SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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

                                    FORM 10-Q

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

           |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2000

                                       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 Q4823

                             ACME UNITED CORPORATION
                             -----------------------
             (Exact name of registrant as specified in its charter)


          CONNECTICUT                                             06-0236700
          -----------                                             ----------
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

75 Kings Highway Cutoff, Fairfield, Connecticut                      06430
-----------------------------------------------                      -----
(Address of principal executive offices)                          (Zip Code)

       Registrant's telephone number, including area code: (203) 332-7330

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 |_|

Registrant had 3,507,055  shares  outstanding as of August 11, 2000 of its $2.50
par value Common Stock.

<PAGE 2>
                             ACME UNITED CORPORATION

                                                                            Page
                                                                            ----
Part I -- FINANCIAL INFORMATION
     Item 1. Financial Statements
               Condensed Consolidated Balance Sheets........................  3
               Condensed Consolidated Statements of Operations
                  and Comprehensive Income .................................  5
               Condensed Consolidated Statements of Cash Flows..............  6
               Notes to Condensed Consolidated Financial Statements.........  7
     Item 2. Management's Discussion and Analysis of Financial Condition
                  and Results of Operations.................................  9

Part II -- OTHER INFORMATION
     Item 1. Legal Proceedings.............................................. 12
     Item 2. Changes in Securities.......................................... 12
     Item 3. Defaults Upon Senior Securities................................ 12
     Item 4. Submission of Matters to a Vote of Security Holders............ 12
     Item 5. Other Information.............................................. 12
     Item 6. Exhibits and Reports on Form 8-K............................... 12
     Signatures............................................................. 13

<PAGE 3>
<TABLE>
                          PART I. FINANCIAL INFORMATION

                             ACME UNITED CORPORATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                (all amounts in thousands, except per share data)

                                                                           June 30     December 31
                                                                             2000          1999
                                                                         ------------  -----------
<CAPTION>
<S>                                                                          <C>          <C>
ASSETS
Current assets:
  Cash and cash equivalents                                                  $      9     $     88
  Accounts receivable, less allowance                                           8,740        6,702
  Inventories:
     Finished goods                                                             6,433        5,355
     Work in process                                                              947          649
     Raw materials and supplies                                                 1,921        2,294
                                                                           ----------    ---------
                                                                                9,301        8,298
  Prepaid expenses and other current assets                                       801          508
                                                                           ----------    ---------
          Total current assets                                                 18,851       15,596
                                                                           ----------    ---------
Property, plant and equipment:
  Land                                                                            182          191
  Buildings                                                                     2,001        2,048
  Machinery and equipment                                                       7,856        8,616
                                                                           ----------    ---------
                                                                               10,039       10,855
  Less accumulated depreciation                                                 6,521        6,869
                                                                           ----------    ---------
                                                                                3,518        3,986
Other assets                                                                    1,254          992
Goodwill, less accumulated amortization                                           180          193
                                                                           ----------    ---------
            Total assets                                                     $ 23,803     $ 20,767
                                                                           ==========    =========
            See notes to condensed consolidated financial statements
</TABLE>

<PAGE 4>
<TABLE>
                             ACME UNITED CORPORATION

                CONDENSED CONSOLIDATED BALANCE SHEETS - continued
                                   (UNAUDITED)
                (all amounts in thousands, except per share data)

                                                                           June 30     December 31
                                                                             2000          1999
                                                                         ------------  -----------
<CAPTION>
<S>                                                                          <C>          <C>
LIABILITIES

Current liabilities:
  Notes payable                                                              $    587     $    691
  Accounts payable                                                              3,465        2,763
  Other accrued liabilities                                                     2,804        3,154
  Current portion of long term debt                                             4,121        2,032
                                                                           ----------    ---------
      Total current liabilities                                                10,976        8,640
  Long term debt, less current portion                                          5,125        5,012
  Other                                                                           216          197
                                                                           ----------    ---------
       Total liabilities                                                       16,317       13,849
                                                                           ----------    ---------

STOCKHOLDERS' EQUITY
  Common stock, par value $2.50:
    Authorized 8,000,000 shares;
    issued 3,612,062 shares,
    including treasury stock                                                    9,030        9,030
  Additional paid-in capital                                                    2,038        2,038
  Retained-earnings deficit                                                    (1,578)      (2,212)
  Accumulated other comprehensive loss-translation adjustment                  (1,356)      (1,290)
  Treasury stock, at cost-105,007 shares                                         (648)        (648)
                                                                           ----------    ---------
      Total stockholders' equity                                                7,486        6,918
                                                                           ----------    ---------
        Total liabilities and stockholders' equity                           $ 23,803     $ 20,767
                                                                           ==========    =========
            See notes to condensed consolidated financial statements
</TABLE>

