<PAGE>

                       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 March 29, 2003

                                       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 0-9576

                           K-TRON INTERNATIONAL, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in Its Charter)

             New Jersey                                  22-1759452
--------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation (I.R.S. Employer Identification #)
               or Organization)

Routes 55 & 553, P.O. Box 888, Pitman, New Jersey             08071-0888
--------------------------------------------------------------------------------
(Address of Principal Executive Offices)                      (Zip Code)

Registrant's Telephone Number, Including Area Code           (856) 589-0500

                                 Not Applicable
--------------------------------------------------------------------------------
   (Former Name, Former Address and Formal Fiscal Year, if Changed Since Last
                                     Report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.

Yes  [X]                     No [ ]

Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).

Yes [ ]                      No [X]

The Registrant had 2,433,104 shares of Common Stock outstanding as of March 29,
2003.

<PAGE>

                   K-TRON INTERNATIONAL, INC. AND SUBSIDIARIES

                                      INDEX

<TABLE>
<CAPTION>
                                                                               Page No.
                                                                               --------
<S>                                                                            <C>
PART I.             FINANCIAL INFORMATION

         Item 1.    Financial Statements.

                    Consolidated Balance Sheets                                      1
                    March 29, 2003 and December 28, 2002

                    Consolidated Statements of Income                                2
                    & Retained Earnings for the Three Months
                    Ended March 29, 2003 and March 30, 2002

                    Consolidated Statements of Cash Flows                            3
                    for the Three Months Ended March 29, 2003
                    and March 30, 2002

                    Notes to Consolidated Financial Statements                   4 - 9

         Item 2.    Management's Discussion and Analysis
                    of Financial Condition and Results of Operations.          10 - 17

         Item 4.    Controls and Procedures.                                        18

PART II.            OTHER INFORMATION

         Item 6.    Exhibits and Reports on Form 8-K.                               18

SIGNATURES                                                                          19

CERTIFICATIONS                                                                   20-21
</TABLE>

<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1.       FINANCIAL STATEMENTS.

                    K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                    (Dollars in Thousands except Share Data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                      March 29,    December 28,
                                                                                        2003           2002
                                                                                        ----           ----
<S>                                                                                   <C>          <C>
                  ASSETS
CURRENT ASSETS:
     Cash and cash equivalents                                                        $   4,325    $      2,694
     Accounts receivable, net of allowance for
       doubtful accounts of $723 and $716                                                17,433          15,275
     Inventories                                                                         14,092           9,318
     Deferred income taxes                                                                  169             169
     Prepaid expenses and other current assets                                            2,073           1,775
                                                                                      ---------    ------------
         Total current assets                                                            38,092          29,231

PROPERTY, PLANT AND EQUIPMENT, net                                                       24,739          16,170
PATENTS, net                                                                              1,997             767
GOODWILL, net                                                                             2,053           2,053
OTHER INTANGIBLES                                                                         9,010              --
NOTES RECEIVABLE AND OTHER ASSETS                                                         2,167           2,238
                                                                                      ---------    ------------
         Total assets                                                                 $  78,058    $     50,459
                                                                                      =========    ============

                  LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
     Current portion of long-term debt                                                $   3,610    $      2,005
     Accounts payable                                                                     6,115           4,934
     Accrued expenses and other current liabilities                                       6,527           5,845
     Accrued commissions                                                                  1,815           1,532
     Customer advances                                                                    1,101             809
                                                                                      ---------    ------------
         Total current liabilities                                                       19,168          15,125

LONG-TERM DEBT, net of current portion                                                   28,809           6,499
OTHER NON-CURRENT LIABILITIES                                                               158              --
DEFERRED INCOME TAXES                                                                       416             416
COMMITMENTS AND CONTINGENCIES
SERIES B JUNIOR PARTICIPATING PREFERRED SHARES,
     $.01 par value - authorized 50,000 shares; none issued                                  --              --
SHAREHOLDERS' EQUITY:
     Preferred stock, $.01 par value - authorized 950,000 shares; none issued                --              --
     Common stock, $.01 par value - authorized 50,000,000 shares;
         issued 4,435,678 shares and 4,433,342 shares                                        44              44
     Paid-in capital                                                                     16,719          16,701
     Retained earnings                                                                   39,603          38,768
     Accumulated other comprehensive income                                                 655             420
                                                                                      ---------    ------------
                                                                                         57,021          55,933
     Treasury stock, 2,002,574 and 2,002,574 shares - at cost                           (27,514)        (27,514)
                                                                                      ---------    ------------
         Total shareholders' equity                                                      29,507          28,419
                                                                                      ---------    ------------
         Total liabilities and shareholders' equity                                   $  78,058    $     50,459
                                                                                      =========    ============
</TABLE>

                 See Notes to Consolidated Financial Statements

                                       -1-

<PAGE>

                    K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF INCOME & RETAINED EARNINGS
                    (Dollars in Thousands except Share Data)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                        Three Months Ended
                                                                        ------------------
                                                                   March 29,          March 30,
                                                                     2003               2002
                                                                     ----               ----
<S>                                                                <C>                <C>
REVENUES                                                           $  23,398          $  16,778

COST OF REVENUES                                                      13,957              9,642
                                                                   ---------          ---------
        Gross Profit                                                   9,441              7,136

OPERATING EXPENSES:
  Selling, general & administrative                                    7,265              5,252
  Research and development                                               671                706
                                                                   ---------          ---------
                                                                       7,936              5,958
                                                                   ---------          ---------

        Operating Income                                               1,505              1,178

INTEREST EXPENSE                                                         380                173
                                                                   ---------          ---------
        Income before income taxes                                     1,125              1,005

INCOME TAX PROVISION                                                     290                254
                                                                   ---------          ---------

