<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, DC 20549

                              --------------------

                                    FORM 10-Q

               Quarterly Report Pursuant to section 13 or 15(d) of
                     the Securities and Exchange Act of 1934

                              --------------------

        For the Quarter ended                             Commission File Number
            June 30, 1997                                         0-14903

                          Baldwin Piano & Organ Company
             (Exact name of registrant as specified in its charter)

Delaware                                                  31-1091812
(State or other jurisdiction of                           (IRS Employer
incorporation or organization)                            Identification No.)

422 Wards Corner Road
Loveland, Ohio                                            45140-8390
(Address of Principal Executive Offices)                  (Zip Code)

Registrant's telephone number, including area code (513) 576-4500

     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 
                                              ---    ---
     The number of shares of the Common Stock outstanding of Baldwin Piano &
Organ Company, as of August 1, 1997 is 3,429,396.


<PAGE>   2

                          BALDWIN PIANO & ORGAN COMPANY

                                      INDEX

                                                                           Page
                                                                          Number
                                                                          ------

PART I. FINANCIAL INFORMATION

     Item 1. Financial Statements

          Condensed Consolidated Balance Sheets as of
               June 30, 1997 and December 31, 1996 ......................    3

          Condensed Consolidated Statements of Earnings
               for the three months and six months ended
               June 30, 1997 and 1996 ...................................    4

          Condensed Consolidated Statements of Cash Flows
               for the six months ended
               June 30, 1997 and 1996 ...................................    5

          Notes to Condensed Consolidated Financial
               Statements, June 30, 1997 ................................    6

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

PART II. OTHER INFORMATION

     Item 1. Legal Proceedings ..........................................   11

     Item 2. Changes in Securities ......................................   11

     Item 3. Defaults upon Senior Securities ............................   11

     Item 4. Submission of Matters to a Vote
                  of Security Holders ...................................   12

     Item 5. Other Information ..........................................   12

     Item 6. Exhibits and Reports on Form 8-K ...........................   13

SIGNATURES ..............................................................   14

INDEX TO EXHIBITS .......................................................   15


                                        2


<PAGE>   3

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                 --------------

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                       June 30, 1997 and December 31, 1996
                            (in thousands of dollars)

<TABLE>
<CAPTION>
                                                        June 30,     December 31,
ASSETS                                                    1997          1996
                                                      -----------    ------------
                                                      (Unaudited)
<S>                                                    <C>            <C>      
Current assets:
     Cash ........................................     $     755      $     774
     Receivables, net ............................        28,167         13,933
     Inventories .................................        44,344         56,555
     Deferred income taxes .......................         3,533          3,533
     Other current assets ........................         3,114          4,496
                                                       ---------      ---------
               Total current assets ..............        79,913         79,291
                                                       ---------      ---------
Installment receivables,
     less current portion ........................        14,479         11,435
Property, plant and equipment, net ...............        15,533         16,479
Other assets .....................................         4,762          4,859
                                                       ---------      ---------
               Total assets ......................     $ 114,687      $ 112,064
                                                       =========      =========

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
     Current portion of long-term debt ...........     $  32,020      $  30,901
     Accounts payable ............................         6,622          8,915
     Income taxes payable ........................           980            154
     Accrued liabilities .........................         7,053          5,757
                                                       ---------      ---------
               Total current liabilities .........        46,675         45,727
                                                       ---------      ---------

Long-term debt, less current portion .............         2,900          3,350
Other liabilities ................................         6,915          6,712
                                                       ---------      ---------
               Total liabilities .................        56,490         55,789
                                                       ---------      ---------

Shareholders' equity:
     Common stock ................................            42             42
     Additional paid-in capital ..................        12,141         12,106
     Retained earnings ...........................        52,221         50,334
                                                       ---------      ---------
                                                          64,404         62,482
     Less cost of treasury shares ................        (6,207)        (6,207)
                                                       ---------      ---------
               Total shareholders' equity ........        58,197         56,275
                                                       ---------      ---------
               Total liabilities and
                    shareholders' equity .........     $ 114,687      $ 112,064
                                                       =========      =========
</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.