<PAGE 5>
<TABLE>
                             ACME UNITED CORPORATION

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            AND COMPREHENSIVE INCOME
                                   (UNAUDITED)
                (all amounts in thousands, except per share data)
                                                                                 Three Months Ended       Six Months Ended
                                                                                       June 30                 June 30
                                                                                --------------------    --------------------
                                                                                  2000         1999       2000         1999
                                                                                --------     --------   --------     --------
<CAPTION>
<S>                                                                              <C>          <C>        <C>          <C>
Revenues:
  Net sales                                                                      $10,201      $10,209    $18,242      $18,121
  Other income (expense)                                                             (21)          87         (3)         264
                                                                                --------     --------   --------     --------
      Total revenues                                                              10,180       10,296     18,239       18,385
                                                                                --------     --------   --------     --------
Costs and expenses:
  Cost of goods sold                                                               6,785        7,251     12,007       13,303
  Selling, general and administrative expenses                                     2,737        2,633      5,160        4,868
  Interest expense                                                                   234          248        440          606
                                                                                --------     --------   --------     --------
      Total expenses                                                               9,756       10,132     17,608       18,777
                                                                                --------     --------   --------     --------
Income (loss) from continuing operations before income taxes                         424          164        631         (392)
Income taxes                                                                          10           39         10           25
                                                                                --------     --------   --------     --------
Income (loss) from continuing operations                                             414          125        621         (417)
Discontinued operations:
  Gain on sale of discontinued operations                                              -            -          -        2,101
  Income from discontinued operations                                                  -            -          -          198
                                                                                --------     --------   --------     --------
                                                                                       -            -          -        2,299
                                                                                --------     --------   --------     --------
Net income                                                                           414          125        621        1,882
Other comprehensive expense -
  foreign currency translation                                                       (78)          (7)       (66)         (78)
                                                                                --------     --------   --------     --------
Comprehensive income                                                             $   336      $   118    $   555      $ 1,804
                                                                                ========     ========   ========     ========
Basic earnings (loss) per share:
  Continuing operations                                                          $  0.12      $  0.04    $  0.18      $ (0.12)
  Discontinued operations                                                              -            -          -         0.68
                                                                                --------     --------   --------     --------
  Net income                                                                     $  0.12      $  0.04    $  0.18      $  0.56
                                                                                ========     ========   ========     ========
Diluted earnings (loss) per share:
  Continuing operations                                                          $  0.12      $  0.04    $  0.17      $ (0.12)
  Discontinued operations                                                              -            -          -         0.68
                                                                                --------     --------   --------     --------
  Net income                                                                     $  0.12      $  0.04    $  0.17      $  0.56
                                                                                ========     ========   ========     ========
Weighted average number of common shares outstanding-
  denominator used for basic per share computations                                3,507        3,377      3,507        3,377
Weighted average number of dilutive stock options
  outstanding                                                                         83            -         54            -

Denominator used for diluted per share computation                                 3,590        3,377      3,561        3,377
                                                                                ========     ========   ========     ========
            See notes to condensed consolidated financial statements
</TABLE>

<PAGE 6>
<TABLE>

                             ACME UNITED CORPORATION
                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
                           (all amounts in thousands)
                                                                                 Six Months Ended
                                                                                      June 30
                                                                               -------------------
                                                                                 2000         1999
                                                                              ---------    ---------
<CAPTION>
<S>                                                                             <C>          <C>
Operating Activities:
  Net income                                                                    $   621      $ 1,882
  Adjustments to reconcile net income
    to net cash used by operating activities:
    Gain on sale of discontinued operations                                           -       (2,101)
    Depreciation                                                                    342          346
    Amortization                                                                     90           24
    Loss on sale of property, plant, and equipment                                   12            -

