----

| Part I -      Financial Information:           | Page      No.       |
|-----------------------------------------------------|---------------------|
|                                                |                |   |   |
|                                                | Item 1      – | Condensed      Consolidated Financial Statements |   |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Balance Sheets –June 30, 2008      and December 31, 2007 | 3 |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Statements of Operations –Six and Three Months Ended June 30,      2008 and 2007 | 4 |
|                                                |                |   |   |
|                                                |                | Condensed      Consolidated Statements of Cash Flows –Six Months Ended June 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 | 16 |
|                                                |                |   |   |
|                                                | Item 3      -       | Quantitative      and Qualitative Disclosures about Market Risk | 19 |
|                                                |                |   |   |
|                                                | Item 4      – | Controls and      Procedures | 19 |
|                                                |                |   |   |
|  Part II –      Other Information:  |                |

|   | Item 1      -      | Legal      Proceedings                                   | 20     |
|--------|--------------------|----------------------------------------------------------|--------|
|   |               |                                                     |   |
|   | Item 1A      -     | Risk      Factors                                        | 20     |
|   |               |                                                     |   |
|   | Item      4        | Submission of      Matters to a Vote of Security Holders | 20     |
|   |               |                                                     |   |
|   | Item 6      -      | Exhibits                                                 | 20     |
|   |               |                                                     |   |
|   | Signatures         |                                                     | 22     |
|   |               |                                                     |   |
|   | Exhibit      Index |                                                     | 23     |
|   |               |                                                     |   |
|   | Exhibits           |                                                     |   |
|   |               |                                                     |   |
|   |               | Exhibit      31.1                                        |   |
|   |               | Exhibit      31.2                                        |   |
|   |               | Exhibit      32.1                                        |   |
|   |               | Exhibit      32.2                                        |   |
|   |               |                                                     |   |

----

|                                                 |   | June      30, |        | December      31, |   |
|------------------------------------------------------|--------|---------------|-------------|-------------------|--------|
|                                                 |   |  2008    |        |        2007  |   |
| Assets                                               |   |          |        |              |   |
| Current      assets:                                 |   |          |        |              |   |
| Cash and cash      equivalents                       |   | $             | 19,139,567  |              | $      | 71,626,379 |   |
| Short-term      marketable securities                |   |          | 51,080,121  |              |   | - |   |
| Receivables,      less allowance for                 |   |          |        |              |   |   |   |
|  doubtful      accounts of $143,858 in          |   |          |        |              |   |   |   |
|  2008      and $285,223 in 2007                 |   |          | 75,967,305  |              |   | 59,932,808 |   |
| Inventories                                          |   |          | 79,712,673  |              |   | 69,228,312 |   |
| Insurance      receivable – asbestos           |   |          | 10,000,000  |              |   | 10,000,000 |   |
| Other                                                |   |          | 15,703,708  |              |   | 17,263,397 |   |
| Total current      assets                            |   |          | 251,603,374 |              |   | 228,050,896 |   |
|                                                 |   |          |        |              |   |   |   |
| Property,      plant and equipment, net              |   |          | 81,180,405  |              |   | 75,101,225 |   |
| Insurance      receivable - asbestos                 |   |          | 79,540,557  |              |   | 84,547,965 |   |
| Investment in      joint ventures                    |   |          | 6,842,615   |              |   | 4,206,149 |   |
| Deferred tax      assets                             |   |          | 1,174,014   |              |   | 2,195,953 |   |
| Prepaid      pensions                                |   |          | 2,060,093   |              |   | 1,701,839 |   |
| Goodwill                                             |   |          | 2,694,240   |              |   | 2,694,240 |   |
| Other      noncurrent assets                         |   |          | 5,617,036   |              |   | 5,893,877 |   |
|                                                 |   | $             | 430,712,334 |              | $      | 404,392,144 |   |
| Liabilities      and Shareholders' Equity            |   |          |        |              |   |   |   |
| Current      liabilities:                            |   |          |        |              |   |   |   |
| Accounts      payable                                |   | $             | 27,627,634  |              | $      | 19,418,106 |   |
| Accrued      payrolls and employee benefits          |   |          | 12,613,590  |              |   | 12,968,395 |   |
| Industrial      Revenue Bond debt                    |   |          | 13,311,000  |              |   | 13,311,000 |   |
| Asbestos      liability – current portion      |   |          | 20,000,000  |              |   | 20,000,000 |   |
| Other                                                |   |          | 32,024,601  |              |   | 25,448,981 |   |
| Total current      liabilities                       |   |          | 105,576,825 |              |   | 91,146,482 |   |
| Employee      benefit obligations                    |   |          | 19,292,043  |              |   | 19,721,794 |   |
| Asbestos      liability                              |   |          | 92,655,399  |              |   | 99,722,526 |   |
| Other      noncurrent liabilities                    |   |          | 7,164,163   |              |   | 6,070,852 |   |
| Total      liabilities                               |   |          | 224,688,430 |              |   | 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                      |   |          | 111,897,093 |              |   | 111,897,093 |   |
| Retained      earnings                               |   |          | 109,321,282 |              |   | 91,232,890 |   |
| Accumulated      other comprehensive loss            |   |          | (25,371,968 | )                 |   | (25,576,990 | ) |
| Total      shareholders' equity                      |   |          | 206,023,904 |              |   | 187,730,490 |   |
|                                                 |   | $             | 430,712,334 |              | $      | 404,392,144 |   |
|                                                 |   |          |        |              |   |   |   |

