|   |
|--------|

| CONNECTICUT                                                    | 06-0236700                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
|                                                           |                                 |
| 60 ROUND HILL ROAD,  FAIRFIELD, CONNECTICUT          | 06824                                |
| (Address of principal executive offices)                       | (Zip Code)                           |

----

| Part I — FINANCIAL INFORMATION |                                                                                                     | Page                                                                                                                |
|--------------------------------------|----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|                                 | Item 1. Financial Statements (Unaudited)                                                            |                                                                                                                |   |
|                                 |                                                                                                     | Condensed Consolidated Balance Sheets as of September 30, 2010 andDecember 31, 2009                                 |   | 3 |
|                                 |                                                                                                     | Condensed Consolidated Statements of Operations for the three andnine months ended September 30, 2010 and 2009 |   | 5 |
|                                 |                                                                                                     | Condensed Consolidated Statements of Cash Flows for the nine monthsended September 30, 2010 and 2009                |   | 6 |
|                                 |                                                                                                     | Notes to Condensed Consolidated Financial Statements                                                                |   | 7 |
|                                 | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |                                                                                                                | 11 |
|                                 | Item 3. Quantitative and Qualitative Disclosure About Market Risk                                        |                                                                                                                | 14 |
|                                 | Item 4T. Controls and Procedures                                                                         |                                                                                                                | 14 |
|                                 |                                                                                                     |                                                                                                                |   |   |
| Part II — OTHER INFORMATION    |                                                                                                     |                                                                                                                |
|                                 | Item 1.   Legal Proceedings                                                          |                                                                                                                | 15 |
|                                 | Item 1A. Risk Factors                                                                                    |                                                                                                                | 15 |
|                                 | Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds           |                                                                                                                | 15 |
|                                 | Item 3.   Defaults Upon Senior Securities                                            |                                                                                                                | 15 |
|                                 | Item 4.   Removed and reserved                                                       |                                                                                                                | 15 |
|                                 | Item 5.   Other Information                                                          |                                                                                                                | 15 |
|                                 | Item 6.   Exhibits                                                                   |                                                                                                                | 16 |
|                                 | Signatures                                                                                               |                                                                                                                | 17 |

----

| ACME UNITED CORPORATION                   |   |
|-------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS     |   |
| (all amounts in thousands)                |   |
|                                      |   |   |   |   |   |   |
|                                      |   | September 30, |   |   | December 31, |   |
|                                      |   | 2010 |   |   | 2009 |   |
|                                      |   | (unaudited) |   |   | (Note 1) |   |
|                                      |   |   |   |   |   |   |
| ASSETS                                    |   |   |   |   |   |   |
| Current assets:                           |   |   |   |   |   |   |
| Cash and cash equivalents                 |   | $ | 7,232 |   |   | $ | 6,519 |   |
| Accounts receivable, less allowance       |   |   | 14,943 |   |   |   | 10,704 |   |
| Inventories:                              |   |   |   |   |   |   |   |   |
| Finished goods                            |   |   | 19,559 |   |   |   | 16,337 |   |
| Work in process                           |   |   | 382 |   |   |   | 97 |   |
| Raw materials and supplies                |   |   | 31 |   |   |   | 966 |   |
|                                      |   |   | 19,972 |   |   |   | 17,400 |   |
| Prepaid expenses and other current assets |   |   | 1,174 |   |   |   | 1,133 |   |
| Total current assets                      |   |   | 43,321 |   |   |   | 35,756 |   |
| Property, plant and equipment:            |   |   |   |   |   |   |   |   |
| Land                                      |   |   | 164 |   |   |   | 172 |   |
| Buildings                                 |   |   | 2,463 |   |   |   | 2,558 |   |
| Machinery and equipment                   |   |   | 8,695 |   |   |   | 8,170 |   |
|                                      |   |   | 11,322 |   |   |   | 10,900 |   |
| Less accumulated depreciation             |   |   | 9,197 |   |   |   | 8,812 |   |
|                                      |   |   | 2,126 |   |   |   | 2,088 |   |
| Note receivable                           |   |   | 1,852 |   |   |   | 1,891 |   |
| Other assets                              |   |   | 2,471 |   |   |   | 2,574 |   |
| Total assets                              |   | $ | 49,769 |   |   | $ | 42,309 |   |

