, and area code         (313) 963-2323
                                              -----------------------------


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_____



At September 30, 1999, the Company had one class of common stock outstanding,
$1.00 par value common stock. There were 1,071,612 shares of such common
stock outstanding at that time.



                                 (continued)





Part I  FINANCIAL INFORMATION


                             FEDERAL SCREW WORKS
                     CONDENSED BALANCE SHEETS (UNAUDITED)
                            (Thousands of Dollars)


                                                     Sept. 30    June 30
                                                       1999        1999
                                                     --------    -------

                                  ASSETS
Current Assets:

  Cash ...........................................    $   162    $   279

  Accounts Receivable, Less Allowance of $50 .....     15,325     15,727


  Inventories:
  Finished Products ..............................      6,323      4,815
  In-Process Products ............................      6,300      7,210
  Raw Materials And Supplies .....................      2,455      2,851
                                                      -------    -------
                                                       15,078     14,876

  Prepaid Expenses And Other Current Accounts ....        277        297
  Deferred Income Taxes ..........................        982        958
                                                      -------    -------

     Total Current Assets ........................     31,824     32,137


Other Assets:

  Intangible Pension Asset .......................      1,722      1,722
  Cash Value Of Life Insurance ...................      5,338      5,312
  Prepaid Pension Cost ...........................      3,550      3,622
  Miscellaneous ..................................        991        992
                                                      -------    -------
                                                       11,601     11,648

Property, Plant And Equipment ....................     95,823     94,527
  Less Accumulated Depreciation ..................     54,782     53,607
                                                      -------    -------

                                                       41,041     40,920
                                                      -------    -------

Total Assets .....................................    $84,466    $84,705
                                                      =======    =======




                                    - 2 -






Part I  FINANCIAL INFORMATION    (Continued)


                                                      Sept. 30    June 30
                                                        1999        1999
                                                      --------    -------

        LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
  Accounts Payable ...............................    $  5,908     $  4,143
  Payroll And Employee Benefits ..................       4,178        8,612
  Dividends Payable ..............................       2,152          108
  Federal Income Taxes ...........................         326          585
  Taxes, Other Than Income Taxes .................       1,531        1,802
  Accrued Pension Contributions ..................         297            0
  Other Accrued Liabilities ......................          78           31
  Current Maturities Of Long-Term Debt ...........         200          200
                                                      --------     --------

     Total Current Liabilities ...................      14,670       15,481

Long Term Liabilities:
  Long-Term Debt .................................       3,505        2,100
  Unfunded Pension Obligation ....................       1,321        1,321
  Postretirement Benefits Other Than Pensions ....      10,285        9,865
  Deferred Income Taxes ..........................       2,093        2,006
  Employee Benefits ..............................       1,055        1,081
  Other Liabilities ..............................         743          723
                                                      --------     --------

     Total Long-Term Liabilities .................      19,002       17,096


Stockholders' Equity:
  Common Stock, $1.00 Par Value, Authorized
  2,000,000 Shares;  1,071,612 Shares Outstanding
  at Sept. 30, 1999 and 1,076,162 at June 30, 1999       1,072        1,076
  Additional Capital .............................       3,269        3,269
  Retained Earnings ..............................      47,082       48,412
  Accumulated Other Comprehensive Income .........        (629)        (629)
                                                      --------     --------

     Total Stockholders' Equity ..................      50,794       52,128
                                                      --------     --------

Total Liabilities and Stockholders' Equity .......    $ 84,466     $ 84,705
                                                      ========     ========




See Accompanying Notes.





                                    - 3 -









                             FEDERAL SCREW WORKS
                CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
                   (Thousands of Dollars, Except Per Share)





                                        Three Months Ended  Three Months Ended
                                        September 30, 1999  September 30, 1998
                                        ------------------  ------------------

Net Sales ............................       $27,068             $25,468

Costs And Expenses:

   Cost of Products Sold .............        23,746              22,228

   Selling And Administrative Expenses         1,690               1,633

   Interest Expense ..................            34                  42
                                             -------             -------

      Total Costs and Expenses .......        25,470              23,903
                                             -------             -------

Earnings Before Federal
   Income Taxes ......................         1,598               1,565

Federal Income Taxes .................           544                 532
                                             -------             -------

Net Earnings .........................       $ 1,054             $ 1,033
                                             =======             =======



Per Share Of Common Stock:

Basic and Diluted Earnings Per Share .       $   .98             $   .95
                                             =======             =======
Cash Dividends Declared Per Share ....       $  2.00             $  1.90
                                             =======             =======



See Accompanying Notes.