Changes in operating assets and liabilities:
    Accounts receivable                                                          (2,038)      (1,881)
    Inventories                                                                  (1,003)         313
    Prepaid expenses and other current assets                                      (293)         (49)
    Other assets                                                                   (262)          (2)
    Accounts payable                                                                702          300
    Other accrued liabilities                                                      (350)      (1,142)
                                                                             ----------    ---------
      Net cash used by operating activities                                      (2,180)      (2,610)
                                                                             ----------    ---------
Investing Activities:
  Capital expenditures                                                             (223)        (342)
  Proceeds from sale of property, plant, and equipment                              233            -
  Proceeds from sale of medical division                                              -        8,156
                                                                             ----------    ---------
      Net cash provided by investing activities                                      10        7,814
                                                                             ----------    ---------
Financing Activities:
  Net proceeds (payments) on short term borrowing arrangements                    2,769       (5,999)
  Borrowings of long term debt                                                      325        2,500
  Payments of long term debt                                                       (927)      (1,763)
  Debt issuance costs                                                              (142)         (27)
                                                                             ----------    ---------
      Net cash provided (used) by financing activities                            2,026       (5,289)
                                                                             ----------    ---------
Effect of exchange rate changes                                                      65           78
                                                                             ----------    ---------
Net change in cash and cash equivalents                                             (79)          (7)

Cash and cash equivalents at beginning of period                                     88           40
                                                                             ----------    ---------
Cash and cash equivalents at end of period                                      $     9      $    33
                                                                             ==========    =========
            See notes to condensed consolidated financial statements
</TABLE>

<PAGE 7>
              Notes to CONDENSED CONSOLIDATED Financial Statements

                                   (Unaudited)

Note 1 -- Basis of Presentation

     In the  opinion of  management,  the  accompanying  condensed  consolidated
financial  statements  contain all  adjustments  necessary to present fairly the
financial position, results of operations and cash flows. However, the financial
statements do not include all of the disclosures  normally required by generally
accepted  accounting  principles or those normally made in the Company's  annual
report on Form 10-K.  Please refer to the  Company's  annual report on Form 10-K
for the  year  ended  December  31,  1999 for such  disclosures.  The  condensed
consolidated  balance sheet as of December 31, 1999 was derived from the audited
consolidated  balance sheet as of that date.  The results of operations  for the
three and six months ended June 30, 2000 are not  necessarily  indicative of the
results to be expected for the full year.

     The Company has  reclassified  certain prior periods  amounts to conform to
the current periods presentation.

Note 2 -- Discontinued Operations

     On March 22, 1999 the Company sold its medical business  including customer
lists, inventory, and certain equipment for approximately $8,156,000 realizing a
gain of $2,101,000.  The condensed  consolidated statement of operations for the
six months ended June 30, 1999 relating to the medical business follows:

          Net sales                $ 3,049,000
          Costs and expenses         2,851,000
                                   -----------
          Income from operations   $   198,000
                                   ===========
          Earnings per share       $      0.06
                                   ===========

     Income taxes related to the medical business were not material.


Note 3 -- Contingencies

     The  Company  has  been   involved   in  certain   environmental   matters.
Additionally,  the Company has been involved in numerous legal actions  relating
to the use of certain latex products,  which the Company  distributes,  but does
not  manufacture.  The Company is one of many  defendants.  The Company has been
released from the majority of the lawsuits. While five lawsuits remain, they are
still in preliminary stages and it has not been determined whether the Company's
products were involved.  Based on information  available,  the Company  believes
that there will not be a material adverse impact on financial position,  results
of operations, or liquidity, from environmental and product liabilities,  either
individually or in aggregate.

<PAGE 8>
         Notes to CONDENSED CONSOLIDATED Financial Statements- continued

                                   (Unaudited)

Note 4 -- Debt and Liquidity

     The Company  has  short-term  lines of credit for its foreign  subsidiaries
which are  renewable at various  times  throughout  the  remainder of 2000.  The
aggregate  amount available under these lines is $1,029,000 of which $587,000 is
outstanding at June 30, 2000.