----

|                                      |   | Six Months Ended June 30, |        |   | Three Months Ended June 30, |   |        |
|-------------------------------------------|--------|---------------------------|-------------|--------|-----------------------------|--------|-------------|
|                                      |   | 2008                      |        |   | 2007                        |   |        | 2008 |   | 2007 |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |
| Net      sales                            |   | $                         | 200,519,255 |   |                        | $      | 176,480,443 |   |   | $ | 102,689,468 |   | $ | 88,740,035 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses:        |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|  Costs      of products sold         |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| (excluding      depreciation)             |   |                      | 142,432,065 |   |                        |   | 123,947,961 |   |   |   | 72,531,491 |   |   | 61,673,688 |   |
|  Selling      and administrative     |   |                      | 20,931,495  |   |                        |   | 19,779,481  |   |   |   | 10,676,878 |   |   | 9,864,783 |   |
|  Depreciation                        |   |                      | 3,668,403   |   |                        |   | 3,517,084   |   |   |   | 1,809,904 |   |   | 1,759,928 |   |
|  Gain on      disposition of assets  |   |                      | (84,268     | )      |                        |   | (32,994     | ) |   |   | (79,828 | ) |   | (42,187 | ) |
|   Total      operating expenses |   |                      | 166,947,695 |   |                        |   | 147,211,532 |   |   |   | 84,938,445 |   |   | 73,256,212 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Income from      operations               |   |                      | 33,571,560  |   |                        |   | 29,268,911  |   |   |   | 17,751,023 |   |   | 15,483,823 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Other income      (expense):              |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Investment-related      income            |   |                      | 1,195,052   |   |                        |   | 958,245     |   |   |   | 965,515 |   |   | 741,013 |   |
| Interest      expense                     |   |                      | (247,859    | )      |                        |   | (361,438    | ) |   |   | (113,925 | ) |   | (182,158 | ) |
| Other                                     |   |                      | (1,195,462  | )      |                        |   | (645,432    | ) |   |   | (686,605 | ) |   | (582,995 | ) |
|                                      |   |                      | (248,269    | )      |                        |   | (48,625     | ) |   |   | 164,985 |   |   | (24,140 | ) |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Income before      income taxes           |   |                      | 33,323,291  |   |                        |   | 29,220,286  |   |   |   | 17,916,008 |   |   | 15,459,683 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Income tax      provision                 |   |                      | 11,571,000  |   |                        |   | 9,578,000   |   |   |   | 6,307,000 |   |   | 5,282,000 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Net      income                           |   | $                         | 21,752,291  |   |                        | $      | 19,642,286  |   |   | $ | 11,609,008 |   | $ | 10,177,683 |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Earnings per      common share:           |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|  Basic                               |   | $                         | 2.14        |   |                        | $      | 1.98        |   |   | $ | 1.14 |   | $ | 1.02 |   |   |
|  Diluted                             |   | $                         | 2.14        |   |                        | $      | 1.96        |   |   | $ | 1.14 |   | $ | 1.01 |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Cash      dividends declared              |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|  per      share                      |   | $                         | 0.36        |   |                        | $      | 0.30        |   |   | $ | 0.18 |   | $ | 0.15 |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
| Weighted      average number of           |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|  common      shares outstanding:     |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |
|   Basic      shares             |   |                      | 10,177,497  |   |                        |   | 9,913,237   |   |   |   | 10,177,497 |   |   | 9,988,145 |   |   |
|   Diluted      shares           |   |                      | 10,179,800  |   |                        |   | 10,031,854  |   |   |   | 10,179,860 |   |   | 10,076,936 |   |   |
|                                      |   |                      |        |   |                        |   |        |   |   |   |   |   |   |   |   |   |

