----

| Part I -      Financial Information:           | Page      No.       |
|-----------------------------------------------------|---------------------|
|                                                |                |   |   |
|                                                | Item 1      – | Financial      Statements |   |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Balance Sheets – September 30,      2008 and December 31, 2007 | 3 |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Statements of Operations –Nine and Three Months Ended      September 30, 2008 and 2007 | 4 |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Statements of Cash Flows –Nine Months Ended September 30,      2008 and 2007 | 5 |
|                                                |                |   |   |
|                                                |                | Notes to      Condensed Consolidated Financial Statements | 6 |
|                                                |                |   |   |
|                                                | Item 2      -       | Management's      Discussion and Analysis of Financial Condition and Results of      Operations | 18 |
|                                                |                |   |   |
|                                                | Item 3      -       | Quantitative      and Qualitative Disclosures About Market Risk | 21 |
|                                                |                |   |   |
|                                                | Item 4      – | Controls and      Procedures | 22 |
|                                                |                |   |   |
|  Part II –      Other Information:  |                |

|   | Item 1      -      | Legal      Proceedings | 23     |
|--------|--------------------|------------------------|--------|
|   |               |                   |   |
|   | Item 1A      -     | Risk      Factors      | 23     |
|   |               |                   |   |
|   | Item      5        | Other      Information | 23     |
|   |               |                   |   |
|   | Item 6      -      | Exhibits               | 23     |
|   |               |                   |   |
|   | Signatures         |                   | 25     |
|   |               |                   |   |
|   | Exhibit      Index |                   | 26     |
|   |               |                   |   |
|   | Exhibits           |                   |   |
|   |               |                   |   |
|   |               | Exhibit      31.1      |   |
|   |               | Exhibit      31.2      |   |
|   |               | Exhibit      32.1      |   |
|   |               | Exhibit      32.2      |   |
|   |               |                   |   |

----

|                                                 |   | September      30,     |        | December      31, |   |
|------------------------------------------------------|--------|------------------------|-------------|-------------------|--------|
|                                                 |   |    2008 |        |        2007  |   |
| Assets                                               |   |                   |        |              |   |
| Current      assets:                                 |   |                   |        |              |   |
| Cash and cash      equivalents                       |   | $                      | 26,615,134  |              | $      | 71,626,379 |   |
| Short-term      marketable securities                |   |                   | 53,837,495  |              |   | - |   |
| Receivables,      less allowance for                 |   |                   |        |              |   |   |   |
|  doubtful      accounts of $152,382 in          |   |                   |        |              |   |   |   |
|  2008      and $285,223 in 2007                 |   |                   | 70,732,120  |              |   | 59,932,808 |   |
| Inventories                                          |   |                   | 67,661,975  |              |   | 69,228,312 |   |
| Insurance      receivable – asbestos           |   |                   | 11,000,000  |              |   | 10,000,000 |   |
| Other current      assets                            |   |                   | 15,053,627  |              |   | 17,263,397 |   |
| Total current      assets                            |   |                   | 244,900,351 |              |   | 228,050,896 |   |
|                                                 |   |                   |        |              |   |   |   |
| Property,      plant and equipment, net              |   |                   | 84,956,855  |              |   | 75,101,225 |   |
| Insurance      receivable - asbestos                 |   |                   | 74,971,154  |              |   | 84,547,965 |   |
| Investment in      joint ventures                    |   |                   | 6,690,848   |              |   | 4,206,149 |   |
| Deferred tax      assets                             |   |                   | -           |              |   | 2,195,953 |   |
| Prepaid      pensions                                |   |                   | 2,262,903   |              |   | 1,701,839 |   |
| Goodwill                                             |   |                   | 2,694,240   |              |   | 2,694,240 |   |
| Other      noncurrent assets                         |   |                   | 5,940,590   |              |   | 5,893,877 |   |
|                                                 |   | $                      | 422,416,941 |              | $      | 404,392,144 |   |
| Liabilities      and Shareholders' Equity            |   |                   |        |              |   |   |   |
| Current      liabilities:                            |   |                   |        |              |   |   |   |
| Accounts      payable                                |   | $                      | 21,682,866  |              | $      | 19,418,106 |   |
| Accrued      payrolls and employee benefits          |   |                   | 12,838,350  |              |   | 12,968,395 |   |
| Industrial      Revenue Bond debt                    |   |                   | 13,311,000  |              |   | 13,311,000 |   |
| Asbestos      liability – current portion      |   |                   | 17,000,000  |              |   | 20,000,000 |   |
| Other current      liabilities                       |   |                   | 28,994,806  |              |   | 25,448,981 |   |
| Total current      liabilities                       |   |                   | 93,827,022  |              |   | 91,146,482 |   |
| Employee      benefit obligations                    |   |                   | 18,125,432  |              |   | 19,721,794 |   |
| Asbestos      liability                              |   |                   | 90,978,431  |              |   | 99,722,526 |   |
| Deferred tax      liabilities                        |   |                   | 1,573,425   |              |   | - |   |
| Other      noncurrent liabilities                    |   |                   | 3,184,248   |              |   | 6,070,852 |   |
| Total      liabilities                               |   |                   | 207,688,558 |              |   | 216,661,654 |   |
|                                                 |   |                   |        |              |   |   |   |
| Commitments      and contingent liabilities          |   |                   |        |              |   |   |   |
| (Note      6)                                        |   |                   |        |              |   |   |   |
|                                                 |   |                   |        |              |   |   |   |
| Shareholders'      equity:                           |   |                   |        |              |   |   |   |
| Preference      stock - no par value;                |   |                   |        |              |   |   |   |
|  authorized      3,000,000 shares; none issued  |   |                   | -           |              |   | - |   |
| Common stock      - par value $1; authorized         |   |                   |        |              |   |   |   |
|  20,000,000      shares; issued and outstanding |   |                   |        |              |   |   |   |
|  10,177,497      shares in 2008 and 2007        |   |                   | 10,177,497  |              |   | 10,177,497 |   |
| Additional      paid-in capital                      |   |                   | 113,176,296 |              |   | 111,897,093 |   |
| Retained      earnings                               |   |                   | 119,462,981 |              |   | 91,232,890 |   |
| Accumulated      other comprehensive loss            |   |                   | (28,088,391 |              |   | (25,576,990 | ) |
| Total      shareholders' equity                      |   |                   | 214,728,383 |              |   | 187,730,490 |   |
|                                                 |   | $                      | 422,416,941 |              | $      | 404,392,144 |   |
|                                                 |   |                   |        |              |   |   |   |