----

| ACME UNITED CORPORATION                           |   |
|---------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS (continued) |   |
| (all amounts in thousands, except share amounts)  |   |
|                                              |   |   |   |   |   |   |
|                                              |   | September 30, |   |   | December 31, |   |
|                                              |   | 2010 |   |   | 2009 |   |
|                                              |   | (unaudited) |   |   | (Note 1) |   |
|                                              |   |   |   |   |   |   |
| LIABILITIES                                       |   |   |   |   |   |   |
| Current liabilities:                              |   |   |   |   |   |   |
| Accounts payable                                  |   | $ | 4,490 |   |   | $ | 3,546 |   |
| Other accrued liabilities                         |   |   | 2,925 |   |   |   | 3,257 |   |
| Total current liabilities                         |   |   | 7,415 |   |   |   | 6,803 |   |
| Bank debt                                         |   |   | 15,420 |   |   |   | 9,154 |   |
| Other                                             |   |   | 1,721 |   |   |   | 1,811 |   |
| Total liabilities                                 |   |   | 24,556 |   |   |   | 17,768 |   |
|                                              |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                              |   |   |   |   |   |   |   |   |
| Common stock, par value $2.50:                    |   |   |   |   |   |   |   |   |
| authorized 8,000,000 shares;                      |   |   |   |   |   |   |   |   |
| issued - 4,361,774 shares in 2010                 |   |   |   |   |   |   |   |   |
| and 4,313,024 shares in 2009,                     |   |   |   |   |   |   |   |   |
| including treasury stock                          |   |   | 10,903 |   |   |   | 10,783 |   |
| Additional paid-in capital                        |   |   | 4,489 |   |   |   | 4,208 |   |
| Retained earnings                                 |   |   | 22,454 |   |   |   | 20,508 |   |
| Treasury stock, at cost - 1,305,237 shares        |   |   |   |   |   |   |   |   |
| in 2010 and  1,155,165 shares in 2009   |   |   | (11,711 | ) |   |   | (10,144 | ) |
| Accumulated other comprehensive income:           |   |   |   |   |   |   |   |   |
| Translation adjustment                            |   |   | 212 |   |   |   | 321 |   |
| Unrecognized pension costs                        |   |   | (1,134 | ) |   |   | (1,134 | ) |
|                                              |   |   | (922 | ) |   |   | (813 | ) |
| Total stockholders’ equity                  |   |   | 25,213 |   |   |   | 24,541 |   |
| Total liabilities and stockholders’ equity  |   | $ | 49,769 |   |   | $ | 42,309 |   |

