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 April 30, 1997

                                       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 0-15067

                             FLUOR DANIEL GTI, INC.
             (Exact Name of Registrant as Specified in its Charter)

          Delaware                                    02-0324047
(State or Other Jurisdiction of            (I.R.S. Employer Identification No.)
 Incorporation or Organization)

                    100 River Ridge Drive, Norwood, MA    02062
               (Address of Principal Executive Offices) (Zip Code)

Registrant's Telephone Number, Including Area Code: (617) 769-7600


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  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 June 12, 1997 the  registrant  had issued and  outstanding  an  aggregate  of
8,323,702 shares of its common stock.






                             FLUOR DANIEL GTI, INC.

                                    FORM 10-Q

                                TABLE OF CONTENTS


<TABLE>
<CAPTION>



PART I     FINANCIAL INFORMATION                                                                       PAGE NUMBER
------     ---------------------                                                                       -----------

Item 1   Financial Statements 1

<S>                                                                                                         <C>
          Condensed Consolidated Balance Sheets
              April 30, 1997 (Unaudited) and October 31, 1996 .................................................1-2

          Condensed Consolidated Statements of Operations
              Quarter ended April 30, 1997 (Unaudited) and April 30, 1996 (Unaudited)............................3

          Condensed Consolidated Statements of Operations
              Six months ended April 30, 1997 (Unaudited) and April 30, 1996 (Unaudited).........................4

          Condensed Consolidated Statements of Cash Flows
              Six months ended April 30, 1997 (Unaudited) and April 30, 1996 (Unaudited).........................5

          Notes to Condensed Consolidated Financial Statements (Unaudited).......................................6

Item 2    Management's Discussion and Analysis of Financial Condition and Results of Operations................7-8


PART II   OTHER INFORMATION
-------   -----------------

Item 6    Exhibits and Reports on Form 8-K.......................................................................9

          Signatures............................................................................................10


</TABLE>



1 Prior year comparative  financial statements reflect the historical results of
Fluor Daniel  Environmental  Services,  Inc. (FDESI), the predecessor entity for
accounting purposes.






Item 1.    Financial Statements

                             FLUOR DANIEL GTI, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                 (In thousands)
<TABLE>
<CAPTION>

                                                                                      April 30,         October 31,
Assets                                                                                     1997                1996
------                                                                                     ----                ----
                                                                                    (unaudited)
<S>                                                                               <C>                   <C>
Current assets:
   Cash and cash equivalents                                                         $    4,502          $    2,552
   Marketable securities                                                                  4,852               4,101
   Accounts receivable, less allowance of $1,788 at
      April 30, 1997 and $1,740 at October 31, 1996                                      44,332              46,438
   Unbilled revenues                                                                     20,354              18,917
   Deferred income taxes                                                                    851                 937
   Other current assets                                                                   2,334               2,525
                                                                                    -----------         -----------

Total current assets                                                                     77,225              75,470

Deferred income taxes                                                                     2,967               2,967
Property, plant and equipment, net                                                        7,030               7,776
Goodwill, net of accumulated amortization of $1,145 at
      April 30, 1997 and $860 at October 31, 1996                                        10,374              10,218
Other assets                                                                              3,931               3,962
                                                                                    -----------         -----------

Total assets                                                                           $101,527            $100,393
                                                                                       ========            ========
</TABLE>


The accompanying notes are an integral part of the financial statements.


                                       -1-





                             FLUOR DANIEL GTI, INC.

                      CONDENSED CONSOLIDATED BALANCE SHEETS

                      (In thousands, except share amounts)
<TABLE>
<CAPTION>


                                                                                      April 30,         October 31,
Liabilities and Stockholders' Equity                                                       1997                1996
------------------------------------                                                       ----                ----
                                                                                    (unaudited)
<S>                                                                          <C>                      <C>
Current liabilities:
   Accounts payable                                                                 $    8,918           $    8,034
   Accrued salaries and benefits                                                         5,706                4,023
   Advance billings on contracts                                                           637                  452
   Other accrued liabilities                                                             4,873                5,905
   Income taxes payable                                                                     --                  101
                                                                               ----------------        ------------

Total current liabilities                                                               20,134               18,515

Stockholders' equity:
   Preferred stock, $.01 par value, 1,000,000 shares authorized,
      none issued                                                                           --                   --
   Common stock, $.001 par value, 25,000,000 shares
      authorized, 8,212,656 issued and outstanding at April 30, 1997;
      8,155,832 issued and outstanding at October 31, 1996                                   8                    8
   Capital in excess of par value                                                       81,430               81,003
   Retained earnings                                                                       131                  825
   Cumulative currency translation adjustment                                             (176)                  42
                                                                                  -------------       -------------

Total stockholders' equity                                                              81,393               81,878
                                                                                    -----------          ----------

Total liabilities and stockholders' equity                                            $101,527             $100,393
                                                                                      =========            ========
</TABLE>


The accompanying notes are an integral part of the financial statements.