                                        3


<PAGE>   4

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                 --------------

            CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)

                  (in thousands, except net earnings per share)

<TABLE>
<CAPTION>
                                        Three Months Ended     Six Months Ended
                                             June 30,              June 30,
                                        ------------------    ------------------
                                         1997       1996       1997       1996
                                        -------    -------    -------    -------
<S>                                     <C>        <C>        <C>        <C>    
Net sales ..........................    $42,404    $26,139    $69,714    $53,286
Cost of goods sold .................     34,251     20,219     56,785     42,091
                                        -------    -------    -------    -------
     Gross profit ..................      8,153      5,920     12,929     11,195

Income on the sale of
     installment receivables .......      1,798      1,474      3,671      2,934
Interest income on
     installment receivables .......        300        341        554        649
Other operating income, net ........        687        947      1,421      1,806
                                        -------    -------    -------    -------
                                         10,938      8,682     18,575     16,584

Selling, general and
     administrative expenses .......      7,440      6,826     13,897     13,152
                                        -------    -------    -------    -------
          Operating profit .........      3,498      1,856      4,678      3,432

Interest expense ...................        860        657      1,656      1,182
                                        -------    -------    -------    -------
          Earnings before
               income taxes ........      2,638      1,199      3,022      2,250

Income taxes .......................        996        449      1,134        816
                                        -------    -------    -------    -------
          Net earnings .............    $ 1,642    $   750    $ 1,888    $ 1,434
                                        =======    =======    =======    =======

Net earnings per share .............    $   .48    $   .22    $   .55    $   .42
                                        =======    =======    =======    =======

Average number of common
     shares outstanding ............      3,428      3,419      3,427      3,417
                                        =======    =======    =======    =======
</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.


                                        4


<PAGE>   5

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                 --------------

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                                Six months ended
                             June 30, 1997 and 1996
                            (in thousands of dollars)

<TABLE>
<CAPTION>
INCREASE (DECREASE) IN CASH                                1997          1996
---------------------------                              --------      --------
<S>                                                      <C>           <C>      
Net cash provided by (used in)
     operating activities ..........................     $  4,169      $(11,377)

Net cash used in investing activities ..............         (946)       (1,876)

Cash flows from financing activities:
     Installment contract
          receivables written ......................      (41,257)      (32,935)
     Installment receivables liquidated ............        3,311         4,215
     Proceeds from sale of
          installment receivables ..................       33,999        26,436
     Borrowing under long-term debt ................          669        15,590
     Other .........................................           36            67
                                                         --------      --------
               Net cash (used in) provided by
                    financing activities ...........       (3,242)       13,373
                                                         --------      --------
Net (decrease) increase in cash ....................          (19)          120
Cash at beginning of period ........................          774           429
                                                         --------      --------
Cash at end of period ..............................     $    755      $    549
                                                         ========      ========

SUPPLEMENTAL DISCLOSURE
-----------------------
     OF CASH FLOW INFORMATION
     ------------------------

Cash paid during the quarter for:
     Interest ......................................     $  1,630      $  1,156
                                                         ========      ========
     Income taxes ..................................     $    225      $    355
                                                         ========      ========
</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.


                                        5


<PAGE>   6

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                 --------------

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

                                  June 30, 1997
                            (in thousands of dollars)

(1) BASIS OF REPORTING FOR CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

     The unaudited condensed consolidated financial statements included herein
have been prepared by Baldwin Piano & Organ Company ("Baldwin" or "Company")
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted pursuant to such rules and regulations, although the Company
believes that the disclosures are adequate to make the information presented not
misleading. These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's Annual Report
and Form 10-K for the year ended December 31, 1996.

     The financial statements presented herewith reflect all adjustments
(consisting of normal recurring adjustments) which are, in the opinion of
management, necessary to fairly state the results for the three month and six
month periods ended June 30, 1997 and 1996. Results of operations for interim
periods are not necessarily indicative of results to be expected for an entire
year.