----

|                                                  |   | Six Months      Ended June 30, |        |
|-------------------------------------------------------|--------|--------------------------------|-------------|
|                                                  |   | 2008                           |        |   | 2007 |   |
|                                                  |   |                           |        |   |   |   |
| Net cash      flows provided by operating activities  |   | $                              | 14,186,374  |   |   | $ | 14,155,404 |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Cash flows      from investing activities:            |   |                           |        |   |   |   |   |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Purchases of      property, plant and equipment       |   |                           | (9,755,367  | ) |   |   | (3,723,251 | ) |
| Purchases of      short-term marketable securities    |   |                           | (61,628,567 | ) |   |   | (50,490,947 | ) |
| Sales of      short-term marketable securities        |   |                           | 11,000,000  |   |   |   | - |   |
| Investment in      Chinese joint venture              |   |                           | (2,940,000  | ) |   |   | - |   |
| Purchases of      long-term marketable securities     |   |                           | (562,558    | ) |   |   | (770,583 | ) |
| Sales of      long-term marketable securities         |   |                           | 463,058     |   |   |   | 711,523 |   |
| Other                                                 |   |                           | 92,572      |   |   |   | (180,640 | ) |
|                                                  |   |                           |        |   |   |   |   |   |
| Net cash      flows used in investing activities      |   |                           | (63,330,862 | ) |   |   | (54,453,898 | ) |
|                                                  |   |                           |        |   |   |   |   |   |
| Cash flows      from financing activities:            |   |                           |        |   |   |   |   |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Proceeds from      the issuance of common stock       |   |                           | -           |   |   |   | 3,625,809 |   |
| Excess tax      benefits from the exercise of stock   |   |                           |        |   |   |   |   |   |
|  options                                         |   |                           | -           |   |   |   | 1,089,060 |   |
| Dividends      paid                                   |   |                           | (3,358,575  | ) |   |   | (2,460,499 | ) |
|                                                  |   |                           |        |   |   |   |   |   |
| Net cash      flows (used in) provided by             |   |                           |        |   |   |   |   |   |
|  financing      activities                       |   |                           | (3,358,575  | ) |   |   | 2,254,370 |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Effect of      exchange rate changes on cash          |   |                           |        |   |   |   |   |   |
| and cash      equivalents                             |   |                           | 16,251      |   |   |   | 128,358 |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Net decrease      in cash and cash equivalents        |   |                           | (52,486,812 | ) |   |   | (37,915,766 | ) |
|                                                  |   |                           |        |   |   |   |   |   |
| Cash and cash      equivalents at beginning of period |   |                           | 71,626,379  |   |   |   | 56,083,870 |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Cash and cash      equivalents at end of period       |   | $                              | 19,139,567  |   |   | $ | 18,168,104 |   |
|                                                  |   |                           |        |   |   |   |   |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Supplemental      information:                        |   |                           |        |   |   |   |   |   |
|  Income      tax payments                        |   | $                              | 5,512,649   |   |   | $ | 6,051,842 |   |
|  Interest      payments                          |   | $                              | 266,236     |   |   | $ | 362,357 |   |
|                                                  |   |                           |        |   |   |   |   |   |
| Non-cash      investing activities:                   |   |                           |        |   |   |   |   |   |
|  Appreciation      of short-term marketable      |   |                           |        |   |   |   |   |   |
|   securities                                |   | $                              | 451,554     |   |   | $ | 971,453 |   |
|                                                  |   |                           |        |   |   |   |   |   |
|                                                  |   |                           |        |   |   |   |   |   |