                                       -2-






                             FLUOR DANIEL GTI, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>

                                                                                               Quarter ended
                                                                                               -------------
                                                                                       April 30           April 30,
                                                                                           1997             1996(1)
                                                                                           ----             -------

<S>                                                                                    <C>                   <C>   
Revenues                                                                               $48,052               $8,178
Cost of revenues                                                                        37,588                5,280
                                                                                      ---------             -------

Gross profit                                                                            10,464                2,898

Selling, general and administrative expenses                                            12,081                   --
Indirect expenses                                                                           --                1,972
License and other income                                                                   172                   --
                                                                                    -----------          ----------

Income (loss) before investment and interest income                                     (1,445)                 926
Investment and interest income                                                             174                   --
                                                                                    -----------          ----------

Income (loss) before income taxes                                                       (1,271)                 926
Provision (benefit) for income taxes                                                      (515)                 361
                                                                                    -----------            --------

Net income (loss)                                                                    $    (756)             $   565
                                                                                     ==========             =======

Loss per common share                                                               $     (.09)                 N/A
                                                                                    ===========            ========

Shares used to compute loss per common share                                             8,213                  N/A
                                                                                     ==========            ========
</TABLE>


The accompanying notes are an integral part of the financial statements.






1 Prior year comparative  financial statements reflect the historical results of
Fluor Daniel  Environmental  Services,  Inc. (FDESI), the predecessor entity for
accounting purposes.


                                       -3-





                             FLUOR DANIEL GTI, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)
                    (In thousands, except per share amounts)

<TABLE>
<CAPTION>

                                                                                             Six months ended
                                                                                             ----------------
                                                                                       April 30           April 30,
                                                                                           1997             1996(1)
                                                                                           ----             -------

<S>                                                                                    <C>                  <C>    
Revenues                                                                               $95,646              $16,486
Cost of revenues                                                                        75,929               12,298
                                                                                      ---------            --------

Gross profit                                                                            19,717                4,188

Selling, general and administrative expenses                                            21,479                   --
Indirect expenses                                                                           --                3,491
License and other income                                                                   342                   --
                                                                                    -----------         -----------

Income (loss) before investment and interest income                                     (1,420)                 697
Investment and interest income                                                             263                   --
                                                                                    -----------        ------------

Income (loss) before income taxes                                                       (1,157)                 697
Provision (benefit) for income taxes                                                      (463)                 272
                                                                                    -----------          ----------

Net income (loss)                                                                    $    (694)           $     425
                                                                                     ==========           =========

Loss per common share                                                               $     (.08)                 N/A
                                                                                    ===========          ==========

Shares used to compute loss per common share                                              8,199                 N/A
                                                                                     ==========          ==========
</TABLE>


The accompanying notes are an integral part of the financial statements.








1 Prior year comparative  financial statements reflect the historical results of
Fluor Daniel  Environmental  Services,  Inc. (FDESI), the predecessor entity for
accounting purposes.


                                       -4-





                             FLUOR DANIEL GTI, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                 (In thousands)
<TABLE>
<CAPTION>

                                                                                                   Six months ended
                                                                                                   ----------------
                                                                                     April 30,            April 30,
                                                                                           1997             1996(1)
                                                                                           ----             -------
<S>                                                                                  <C>                  <C>
Cash Flows From Operating Activities
   Net income (loss)                                                                   $  (694)             $  425
   Adjustments to reconcile net income  to net cash provided by operating
     activities:
       Depreciation and amortization                                                     2,210                  --
      Deferred taxes                                                                        86                  --
      Changes in operating assets and liabilities:
         Accounts receivable and unbilled revenues                                         669              (1,157)
         Other current assets                                                              191                  --
         Other assets                                                                      (50)                 --
         Accounts payable                                                                  884                  --
         Accrued salaries and benefits                                                   1,683                  --
         Other accrued liabilities                                                      (1,032)                 92
         Advance billings on contracts                                                     185                 329
         Income taxes payable                                                             (101)                 --
      Advances from parent                                                                   --                311
                                                                                   ------------            -------