----

| ACME UNITED CORPORATION                                        |   |
|----------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                |   |
| (UNAUDITED)                                                    |   |
| (all amounts in thousands, except share and per share amounts) |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   | Three Months Ended |   | Nine Months Ended |   |
|                                                           |   | September 30 |   |   | September 30 |   |
|                                                           |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Net sales                                                      |   | $ | 16,083 |   |   | $ | 15,269 |   |   | $ | 49,789 |   |   | $ | 45,727 |   |
| Cost of goods sold                                             |   |   | 10,426 |   |   |   | 9,771 |   |   |   | 31,468 |   |   |   | 28,827 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross Profit                                                   |   |   | 5,657 |   |   |   | 5,498 |   |   |   | 18,321 |   |   |   | 16,900 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                   |   |   | 5,000 |   |   |   | 4,864 |   |   |   | 15,418 |   |   |   | 14,166 |   |
| Operating income                                               |   |   | 657 |   |   |   | 634 |   |   |   | 2,903 |   |   |   | 2,734 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-operating items:                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                               |   |   | 86 |   |   |   | 38 |   |   |   | 217 |   |   |   | 124 |   |
| Interest income                                                |   |   | (39 | ) |   |   | (31 | ) |   |   | (112 | ) |   |   | (97 | ) |
| Interest expense, net                                          |   |   | 47 |   |   |   | 7 |   |   |   | 105 |   |   |   | 27 |   |
| Other (income) expense, net                                    |   |   | (3 | ) |   |   | (461 | ) |   |   | 36 |   |   |   | (480 | ) |
| Total other expense (income)                                   |   |   | 44 |   |   |   | (454 | ) |   |   | 141 |   |   |   | (453 | ) |
| Income before income taxes                                     |   |   | 613 |   |   |   | 1,088 |   |   |   | 2,762 |   |   |   | 3,187 |   |
| Income tax expense                                             |   |   | 1 |   |   |   | 360 |   |   |   | 371 |   |   |   | 1,076 |   |
| Net income                                                     |   | $ | 612 |   |   | $ | 728 |   |   | $ | 2,391 |   |   | $ | 2,111 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                       |   | $ | 0.20 |   |   | $ | 0.22 |   |   | $ | 0.76 |   |   | $ | 0.64 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                     |   | $ | 0.19 |   |   | $ | 0.22 |   |   | $ | 0.74 |   |   | $ | 0.63 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding-          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| denominator used for basic per share computations              |   |   | 3,111 |   |   |   | 3,290 |   |   |   | 3,147 |   |   |   | 3,318 |   |
| Weighted average number of dilutive stock options              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| outstanding                                                    |   |   | 80 |   |   |   | 63 |   |   |   | 71 |   |   |   | 45 |   |
| Denominator used for diluted per share computations            |   |   | 3,192 |   |   |   | 3,353 |   |   |   | 3,218 |   |   |   | 3,363 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends declared per share                                   |   | $ | 0.06 |   |   | $ | 0.05 |   |   | $ | 0.16 |   |   | $ | 0.15 |   |

----

| ACME UNITED CORPORATION                               |   |
|-------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS       |   |
| (UNAUDITED)                                           |   |
| (all amounts in thousands)                            |   |
|                                                  |   | Nine Months Ended |   |
|                                                  |   | September 30, |   |
|                                                  |   | 2010 |   |   | 2009 |   |
| Operating Activities:                                 |   |   |   |   |   |   |
| Net income                                            |   | $ | 2,391 |   |   | $ | 2,111 |   |
| Adjustments to reconcile net income                   |   |   |   |   |   |   |   |   |
| to net cash (used) provided by operating activities:  |   |   |   |   |   |   |   |   |
| Depreciation                                          |   |   | 572 |   |   |   | 594 |   |
| Amortization                                          |   |   | 86 |   |   |   | 85 |   |
| Stock compensation expense                            |   |   | 280 |   |   |   | 214 |   |
| Change in estimated cost of environmental remediation |   |   | - |   |   |   | (460 | ) |
| Changes in operating assets and liabilities:          |   |   |   |   |   |   |   |   |
| Accounts receivable                                   |   |   | (4,302 | ) |   |   | (983 | ) |
| Inventories                                           |   |   | (2,678 | ) |   |   | 4,275 |   |
| Prepaid expenses and other current assets             |   |   | (7 | ) |   |   | (18 | ) |
| Accounts payable                                      |   |   | 979 |   |   |   | (400 | ) |
| Other accrued liabilities                             |   |   | (315 | ) |   |   | (39 | ) |
| Total adjustments                                     |   |   | (5,385 | ) |   |   | 3,268 |   |
| Net cash (used) provided by operating activities      |   |   | (2,994 | ) |   |   | 5,379 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Investing Activities:                                 |   |   |   |   |   |   |   |   |
| Purchase of property, plant, and equipment            |   |   | (644 | ) |   |   | (443 | ) |
| Purchase of patents and trademarks                    |   |   | (79 | ) |   |   | (81 | ) |
| Net cash used by investing activities                 |   |   | (723 | ) |   |   | (524 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Financing Activities:                                 |   |   |   |   |   |   |   |   |
| Net (repayment) borrowing of bank debt                |   |   | 6,266 |   |   |   | (2,395 | ) |
| Proceeds from issuance of common stock                |   |   | 123 |   |   |   | 44 |   |
| Distributions to stockholders                         |   |   | (472 | ) |   |   | (500 | ) |
| Purchase of treasury stock                            |   |   | (1,566 | ) |   |   | (868 | ) |
| Net cash provided (used) by financing activities      |   |   | 4,350 |   |   |   | (3,719 | ) |
|                                                  |   |   |   |   |   |   |   |   |
| Effect of exchange rate changes                       |   |   | 80 |   |   |   | 238 |   |
| Net change in cash and cash equivalents               |   |   | 713 |   |   |   | 1,374 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period      |   |   | 6,519 |   |   |   | 5,225 |   |
|                                                  |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period            |   | $ | 7,232 |   |   | $ | 6,599 |   |