(2) INVENTORIES

     Inventories consist of the following (in thousands of dollars):

<TABLE>
<CAPTION>
                                                      June 30,        December 31,
                                                        1997              1996
                                                      --------        ------------
<S>                                                   <C>              <C>     
FIFO cost:
     Raw material ............................        $ 16,167         $ 15,540
     Work-in-process .........................           7,793            8,257
     Finished goods ..........................          32,376           45,725
                                                      --------         --------
                                                        56,336           69,522
Excess of FIFO cost
     over LIFO inventory value ...............         (11,992)         (12,967)
                                                      --------         --------

          Net inventories ....................        $ 44,344         $ 56,555
                                                      ========         ========
</TABLE>


                                        6


<PAGE>   7

                BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                               ----------------

                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                    ---------------------------------------
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                 ---------------------------------------------

RESULTS OF OPERATIONS
SECOND QUARTER AND SIX MONTHS OF 1997 COMPARED
     TO THE SECOND QUARTER AND SIX MONTHS OF 1996

     During the second quarter of 1997 the Company began to phase-out its
consignment inventory program. Under Baldwin's traditional consignment inventory
program, Baldwin pianos in the dealer's possession remained part of Baldwin's
inventory until actually sold by the dealer. As dealers opt out of the
consignment program in favor of more traditional financing, all Baldwin stock in
the dealer's possession will be immediately sold to the dealer, creating a large
adjustment on Baldwin's books to record the sale.

     Net sales for the second quarter of 1997 increased 62% to $42.4 million
from $26.1 million for the same period in 1996. Net sales for the first six
months of 1997 increased 31% to $69.7 million from $53.3 million in 1996. The
increase in sales during the second quarter and the first half of 1997 included
$12.7 million related to the one-time phase-out of consignment. Measured before
the impact of the phase-out of consignment, second-quarter sales rose 14% and
sales for the first half increased 7%. The Company expects to recognize
approximately $5 million of additional consignment-related sales in the third
quarter of 1997.

     Measured before the impact of the phase-out of consignment, second-quarter
1997 sales for the Company's core acoustic and digital music businesses rose
$3.0 million (17%) over 1996. Additionally, second quarter sales for the
contract electronics business increased $1.6 million (22%) over 1996. Higher
sales for the Company's core music and contract electronics business were
offset, in part, by $.4 million lower sales in contract music and contract
furniture, two lower-margin businesses Baldwin decided to exit in the second
quarter of 1996 and $.4 million lower sales in the church organ business, which
was sold in the second quarter of 1997.

     Net earnings for the second quarter of 1997 increased 118% to $1.6 million
($.48 per share)from $.8 million ($.22 per share) for the same period in 1996.
Net earnings for the first six months of 1997 increased 32% to $1.9 million
($.55 per share)from $1.4 million ($.42 per share). Net earnings for the second
quarter and the first six months of 1997 include an after-tax profit of $2.3
million ($.67 per share) from the phase-out of consignment sales described
above, partially offset by a non-recurring after-tax charge of $1.0 million
($.30 per share) related to the sale of the Company's church organ business and
associated work force reductions.


                                       7


<PAGE>   8

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                ----------------

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     ---------------------------------------
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)
           -----------------------------------------------------------

     Income on the sale of installment receivables generated by the Company's
financing operation for the second quarter and first six months of 1997
increased $.3 million and $.7, respectively. This increase is primarily the
result of the effect of the required adoption of SFAS 125, ACCOUNTING FOR
TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENT OF LIABILITIES.
This Statement is effective for transfers and servicing of financial assets and
extinguishments of liabilities occurring after December 31, 1996 and is to be
applied prospectively. This statement provides consistent standards for
distinguishing transfers of financial assets that are sales from transfers that
are secured borrowings.

     Selling general and administrative expenses for the second quarter
increased by $.6 million from 1996. The increase was primarily due to costs
related to the proxy contest and costs connected with the sale of the church
organ business and associated work force reductions.

     Interest expense for the second quarter and first six months of 1997
increased by $.2 million and $.5, respectively, resulting from higher interest
rates and higher debt levels necessary for pipeline inventories for the
Pianovelle(TM) digital piano line and the ConcertMaster(TM) autoplayer, compared
to year ago levels when these new products did not exist.