----

|                                      |   | Nine Months      Ended September 30, |        |   | Three Months Ended September 30, |   |
|-------------------------------------------|--------|--------------------------------------|-------------|--------|---------------------------------------|--------|
|                                      |   | 2008                                 |        |   | 2007                                  |   |   |   2008  |   |   |   2007  |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |
| Net      sales                            |   | $                                    | 306,425,474 |   |                                  | $      | 263,640,134 |   |   | $ | 105,906,219 |   |   | $ | 87,159,691 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses:        |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|  Costs      of products sold         |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| (excluding      depreciation)             |   |                                 | 218,592,931 |   |                                  |   | 185,257,745 |   |   |   | 76,160,867 |   |   |   | 61,309,784 |   |
|  Selling      and administrative     |   |                                 | 32,364,008  |   |                                  |   | 29,843,338 |   |   |   | 11,432,512 |   |   |   | 10,063,857 |   |
|  Depreciation                        |   |                                 | 5,427,038   |   |                                  |   | 5,097,501 |   |   |   | 1,758,635 |   |   |   | 1,580,417 |   |
|  Gain on      disposition of assets  |   |                                 | (92,559     | )      |                                  |   | (33,342 | ) |   |   | (8,291 | ) |   |   | (348 | ) |
|   Total      operating expenses |   |                                 | 256,291,418 |   |                                  |   | 220,165,242 |   |   |   | 89,343,723 |   |   |   | 72,953,710 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income from      operations               |   |                                 | 50,134,056  |   |                                  |   | 43,474,892 |   |   |   | 16,562,496 |   |   |   | 14,205,981 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Other income      (expense):              |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Investment-related      income            |   |                                 | 1,419,350   |   |                                  |   | 1,215,920 |   |   |   | 224,309 |   |   |   | 257,675 |   |
| Interest      expense                     |   |                                 | (369,770    | )      |                                  |   | (551,462 | ) |   |   | (121,911 | ) |   |   | (190,024 | ) |
| Other –      net                    |   |                                 | (429,697    | )      |                                  |   | (993,434 | ) |   |   | 765,754 |   |   |   | (348,002 | ) |
|                                      |   |                                 | 619,883     |   |                                  |   | (328,976 | ) |   |   | 868,152 |   |   |   | (280,351 | ) |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Income before      income taxes           |   |                                 | 50,753,939  |   |                                  |   | 43,145,916 |   |   |   | 17,430,648 |   |   |   | 13,925,630 |   |
| Income tax      provision                 |   |                                 | 17,028,000  |   |                                  |   | 14,105,000 |   |   |   | 5,457,000 |   |   |   | 4,527,000 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                           |   | $                                    | 33,725,939  |   |                                  | $      | 29,040,916 |   |   | $ | 11,973,648 |   |   | $ | 9,398,630 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net income      per common share:         |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|  Basic                               |   | $                                    | 3.31        |   |                                  | $      | 2.90 |   |   | $ | 1.18 |   |   | $ | 0.92 |   |
|  Diluted                             |   | $                                    | 3.31        |   |                                  | $      | 2.88 |   |   | $ | 1.18 |   |   | $ | 0.92 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared              |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|  per      share                      |   | $                                    | 0.54        |   |                                  | $      | 0.45 |   |   | $ | 0.18 |   |   | $ | 0.15 |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                      |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Weighted      average number of           |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|  common      shares outstanding:     |   |                                 |        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                         |   |                                 | 10,177,497  |   |                                  |   | 10,002,292 |   |   |   | 10,177,497 |   |   |   | 10,177,497 |   |
|   Diluted                       |   |                                 | 10,179,769  |   |                                  |   | 10,084,271 |   |   |   | 10,179,735 |   |   |   | 10,179,788 |   |