NET INCOME                                                               835                751

RETAINED EARNINGS
  Beginning of period                                                 38,768             35,484
                                                                   ---------          ---------
  End of period                                                    $  39,603          $  36,235
                                                                   =========          =========

EARNINGS PER SHARE
  Basic                                                            $    0.34          $    0.31
                                                                   =========          =========
  Diluted                                                          $    0.34          $    0.31
                                                                   =========          =========
</TABLE>

                 See Notes to Consolidated Financial Statements

                                       -2-

<PAGE>

                    K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (Dollars in Thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                     Three Months Ended
                                                                                     ------------------
                                                                                    March 29,   March 30,
                                                                                      2003        2002
                                                                                      ----        ----
<S>                                                                                 <C>         <C>
OPERATING ACTIVITIES:
 Net income                                                                         $     835   $     751
 Adjustment to reconcile net income to net cash provided by operating activities:
       Depreciation and amortization                                                      862         683
       Changes in assets and liabilities:
            Accounts receivable, net                                                    1,144        (151)
            Inventories                                                                  (128)        899
            Prepaid expenses and other current assets                                     (13)       (314)
            Other assets                                                                  164          33
            Accounts payable                                                             (583)        354
            Accrued expenses and other current liabilities                             (1,035)        509
                                                                                    ---------   ---------
                  Net cash provided by operating activities                             1,246       2,764
                                                                                    ---------   ---------

INVESTING ACTIVITIES:
 Business acquired, net of cash acquired                                              (18,988)         --
 Capital expenditures                                                                    (562)       (218)
 Other                                                                                     (2)        (15)
                                                                                    ---------   ---------
                  Net cash used in investing activities                               (19,552)       (233)
                                                                                    ---------   ---------

FINANCING ACTIVITIES:
 Net (repayments) borrowing under notes payable to banks                                    5      (1,116)
 Proceeds from issuance of long-term debt                                              20,000          --
 Principal payments on long-term debt                                                    (132)       (509)
 Proceeds from issuance of common stock                                                    18           4
                                                                                    ---------   ---------
                  Net cash provided by (used in) financing activities                  19,891      (1,621)
                                                                                    ---------   ---------

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
 CASH EQUIVALENTS                                                                          46         (18)
                                                                                    ---------   ---------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                               1,631         892
                                                                                    ---------   ---------

CASH AND CASH EQUIVALENTS
 Beginning of period                                                                    2,694       2,214
                                                                                    ---------   ---------
 End of period                                                                      $   4,325   $   3,106
                                                                                    =========   =========
</TABLE>

                 See Notes to Consolidated Financial Statements

                                       -3-

<PAGE>

                    K-TRON INTERNATIONAL, INC. & SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 March 29, 2003
                                   (Unaudited)

1.       Basis of Presentation

         The accompanying unaudited consolidated financial statements have been
         prepared in accordance with the instructions for Form 10-Q and do not
         include all of the information and footnotes required by accounting
         principles generally accepted in the United States for complete
         financial statements. The consolidated financial statements include the
         accounts of K-Tron International, Inc. and its subsidiaries ("K-Tron"
         or the "Company") (including the January 2, 2003 Pennsylvania Crusher
         Corporation acquisition noted below). All intercompany transactions
         have been eliminated in consolidation. In the opinion of management,
         all adjustments (consisting of a normal recurring nature) considered
         necessary for a fair presentation of results for interim periods have
         been made.

         Certain reclassifications were made to the first quarter 2002
         consolidated financial statements to conform to the current period
         presentation.

         The unaudited financial statements herein should be read in conjunction
         with the Company's annual report on Form 10-K for the year ended
         December 28, 2002 which was previously filed with the Securities and
         Exchange Commission.

2.       Acquisition

         On January 2, 2003, the Company acquired all of the stock of
         privately-held Pennsylvania Crusher Corporation. The purchase price
         paid for the Pennsylvania Crusher Corporation stock was $23.5 million,
         plus a post-closing adjustment of $205,000 based on Pennsylvania
         Crusher Corporation's consolidated shareholders' equity at December 31,
         2002. Of this amount, $19.7 million was paid in cash and $4.0 million
         was in unsecured, promissory notes which are payable in equal, annual
         installments on January 2 in each of 2005, 2006 and 2007. The excess of
         the purchase price over the carrying value of the net assets acquired
         was allocated as follows (in millions): inventory -- $0.3, property,
         plant & equipment -- $4.7, patents -- $1.3, trademarks and tradenames
         -- $1.9, and other identified intangibles -- $7.1. Trademarks and
         tradenames and other identified intangibles are included in other
         intangibles in the consolidated balance sheet.

         If the acquisition of Pennsylvania Crusher Corporation had occurred at
         the beginning of fiscal 2002, pro forma revenues, net income and
         diluted earnings per share for the three months ended March 30, 2002
         would have been approximately $24.9 million, $1.0 million and $0.41 per
         share, respectively. These pro forma disclosures are unaudited and are
         based on historical results, adjusted for the impact of certain
         acquisition-related items such as depreciation and amortization of
         property, plant and equipment and identified

                                       -4-

<PAGE>

         intangibles, increased interest expense on acquisition debt and the
         related income tax effects. This unaudited pro forma disclosure is
         presented for informational purposes only and should not be construed
         to be indicative of the actual results of operations of the combined
         companies on the date indicated or of the results that may be obtained
         in the future.

3.       Intangible Assets

<TABLE>
<CAPTION>
                                             Three Months Ended March 29, 2003
                                             ---------------------------------
                                                        (in thousands)

                                            Gross Carrying          Accumulated
                                                Amount              Amortization
                                                ------              ------------
<S>                                         <C>                     <C>
Amortized intangible assets
  Patents                                       $2,758                 $  761
  Drawings                                       3,550                     29
                                                ------                 ------
                                                $6,308                 $  790
                                                ======                 ======

Unamortized intangible assets
  Trademarks                                    $1,890
  Other identifiable intangibles                 3,599
                                                ------
                                                $5,489
                                                ======
</TABLE>

         The amortized intangible assets are being amortized on the
         straight-line basis over the expected period of benefits, 17 to 25
         years. Intangible assets of $10.3 million were acquired during the
         first quarter of 2003 as part of the acquisition of Pennsylvania
         Crusher Corporation (see Note 2). Amortization expense for the first
         three months of 2003 and 2002 was $71 thousand and $18 thousand,
         respectively.