INFLATION, OPERATIONS AND INTEREST RATES

     The impact of inflation on manufacturing and operating costs can affect the
Company's results. However, the Company has generally been able to offset the
impact of higher employment costs per hour and higher raw material unit costs by
increases in sales prices.

     The Company and its subsidiaries' operating results are sensitive to
changes in interest rates primarily because of fixed interest rates on
installment receivable contracts and floating interest rates on a substantial
portion of indebtedness. Additionally, the buyer of the installment receivables
earns interest on the outstanding principal balance of the contracts based upon
a floating interest rate provision.

     The Company can partially offset the effect of interest rate changes by
increasing interest rates on its new installment receivable contracts. In
December 1996 and November 1995, the Company entered into two year interest rate
cap agreements in order to reduce the potential impact of increases in interest
rates on $44 million and $20 million, respectively, of floating-rate long-term
debt. The agreements entitle the Company to receive from the counterparty, on a
monthly basis, interest income to the extent the one-month commercial paper rate
exceeds 12%.


                                       8


<PAGE>   9

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                ----------------

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     ---------------------------------------
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)
           -----------------------------------------------------------

     The annual rate of interest under the revolving line of credit (Revolver)
ranges from 150 to 250 basis points plus the greater of the LIBOR on three month
deposits or the rate on 60 day high grade commercial paper.

LIQUIDITY AND CAPITAL RESOURCES

     The Company requires significant working capital to support its operations.
Under Baldwin's traditional consignment inventory program, inventory levels
would increase during each year to support its high fourth quarter seasonal
sales demand. During the second quarter of 1997 the Company began to phase-out
its consignment inventory program (see RESULTS OF OPERATIONS, above). This
phase-out accounted for most of the decrease in inventory and the increase in
receivables that occurred during the second quarter of 1997. Coming late in the
quarter, the phase-out did not produce a reduction in debt until July, 1997,
when the receivables were collected. As of July 22, 1997 debt was approximately
$12 million less than at the end of the second quarter.

     The Company has a Revolver with a maximum commitment level of $50 million
and an initial due date of October 31, 2001. The Revolver is renewable for three
consecutive one-year periods beyond October 31, 2001. Amounts outstanding under
the Revolver are due one year after demand. However, the lender retains absolute
discretion regarding each advance, even if no event of default then exists.

     Under the Revolver, the lender will make available a line of credit based
upon certain percentages of the carrying value of the Company's inventories and
trade accounts receivable. At June 30, 1997, the Company had approximately $14.4
million of additional borrowing available under this line of credit, and
considers this availability to be adequate.

     The Company's debt agreements contain covenants that restrict, among other
things, the payment of dividends, the repurchase of the Company's common stock
and the Company's ability to incur new indebtedness and to enter new businesses.
Such agreements permit the payment of dividends or the repurchase of the
Company's common stock equal to the lesser of (i) 50% of the Company's
cumulative net earnings since January 1, 1986 or (ii) the amount of unused
borrowing available under the Company's Revolver, reduced by the $3.8 million
unpaid portion of the Company's term loan. Accordingly, at June 30, 1997,
approximately $10.6 million is available for the payment of dividends or the
repurchase of the Company's common stock. Also, under the covenants of the
Company's debt agreements, the Company's finance subsidiary ("Finance") can only
pay dividends or repurchase its own stock to the extent its net worth exceeds
$4.0 million. The Company's debt agreements contain provisions by which a
default under one agreement constitutes a default under the other agreements.


                                       9


<PAGE>   10

                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES

                                ----------------

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                     ---------------------------------------
           FINANCIAL CONDITION AND RESULTS OF OPERATIONS - (CONTINUED)
           -----------------------------------------------------------

     The Company has entered into negotiations with other potential lenders and
expects to sign a definitive agreement within the next several months on lending
terms more favorable than the terms of agreements with its present lender,
although such a result cannot be assured.