----

|                                                  |   | Nine      MonthsEnded      September 30, |        |
|-------------------------------------------------------|--------|------------------------------------------|-------------|
|                                                  |   | 2008                                     |        |   | 2007 |   |
|                                                  |   |                                     |        |   |   |   |
| Net cash      flows provided by operating activities  |   | $                                        | 34,403,823  |   |   | $ | 28,356,849 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Cash flows      from investing activities:            |   |                                     |        |   |   |   |   |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Purchases of      property, plant and equipment       |   |                                     | (16,703,433 | ) |   |   | (6,400,030 | ) |
| Purchases of      short-term marketable securities    |   |                                     | (68,168,522 | ) |   |   | (54,006,962 | ) |
| Sales of      short-term marketable securities        |   |                                     | 15,000,000  |   |   |   | - |   |
| Investment in      Chinese joint venture              |   |                                     | (2,940,000  | ) |   |   | - |   |
| Purchases of      long-term marketable securities     |   |                                     | (785,209    | ) |   |   | (1,805,618 | ) |
| Sales of      long-term marketable securities         |   |                                     | 667,325     |   |   |   | 1,722,500 |   |
| Other                                                 |   |                                     | 106,632     |   |   |   | (156,582 | ) |
|                                                  |   |                                     |        |   |   |   |   |   |
| Net cash      flows used in investing activities      |   |                                     | (72,823,207 | ) |   |   | (60,646,692 | ) |
|                                                  |   |                                     |        |   |   |   |   |   |
| Cash flows      from financing activities:            |   |                                     |        |   |   |   |   |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Dividends      paid                                   |   |                                     | (5,190,524  | ) |   |   | (3,987,124 | ) |
| Proceeds from      the issuance of common stock       |   |                                     | -           |   |   |   | 3,625,809 |   |
| Excess tax      benefits from the exercise of stock   |   |                                     |        |   |   |   |   |   |
|  options                                         |   |                                     | -           |   |   |   | 429,660 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Net cash      flows (used in) provided by             |   |                                     |        |   |   |   |   |   |
|  financing      activities                       |   |                                     | (5,190,524  | ) |   |   | 68,345 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Effect of      exchange rate changes on cash          |   |                                     |        |   |   |   |   |   |
| and cash      equivalents                             |   |                                     | (1,401,337  | ) |   |   | 294,619 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Net decrease      in cash and cash equivalents        |   |                                     | (45,011,245 | ) |   |   | (31,926,879 | ) |
|                                                  |   |                                     |        |   |   |   |   |   |
| Cash and cash      equivalents at beginning of period |   |                                     | 71,626,379  |   |   |   | 56,083,870 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Cash and cash      equivalents at end of period       |   | $                                        | 26,615,134  |   |   | $ | 24,156,991 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Supplemental      information:                        |   |                                     |        |   |   |   |   |   |
|  Income      tax payments                        |   | $                                        | 9,978,896   |   |   | $ | 9,535,693 |   |
|  Interest      payments                          |   | $                                        | 373,221     |   |   | $ | 556,052 |   |
|                                                  |   |                                     |        |   |   |   |   |   |
| Non-cash      investing activities:                   |   |                                     |        |   |   |   |   |   |
|  Appreciation      of short-term marketable      |   |                                     |        |   |   |   |   |   |
|   securities                                |   | $                                        | 668,973     |   |   | $ | 1,519,002 |   |
|  Purchases      of property, plant and equipment |   |                                     |        |   |   |   |   |   |
|   included      in accounts payable         |   | $                                        | 1,377,432   |   |   | $ | - |   |
|                                                  |   |                                     |        |   |   |   |   |   |