                                    - 4 -








                             FEDERAL SCREW WORKS
                CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
                            (Thousands of Dollars)


                                                         Three Months
                                                             Ended
                                                         September 30
                                                        ---------------
                                                        1999       1998
                                                        ----       ----

Operating Activities
  Net Earnings ....................................   $ 1,054    $ 1,033

  Adjustments to Reconcile Net Earnings to Net Cash
    Provided By (Used In) Operating Activities:
      Depreciation and Amortization ...............     1,199      1,090
      Increase In Cash Value of Life Insurance ....       (27)       (27)
      Change In Deferred Income Taxes .............        63       (131)
      Employee Benefits ...........................       (26)        (1)
      Other .......................................       515        499
      Changes In Operating Assets And Liabilities:
       Accounts Receivable ........................       402     (1,457)
       Inventories And Prepaid Expenses ...........      (182)        85
       Accounts Payable And Accrued Expenses ......    (2,855)    (3,304)
                                                      -------    -------

Net Cash Provided By Operating Activities .........       143     (2,213)

Investing Activities
  Purchases of Property, Plant And Equipment-Net ..    (1,320)      (664)

Financing Activities
  Proceeds From Bank Borrowings ...................     1,405      2,070
  Purchase of Common Stock ........................      (237)         0
  Dividends Paid ..................................      (108)      (109)
                                                      -------    -------

Net Cash Used In Financing Activities .............     1,060      1,961
                                                      -------    -------

Decrease In Cash ..................................      (117)      (916)

Cash At Beginning Of Period .......................       279        975
                                                      -------    -------

Cash At End Of Period .............................   $   162    $    59
                                                      =======    =======



See Accompanying Notes.



                                    - 5 -





                             FEDERAL SCREW WORKS
             NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


Note A - Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial reporting. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. The results of operations for the three
months ended September 30, 1999, are not necessarily indicative of the
results to be expected for the fiscal year ending June 30, 2000.


Note B - Debt

On October 13, 1999, Comerica Bank approved a one year extension of the
Company's $25,000,000 Revolving Credit and Term Loan Agreement. Under the
agreement the Company has the option to convert borrowings thereunder
(classified as long-term debt) to a term note through October 31, 2002, the
expiration date of the agreement. Payments under the term note, if the
conversion option is exercised, would be made quarterly and could extend to
October 31, 2004. As of September 30, 1999, there was $3,505,000 in
outstanding borrowings under the Revolving Credit and Term Loan Agreement.


Note C - Dividends

Cash dividends per share are based on the number of shares outstanding at the
respective dates of declaration.



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


RESULTS OF OPERATIONS: Net sales for the Company's first quarter ended
September 30, 1999, increased $1,600,000, or 6.3%, compared with net sales
for the first quarter of the prior year. The increase is attributable mainly
to continued strong demand for the Company's products.

Gross profit for the three month period ended September 30, 1999, increased
$82,000, or 2.5%, as compared with gross profit for the first quarter of the
prior year. The increase is attributable mainly to additional volume and
improved product mix.

Selling and administrative expenses increased $57,000, or 3.5%, for the first
quarter ended September 30, 1999, as compared with the first quarter of the
prior year. The increase is mainly attributable to increases in compensation
and related expenses.

The Registrant's Shareholders are aware of the Registrant's dependence upon
sales to the two largest U.S. automobile manufacturers, a condition that has
existed for at least fifty years. Although the Registrant has purchase orders
from such customers, such purchase orders generally provide for supplying the
customer's requirements for a particular model or model year rather than for
manufacturing a specific quantity of products. The loss of any one of such
customers or significant purchase orders could have a material adverse effect
on the Registrant. These customers are also able to exert considerable
pressure on component suppliers to reduce costs, improve quality and provide
additional design and engineering capabilities. There can be no assurance
that the additional costs of increased quality standards, price reductions or
additional capabilities

                                    - 6 -



required by such customers will not have a material adverse effect on the
financial condition or results of operations of the Registrant.


YEAR 2000 MATTERS: The Company completed a comprehensive review of its
operations related to the "Year 2000" issue during fiscal 1998. This review
included an assessment of the Company's mainframe computer system, operating
and application systems, microcomputer and office systems, facilities, and
production equipment. This review also included correspondence with major
vendors and customers. Management believes it has identified those systems
that could be affected by the "Year 2000" issue. The Company has implemented
a plan to resolve these issues.