Net Cash provided by Operating Activities                                                4,031                  --

Cash Flows From Investing Activities
      Purchase of marketable securities                                                 (5,701)                 --
      Sale of marketable securities                                                      4,950                  --
      Expenditures for property, plant and equipment                                    (1,337)                 --
      Sale of property, plant and equipment                                                166                  --
      Other                                                                               (368)                 --
                                                                                      ---------         ----------

Net Cash used in Investing Activities                                                   (2,290)                 --

Cash Flows From Financing Activities
      Proceeds from sale of stock under employee stock purchase plans                      427                  --
                                                                                      ---------         ----------

Net Cash provided by Financing Activities                                                  427                  --

Effect of Exchange Rate Changes on Cash and Cash Equivalents                              (218)                 --
                                                                                      ---------         ----------

Net Increase in Cash and Cash Equivalents                                                1,950                  --

Cash and Cash Equivalents at Beginning of Fiscal Year                                    2,552                  --
                                                                                       --------         ----------

Cash and Cash Equivalents at End of Period                                              $4,502           $      --
                                                                                        =======          =========
</TABLE>


The accompanying notes are an integral part of the financial statements.






1 Prior year comparative  financial statements reflect the historical results of
Fluor Daniel  Environmental  Services,  Inc. (FDESI), the predecessor entity for
accounting purposes.


                                       -5-






                             FLUOR DANIEL GTI, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



NOTE 1. Condensed Consolidated Financial Statements

     The condensed  consolidated balance sheets as of April 30, 1997 and October
31, 1996, the related  condensed  consolidated  statements of operations for the
quarter and six months ended April 30, 1997 and April 30, 1996,  and the related
condensed  consolidated  statements of cash flows for the six months ended April
30, 1997 and April 30, 1996,  have been  prepared by Fluor Daniel GTI, Inc. (the
"Company")  without  audit.  In  the  opinion  of  management,  all  adjustments
(consisting  of normal  recurring  accruals)  necessary  to  present  fairly the
financial position, results of operations and changes in cash flows at April 30,
1997 and for all periods presented have been made.

     Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting  principles
have been  condensed or omitted.  It is suggested  this  information  be read in
conjunction  with the Annual  Report on Form 10-K for fiscal year ended  October
31, 1996 (SEC File No. 0-15067) and the Proxy  Statement/Prospectus  dated April
5, 1996, of Groundwater Technology,  Inc. ("GTI"),  relating to the May 10, 1996
Special  Meeting of  Stockholders  at which the  Change of Control  Transactions
(defined  below) were approved.  The results of operations for the three and six
month  periods  ended  April  30,  1997 are not  necessarily  indicative  of the
operating results for the year.

NOTE 2. Earnings Per Share

     Earnings per share for the three and six month periods ended April 30, 1996
is not meaningful.

NOTE 3. Merger and Recapitalization Activities

     On May 10, 1996, the Company closed a series of  transactions  (the "Change
of  Control  Transactions")   pursuant  to  which  it  became  a  majority-owned
subsidiary  of Fluor  Daniel,  Inc.  ("Fluor  Daniel"),  a global  construction,
engineering,   maintenance   and  services   company.   The  Change  of  Control
Transactions  included a recapitalization of the Company's common stock, and the
merger  of one of the  Company's  subsidiaries  and Fluor  Daniel  Environmental
Services,  Inc.  ("FDESI"),  a  wholly-owned  subsidiary  of Fluor  Daniel  that
provides environmental services primarily to agencies of the federal government.
In exchange for FDESI and $35 million in cash,  Fluor Daniel received  4,400,000
shares of the Company's  "new" common stock and an option to purchase  1,768,970
additional  shares at $13.1274 per share that  expires on December 11, 1998.  In
the  recapitalization,  each holder of "old" common stock received $8.62 in cash
and .5274 of a share of "new"  common stock of the  Company.  In  addition,  the
Company  entered into a Marketing  Agreement with Fluor Daniel,  and the Company
changed its name from "Groundwater Technology, Inc." to "Fluor Daniel GTI, Inc."
to emphasize the new relationship.