     Long term debt consisted of the following:

          (all amounts in thousands)

                                                June 30          December 31
                                                  2000              1999
                                              ------------       -----------
     Notes payable:
       U.S. and Canada arrangements.......     $    8,444         $    5,225
       Other..............................            802              1,819
                                               ----------         ----------
                                                    9,246              7,044
     Less current portion                           4,121              2,032
                                               ----------         ----------
                                               $    5,125         $    5,012
                                               ==========         ==========

     On January  19,  2000,  the  Company  entered  into a loan  agreement  (the
Agreement)  with a bank to refinance  debt.  Under the Agreement the Company may
borrow up to $11,500,000 through January 19, 2003 (the maturity date) based on a
formula which applies  specific  percentages to balances of accounts  receivable
and inventories.  Throughout 2000, the Company expects to have a minimum of $4.4
million  outstanding  under this arrangement.  Under the Agreement,  the Company
borrowed an  additional  $325,000  which is payable in monthly  installments  of
$5,417,  plus  interest,  from  February 1, 2000 through  November 1, 2002 and a
final  installment  of $140,822,  plus interest,  due December 1, 2002.  Amounts
outstanding  under the Agreement  bear interest at varying rates as provided for
in the  Agreement.  As of June 30, 2000,  the North  American  operations had $1
million in excess availability under this agreement.

     On August 7, 2000 the Company  entered into an interest  rate swap with the
bank  effectively  fixing the  interest  rate at 10.18% for $3.5 million of debt
through the Agreement's maturity date.

     Under a separate loan agreement with another bank which was amended January
19, 2000, the Company will repay $500,000, principal amount, of outstanding debt
at that date in monthly  installments  of  $13,889,  plus  interest at the prime
rate, as defined, plus 2.5%, from February 1, 2000 through January 1, 2003.

     The Company,  among other things,  is restricted with respect to dividends,
additional borrowings,  investments,  mergers,  distributions,  and property and
equipment  acquisitions.  Further,  the Company is required to maintain specific
amounts of  tangible  net worth,  as  defined,  from  January  19,  2000,  and a
specified debt service  coverage ratio, as defined,  and a fixed charge coverage
ratio,  as defined,  from March 31, 2000. The Company was in compliance with all
covenants as of June 30, 2000 and believes these financial covenants will be met
for the remainder of the term of the loan.

     Cash expected to be generated from  operating  activities for the remainder
of 2000, together with funds available under the Agreement,  is expected,  under
current conditions, to be sufficient to finance the Company's planned operations
in 2000.

<PAGE 9>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                     For the Six Months Ended June 30, 2000


Results of Operations

   Net Sales

     Traditionally,  the  Company's  sales are  stronger in the second and third
quarters,  and weaker in the first and fourth quarters of the fiscal year due to
the  seasonal  nature of the  business  specific to the  back-to-school  season.
Consolidated  net sales for the  quarter  ended June 30,  2000 were  $10,201,000
compared with $10,209,000 for 1999.  Beginning in the first quarter of 2000, the
Company  is  classifying  outgoing  freight  expense as  selling  expense.  Such
expenses  were  previously  classified  as a  component  of net sales.  Outgoing
freight  expense  for the  quarter  ended June 30,  1999 of  $396,000  have been
reclassified to conform with the current period presentation.  Net sales for the
first six months of 2000 were $18,242,387  compared with $18,120,651 for 1999, a
1% increase.

     Domestic  sales were down 1% in the second  quarter of 2000 versus the same
period in 1999,  while up 2% for the first six  months in the first half of 2000
compared to 1999.  Strong sales to the office  superstores and wholesalers  were
offset by a decline in the very price competitive bid business which resulted in
reduced sales in this segment year over year.

     International  sales  were 2% above 1999  levels for the second  quarter of
2000.  Strong  sales  growth in England  offset  weakness in Canada and Germany.
Continuation of a product rationalization program of low margin products was the
main  reason  for the  decline  in  Canada.  For the first  six  months of 2000,
international sales were 2% below 1999 levels.


   Gross Profit

     The gross profit for the second  quarter of 2000 was  $3,416,000  (33.5% of
net sales) compared to $2,958,000 (29.0% of net sales) for the second quarter of
1999.  The gross  margin was 34.2% for the first six months of 2000 versus 26.6%
in the same period of 1999.  Resourcing of scissor products to Asia coupled with
aggressive purchasing practices and improved  manufacturing  efficiencies in the
USA were the main reasons for the improved gross margins.


   Selling, General and Administrative Expenses

     Selling,  general  and  administrative  ("SG&A")  expenses  for the  second
quarter of 2000 were  $2,737,000  (26.8% of net sales)  compared with $2,633,000
(25.8% of net sales) for the same period of 1999, an increase of $104,000.  SG&A
were  28.3% of net sales for the first six  months of 2000  versus  26.9% in the
same period of 1999.