----

| 1. | Unaudited Condensed      Consolidated FinancialStatements |
|----|-----------------------------------------------------------|

----

|  2. |  Inventories |
|----------|-------------------|

|                |   | (in      thousands) |   |
|---------------------|--------|---------------------|--------|
|                |   | September      30,  |   | December      31, |   |
|                |   | 2008                |   |        2007   |   |
|                |   |                |   |   |   |
| Raw      materials  |   | $                   | 14,150 |   | $ | 14,197 |   |
| Work-in-process     |   |                | 34,911 |   |   | 35,924 |   |
| Finished      goods |   |                | 9,078  |   |   | 10,486 |   |
| Supplies            |   |                | 9,523  |   |   | 8,621 |   |
|                |   | $                   | 67,662 |   | $ | 69,228 |   |

|   | Property,      plant and equipment were comprised of the  following: |
|--------|----------------------------------------------------------------------|

|                            |   | (in      thousands) |     |
|---------------------------------|--------|---------------------|----------|
|                            |   | September      30,  |     | December      31, |   |
|                            |   | 2008                |     |        2007   |   |
|                            |   |                |     |   |   |
| Land and land      improvements |   | $                   | 4,728    |   | $ | 4,507 |   |
| Buildings                       |   |                | 30,862   |   |   | 27,371 |   |
| Machinery and      equipment    |   |                | 145,547  |   |   | 142,258 |   |
| Construction-in-progress        |   |                | 13,820   |   |   | 6,459 |   |
| Other                           |   |                | 7,379    |   |   | 7,074 |   |
|                            |   |                | 202,336  |   |   | 187,669 |   |
| Accumulated      depreciation   |   |                | (117,379 | ) |   | (112,568 | ) |
|                            |   | $                   | 84,957   |   | $ | 75,101 |   |

| 4. | Other Current Liabilities |
|----|---------------------------|

|                              |   | (in      thousands)     |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | September      30,      |   | December      31, |   |
|                              |   |        2008   |   |        2007   |   |
|                              |   |                    |   |   |   |
| Customer-related      liabilities |   | $                       | 8,234  |   | $ | 9,248 |   |
| Accrued      income taxes         |   |                    | 4,244  |   |   | 819 |   |
| Foreign      exchange contracts   |   |                    | 4,044  |   |   | 4,832 |   |
| Accrued sales      commissions    |   |                    | 3,762  |   |   | 3,161 |   |
| Other                             |   |                    | 8,711  |   |   | 7,389 |   |
|                              |   | $                       | 28,995 |   | $ | 25,449 |   |

----

|                                    |   | (in      thousands)      |   |
|-----------------------------------------|--------|--------------------------|--------|
|                                    |   | Nine      Months         |   |   | Three      Months |   |
|                                    |   | Ended      September 30, |   |   | Ended      September 30, |   |
|                                    |   | 2008                     |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                    |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance at      beginning of the period |   | $                        | 6,156  |   |   | $ | 5,567 |   |   | $ | 5,768 |   |   | $ | 6,779 |   |
| Satisfaction      of warranty claims    |   |                     | (3,150 | ) |   |   | (2,115 | ) |   |   | (1,195 | ) |   |   | (870 | ) |
| Provision for      warranty claims      |   |                     | 2,490  |   |   |   | 2,913 |   |   |   | 919 |   |   |   | 548 |   |
| Other,      primarily impact from       |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  changes      in foreign currency  |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  exchange      rates               |   |                     | (333   | ) |   |   | 147 |   |   |   | (329 | ) |   |   | 55 |   |
| Balance at      end of the period       |   | $                        | 5,163  |   |   | $ | 6,512 |   |   | $ | 5,163 |   |   | $ | 6,512 |   |