     In 1996, Finance amended its agreements with an independent entity to sell
substantially all of its installment receivable contracts up to a maximum
outstanding principal amount of $100 million. Certain installment receivables
are not eligible for sale and are retained by Finance. At the time of each
installment receivable sale, Finance receives cash equal to the unpaid principal
balance of the contracts, less a holdback of 10% of the principal balance of the
contracts sold. Finance continues to service all installment receivables sold.

     The buyer of the installment receivables earns interest on the outstanding
principal balance of the contracts based upon a floating interest rate
provision. Over the lives of the contracts, the difference between the actual
yield on the installment contracts sold and the amount retained by the buyer
under the floating interest rate provision is remitted to Finance as a service
fee. In February 1994, Finance entered into a five year interest rate swap
agreement in order to reduce the potential impact of an increase in interest
rates on $20 million of installment contracts.

     Proceeds from the sale of installment receivables amounted to $34.0 million
for the six months ended June 30, 1997 and $26.4 million for the comparable
period in 1996. This increase in 1997 compared to 1996 is largely the result of
an increase in the volume of new installment contracts written at traditional
keyboard dealers and at Company sponsored "event sales".

     Under the sale agreements, Finance is required to repurchase accounts that
become more than 120 days past due or accounts that are deemed uncollectible.
The repurchase price is equal to the remaining unpaid principal balance of the
contract on the date repurchased, less the related 10% holdback. Finance is
responsible for all credit losses associated with the sold receivables. Finance
remains contingently liable on approximately $85.9 million of installment
receivables. The Company believes an adequate allowance has been provided for
any uncollectible receivables.

     Capital expenditures amounted to $.9 million in the first six months of
1997 and $1.9 million in the comparable period of 1996. At June 30, 1997, the
Company had no material outstanding capital commitments.


                                       10


<PAGE>   11

                           PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

     The Company is involved in legal proceedings arising in its normal course
of business. The Company does not believe that any existing claim or suit will
have a material adverse effect on the business or financial condition of the
Company.

     The operations of the Company and its predecessors are subject to federal,
state and local laws regulating the discharge of materials into the environment.
The Company does not anticipate that any environmental matters currently known
to the Company will result in any material liability.

ITEM 2. CHANGES IN SECURITIES

     No changes have been made to the instruments defining the right of the
holders of the Company's common stock or to the rights of such shareholders.

     In May 1997, the Company issued 4,000 shares of the Company's common stock
in connection with exercises of stock options by four officers of the Company.
The stock options were granted pursuant to the Company's 1986 Incentive Stock
Option Plan. The aggregate price paid by the exercising option grantees was
$34,000. The issuance of shares of the Company's common stock is exempt from
registration pursuant to Section 4(2) of the Securities Act of 1933 because the
shares were issued in a private placement transaction with officers of the
Company.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

     The Company is not in default nor has it defaulted on any indebtedness. The
Company is not obligated to pay any dividends or other payment to any of its
shareholders.


                                       11


<PAGE>   12

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     No matters have been submitted to a vote of security holders during the
second quarter of 1997, other than matters arising in connection with the annual
meeting of the Company's shareholders held on June 12, 1997. At that meeting,
the only matters submitted to a vote of the shareholders were the election of
directors and the approval of the appointment of the Company's auditors. All of
the Company's existing directors (Mr. Castrucci, Mr. Connell, Mr. Head, Ms.
Hendricks, Mr. Howe) were elected to serve as directors until the 1998 annual
shareholders meeting. The votes cast for each director or nominee are as
follows:

                                                        Votes
                                               ------------------------
                                                  For          Withheld
                                               ---------       --------
          George E. Castrucci ..........       2,409,170       490,193
          William B. Connell ...........       2,409,471       489,892
          Joseph H. Head, Jr ...........       2,409,371       489,992
          Karen L. Hendricks ...........       2,408,470       490,893
          Roger L. Howe ................       2,409,470       489,893
          Peter Cooper .................         341,219             0
          David Harmon .................         341,219             0
          Robert Lippert ...............         341,219             0
          Edward McDonnell .............         341,219             0
          John West ....................         341,219             0

     KPMG Peat Marwick LLP was approved as the Company's auditor for 1997 with
3,228,862 votes cast "For", 701 votes "Against" and 11,019 votes "Abstained".