4.       Supplemental Disclosures of Cash Flow Information

         The Company considers all highly liquid short-term investments
         purchased with an original maturity of three months or less to be cash
         equivalents.

         Cash paid in the first three months of 2003 and 2002 for interest was
         $0.1 million and $0.2 million, respectively, and for income taxes was
         $0.1 million and zero, respectively.

                                       -5-

<PAGE>

5.       Inventories

         Inventories consist of the following:

<TABLE>
<CAPTION>
                                     March 29,                 December 28,
                                       2003                        2002
                                       ----                        ----
                                                (in thousands)
<S>                                  <C>                       <C>
Components                           $  12,072                 $      8,064
Work-in-process                          1,921                        1,151
Finished goods                              99                          103
                                     ---------                 ------------
                                     $  14,092                 $      9,318
                                     =========                 ============
</TABLE>

6.       Accrued Warranty

         The Company offers a product warranty on a majority of its products.
         Warranty is accrued as a percentage of sales on a monthly basis and is
         included in accrued expenses and other current liabilities. The
         following is a rollforward of accrued warranty for the three-month
         periods ended March 29, 2003 and March 30, 2002.

<TABLE>
<CAPTION>
                                                         March 29,        March 30,
                                                           2003             2002
                                                           ----             ----
                                                               (in thousands)
<S>                                                      <C>              <C>
Beginning balance                                        $     687        $     662
Accrued warranty of acquired business                          553               --
Accrual                                                        351              182
Expense                                                       (474)            (254)
Foreign exchange adjustment                                      6               (2)
                                                         ---------        ---------
Ending balance                                           $   1,123        $     588
                                                         =========        =========
</TABLE>

7.       Earnings Per Share

         The Company's basic and diluted earnings per share are calculated as
         follows:

<TABLE>
<CAPTION>
                                                     For the Three Months Ended March 29, 2003
                                                     -----------------------------------------
                                              Net Income Available
(Dollars and Shares in Thousands                    To Common                                Earnings
     except Per Share Data)                       Shareholders            Shares            Per Share
                                                  ------------            ------            ---------
<S>                                           <C>                         <C>               <C>
Basic                                             $        835             2,432            $    0.34

           Common Share Equivalent
             of Outstanding Options                         --                52                (0.00)
                                                  ------------            ------            ---------
Diluted                                           $        835             2,484            $    0.34
                                                  ============            ======            =========
</TABLE>

                                       -6-

<PAGE>

<TABLE>
<CAPTION>
                                                     For the Three Months Ended March 30, 2002
                                                     -----------------------------------------
                                              Net Income Available
(Dollars and Shares in Thousands                    To Common                               Earnings
     except Per Share Data)                       Shareholders            Shares            Per Share
                                                  ------------            ------            ---------
<S>                                           <C>                         <C>               <C>
Basic                                             $        751             2,432            $    0.31

           Common Share Equivalent
             of Outstanding Options                         --                17                (0.00)
                                                  ------------            ------            ---------
Diluted                                           $        751             2,449            $    0.31
                                                  ============            ======            =========
</TABLE>

         Diluted earnings per common share are based on the weighted average
         number of common and common equivalent shares outstanding during a
         given time period. Such average shares include the weighted average
         number of common shares outstanding plus the shares issuable upon
         exercise of stock options after the assumed repurchase of common shares
         with the related proceeds.

8.       Stock-Based Compensation

         In December 2002, the FASB issued Statement of Financial Accounting
         Standards (SFAS) No. 148, "Accounting for Stock-Based Compensation -
         Transition and Disclosure." SFAS No. 148 amends the disclosure
         requirements of SFAS No. 123, "Accounting for Stock-Based
         Compensation," to require more prominent and frequent disclosures in
         financial statements. Also, SFAS No. 148 provides alternative methods
         of transition for a voluntary change to the fair value based method of
         accounting for stock-based employee compensation. The Company has
         included the interim disclosures prescribed under SFAS No. 148.

         At March 29, 2003, the Company had various stock-based compensation
         plans as described in Note 11 to the consolidated financial statements
         in the Company's annual report on Form 10-K for the year ended December
         28, 2002. As permitted under SFAS No. 123, as amended by SFAS No. 148,
         the Company has elected to continue to account for compensation costs
         using the intrinsic value-based method of accounting as prescribed by
         Accounting Principles Board Opinion No. 25, "Accounting for Stock
         Issued to Employees." No compensation expense has been recognized in
         net income for stock options, as options granted had an exercise price
         equal to the market value of the underlying common stock on the date of
         grant. The following table illustrates the effect on net income and
         earnings per share if the Company had applied the fair value
         recognition provisions of SFAS No. 123 to its stock option plans.