|                                                            |
|------------------------------------------------------------|
|                                                       |   | (in      thousands) |   |
|                                                       |   |        2008 |   |   |        2007 |   |
|                                                       |   |   |   |   |   |   |
| U.S. pension      defined benefits plans                   |   | $ | - |   |   | $ | - |   |
| U.K. pension      defined benefits plan                    |   | $ | 1,352 |   |   | $ | 1,326 |   |
| Other      postretirement benefits(e.g. net      payments) |   | $ | 439 |   |   | $ | 499 |   |
| U.K. defined      contribution plan                        |   | $ | 382 |   |   | $ | 362 |   |
|                                                       |   |   |   |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |

|                                |   | (in      thousands)        |
|-------------------------------------|--------|----------------------------|
|                                |   | U.S. Pension      Benefits |
|                                |   | Nine      Months           |   |   | Three      Months |
|                                |   | Ended      September 30,   |   |   | Ended      September 30, |
|                                |   | 2008                       |   |   |  2007 |   |   | 2008       2007 |   |   |
|                                |   |                       |   |   |   |   |   |   |   |   |
| Service      cost                   |   | $                          | 1,978 |   |   | $ | 1,980 |   |   | $ | 634 |   | $ | 641 |   |
| Interest      cost                  |   |                       | 5,949 |   |   |   | 5,755 |   |   |   | 1,989 |   |   | 1,971 |   |
| Expected      return on plan assets |   |                       | (8,403 | ) |   |   | (8,723 | ) |   |   | (2,798 | ) |   | (2,901 | ) |
| Amortization      of:               |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Prior      service cost       |   |                       | 488 |   |   |   | 481 |   |   |   | 164 |   |   | 161 |   |
|  Actuarial      gain           |   |                       | (98 | ) |   |   | (86 | ) |   |   | (33 | ) |   | (18 | ) |
| Net benefit      income             |   | $                          | (86 | ) |   | $ | (593 | ) |   | $ | (44 | ) | $ | (146 | ) |

----

|                                |   | (in      thousands)        |   |
|-------------------------------------|--------|----------------------------|--------|
|                                |   | U.K. Pension      Benefits |   |
|                                |   | Nine      Months           |   |   | Three      Months |   |
|                                |   | Ended      September 30,   |   |   | Ended      September 30, |   |
|                                |   | 2008                       |   |   |  2007 |   |   | 2008 |   |   |  2007 |   |
|                                |   |                       |   |   |   |   |   |   |   |   |   |   |
| Interest      cost                  |   | $                          | 1,944  |   |   | $ | 2,023 |   |   | $ | 624 |   |   | $ | 685 |   |
| Expected      return on plan assets |   |                       | (2,061 | ) |   |   | (1,990 | ) |   |   | (661 | ) |   |   | (674 | ) |
| Amortization      of actuarial loss |   |                       | 230    |   |   |   | 351 |   |   |   | 73 |   |   |   | 119 |   |
| Net benefit      cost               |   | $                          | 113    |   |   | $ | 384 |   |   | $ | 36 |   |   | $ | 130 |   |

|                             |   | (in      thousands)                |
|----------------------------------|--------|------------------------------------|
|                             |   | Other      Postretirement Benefits |
|                             |   | Nine      Months                   |   |   | Three      Months |
|                             |   | Ended      September 30,           |   |   | Ended      September 30, |
|                             |   | 2008                               |   |   | 2007 |   |   | 2008 |   | 2007 |
|                             |   |                               |   |   |   |   |   |   |   |   |   |   |
| Service      cost                |   | $                                  | 304 |   |   | $ | 300 |   |   | $ | 101 |   | $ | 103 |   |
| Interest      cost               |   |                               | 589 |   |   |   | 568 |   |   |   | 196 |   |   | 151 |   |
| Amortization      of:            |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Prior      service cost    |   |                               | 51 |   |   |   | 26 |   |   |   | 17 |   |   | 8 |   |
|  Actuarial      loss (gain) |   |                               | 42 |   |   |   | 76 |   |   |   | 14 |   |   | (1 | ) |
| Net benefit      cost            |   | $                                  | 986 |   |   | $ | 970 |   |   | $ | 328 |   | $ | 261 |   |

| 6. | Commitments and      Contingent Liabilities |
|----|---------------------------------------------|

