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 March 31, 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                                  (I.R.S. Employer
of 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 May 12, 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.............................................  11
     Item 2. Changes in Securities.........................................  11
     Item 3. Defaults Upon Senior Securities...............................  11
     Item 4. Submission of Matters to a Vote of Security Holders...........  11
     Item 5. Other Information.............................................  11
     Item 6. Exhibits and Reports on Form 8-K..............................  11
     Signatures............................................................  12

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

                             ACME UNITED CORPORATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                (all amounts in thousands, except per share data)
                                                                           March 31    December 31
                                                                             2000          1999
                                                                         ------------  -----------
<CAPTION>
<S>                                                                          <C>          <C>
ASSETS
Current Assets:
  Cash and cash equivalents                                                  $      -     $     88
  Accounts receivable, less allowance                                           7,020        6,702
  Inventories:
     Finished goods                                                             5,815        5,355
     Work in process                                                              871          649
     Raw materials and supplies                                                 2,155        2,294
                                                                           ----------    ---------
                                                                                8,841        8,298
  Prepaid expenses and other current assets                                       795          508
                                                                           ----------    ---------
          Total current assets                                                 16,657       15,596
                                                                           ----------    ---------
Property, plant and equipment:
  Land                                                                            182          191
  Buildings                                                                     1,938        2,048
  Machinery and equipment                                                       8,438        8,616
                                                                           ----------    ---------
                                                                               10,558       10,855
  Less accumulated depreciation                                                 6,781        6,869
                                                                           ----------    ---------
                                                                                3,777        3,986
Other assets                                                                      990          993
Goodwill, less accumulated amortization                                           188          193
                                                                           ----------    ---------
            Total assets                                                     $ 21,611     $ 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)

                                                                           March 31    December 31
                                                                             2000          1999
                                                                         ------------  -----------
<CAPTION>
<S>                                                                          <C>          <C>
LIABILITIES

Current Liabilities:
  Notes payable                                                              $    734     $    691
  Accounts payable                                                              2,664        2,763
  Other accrued liabilities                                                     3,193        3,154
  Current portion of long term debt                                             2,512        2,032
                                                                           ----------    ---------
      Total current liabilities                                                 9,103        8,640
  Long term debt, less current portion                                          5,178        5,012
  Other                                                                           192          197
                                                                           ----------    ---------
       Total liabilities                                                       14,473       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                                                    (2,005)      (2,212)
  Accumulated other comprehensive loss-translation adjustment                  (1,278)      (1,290)
  Treasury stock, at cost-105,007 shares                                         (648)        (648)
                                                                           ----------    ---------
      Total stockholders' equity                                                7,138        6,918
                                                                           ----------    ---------
        Total liabilities and stockholders' equity                           $ 21,611     $ 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
                                                                                      March 31
                                                                                --------------------
                                                                                  2000         1999
                                                                                --------     --------
<CAPTION>
<S>                                                                              <C>          <C>
Revenues:
  Net sales                                                                      $ 8,041      $ 7,911
  Other income                                                                        18          177
                                                                                --------     --------
      Total revenues                                                               8,059        8,088
                                                                                --------     --------
Costs and expenses:
  Cost of goods sold                                                               5,222        6,052
  Selling, general and administrative expenses                                     2,424        2,234
  Interest expense                                                                   206          358
                                                                                --------     --------
      Total expenses                                                               7,852        8,644
                                                                                --------     --------
Income (loss) from continuing operations before income taxes                         207         (556)
Income taxes                                                                           -          (14)
                                                                                --------     --------
Income (loss) from continuing operations                                             207         (542)
Discontinued operations:
  Gain on sale of discontinued operations                                              -        2,101
  Income from discontinued operations                                                  -          198
                                                                                --------     --------
                                                                                       -        2,299
                                                                                --------     --------
Net income                                                                           207        1,757
Other comprehensive income (expense) -
  foreign currency translation                                                        12          (71)
                                                                                --------     --------
Comprehensive income                                                             $   219      $ 1,686
                                                                                ========     ========
Earnings (loss)  per share:
  Continuing operations                                                          $  0.06      $ (0.16)
  Discontinued operations                                                              -         0.68
                                                                                --------     --------
  Net income                                                                     $  0.06      $  0.52
                                                                                ========     ========
Diluted earnings (loss) per share:
  Continuing operations                                                          $  0.06      $ (0.16)
  Discontinued operations                                                              -         0.68

  Net income                                                                     $  0.06      $  0.52
                                                                                ========     ========
Weighted average number of common shares outstanding-
  denominator used for per share computations                                      3,507        3,377
Weighted average number of dilutive stock options
  outstanding                                                                        183
                                                                                --------     --------
Denominator for diluted per share computation                                      3,690        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)
                                                                                Three Months Ended
                                                                                     March 31
                                                                               -------------------
                                                                                 2000         1999
                                                                              ---------    ---------
<CAPTION>
<S>                                                                             <C>          <C>
Operating Activities:
  Net income                                                                    $   207      $ 1,757
  Adjustments to reconcile net income
      to net cash provided (used) by operating activities:
    Gain on sale of discontinued operations                                           -       (2,101)
    Depreciation                                                                    208          236
    Amortization                                                                      5            3
    Gain on disposal of property, plant, and equipment                              (12)           -