                                       -7-

<PAGE>

<TABLE>
<CAPTION>
                                              March 29,        March 30,
                                                2003             2002
                                                ----             ----
                                           (in thousands, except per share)
<S>                                        <C>                 <C>
Net income - as reported                   $        835        $     751
Net income - pro forma                              767              667
Basic earnings per share - as reported             0.34             0.31
Basic earnings per share - pro forma               0.32             0.27
Diluted earnings per share - as reported           0.34             0.31
Diluted earnings per share - pro forma             0.31             0.27
</TABLE>

9.       Comprehensive Income

         Comprehensive income is the total of net income, the change in the
         unrealized gain or loss on derivatives, net of tax and the change in
         translation adjustments, all for a given period, which are the
         Company's only non-owner changes in equity. For the three-month periods
         ending March 29, 2003 and March 30, 2002, the following table sets
         forth the Company's comprehensive income:

<TABLE>
<CAPTION>
                                                           Three Months Ended
                                                           ------------------
                                                  March 29,                   March 30,
                                                    2003                        2002
                                                    ----                        ----
                                                             (in thousands)
<S>                                               <C>                         <C>
Net Income                                        $     835                   $     751
Unrealized loss on derivatives, net of tax              (98)                         --
Translation Adjustments                                 333                         (89)
                                                  ---------                   ---------
Comprehensive Income                              $   1,070                   $     662
                                                  =========                   =========
</TABLE>

                                       -8-

<PAGE>

10.      Management Segment Information

         The Company is engaged in one principal business segment -- material
         handling equipment and systems. The Company operates in two primary
         geographic locations, North and South America (the "Americas") and
         Europe, the Middle East, Africa and Asia ("EMEA/Asia"). For the three
         months ended March 29, 2003 and March 30, 2002, the following tables
         set forth the Company's segment information:

<TABLE>
<CAPTION>
                                                            EMEA/       Elimi-         Consoli-
                                           Americas         Asia        nations         dated
                                           --------         ----        -------         -----
                                                             (in thousands)
<S>                                        <C>            <C>           <C>            <C>
THREE MONTHS ENDED
 March 29, 2003
 Revenues
   Sales to unaffiliated customers         $ 13,217       $ 10,181      $     --       $ 23,398
   Sales to affiliates                          749            568        (1,317)            --
                                           --------       --------      --------       --------
        Total sales                        $ 13,966       $ 10,749      $ (1,317)      $ 23,398
                                           ========       ========      ========       ========

 Operating income                          $    673       $    851      $    (19)      $  1,505
                                           ========      ========       ========
 Interest expense                                                                          (380)
                                                                                       --------
 Income before income taxes                                                            $  1,125
                                                                                       ========
</TABLE>

<TABLE>
<CAPTION>
                                                            EMEA/       Elimi-         Consoli-
                                           Americas         Asia        nations         dated
                                           --------         ----        --------       --------
                                                              (in thousands)
<S>                                        <C>            <C>           <C>            <C>
THREE MONTHS ENDED
 March 30, 2002
 Revenues
   Sales to unaffiliated customers         $  7,584       $  9,194      $     --       $ 16,778
   Sales to affiliates                          948            305        (1,253)            --
                                           --------       --------      --------       --------
        Total sales                        $  8,532       $  9,499      $ (1,253)      $ 16,778
                                           ========       ========      ========       ========

 Operating income                          $    644       $    534      $     --       $  1,178
                                           ========       ========      ========
 Interest expense                                                                          (173)
                                                                                       --------
 Income before income taxes                                                            $  1,005
                                                                                       ========
</TABLE>

                                      -9-
<PAGE>

ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
             RESULTS OF OPERATIONS.

         The following provides information that management believes is relevant
to an assessment and understanding of our consolidated results of operations and
financial condition. The discussion should be read in conjunction with our
consolidated financial statements and accompanying notes. All references to the
first three months or first quarters of 2003 and 2002 mean the fiscal quarters
ended March 29, 2003 and March 30, 2002, respectively.

         On January 2, 2003, we acquired all of the outstanding capital stock of
privately-held Pennsylvania Crusher Corporation ("Penn Crusher"). As a result of
this purchase, we also acquired Jeffrey Specialty Equipment Corporation
("Jeffrey"), a wholly-owned subsidiary of Penn Crusher. The purchase price
consisted of a combination of $19,500,000 in cash, $4,000,000 in unsecured
promissory notes and a post-closing cash payment of $205,000 based on Penn
Crusher's consolidated shareholders' equity at December 31, 2002. With respect
to the payment of the cash portion of the purchase price and related acquisition
costs, we financed $15,000,000 through a $17,000,000 secured credit facility
with Penn Crusher as the borrower (the additional $2,000,000 is available for
working capital and general corporate purposes, subject to certain limitations).
This facility is directly with Penn Crusher, and the lender has no recourse
against any K-Tron company other than Penn Crusher and Jeffrey with respect to
any amounts borrowed thereunder. Additionally, we borrowed $5,000,000 from a
U.S. bank through a K-Tron wholly-owned subsidiary, the repayment of which loan
was guaranteed by K-Tron International, and we used these funds to pay part of
the purchase price. K-Tron International also issued the $4,000,000 of unsecured
promissory notes referred to above.

         As noted above, we incurred substantial debt as a result of the Penn
Crusher acquisition, which debt is described in more detail in the Liquidity and
Capital Resources section below; however, we expect to have sufficient cash flow
to cover all required principal and interest payments and, in particular, Penn
Crusher's cash flow should be adequate to cover required principal and interest
payments on its secured credit facility.

RESULTS OF OPERATIONS

         For the first three months of 2003 and 2002, K-Tron reported net income
of $835,000 and $751,000, respectively.

         We are engaged in one principal business segment - material handling
equipment and systems. We operate in two primary geographic locations - North
and South America (the "Americas") and Europe, the Middle East, Africa and Asia
("EMEA/Asia"). We derived approximately 44% and 55% of our first quarter of 2003
and 2002 revenues, respectively, from products manufactured in, and services
performed from, our facilities located outside the United States, primarily in
Europe. Since we operate globally, we are sensitive to changes in foreign
currency exchange rates ("foreign exchange rates"), which can affect both the
translation of financial statement items into U.S. dollars as well as
transactions where the revenues and related expenses may initially be accounted
for in different currencies, such as sales made from our

                                      -10-

<PAGE>

Swiss manufacturing facility in currencies other than the Swiss franc. The
reduction in the percentage of revenues derived outside of the United States in
the first quarter of 2003 as compared to the same period in 2002 was primarily
due to the acquisition of Penn Crusher and Jeffrey noted above, since their
revenues were mostly derived from within the United States.