     The merger was treated as a reverse  acquisition  for accounting  purposes,
and therefore, the unaudited April 30, 1996 condensed consolidated statements of
operations  and  condensed  consolidated  statements  of cash flows  reflect the
historical  results of FDESI,  which is the  predecessor  entity for  accounting
purposes.

     Pro forma results for the quarter ended April 30, 1996, presented as though
the merger of FDESI and GTI had occurred on November 1, 1995, were net income of
approximately  $663,000 on revenues of  approximately  $48.2 million.  Pro forma
results for the six month period  ended April 30, 1996,  presented as though the
merger of FDESI and GTI had  occurred on  November  1, 1995,  were net income of
$1,076,000 on revenues of approximately $98.5 million.

NOTE 4. Change in Fiscal Year

     The Company changed its year end from April 30 to October 31.  Accordingly,
the Company began a new 12-month fiscal year on November 1, 1996.

                                       -6-






                             FLUOR DANIEL GTI, INC.

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

General
-------

     On May 10, 1996, the Company closed a series of  transactions  (the "Change
of  Control  Transactions")   pursuant  to  which  it  became  a  majority-owned
subsidiary  of Fluor  Daniel,  Inc.  ("Fluor  Daniel"),  a global  construction,
engineering,   maintenance   and  services   company.   The  Change  of  Control
Transactions  included a recapitalization of the Company's common stock, and the
merger  of one of the  Company's  subsidiaries  and Fluor  Daniel  Environmental
Services,  Inc.  ("FDESI"),  a  wholly-owned  subsidiary  of Fluor  Daniel  that
provides environmental services primarily to agencies of the federal government.
In exchange for FDESI and $35 million in cash,  Fluor Daniel received  4,400,000
shares of the Company's  "new" common stock and an option to purchase  1,768,970
additional  shares at $13.1274 per share that  expires on December 11, 1998.  In
the  recapitalization,  each holder of "old" common stock received $8.62 in cash
and .5274 of a share of "new"  common stock of the  Company.  In  addition,  the
Company  entered into a Marketing  Agreement with Fluor Daniel,  and the Company
changed its name from "Groundwater Technology, Inc." to "Fluor Daniel GTI, Inc."
to emphasize the new relationship.

     The merger was treated as a reverse  acquisition  for accounting  purposes,
and therefore, the unaudited April 30, 1996 condensed consolidated statements of
operations  and  condensed  consolidated  statements  of cash flows  reflect the
historical  results of FDESI,  which is the  predecessor  entity for  accounting
purposes.

     The Company changed its year end from April 30 to October 31.  Accordingly,
the Company began a new 12-month fiscal year on November 1, 1996.

Results of Operations
---------------------

Results for the Quarter Ended April 30, 1997

     Revenues  for the  quarter  ended April 30,  1997 were $48.1  million.  The
Company  experienced  continued  competition  within almost all  assessment  and
remediation markets.

     Gross profit for the three  months ended April 30, 1997 was $10.5  million.
As a percentage of revenues,  gross profit for the quarter was 21.8%.  The gross
profit for the three months has been impacted by continued pricing pressures for
services  performed and by an additional  charge of $831,000 in labor and salary
costs associated with writing government  proposals.  These additional costs had
an adverse impact on the gross margins for the quarter.

     Selling,  general and  administrative  expenses for the quarter ended April
30,  1997 were  $12.1  million.  Included  in this cost is  $583,000  in outside
vendors costs  associated  with the  preparation of government  proposals.  Also
included is a charge of $830,000 for payroll and benefits related to an overhead
cost reduction plan  implemented  during the quarter ended April 30, 1997. It is
expected that this  overhead cost  reduction  plan will yield  approximately  $2
million in annualized salary and benefit savings.

     The benefit for income taxes at 40.5% for the quarter  ended April 30, 1997
is approximately the combined statutory rate.

     Pro forma results for the quarter ended April 30, 1996, presented as though
the merger of FDESI and GTI had occurred on November 1, 1995, were net income of
approximately $663,000 on revenues of approximately $48.2 million.

Results for the Six Months Ended April 30, 1997

     Revenues  for the six months ended April 30, 1997 were $95.6  million.  The
Company  experienced  continued  competition  within almost all  assessment  and
remediation markets for the six months ended.