----

----

| Balance at December 31, 2009 |   | Payments           |   | Balance at September 30, 2010 |
|------------------------------|--------|--------------------|--------|-------------------------------|
|                         |   |               |   |                          |
| $  681             |   | $  (208) |   | $  473              |
|                         |   |               |   |                          |

|                                     |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|------------------------------------------|--------|----------------------------------|--------|--------|---------------------------------|--------|
|                                     |   | 2010                             |   |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                                     |   |                             |   |   |                            |   |   |   |   |   |   |   |
| Components of net periodic benefit cost: |   |                             |   |   |                            |   |   |   |   |   |   |   |
| Interest cost                            |   | $                                | 31     |   |                            | $      | 38 |   |   | $ | 92 |   |   | $ | 114 |   |
| Service cost                             |   |                             | 6      |   |                            | $      | 6 |   |   |   | 19 |   |   | $ | 19 |   |
| Expected return on plan assets           |   |                             | (24    | )      |                            | $      | (24 | ) |   |   | (72 | ) |   | $ | (71 | ) |
| Amortization of prior service costs      |   |                             | 2      |   |                            | $      | 2 |   |   |   | 7 |   |   | $ | 7 |   |
| Amortization of actuarial loss           |   |                             | 39     |   |                            | $      | 42 |   |   |   | 116 |   |   | $ | 126 |   |
|                                     |   | $                                | 54     |   |                            | $      | 65 |   |   | $ | 162 |   |   | $ | 195 |   |

----

|                             |   | Three months ended September 30, |   |   | Nine months ended September 30, |   |
|----------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                             |   | 2010                                  |   |   | 2009                                 |   |   | 2010 |   |   | 2009 |   |
| Sales to external customers:     |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| United States                    |   | $                                     | 12,220 |   |                                 | $      | 11,145 |   |   | $ | 36,845 |   |   | $ | 34,520 |   |
| Canada                           |   |                                  | 1,765  |   |                                 |   | 1,770 |   |   |   | 6,214 |   |   |   | 5,680 |   |
| Europe                           |   |                                  | 2,098  |   |                                 |   | 2,354 |   |   |   | 6,730 |   |   |   | 5,527 |   |
| Consolidated                     |   | $                                     | 16,083 |   |                                 | $      | 15,269 |   |   | $ | 49,789 |   |   | $ | 45,727 |   |
|                             |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):         |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| United States                    |   | $                                     | 583    |   |                                 | $      | 593 |   |   | $ | 2,462 |   |   | $ | 2,833 |   |
| Canada                           |   |                                  | 185    |   |                                 |   | 80 |   |   |   | 703 |   |   |   | 325 |   |
| Europe                           |   |                                  | (111   | )      |                                 |   | (39 | ) |   |   | (262 | ) |   |   | (424 | ) |
| Consolidated                     |   | $                                     | 657    |   |                                 | $      | 634 |   |   | $ | 2,903 |   |   | $ | 2,734 |   |
|                             |   |                                  |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, net            |   |                                  | 47     |   |                                 |   | 7 |   |   |   | 105 |   |   |   | 27 |   |
| Other (income) expense, net      |   |                                  | (3     | )      |                                 |   | (461 | ) |   |   | 36 |   |   |   | (480 | ) |
| Consolidated income before taxes |   | $                                     | 613    |   |                                 | $      | 1,088 |   |   | $ | 2,761 |   |   | $ | 3,187 |   |