----

|                                         |   | (in      thousands)      |   |
|----------------------------------------------|--------|--------------------------|--------|
|                                         |   | Nine      Months         |   |   | Three      Months |   |
|                                         |   | Ended      September 30, |   |   | Ended      September 30, |   |
|                                         |   | 2008                     |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                         |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net      income                              |   | $                        | 33,726 |   |   | $ | 29,041 |   |   | $ | 11,974 |   |   | $ | 9,399 |   |
| Foreign      currency translation            |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustments                            |   |                     | (5,143 | ) |   |   | 672 |   |   |   | (5,398 | ) |   |   | (508 | ) |
| Unrecognized      components of              |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  employee      benefit plans            |   |                     | 452    |   |   |   | 566 |   |   |   | 140 |   |   |   | 188 |   |
| Unrealized      holding gains                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  (losses)      on marketable securities |   |                     | 209    |   |   |   | 1,020 |   |   |   | (63 | ) |   |   | 358 |   |
| Change in the      fair value                |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  of      derivatives (cash flow hedges) |   |                     | 1,971  |   |   |   | (1,108 | ) |   |   | 2,605 |   |   |   | (791 | ) |
| Comprehensive      income                    |   | $                        | 31,215 |   |   | $ | 30,191 |   |   | $ | 9,258 |   |   | $ | 8,646 |   |

----

----

|                                  |   | (in      thousands) |   |
|---------------------------------------|--------|---------------------|--------|
|                                  |   | Level 1             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Investments                           |   |                |   |   |   |   |   |   |   |   |   |   |
| Short-term      marketable securities |   | $                   | -      |   |   | $ | 53,837 |   |   | $ | - |   |   | $ | 53,837 |   |
| Other      noncurrent assets          |   |                | 2,566  |   |   |   | - |   |   |   | - |   |   |   | 2,566 |   |
| Foreign      currency contracts       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other current      assets             |   |                | -      |   |   |   | 2,280 |   |   |   | - |   |   |   | 2,280 |   |
| Other      noncurrent assets          |   |                | -      |   |   |   | 1,071 |   |   |   | - |   |   |   | 1,071 |   |
| Other current      liabilities        |   |                | -      |   |   |   | 4,044 |   |   |   | - |   |   |   | 4,044 |   |
| Other      noncurrent liabilities     |   |                | -      |   |   |   | 989 |   |   |   | - |   |   |   | 989 |   |

|                                               |   | (in      thousands)      |    |
|----------------------------------------------------|--------|--------------------------|---------|
|                                               |   | Nine      Months         |    |   | Three      Months |   |
|                                               |   | Ended      September 30, |    |   | Ended      September 30, |   |
|                                               |   | 2008                     |    |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                               |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net      Sales:                                    |   |                     |    |   |   |   |   |   |   |   |   |   |
|  Forged      and Cast Rolls                   |   | $                        | 223,053 |   |   | $ | 185,010 |   |   | $ | 80,059 |   |   | $ | 61,251 |   |
|  Air and      Liquid Processing               |   |                     | 83,372  |   |   |   | 78,630 |   |   |   | 25,847 |   |   |   | 25,909 |   |
|   Total      Reportable Segments         |   | $                        | 306,425 |   |   | $ | 263,640 |   |   | $ | 105,906 |   |   | $ | 87,160 |   |
|                                               |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before      income taxes:                   |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Forged      and Cast Rolls                   |   | $                        | 49,426  |   |   | $ | 41,345 |   |   | $ | 17,834 |   |   | $ | 13,222 |   |
|  Air and      Liquid Processing               |   |                     | 7,286   |   |   |   | 6,925 |   |   |   | 1,910 |   |   |   | 2,629 |   |
|   Total      Reportable Segments         |   |                     | 56,712  |   |   |   | 48,270 |   |   |   | 19,744 |   |   |   | 15,851 |   |
|   Other      expense, including          |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    corporate      costs – net |   |                     | (5,958  | ) |   |   | (5,124 | ) |   |   | (2,313 | ) |   |   | (1,925 | ) |
|                                               |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total                                        |   | $                        | 50,754  |   |   | $ | 43,146 |   |   | $ | 17,431 |   |   | $ | 13,926 |   |
|                                               |   |                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Approximate      open claims at end of period            | 9,372   | (1) |
|----------------------------------------------------------|---------|-----|
| Gross      settlement and defense costs (in 000’s) | $12,659 |
| Approximate      claims settled or dismissed             | 728     |
|                                                     |    |