----

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

----

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

|                |   |   (in      thousands) |   |
|---------------------|--------|---------------------------------|--------|
|                |   | June      30,                   |   | December      31, |   |
|                |   |        2008           |   |        2007   |   |
|                |   |                            |   |   |   |
| Raw      materials  |   | $                               | 17,432 |   | $ | 14,197 |   |
| Work-in-process     |   |                            | 41,591 |   |   | 35,924 |   |
| Finished      goods |   |                            | 11,053 |   |   | 10,486 |   |
| Supplies            |   |                            | 9,637  |   |   | 8,621 |   |
|                |   | $                               | 79,713 |   | $ | 69,228 |   |

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

|                            |   | (in      thousands) |     |
|---------------------------------|--------|---------------------|----------|
|                            |   | June      30,       |     | December      31, |   |
|                            |   | 2008                |     |        2007   |   |
|                            |   |                |     |   |   |
| Land and land      improvements |   | $                   | 4,507    |   | $ | 4,507 |   |
| Buildings                       |   |                | 27,440   |   |   | 27,371 |   |
| Machinery and      equipment    |   |                | 144,461  |   |   | 142,258 |   |
| Construction-in-progress        |   |                | 13,855   |   |   | 6,459 |   |
| Other                           |   |                | 7,127    |   |   | 7,074 |   |
|                            |   |                | 197,390  |   |   | 187,669 |   |
| Accumulated      depreciation   |   |                | (116,210 | ) |   | (112,568 | ) |
|                            |   | $                   | 81,180   |   | $ | 75,101 |   |

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

|                              |   | (in      thousands)     |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | June      30,           |   | December      31, |   |
|                              |   |        2008   |   |        2007   |   |
|                              |   |                    |   |   |   |
| Customer-related      liabilities |   | $                       | 9,033  |   | $ | 9,248 |   |
| Accrued      income taxes         |   |                    | 5,195  |   |   | 819 |   |
| Foreign      exchange contracts   |   |                    | 5,054  |   |   | 4,832 |   |
| Accrued sales      commissions    |   |                    | 3,474  |   |   | 3,161 |   |
| Other                             |   |                    | 9,269  |   |   | 7,389 |   |
|                              |   | $                       | 32,025 |   | $ | 25,449 |   |

----

|                                    |   | (in      thousands) |   |
|-----------------------------------------|--------|---------------------|--------|
|                                    |   | Six      Months     |   |   | Three      Months |   |
|                                    |   | Ended June      30, |   |   | Ended June      30, |   |
|                                    |   | 2008                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                    |   |                |   |   |   |   |   |   |   |   |   |   |
| Balance at      beginning of the period |   | $                   | 6,156  |   |   | $ | 5,567 |   |   | $ | 6,543 |   |   | $ | 5,926 |   |
| Satisfaction      of warranty claims    |   |                | (1,955 | ) |   |   | (1,245 | ) |   |   | (1,372 | ) |   |   | (576 | ) |
| Provision for      warranty claims      |   |                | 1,571  |   |   |   | 2,365 |   |   |   | 596 |   |   |   | 1,355 |   |
| Other,      primarily impact from       |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  changes      in foreign currency  |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  exchange      rates               |   |                | (4     | ) |   |   | 92 |   |   |   | 1 |   |   |   | 74 |   |
| Balance at      end of the period       |   | $                   | 5,768  |   |   | $ | 6,779 |   |   | $ | 5,768 |   |   | $ | 6,779 |   |

|                                                            |
|------------------------------------------------------------|
|                                                       | (in      thousands) |
|                                                       |         2008    |         2007    |
|                                                       |   |   |
| U.S. pension      benefits plans                           |        $      - | $      - |
| U.K. pension      benefits plan                            | $    923 | $    743 |
| Other      postretirement benefits(e.g. net      payments) |  $    200 |  $    385 |
| U.K. defined      contribution plan                        | $    256 | $    246 |
|                                                       |   |   |