|          |   | September 30, |        |   | December 31, |   |
|---------------|--------|---------------|-------------|--------|--------------|--------|
|          |   | 2010          |        |   | 2009         |   |
| United States |   | $             | 37,940      |   |         | $      | 31,377 |   |
| Canada        |   |          |  5,885 |   |         |   | 5,606 |   |
| Europe        |   |          | 5,944       |   |         |   | 5,326 |   |
| Consolidated  |   | $             | 49,769      |   |         | $      | 42,309 |   |

----

|                   |   | Three months endedSeptember 30, |   |   | Nine months endedSeptember 30, |   |
|------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
|                   | 2010   |                            |   | 2009   |                           |   | 2010 |   |   | 2009 |   |
| Expected life in years |   | 5                               |   |   |                           | NA     |   |   |   | 5 |   |   |   | 5 |   |
| Interest rate          |   | 1.55                            | %      |   |                           | NA     |   |   |   | 1.55% - 2.54 | % |   |   | 1.82% - 2.95 | % |
| Volatility             |   | 0.335                           |   |   |                           | NA     |   |   |   | 0.335 – 0.359 |   |   |   | 0.384 – 0.386 |   |
| Dividend yield         |   | 2.3                             | %      |   |                           | NA     |   |   |   | 1.8 - 2.3 | % |   |   | 2.5 | % |

|                                             |   | Three Months Ended |   |   | Nine Months Ended |   |
|--------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                             |   | September 30,      |   |   | September 30,     |   |
|                                             |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                             |   |               |   |   |              |   |   |   |   |   |   |   |
| Net income                                       |   | $                  | 612    |   |              | $      | 728 |   |   | $ | 2,391 |   |   | $ | 2,111 |   |
| Other comprehensive income / (loss)  - |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation                     |   |               | 547    |   |              |   | 530 |   |   |   | (58 | ) |   |   | 717 |   |
| Comprehensive income                             |   | $                  | 1,160  |   |              | $      | 1,258 |   |   | $ | 2,333 |   |   | $ | 2,829 |   |

----

----

----

|                           |   | September 30, 2010 |   |   | December 31, 2009 |   |
|--------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                           |   |               |   |   |              |   |
| Working capital                |   | $                  | 35,907 |   |              | $      | 28,953 |   |
| Current ratio                  |   |               | 5.84   |   |              |   | 5.26 |   |
| Long term debt to equity ratio |   |               | 61.2   | %      |              |   | 37.2 | % |

----

| (a)   | Evaluation of Internal Controls and Procedures |
|-----------------|------------------------------------------------|

| (b)   | Changes in Internal Control over Financial Reporting |
|-----------------|------------------------------------------------------|

----

----

Exhibit 31.1

Exhibit 31.2

Exhibit 32.1

Exhibit 32.2

----

| By                                  | /s/  Walter C. Johnsen |   |   |
|-------------------------------------|----------------------------------|--------|--------|
|                                |  Walter C. Johnsen          |   |   |
|                                | Chairman of the Board and        |   |   |
|                                | Chief Executive Officer          |   |   |
|                                |                             |   |   |
| Dated:  November 12, 2010 |                             |   |
|                                |                             |   |   |
|                                |                             |   |   |
|                                |                             |   |   |
|                                |                             |   |   |
| By                                  | /s/  Paul G. Driscoll  |   |   |
|                                | Paul G. Driscoll                 |   |   |
|                                | Vice President and               |   |   |
|                                | Chief Financial Officer          |   |   |
|                                |                             |   |   |
| Dated:  November 12, 2010 |                             |   |
|                                |                             |   |   |
|                                |                             |   |   |

----