         The following table sets forth our results of operations expressed as a
percentage of total revenues for the periods indicated.

<TABLE>
<CAPTION>
                                                                 Three Months Ended
                                                                 ------------------
                                                         March 29,             March 30,
                                                           2003                  2002
                                                           ----                  ----
<S>                                                      <C>                   <C>
Total revenues                                            100.0%                100.0%

Cost of revenues                                           59.7                  57.5
                                                           ----                  ----

Gross profit                                               40.3                  42.5

Selling, general and administrative                        31.0                  31.3

Research and development                                    2.9                   4.2
                                                            ---                   ---

Operating income                                            6.4                   7.0

Interest                                                    1.6                   1.0
                                                            ---                   ---

Income before income taxes                                  4.8%                  6.0%
                                                            ===                   ===
</TABLE>

         The following table summarizes our order backlog as of the dates
indicated, all adjusted to March 29, 2003 foreign exchange rates:

<TABLE>
<CAPTION>
   (Dollars in Thousands)    March 29, 2003     December 28, 2002      March 30, 2002
                             --------------     -----------------      --------------
<S>                          <C>                <C>                    <C>
Order backlog                   $ 15,530            $   8,637             $ 12,810
</TABLE>

         The March 29, 2003 order backlog includes $7,464,000 of order backlog
of Penn Crusher and Jeffrey.

         As previously noted, we derive a substantial amount of our revenues
from activities in foreign jurisdictions. Consequently, our results can be
significantly affected by changes in foreign exchange rates, particularly in
U.S. dollar exchange rates with respect to the Swiss franc, euro and British
pound sterling and, to a lesser degree, the Singapore dollar and other
currencies. When the U.S. dollar weakens against these currencies, the U.S.
dollar value of non-U.S. dollar-based sales increases. When the U.S. dollar
strengthens against these currencies, the U.S. dollar

                                      -11-

<PAGE>

value of non-U.S. dollar-based sales decreases. Correspondingly, the U.S. dollar
value of non-U.S. dollar-based costs increases when the U.S. dollar weakens and
decreases when the U.S. dollar strengthens. Overall, since we typically receive
a significant amount of our revenues in currencies other than the U.S. dollar,
we generally benefit from a weaker dollar and are adversely affected by a
stronger dollar relative to major currencies worldwide, especially those
identified above. In particular, a general weakening of the U.S. dollar against
other currencies would positively affect our revenues, gross profit and
operating income as expressed in U.S. dollars (provided that the gross profit
and operating income numbers from foreign operations are not losses, since in
the case of a loss, the effect would be to increase the loss), whereas a general
strengthening of the U.S. dollar against such currencies would have the opposite
effect.

         In addition, our revenues and income with respect to particular
transactions may be affected by changes in foreign exchange rates where sales
are made in currencies other than the functional currency of the facility
manufacturing the product subject to the sale, including in particular the U.S.
dollar/Swiss franc (for inter-company transactions) and the Swiss franc/euro and
Swiss franc/British pound sterling (for sales from the Company's Swiss
manufacturing facility) exchange rates. For the first three months of 2003 and
2002, the changes in certain key exchange rates were as follows:

<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                          ------------------
                                                     March 29,           March 30,
                                                       2003                2002
                                                       ----                ----
<S>                                                  <C>         <C>     <C>
Average U.S. dollar equivalent of
 one Swiss franc                                       0.732               0.595
% change vs. prior year                                          23.0%

Average U.S. dollar equivalent of
 one euro                                              1.073               0.876
% change vs. prior year                                          22.5%

Average U.S. dollar equivalent of
 one British pound sterling                            1.602               1.427
% change vs. prior year                                          12.3%

Average Swiss franc equivalent of
 one euro                                              1.466               1.472
% change vs. prior year                                          -0.4%

Average Swiss franc equivalent of
 one British pound sterling                            2.189               2.398
% change vs. prior year                                          -8.7%
</TABLE>

                                      -12-

<PAGE>

         With the acquisition of Penn Crusher and Jeffrey, we are less affected
by foreign exchange rates since most of their sales are in U.S. dollars.
Nevertheless, more than 40% of our first quarter 2003 revenues were from
products manufactured in, and services performed from, our facilities outside
the United States, so that we will continue to have significant sensitivity to
foreign exchange rate changes.

         Total revenues increased by $6,620,000 or 39.5% in the first quarter of
2003 compared to the same period in 2002. This increase in revenues was
primarily attributed to a full quarter of revenues in 2003 from the January 2,
2003 acquisition of Penn Crusher and Jeffrey ($7,261,000) and the positive
effect of a weaker U.S. dollar when translating the revenues of foreign
operations into U.S. dollars, partially offset by lower revenues in our
pre-acquisition businesses due to a weaker global economy with reduced capital
equipment spending in many of the industries that we serve. If the average
foreign exchange rates for the first quarter of 2002 were applied to the first
quarter of 2003, total revenues for 2003 would have increased by $4,822,000 or
28.7% as compared to the first quarter of 2002.

         Gross profit as a percent of total revenues decreased to 40.3% in the
first quarter of 2003 from 42.5% for the same period in 2002. The decrease in
gross profit was primarily due to geographic and product sales mix and the
deterioration in economic conditions discussed above, which led to fixed costs
being absorbed over a smaller revenue base.

         Selling, general and administrative (SG&A) expenses increased by
$2,013,000 or 38.3% in the first quarter of 2003 compared to the same period in
2002. The increase in SG&A was primarily due to Penn Crusher and Jeffrey,
partially offset by lower spending levels. As a percent of total revenues, SG&A
was 31.0% in the first quarter of 2003 and 31.3% in the same period in 2002.