|                                |   | (in      thousands) |   |
|-------------------------------------|--------|---------------------|--------|
|                                |   | Six      Months     |   |   | Three      Months |   |
|                                |   | Ended June      30, |   |   | Ended June      30, |   |
| U.S. Pension Benefits               |   | 2008                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Service      cost                   |   | $                   | 1,344  |   |   | $ | 1,339 |   |   | $ | 672 |   |   | $ | 670 |   |
| Interest      cost                  |   |                | 3,960  |   |   |   | 3,784 |   |   |   | 1,980 |   |   |   | 1,892 |   |
| Expected      return on plan assets |   |                | (5,605 | ) |   |   | (5,822 | ) |   |   | (2,802 | ) |   |   | (2,911 | ) |
| Amortization      of:               |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Prior      service cost       |   |                | 324    |   |   |   | 320 |   |   |   | 162 |   |   |   | 160 |   |
|  Actuarial      gain           |   |                | (65    | ) |   |   | (68 | ) |   |   | (33 | ) |   |   | (34 | ) |
| Net benefit      income             |   | $                   | (42    | ) |   | $ | (447 | ) |   | $ | (21 | ) |   | $ | (223 | ) |

|                                |   | (in      thousands) |   |
|-------------------------------------|--------|---------------------|--------|
|                                |   | Six      Months     |   |   | Three      Months |   |
|                                |   | Ended June      30, |   |   | Ended June      30, |   |
| Foreign Pension Benefits            |   | 2008                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Interest      cost                  |   | $                   | 1,320  |   |   | $ | 1,338 |   |   | $ | 660 |   |   | $ | 674 |   |
| Expected      return on plan assets |   |                | (1,400 | ) |   |   | (1,316 | ) |   |   | (700 | ) |   |   | (662 | ) |
| Amortization      of actuarial loss |   |                | 157    |   |   |   | 232 |   |   |   | 79 |   |   |   | 117 |   |
| Net benefit      cost               |   | $                   | 77     |   |   | $ | 254 |   |   | $ | 39 |   |   | $ | 129 |   |

----

|                             |   | (in      thousands) |   |
|----------------------------------|--------|---------------------|--------|
|                             |   | Six      Months     |   |   | Three      Months |   |
|                             |   | Ended June      30, |   |   | Ended June      30, |   |
| Other Postretirement    Benefits |   | 2008                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                             |   |                |   |   |   |   |   |   |   |   |   |
| Service      cost                |   | $                   | 203    |   |   | $ | 197 |   |   | $ | 106 |   |   | $ | 125 |   |
| Interest      cost               |   |                | 393    |   |   |   | 417 |   |   |   | 196 |   |   |   | 263 |   |
| Amortization      of:            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Prior      service cost    |   |                | 34     |   |   |   | 18 |   |   |   | 17 |   |   |   | 9 |   |
|  Actuarial      loss        |   |                | 28     |   |   |   | 77 |   |   |   | 24 |   |   |   | 38 |   |
| Net benefit      cost            |   | $                   | 658    |   |   | $ | 709 |   |   | $ | 343 |   |   | $ | 435 |   |

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

----

|                                         |   | (in      thousands) |   |
|----------------------------------------------|--------|---------------------|--------|
|                                         |   | Six      Months     |   |   | Three      Months |   |
|                                         |   | Ended June      30, |   |   | Ended June      30, |   |
|                                         |   | 2008                |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                         |   |                |   |   |   |   |   |   |   |   |   |   |
| Net      income                              |   | $                   | 21,752 |   |   | $ | 19,642 |   |   | $ | 11,609 |   |   | $ | 10,178 |   |
| Foreign      currency translation            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  adjustments                            |   |                | 255    |   |   |   | 1,180 |   |   |   | 51 |   |   |   | 550 |   |
| Unrecognized      components of              |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  employee      benefit plans            |   |                | 312    |   |   |   | 378 |   |   |   | 162 |   |   |   | 306 |   |
| Unrealized      holding gains on             |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  marketable      securities             |   |                | 272    |   |   |   | 662 |   |   |   | 192 |   |   |   | 383 |   |
| Change in the      fair value                |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  of      derivatives (cash flow hedges) |   |                | (634   | ) |   |   | (317 | ) |   |   | 407 |   |   |   | (188 | ) |
| Comprehensive      income                    |   | $                   | 21,957 |   |   | $ | 21,545 |   |   | $ | 12,421 |   |   | $ | 11,229 |   |