Changes in operating assets and liabilities:
  Accounts receivable                                                              (318)        (624)
  Inventories                                                                      (543)       1,743
  Prepaid expenses and other current assets                                        (287)         140
  Other assets                                                                        3          (14)
  Accounts payable                                                                  (99)        (800)
  Other accrued liabilities                                                          39       (1,209)
                                                                             ----------    ---------
      Net cash used by operating activities                                        (796)        (869)
                                                                             ----------    ---------
Investing Activities:
  Capital expenditures                                                              (70)        (242)
  Proceeds from sale of property, plant, and equipment                               60            -
  Proceeds from sale of medical division                                              -        7,156
                                                                             ----------    ---------
      Net cash (used) provided by investing activities                              (10)       6,914
                                                                             ----------    ---------
Financing Activities:
  Net proceeds (payments) on short term borrowing arrangements                    1,262       (7,321)
  Borrowings of long term debt                                                      325        1,786
  Payments of long term debt                                                       (870)           -
                                                                             ----------    ---------
      Net cash provided (used) by financing activities                              717       (5,535)
                                                                             ----------    ---------
Effect of exchange rate changes on cash                                               1           (1)
                                                                             ----------    ---------
Net change in cash and cash equivalents                                             (88)         509

Cash and cash equivalents at beginning of period                                     88           40
                                                                             ----------    ---------
Cash and cash equivalents at end of period                                      $    (0)     $   549
                                                                             ==========    =========
            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 months ended March 31,2000 are not  necessarily  indicative of the results
to be expected for the full year.

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
three months ended March 31, 1999 relating to the medical business follows:

               Net sales                $ 2,101,000
               Costs and expenses         1,903,000
                                        -----------
               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 $734,000 is
outstanding at March 31, 2000.

     Long term debt consisted of the following:

          (all amounts in thousands)
                                                   March 31         December 31
                                                     2000              1999
                                                 ------------       -----------
    Notes payable:
      U.S. and Canada arrangements...........       $  6,795          $  5,225
      Other..................................            895             1,819
                                                   ----------        ----------
                                                       7,691             7,044
    Less current portion                               2,512             2,032
                                                   ----------        ----------
                                                    $  5,178          $  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.

    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%,  commencing  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,  commencing  January 19, 2000, and a
specified debt service  coverage ratio, as defined,  and a fixed charge coverage
ratio, as defined, commencing March 31, 2000. The Company was in compliance with
all covenants as of March 31, 2000 and believes these  financial  covenants will
be met for the remainder of the term of the loan.

    Cash  generated  from operating  activities,  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 Three Months Ended March 31, 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  March 31,  2000 were  $8,041,000
compared with $7,911,000 for 1999, or 2% higher.  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  March 31,  1999 of  $341,000  has been
reclassified to conform with the current period presentation.

     Domestic  sales  increased 6% to $5,319,000.  Sales to all major  customers
were ahead of last year's levels and enhanced  inventory  management reduced the
backlog  from  $569,000  in 1999 to  $85,000  in 2000  which  added to the sales
growth.

     International  sales  were 7% below 1999  levels.  Strong  sales  growth in
England  was more than  offset by  weakness  in Canada  and  Germany.  A product
rationalization  of low margin  products were the main reason for the decline in
Canada. Also adding to the reduction in sales was a 9% negative foreign exchange
decline in the German Mark.

   Gross Profit

     The gross profit for the first quarter of 2000 was  $2,819,000  (35% of net
sales)  compared to $1,859,000 (23% of net sales) for the first quarter 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 first quarter
of 2000 were $2,424,000  (30.1% of net sales) compared with $2,234,000 (28.2% of
net sales) for the same period of 1999, an increase of $189,000.

   Net Income (Loss)

     Net income  from  continuing  operations  for the first  quarter of 2000 is
$207,000,  or 6 cents per share  (basic and  diluted)  compared to a net loss of
$542,000,  or 16 cents per share (basic and  diluted).  Net income for the first
quarter of 1999 was  $1,757,000 or 52 cents per share (basic and  diluted).  The
first  quarter of 1999  included a  $2,101,000  gain on the sale of the  medical
business.

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

                    For the Three Months Ended March 31, 2000

Financial Condition

   Liquidity and Capital Resources

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

                                           March 31, 2000      December 31, 1999
                                       ------------------     ------------------

  Working capital.....................       $7,554,000             $6,956,481
  Current ratio.......................        1.83 to 1              1.81 to 1
  Long-term debt to equity ratio......              .73                    .72


     During the first three  months of 2000,  total debt  increased  by $653,000
compared to total debt at December 31, 1999.

    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.

    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%,  commencing  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,  commencing  January 19, 2000, and a
specified debt service  coverage ratio, as defined,  and a fixed charge coverage
ratio,  as  defined,  commencing  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

A.   The Annual Meeting was held on April 24, 2000.

B.   The  following  individuals  were  elected  Directors  at the  Meeting  and
     comprise the entire Board.

                                Votes for      Votes against     Votes withheld
                                ---------      -------------     --------------
    George R. Dunbar            2,763,328      151,821           591,906

    Richard Y. Holden, Jr.      2,763,468      151,681           591,906

    Walter C. Johnsen           2,813,402      101,747           591,906

    Wayne R. Moore              2,763,394      151,755           591,906

    Brian Olschan               2,763,468      151,681           591,906

    Gary D. Penisten            2,813,394      101,755           591,906

C.   An amendment to the Employee Stock Option Plan was approved.

                                Votes for      Votes against     Votes withheld
                                ---------      -------------     --------------
                                2,520,007      111,786           875,262


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:  May 12, 2000

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

Dated:  May 12, 2000