         Research and development (R&D) expenditures decreased by $35,000 or
5.0% in the first quarter of 2003 compared to the first quarter of 2002. This
decline was due to lower tooling costs partially offset by the translation
effects of a weaker U.S. dollar. R&D expense as a percent of total revenues was
2.9% in the first quarter of 2003 and 4.2% for the same period in 2002.

         Interest expense increased by $207,000 or 120% in the first quarter of
2003 compared to the same period in 2002. The increase was due to the debt
associated with the Penn Crusher acquisition, partially offset by lower interest
costs on other debt as a result of substantial reductions in that debt which
were made in the last nine months of 2002.

         Income before income taxes was $1,125,000 in the first quarter of 2003
and $1,005,000 in the same period in 2002. First quarter 2003 income before
income taxes improved versus the same period in 2002, primarily as a result of
the Penn Crusher acquisition.

         The effective tax rate for the first quarter of 2003 was 25.8% compared
to 25.3% for the same period in 2002.

         Our backlog at constant foreign exchange rates increased by 79.8% and
21.2% at the end of the first quarter of 2003 compared to year end 2002 and
March 30, 2002, respectively, due to the Penn Crusher acquisition, partially
offset by reduced backlog in our other businesses resulting from the very weak
capital equipment spending environment that existed during all of 2002.

                                      -13-

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

         To finance the Penn Crusher acquisition described earlier, in January
2003 we borrowed $20,000,000 from two U.S. banks, and we also issued $4,000,000
in unsecured promissory notes to the former Penn Crusher stockholders.

         We borrowed $5,000,000 from a U.S. bank through K-Tron's U.S.
manufacturing subsidiary, which loan was combined with an outstanding term loan
from that bank to that subsidiary and resulted in a $7,333,000 term loan.
Monthly principal payments of $83,000 plus interest at a fixed rate of 5.625% on
approximately half the loan and at a variable rate of one-month LIBOR plus 1.85%
on the other half (3.19% at March 29, 2003) began in February 2003, with the
final principal payment of approximately $2,416,000 plus interest being due in
January 2008. This loan is secured by substantially all of the assets of the
U.S. manufacturing subsidiary and is guaranteed by K-Tron International, Inc.

         Penn Crusher borrowed $15,000,000 from another U.S. bank consisting of
an aggregate of $13,500,000 term debt ($10,000,000 with a five-year term and
$3,500,000 with a six-year term) and $1,500,000 under a five-year revolving
credit facility. Subject to certain conditions, the revolving credit facility
provides for up to an additional $2,000,000 of availability. Quarterly term debt
principal payments of $400,000 began March 31, 2003 and increase each year by
$62,500 per quarter (or $250,000 per year in the aggregate) through December 31,
2007, with final quarterly payments of $750,000 in 2008. Interest is based on
one- to six-month LIBOR plus 3% to 3.5%, and the 3% to 3.5% can be reduced to 2%
to 2.5% upon meeting certain financial ratios. In January 2003, Penn Crusher
entered into an interest rate swap related to the entire $10,000,000 five-year
term loan where interest will not exceed 6.11% for the full term of the loan and
can be reduced to 5.11% upon meeting certain financial ratios. The interest
rates on the $10,000,000 term loan, $3,500,000 term loan and $1,500,000
revolving credit facility were 6.11%, 4.91% and 4.34%, respectively, as of March
29, 2003. The Penn Crusher debt is guaranteed by Jeffrey and secured by
substantially all of the assets of Penn Crusher and Jeffrey, but it is not
guaranteed by any other K-Tron company.

         In addition, K-Tron International, Inc. issued $4,000,000 of unsecured
promissory notes to the former Penn Crusher stockholders as part of the Penn
Crusher purchase price, which notes are payable in three equal, annual
installments on the second, third and fourth anniversaries of the closing date.
Interest at 6% per annum is payable quarterly.

         As stated previously, we expect to have sufficient cash flow to cover
all required principal and interest payments on the foregoing debt.

                                      -14-

<PAGE>

         Our capitalization at the end of the first quarter of 2003 and at the
end of fiscal years 2002 and 2001 is set forth below:

<TABLE>
<CAPTION>
                                                     March 29,    December 28,   December 29,
     (Dollars in Thousands)                            2003           2002           2001
                                                       ----           ----           ----
<S>                                                  <C>          <C>            <C>
Short-term debt, including current
 portion of long-term debt                           $   3,610    $      2,005   $      2,186
Long-term debt                                          28,809           6,499         12,499
                                                     ---------    ------------   ------------
Total debt                                              32,419           8,504         14,685

Shareholders' equity                                    29,507          28,419         21,561
                                                     ---------    ------------   ------------
Total debt and shareholders' equity                  $  61,926    $     36,923   $     36,246
                                                     =========    ============   ============
 (total capitalization)

Percent total debt to total capitalization                  52%             23%            41%

Percent long-term debt to equity                            98%             23%            58%

Percent total debt to equity                               110%             30%            68%
</TABLE>

         Total debt increased by $23,917,000 in the first three months of 2003
($24,000,000 related to the Penn Crusher acquisition net of a debt reduction in
the U.S. of $83,000). At March 29, 2003 and subject to certain conditions, we
had $6,000,000 of unused borrowing availability under our U.S. revolving credit
agreements and $6,915,000 of unused borrowing availability under our foreign
loan agreements.

         At March 29, 2003, working capital was $18,924,000 compared to
$14,106,000 at December 28, 2002, and the ratio of current assets to current
liabilities at those dates was 1.99 and 1.93, respectively.

         In the first three months of 2003 and 2002, we utilized internally
generated funds to meet our working capital needs.

         Net cash provided by operating activities was $1,246,000 in the first
three months of 2003 compared to $2,764,000 in the same period of 2002. The
decrease in operating cash flow during the first three months of 2003 compared
to the same period in 2002 was primarily due to a decrease in accounts payable
and accrued expenses and an increase in inventory, partially offset by a
decrease in accounts receivable and higher depreciation and amortization.