|   | (1) Included      as “open claims” are approximately 3,255 claims classified in various      jurisdictions as “inactive” or transferred to a state or federal judicial      panel on multi-district litigation, commonly referred to as the      MDL. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | HR&A’s      interpretation of a widely accepted forecast of the population likely to      have been exposed to asbestos; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | epidemiological      studies estimating the number of people likely to develop asbestos-related      diseases; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | HR&A’s      analysis of the number of people likely to file an asbestos-related injury      claim against the subsidiaries and the Corporation based on such      epidemiological data and relevant claims history from January 1, 2004      through August 31, 2006; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an analysis      of pending cases, by type of injury claimed and jurisdiction where the      claim is filed; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | an analysis      of claims resolution history from January 1, 2004 through August 31, 2006      to determine the average settlement value of claims, by type of injury      claimed and jurisdiction of filing;and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | an adjustment      for inflation in the future average settlement value of claims, at an      annual inflation rate based on the Congressional Budget Office’s ten year      forecast of inflation. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| ITEM 2 - MANAGEMENT'S      DISCUSSION AND ANALYSIS OF |
|-------------------------------------------------------|

| FINANCIAL CONDITION      AND RESULTS OF OPERATIONS |
|----------------------------------------------------|

----

| ·   | Investment-related      income increased for the nine months ended September 30, 2008 primarily      due to receipt of a larger dividend from the Corporation’s Chinese      cast-roll joint venture in each of the second quarters.  The      dividend approximated $800,000 in 2008 versus $540,000 in 2007. The      reduction in investment-related income for the three months ended      September 30, 2008 is attributable to the general decline in interest      rates. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Interest      expense decreased for each of the periods due to lower average interest      rates incurred on the outstanding Industrial Revenue  Bonds. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other-net      includes approximately $960,000 of income resulting the reduction in the      accrual for environmental remediation of a previously sold location offset      by higher foreign exchange losses in 2008 when compared to      2007. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ITEM 3 – QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET  RISK |
|---------------------------------------------------------------------------------|

----

| ITEM 4 – CONTROLS AND      PROCEDURES |
|---------------------------------------------|

| - 22      - |
|-------------|

----

|   | PART II - OTHER      INFORMATION |
|--------|----------------------------------|

|   | (a) | Articles of      Incorporation |
|--------|-----|--------------------------------|

|   | (b) | By-laws |
|--------|-----|---------|

|   | (a) | 2008 Omnibus      Incentive Plan |
|--------|-----|----------------------------------|

----

| (31.1) | Certification      of the principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|--------|----------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                 |
| (31.2) | Certification      of the principal financial officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |

| (32.1) | Certification      of principal executive officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |
|--------|------------------------------------------------------------------------------------------------------------------|

| (32.2) | Certification      of principal financial officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |
|--------|------------------------------------------------------------------------------------------------------------------|

----

|                                   |                                                                                                                                                                            |
|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   | AMPCO-PITTSBURGH      CORPORATION                                                                                                                                               |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
| DATE:  November 7,      2008 | BY:  s/Robert A.      Paul                              |
|                                   | Robert A.      Paul                                                                                                                                                             |
|                                   | Chairman      and                                                                                                                                                               |
|                                   |   Chief      Executive Officer                                                                                                                                        |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
| DATE:  November 7,      2008 | BY:  s/Marliss D.      Johnson                                                   |
|                                   | Marliss D.      Johnson                                                                                                                                                         |
|                                   | Vice      President                                                                                                                                                             |
|                                   |   Controller      and Treasurer                                                                                                                                       |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |
|                                   |                                                                                                                                                                            |

----

| Exhibit | (31.1) | Certification      of principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|---------|--------|------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                             |
|    | (31.2) | Certification      of principal financial officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002 |
|    |   |                                                                                                             |
| Exhibit | (32.1) | Certification      of principal executive officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |
|    |   |                                                                                                             |
|    | (32.2) | Certification      of principal financial officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002 |
|    |   |                                                                                                             |