                                       -7-






     Gross profit for the six months ended April 30, 1997 was $19.7 million.  As
a percentage of revenues,  gross profit for the six months ended was 20.6%.  The
gross profit for the six months has been impacted by continued pricing pressures
for services performed and by an additional charge of $1.15 million in labor and
salary costs  associated with writing  government  proposals.  These  additional
costs had an adverse impact on the gross margins.

     Selling, general and administrative expenses for the six months ended April
30,  1997 were  $21.5  million.  Included  in this cost is  $583,000  in outside
vendors costs  associated  with the  preparation of government  proposals.  Also
included is a charge of $830,000 for payroll and benefits related to an overhead
cost reduction plan  implemented  during the quarter ended April 30, 1997. It is
expected that this  overhead cost  reduction  plan will yield  approximately  $2
million in annualized salary and benefit savings.

     The  benefit for income  taxes at 40.0% for the six months  ended April 30,
1997 is approximately the combined statutory rate.

     Pro forma results for the six month period ended April 30, 1996,  presented
as though the merger of FDESI and GTI had occurred on November 1, 1995, were net
income of $1,076,000 on revenues of approximately $98.5 million.

Liquidity and Capital Resources
-------------------------------

     At April 30, 1997,  the  Company's  primary  source of  liquidity  was $9.4
million in cash, cash equivalents and marketable securities.  The Company has no
long-term borrowings. At April 30, 1997, the Company had a line of credit with a
bank providing for borrowings up to $10.0 million through April 30, 1999.  There
have been no borrowings under the line of credit.

     Operating  activities  provided $4.0 million in net cash for the six months
ended  April  30,  1997,  principally  due to  improvements  in  collections  of
receivables and increases in accounts payable  balances.  At April 30, 1997, the
Company's working capital was $56.9 million. Total assets were $101.5 million at
the end of the same period.

     Cash flows from investing  activities were impacted by  approximately  $1.3
million of  expenditures  in  property,  plant and  equipment  that were made to
upgrade the Company's computer and rental equipment. The Company had no material
commitments  for  capital  expenditures  as of April  30,  1997,  and  estimates
spending for the next three months to be approximately $360,000.

     Funding  requirements  for  operations are expected to be met from existing
cash,  cash   equivalents,   marketable   securities  and  cash  generated  from
operations.  The Company  believes that cash provided from these sources will be
sufficient to meet its operating requirements for the near term.

Forward-Looking Information
---------------------------

Any of the comments in this Form 10-Q that refer to the  Company's  estimated or
future  results,  including  its estimates of the cost savings from the overhead
cost  reduction  plan,  are  forward-looking  and reflect the Company's  current
analysis  of  existing  trends  and  information.   Actual  results  may  differ
materially from current expectations or projections based on a number of factors
affecting the Company's  businesses.  These factors include,  in the case of the
overhead cost reduction plan, the ability to achieve  estimated staff reductions
while maintaining workflow in the functional areas affected.  Other risk factors
affecting the Company's estimated or future results include, but are not limited
to,  cost  overruns  on fixed,  maximum,  or unit-  priced  contracts;  contract
performance risks; the uncertain timing of awards and contracts;  and changes in
environmental  regulations;  as well as, the  enforcement of those  regulations.
These  forward-looking  statements  represent the Company's judgement only as of
the date of this Form 10-Q. As a result,  the reader is cautioned not to rely on
these forward-looking statements. The Company disclaims any intent or obligation
to update these forward-looking statements.

Additional  information  concerning  these and other factors can be found in the
Company's public periodic filings with the Securities and Exchange Commission.


                                       -8-






                             FLUOR DANIEL GTI, INC.

                                     PART II




Item 6.    Exhibits and Reports on Form 8-K

           None















                                       -9-






                             FLUOR DANIEL GTI, INC.

                                   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.





                                                          FLUOR DANIEL GTI, INC.
                                                          ----------------------



Date:      June 13, 1997                      /s/Walter C. Barber
           ----------------------------    -------------------------------------
                                                                Walter C. Barber
                                           President and Chief Executive Officer





Date:      June 13, 1997                      /s/Robert E. Sliney, Jr.
           ----------------------------    -------------------------------------
                                                           Robert E. Sliney, Jr.
                                                   Vice President, Treasurer and
                                                         Chief Financial Officer






                                      -10-