         Net cash used in investing activities in the first three months of 2003
was primarily for the acquisition of Penn Crusher and capital additions, while
in the first quarter of 2002 net cash used in investing activities was primarily
for capital additions.

                                      -15-

<PAGE>

         Cash provided by financing activities in the first three months of 2003
was primarily due to the borrowings related to the Penn Crusher acquisition,
while cash used in financing activities in the same period of 2002 was primarily
for debt reduction.

         Of the total increase in shareholders' equity of $1,088,000 in the
first three months of 2003, $835,000 was from net income, $333,000 was
attributable to changes in foreign exchange rates, particularly the
strengthening of the Swiss franc and euro versus the U.S. dollar, and $18,000
was from the issuance of common stock, reduced by $98,000 which was an
unrealized loss on a derivative, net of taxes.

CONTRACTUAL OBLIGATIONS

         We are obligated to make future payments under various contracts such
as debt agreements and lease agreements, and we are subject to certain other
commitments and contingencies. There have been no material changes to
Contractual Obligations as reflected in the Liquidity and Capital Resources
section of the Management's Discussion and Analysis in the Company's annual
report on Form 10-K for the year ended December 28, 2002 (the "2002 Form 10-K").
Refer to Notes 9 and 16 to the consolidated financial statements in the 2002
Form 10-K for additional information on long-term debt and commitments and
contingencies.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

         Management's Discussion and Analysis of our financial condition and
results of operations is based on the accounting policies used and disclosed in
our 2002 consolidated financial statements and accompanying notes that were
prepared in accordance with accounting principles generally accepted in the
United States and included in the 2002 Form 10-K. The preparation of those
financial statements required management to make estimates and assumptions that
affected the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

         The significant accounting policies of the Company are described in
Note 2 to the 2002 consolidated financial statements, and the critical
accounting policies and estimates are described in Management's Discussion and
Analysis included in the 2002 Form 10-K. Information concerning our
implementation and impact of new accounting standards issued by the Financial
Accounting Standards Board (FASB) is included in the notes to the 2002
consolidated financial statements. Otherwise, we did not adopt an accounting
policy in the current period that had a material impact on our financial
condition, liquidity or results of operations.

FORWARD-LOOKING STATEMENTS AND RISK FACTORS

         The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a safe harbor for forward-looking statements made by us or on our
behalf. We and our representatives may from time to time make written or oral
statements that are "forward-looking," including statements contained in this
report and other filings with the Securities and Exchange Commission, reports to
our shareholders and news releases. All statements that express

                                      -16-

<PAGE>

expectations, estimates, forecasts or projections are forward-looking statements
within the meaning of the Act. In addition, other written or oral statements
which constitute forward-looking statements may be made by us or on our behalf.
Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks,"
"estimates," "projects," "forecasts," "may," " should," variations of such words
and similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions which are difficult to
predict. Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in or suggested by such forward-looking statements.
The forward-looking statements contained in this report include statements
regarding the effect of changes in foreign exchange rates on our business and
our ability to repay debt, including in particular the principal and interest
payments related to the Penn Crusher acquisition. We undertake no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.

         A wide range of factors could materially affect our future performance
and financial and competitive position, including the following: (i) increasing
price and product/service competition by domestic and foreign competitors,
including new entrants; (ii) the mix of products/services sold by us; (iii)
rapid technological changes and developments and our ability to continue to
introduce competitive new products on a timely and cost-effective basis; (iv)
changes in U.S. and global financial and currency markets, including significant
interest rate and foreign currency exchange rate fluctuations; (v) protection
and validity of patent and other intellectual property rights held by us and our
competitors; (vi) the cyclical nature of our business as a capital goods
supplier; (vii) possible future litigation and governmental proceedings; (viii)
the availability of financing and financial resources in the amounts, at the
times and on the terms required to support our future business, including
capacity expansions and possible acquisitions; (ix) the loss of key customers,
employees or suppliers; (x) the failure to carry out marketing and sales plans;
(xi) the failure to integrate acquired businesses without substantial costs,
delays or other operational or financial problems; (xii) economic, business and
regulatory conditions and changes which may affect the level of new investments
and purchases made by customers, including general economic and business
conditions that are less favorable than expected; (xiii) domestic and
international political and economic conditions; and (xiv) the outcome of any
legal proceeding in which we are involved.

         This list of factors that may affect our future performance and
financial and competitive position and also the accuracy of forward-looking
statements is illustrative, but it is by no means exhaustive. Accordingly, all
forward-looking statements should be evaluated with the understanding of their
inherent uncertainty.

                                      -17-

<PAGE>

ITEM 4.  CONTROLS AND PROCEDURES.

An evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures as of March 25, 2003 was carried out by us under the
supervision and with the participation of the Company's management, including
the Chief Executive Officer and Chief Financial Officer. Based on that
evaluation, the Chief Executive Officer and Chief Financial Officer concluded
that our disclosure controls and procedures have been designed and are
functioning effectively to provide reasonable assurance that the information
required to be disclosed by us in reports filed under the Securities and
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's rules and
forms. A controls system, no matter how well designed and operated, cannot
provide absolute assurance that the objectives of the controls system are met,
and no evaluation of controls can provide absolute assurance that all control
issues and instances of fraud, if any, within a company have been detected.
Subsequent to the date of the most recent evaluation of our internal controls,
there were no significant changes in our internal controls, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

                           PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     (a) Exhibits.
         99.1       Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

         99.2       Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                    Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

     (b) Reports on Form 8-K.

         1.       Current Report on Form 8-K dated January 2, 2003 ("January
2003 Form 8-K") and filed with the Securities and Exchange Commission on January
15, 2003 reporting our acquisition of all of the outstanding capital stock of
Penn Crusher.