ITEM 5. OTHER INFORMATION

     Not applicable.


                                       12


<PAGE>   13

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

          (a) EXHIBITS

     10.1     Agreement of Employment between Baldwin Piano & Organ Company and
              Karen L. Hendricks dated as of June 19, 1997.

     19       1997 Second Quarter Report to Shareholders of the Company.

     99.1     Press Release, dated April 22, 1997, announcing the Company's new
              manufacturing efficiencies and the elimination of 78 manufacturing
              jobs.

     99.2     Press Release, dated April 24, 1997, announcing the Company's
              financial results for the first quarter of 1997.

     99.3     Press Release, dated June 9, 1997, announcing that Institutional
              Shareholder Service has recommended that its institutional
              shareholder clients vote for the Company's slate of five
              directors.

     99.4     Press Release, dated June 12, 1997, announcing David L. Davis as
              the first recipient of the "D.H. Baldwin Award".

     99.5     Press Release, dated June 12, 1997, announcing preliminary
              indications that Company shareholders have voted overwhelmingly to
              re-elect the Company's five-member board.

     99.6     Press Release, dated June 19, 1997, announcing that the final
              results of the shareholder vote confirmed preliminary indications
              that the Company's five directors had been re-elected.

     99.7     Press Release, dated June 25, 1997, announcing the Company has
              begun to phase out consignment sales.

     99.8     Press Release, dated July 23, 1997, announcing the Company's
              financial results for the second quarter of 1997.

     27       Financial Data Schedule.

                         ------------------------------

          Index to Exhibits appears on sequentially numbered page 15.

          (b) REPORTS ON FORM 8-K

              The Company filed no reports on Form 8-K during the second quarter
          of 1997.


                                       13


<PAGE>   14

                                   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.

                                        BALDWIN PIANO & ORGAN COMPANY

DATE:      August 8, 1997               BY: /s/ Karen L. Hendricks
      -----------------------               ------------------------------------
                                            Karen L. Hendricks, Chairman,
                                            Chief Executive Officer and
                                            President

DATE:      August 8, 1997               BY: /s/ Perry H. Schwartz
      -----------------------               ------------------------------------
                                            Perry H. Schwartz, Executive
                                            Vice President and Chief
                                            Financial Officer


                                       14


<PAGE>   15

                                INDEX TO EXHIBITS

Exhibit                                                              Sequential
Number         Exhibit                                               Page Number
-------        -------                                               -----------

 10.1          Agreement of Employment between Baldwin Piano &
               Organ Company and Karen L. Hendricks dated as of
               June 19, 1997.                                            16

 19            1997 Second Quarter Report to Shareholders of the
               Company.                                                  24

 99.1          Press Release, dated April 22, 1997, announcing
               the Company's new manufacturing efficiencies and
               the elimination of 78 manufacturing jobs.                 26

 99.2          Press Release, dated April 24, 1997, announcing
               the Company's financial results for the first
               quarter of 1997.                                          28

 99.3          Press Release, dated June 9, 1997, announcing that
               Institutional Shareholder Service has recommended
               that its institutional shareholder clients vote
               for the Company's slate of five directors.                31

 99.4          Press Release, dated June 12, 1997, announcing
               David L. Davis as the first recipient of the "D.H.
               Baldwin Award".                                           33

 99.5          Press Release, dated June 12, 1997, announcing
               preliminary indications that Company shareholders
               have voted overwhelmingly to re-elect the
               Company's five-member board.                              36

 99.6          Press Release, dated June 19, 1997, announcing
               that the final results of the shareholder vote
               confirmed preliminary indications that the
               Company's five directors had been re-elected.             38

 99.7          Press Release, dated June 25, 1997, announcing the
               Company has begun to phase out consignment sales.         40

 99.8          Press Release dated July 23, 1997, announcing the
               Company's financial results for the second quarter
               of 1997.                                                  42

 27            Financial Data Schedule.


                                       15