During the fiscal year ended June 30, 1998, the Company installed a new
mainframe computer system and operating system that are "Year 2000"
compliant. Implementation and testing of mainframe applications were
completed in fiscal 1999. The Company believes that, with modification of its
existing computer systems and updates by vendors in the ordinary course of
business, the "Year 2000" issue will not pose significant operational
problems of the Company's computer systems. However, if such modifications
are not made, or are not completed timely, the "Year 2000" issue could have a
material impact on the operations of the Company.

The Company has developed contingency plans for its significant operations
and is continuously monitoring the progress toward the established "Year
2000" plan. These plans include preliminary discussions with the Company's
primary software vendors to replace critical applications that may become
inoperable as a result of the "Year 2000" issue. The Company may increase
inventory levels to insure that supplies are not interrupted.

The total "Year 2000" project cost is estimated at approximately $400,000,
which includes estimated costs to be incurred to acquire upgraded software
that has been capitalized. These costs have been paid for with cash from
operations.


DIVIDENDS: The Board of Directors, in August 1999, declared a $.10 per share
quarterly dividend, and an extra $1.90 per share dividend, both payable
October 1, 1999, to shareholders of record September 3, 1999.


LIQUIDITY AND CAPITAL RESOURCES: Working capital increased by $498,000 from
$16,656,000 at June 30, 1999, to $17,154,000 at September 30, 1999.

At September 30, 1999, the Company had available $21,495,000 under its bank
credit agreement.

Capital expenditures for the three month period ended September 30, 1999,
were approximately $1.3 million, and, for the year, are expected to
approximate $7.1 million, of which approximately $3.0 million has been
committed as of September 30, 1999.

There have been no material changes concerning environmental matters since
those reported in the Registrant's Report on Form 10-K for the fiscal year
ended June 30, 1999.


FORWARD LOOKING STATEMENTS: The foregoing discussion and analysis contains a
number of "forward looking statements" within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, both as amended, with
respect to expectations for future periods which are subject to various
uncertainties, including competition, Information Systems issues related to
the Year 2000, the


                                    - 7 -



loss of, or reduction in business with, the Company's principal customers,
work stoppages, strikes and slowdowns at the Company's facilities and those
of its customers; adverse changes in economic conditions generally and those
of the automotive industry, specifically.


Item 3.   Quantitative and Qualitative Disclosures About Market Risk

          The Company's market risk is limited to interest rate risk on its
revolving credit and term loan agreement and its lease-purchase obligation.
At September 30, 1999, the carrying amounts reported in the balance sheets
for cash, accounts receivable, accounts payable, debt and investments
approximate fair value. The aggregate fair value of the Company's
lease-purchase obligation approximates its recorded amount at September 30,
1999. Accordingly, management believes this risk is not material.



PART II  OTHER INFORMATION


Item 1.  Legal Proceedings

          The information set forth at the conclusion of the Liquidity and
Capital Resources discussion in Item 2 of Part I concerning environmental
matters is incorporated by reference.


Item 6.  Exhibits and Reports on Form 8-K

          (a)  Exhibit 10.2  One Year Extension of Revolving Credit and
               Term Loan Agreement By and Between Registrant and Comerica
               Bank Dated October 13, 1999.

               Exhibit 10.3  Lease Agreement For the Lease of New Corporate
               Headquarters By and Between Registrant and Safran Development,
               LLC, Dated October 26, 1999.

               Exhibit 27   Financial Data Schedule.


          (b)  Reports on Form 8-K. There was no SEC Form 8-K filed this
               quarter. There were no unusual charges or credits to income,
               nor a change in independent accountants.


                                  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.


                                                 Federal Screw Works
                                           ---------------------------------



Date  November 12, 1999                    /s/ W.T. ZurSchmiede, Jr.
      -------------------                  ---------------------------------
                                           W. T. ZurSchmiede, Jr.
                                           Chairman, Chief Executive Officer
                                           and Chief Financial Officer

                                    - 8 -









Exhibit Index:
          Exhibit 10.2  One Year Extension of Revolving Credit and
                        Term Loan Agreement By and Between Registrant
                        and Comerica Bank Dated October 13, 1999.

          Exhibit 10.3  Lease Agreement for the Lease of New Corporate
                        Headquarters By and Between Registrant and Safran
                        Development, LLC Dated October 26, 1999.

          Exhibit 27    Financial Data Schedule