         2.       Current Report on Form 8-K/A dated January 2, 2003 and filed
with the Securities and Exchange Commission on March 17, 2003, amending the
January 2003 Form 8-K to include the audited financial statements of Penn
Crusher and certain unaudited K-Tron pro forma condensed consolidated financial
statements.

                                      -18-

<PAGE>

                                   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.

                                     K-TRON INTERNATIONAL, INC.

Date: May 13, 2003               By: /s/ Ronald R. Remick
                                     --------------------
                                     Ronald R. Remick
                                     Senior Vice President & Chief
                                     Financial Officer
                                     (Duly authorized officer and principal
                                     financial officer of the registrant)

                                 By: /s/ Alan R. Sukoneck
                                     --------------------
                                     Alan R. Sukoneck
                                     Vice President, Chief Accounting
                                     & Tax Officer
                                     (Duly authorized officer and principal
                                     accounting officer of the registrant)

                                      -19-

<PAGE>

                                 CERTIFICATIONS

I, Edward B. Cloues, II, Chairman and Chief Executive Officer of K-Tron
International, Inc. (the "Registrant"), certify that:

1.       I have reviewed this quarterly report on Form 10-Q of the Registrant;

2.       Based on my knowledge, this quarterly report does not contain any
         untrue statement of a material fact or omit to state a material fact
         necessary to make the statements made, in light of the circumstances
         under which such statements were made, not misleading with respect to
         the period covered by this quarterly report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this quarterly report, fairly present in all
         material respects the financial condition, results of operations and
         cash flows of the Registrant as of, and for, the periods presented in
         this quarterly report;

4.       The Registrant's other certifying officer and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and
         we have:

         a.  designed such disclosure controls and procedures to ensure
             that material information relating to the Registrant,
             including its consolidated subsidiaries, is made known to us
             by others within those entities, particularly during the
             period in which this quarterly report is being prepared;

         b.  evaluated the effectiveness of the Registrant's disclosure
             controls and procedures as of a date within 90 days prior to
             the filing date of this quarterly report (the "Evaluation
             Date"); and

         c.  presented in this quarterly report our conclusions about the
             effectiveness of the disclosure controls and procedures based
             on our evaluation as of the Evaluation Date;

5.       The Registrant's other certifying officer and I have disclosed, based
         on our most recent evaluation, to the Registrant's auditors and audit
         committee of Registrant's board of directors:

         a.  all significant deficiencies in the design or operation of
             internal controls which could adversely affect the
             Registrant's ability to record, process, summarize and report
             financial data and have identified for the Registrant's
             auditors any material weaknesses in internal controls; and

         b.  any fraud, whether or not material, that involves management
             or other employees who have a significant role in the
             Registrant's internal controls; and

6.       The Registrant's other certifying officer and I have indicated in this
         quarterly report whether or not there were significant changes in
         internal controls or in other factors that could significantly affect
         internal controls subsequent to the date of our most recent evaluation,
         including any corrective actions with regard to significant
         deficiencies and material weaknesses.

Date: May 13, 2003                         /s/ Edward B. Cloues, II
                                           ------------------------
                                           Edward B. Cloues, II
                                           Chairman and Chief Executive Officer

                                      -20-

<PAGE>

                            CERTIFICATIONS, continued

I, Ronald R. Remick, Senior Vice President and Chief Financial Officer of K-Tron
International, Inc. (the "Registrant"), certify that:

1.       I have reviewed this quarterly report on Form 10-Q of the Registrant;

2.       Based on my knowledge, this quarterly report does not contain any
         untrue statement of a material fact or omit to state a material fact
         necessary to make the statements made, in light of the circumstances
         under which such statements were made, not misleading with respect to
         the period covered by this quarterly report;

3.       Based on my knowledge, the financial statements, and other financial
         information included in this quarterly report, fairly present in all
         material respects the financial condition, results of operations and
         cash flows of the Registrant as of, and for, the periods presented in
         this quarterly report;

4.       The Registrant's other certifying officer and I are responsible for
         establishing and maintaining disclosure controls and procedures (as
         defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and
         we have:

         a.  designed such disclosure controls and procedures to ensure
             that material information relating to the Registrant,
             including its consolidated subsidiaries, is made known to us
             by others within those entities, particularly during the
             period in which this quarterly report is being prepared;

         b.  evaluated the effectiveness of the Registrant's disclosure
             controls and procedures as of a date within 90 days prior to
             the filing date of this quarterly report (the "Evaluation
             Date"); and

         c.  presented in this quarterly report our conclusions about the
             effectiveness of the disclosure controls and procedures based
             on our evaluation as of the Evaluation Date;

5.       The Registrant's other certifying officer and I have disclosed, based
         on our most recent evaluation, to the Registrant's auditors and audit
         committee of Registrant's board of directors:

         a.  all significant deficiencies in the design or operation of
             internal controls which could adversely affect the
             Registrant's ability to record, process, summarize and report
             financial data and have identified for the Registrant's
             auditors any material weaknesses in internal controls; and

         b.  any fraud, whether or not material, that involves management
             or other employees who have a significant role in the
             Registrant's internal controls; and

6.       The Registrant's other certifying officer and I have indicated in this
         quarterly report whether or not there were significant changes in
         internal controls or in other factors that could significantly affect
         internal controls subsequent to the date of our most recent evaluation,
         including any corrective actions with regard to significant
         deficiencies and material weaknesses.

Date: May 13, 2003                   /s/ Ronald R. Remick
                                     --------------------
                                     Ronald R. Remick
                                     Senior Vice President and Chief
                                     Financial Officer

                                      -21-

<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number     Description
------     -----------
<S>        <C>
99.1       Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
           to Section 906 of the Sarbanes-Oxley Act of 2002

99.2       Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
           to Section 906 of the Sarbanes-Oxley Act of 2002
</TABLE>