   Income (Loss)

     Net income from  continuing  operations  for the second  quarter of 2000 is
$414,000,  or 12 cents per share (basic),  12 cents per share (diluted) compared
to a net income of  $125,000,  or 4 cents per share  (basic and diluted) for the
same period of 1999.  Net income from  continuing  operations  for the first six
months of 2000 was $621,000 versus a net loss of $417,000.

<PAGE 10>
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS-Continued

                     For the Six Months Ended June 30, 2000

Financial Condition

   Liquidity and Capital Resources

     The Company's  working capital,  current ratio and long term debt to equity
ratio follow:

                                         June 30, 2000        December 31, 1999
                                      ------------------     ------------------

   Working capital...................       $7,875,000            $6,956,481
   Current ratio.....................        1.72 to 1             1.81 to 1
   Long term debt to equity ratio....              .68                   .72



     During the first six months of 2000,  total debt  increased  by  $2,202,000
compared to total debt at December 31, 1999 as a result of seasonal demand.

     On January  19,  2000,  the  Company  entered  into a loan  agreement  (the
Agreement)  with a bank to refinance  debt.  Under the Agreement the Company may
borrow up to $11,500,000 through January 19, 2003 (the maturity date) based on a
formula which applies  specific  percentages to balances of accounts  receivable
and inventories.  Throughout 2000, the Company expects to have a minimum of $4.4
million  outstanding  under this arrangement.  Under the Agreement,  the Company
borrowed an  additional  $325,000  which is payable in monthly  installments  of
$5,417,  plus  interest,  from  February 1, 2000 through  November 1, 2002 and a
final  installment  of $140,822,  plus interest,  due December 1, 2002.  Amounts
outstanding  under the Agreement  bear interest at varying rates as provided for
in the  Agreement.  As of June 30, 2000,  the North  American  operations had $1
million in excess availability under this agreement.

     On August 7, 2000 the Company  entered into an interest  rate swap with the
bank  effectively  fixing the  interest  rate at 10.18% for $3.5 million of debt
through the Agreement's maturity date.

     Under a separate loan agreement with another bank which was amended January
19, 2000, the Company will repay $500,000, principal amount, of outstanding debt
at that date in monthly  installments  of  $13,889,  plus  interest at the prime
rate, as defined, plus 2.5%, from February 1, 2000 through January 1, 2003.

     The Company,  among other things,  is restricted with respect to dividends,
additional borrowings,  investments,  mergers,  distributions,  and property and
equipment  acquisitions.  Further,  the Company is required to maintain specific
amounts of  tangible  net worth,  as  defined,  from  January  19,  2000,  and a
specified debt service  coverage ratio, as defined,  and a fixed charge coverage
ratio,  as defined,  from March 31, 2000. The Company  believes these  financial
covenants will be met.

     Capital expenditures for the next 12 months are not expected to be material
and are  expected to be financed by cash  provided by investing  activities  and
future operating activities.


Safe Harbor for Forward-looking Statements

     Forward-looking  statements in this report,  including without  limitation,
statements related to the Company's plans, strategies, objectives, expectations,
intentions  and  adequacy  of  resources,  are made  pursuant to the safe harbor
provisions of the Private  Securities  litigation Reform Act of 1995.  Investors
are  cautioned   that  such   forward-looking   statements   involve  risks  and
uncertainties  including  without  limitation the  following:  (i) the Company's
plans, strategies, objectives, expectations and intentions are subject to change
at any time at the  discretion  of the  Company;  (ii) the  Company's  plans and
results of operations  will be affected by the  Company's  ability to manage its
growth and inventory; (iii) other risks and uncertainties indicated from time to
time in the Company's filings with the Securities and Exchange Commission.

<PAGE 11>
                           PART II. OTHER INFORMATION


Item 1 -- Legal Proceedings

     None.


Item 2 -- Changes in Securities

     None.


Item 3 -- Defaults Upon Senior Securities

     None.


Item 4 -- Submission of Matters to a Vote of Security Holders

     None.


Item 5 -- Other Information

     None.


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

     None.

<PAGE 12>
                                   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.



ACME UNITED CORPORATION

By          /s/ WALTER C. JOHNSEN
         ------------------------------
                Walter C. Johnsen
                 President and
             Chief Executive Officer

Dated:  August 11, 2000

By          /s/ RONALD P. DAVANZO
         ------------------------------
                Ronald P. Davanzo
               Vice President and
             Chief Financial Officer

Dated:  August 11, 2000