----

|                                       |   | (in      thousands) |   |
|--------------------------------------------|--------|---------------------|--------|
|                                       |   | Level 1             |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Investments                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Short-term      marketable securities |   | $                   | -      |   |   | $ | 51,080 |   |   | $ | - |   |   | $ | 51,080 |   |
| Other      noncurrent assets               |   |                | 2,907  |   |   |   | - |   |   |   | - |   |   |   | 2,907 |   |
| Foreign      currency contracts            |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other current      assets                  |   |                | -      |   |   |   | 1,568 |   |   |   | - |   |   |   | 1,568 |   |
| Other      noncurrent assets               |   |                | -      |   |   |   | 621 |   |   |   | - |   |   |   | 621 |   |
| Other current      liabilities             |   |                | -      |   |   |   | 5,054 |   |   |   | - |   |   |   | 5,054 |   |
| Other      noncurrent liabilities          |   |                | -      |   |   |   | 3,958 |   |   |   | - |   |   |   | 3,958 |   |

|                                               |   | (in      thousands) |    |
|----------------------------------------------------|--------|---------------------|---------|
|                                               |   | Six      Months     |    |   | Three      Months |   |
|                                               |   | Ended June      30, |    |   | Ended June      30, |   |
|                                               |   | 2008                |    |   | 2007 |   |   | 2008 |   |   | 2007 |   |
|                                               |   |                |    |   |   |   |   |   |   |   |   |   |
| Net      Sales:                                    |   |                |    |   |   |   |   |   |   |   |   |   |
|  Forged      and Cast Rolls                   |   | $                   | 142,994 |   |   | $ | 123,759 |   |   | $ | 73,509 |   |   | $ | 63,014 |   |
|  Air and      Liquid Processing               |   |                | 57,525  |   |   |   | 52,721 |   |   |   | 29,180 |   |   |   | 25,726 |   |
|   Total      Reportable Segments         |   | $                   | 200,519 |   |   | $ | 176,480 |   |   | $ | 102,689 |   |   | $ | 88,740 |   |
|                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before      Income Taxes:                   |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Forged      and Cast Rolls                   |   | $                   | 31,592  |   |   | $ | 28,123 |   |   | $ | 16,705 |   |   | $ | 14,875 |   |
|  Air and      Liquid Processing               |   |                | 5,376   |   |   |   | 4,296 |   |   |   | 2,790 |   |   |   | 2,137 |   |
|   Total      Reportable Segments         |   |                | 36,968  |   |   |   | 32,419 |   |   |   | 19,495 |   |   |   | 17,012 |   |
|   Other      expense, including          |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    corporate      costs – net |   |                | (3,645  | ) |   |   | (3,199 | ) |   |   | (1,579 | ) |   |   | (1,552 | ) |
|                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total                                        |   | $                   | 33,323  |   |   | $ | 29,220 |   |   | $ | 17,916 |   |   | $ | 15,460 |   |
|                                               |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Approximate      open claims at end of period            | 9,373  | (1) |
|----------------------------------------------------------|--------|-----|
| Gross      settlement and defense costs (in 000’s) | 8,450  |
| Approximate      claims settled or dismissed             | 439    |
|                                                     |   |

|   (1) | Included as      “open claims” are approximately 3,194 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 |
|----------------------------------------------------|

----

----

----

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

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

| - 19      - |
|-------------|

----

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

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

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

|   | (a) | Rights      Agreement between Ampco-Pittsburgh Corporation and Chase Mellon      Shareholder Services dated as of September 28,  1998. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (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:  August 4,      2008 | BY:  s/Robert A.      Paul      |
|                                 | Robert A.      Paul                       |
|                                 | Chairman      and                         |
|                                 |   Chief      Executive Officer  |
|                                 |                                      |
|                                 |                                      |
|                                 |                                      |
|                                 |                                      |
| DATE:  August 4,      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 |
|    |   |                                                                                                             |