##### Table of Contents



UNITED STATES
 SECURITIES AND EXCHANGE
    COMMISSION
 Washington, D.C.
    20549
  FORM 10-Q
   (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    June 30, 2007oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
    THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from         to   Commission file number
    333-43005
 Park-Ohio Industries,
    Inc.
 (Exact name of registrant as
    specified in its charter)
  Ohio

34-6520107(State or other jurisdiction
    of

(I.R.S. Employerincorporation or
    organization)

Identification No.)23000 Euclid Avenue, Cleveland,
    Ohio

44117(Address of principal executive
    offices)

(Zip Code)   216/692-7200
 (Registrants telephone number, including area code)
  Form 10-Q
    (1)
    
    Has filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the
    preceding twelve months (or for such shorter period that the
    registrant was required to file such reports) and(2)
    
    Has been subject to such filing requirements for the past
    90 days.Yes o     No þ  Rule 12b-2
  o o þ
  Rule 12b-2
  Yes o     No þ




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##### 



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  INDEX
   
 PagePART I.
    FINANCIAL INFORMATIONItem 1.


Financial
    Statements


3Consolidated
    balance sheets  June 30, 2007 and
    December 31, 2006


3Consolidated
    statements of income  Three and six months ended
    June 30, 2007 and 2006


4Consolidated
    statement of shareholders equity  Six months
    ended June 30, 2007


5Consolidated
    statements of cash flows  Six months ended
    June 30, 2007 and 2006


6Notes to
    consolidated financial statements  June 30,
    2007


7Report of
    independent registered public accounting firm


21Item 2.


Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations


22Item 3.


Quantitative and
    Qualitative Disclosure About Market Risk


28Item 4.


Controls and
    Procedures


28PART II.
    OTHER INFORMATIONItem 1.


Legal
    Proceedings


29Item 1A.


Risk
    Factors


30Item 6.


Exhibits


30SIGNATURE


31EXHIBIT INDEX


32EX-31.1EX-31.2EX-32   2




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##### Table of Contents



PART I.
    Financial Information  ITEM 1.
    Financial
    Statements  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED
    BALANCE SHEETS
  (Unaudited)June 30,


December 31,2007


2006(Dollars in thousands)ASSETSCurrent AssetsCash and cash equivalents

$
15,417


$
20,872Accounts receivable, less
    allowances for doubtful accounts of $3,914 at
    June 30, 2007 and $4,305 at December 31, 2006


189,274



181,893Inventories


211,812



223,936Deferred tax assets


34,142



34,142Other current assets


39,824



29,715Total Current Assets


490,469



490,558Property, Plant and Equipment


253,030



245,330Less accumulated depreciation


154,236



146,35298,794



98,978Other AssetsGoodwill


98,676



98,180Net assets held for sale


4,458



4,967Other


93,271



91,377$
785,668


$
784,060LIABILITIES AND
    SHAREHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
116,463


$
132,859Accrued expenses


65,878



78,225Current portion of long-term
    liabilities


7,915



5,873Total Current Liabilities


190,256



216,957Long-Term Liabilities, less
    current portion
    8.375% Senior Subordinated Notes due 2014


210,000



210,000Revolving credit


169,100



156,700Other long-term debt


3,985



4,790Deferred tax liability


32,089



32,089Other postretirement benefits and
    other long-term liabilities


28,447



24,434443,621



428,013Shareholders EquityCommon Stock, par value $1 a share


-0-



-0-Additional paid-in capital


64,844



64,844Retained earnings


77,758



68,422Accumulated other comprehensive
    income


9,189



5,824151,791



139,090$
785,668


$
784,060   Note:
    The balance sheet at December 31, 2006 has been derived
    from the audited financial statements at that date, but does not
    include all of the information and footnotes required by
    generally accepted accounting principles for complete financial
    statements.   3




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
  Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006(Amounts in thousands, except per share data)Net sales

$
286,636


$
268,453


$
554,522


$
528,674Cost of products sold


244,256



230,738



473,533



454,072Gross profit


42,380



37,715



80,989



74,602Selling, general and
    administrative expenses


24,274



21,953



49,159



43,406Operating income


18,106



15,762



31,830



31,196Interest expense


8,286



7,735



16,293



15,105Income before income taxes


9,820



8,027



15,537



16,091Income taxes


3,386



2,900



5,593



5,973Net income

$
6,434


$
5,127


$
9,944


$
10,118    4




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY
    (UNAUDITED)
  AccumulatedAdditional





OtherCommon


Paid-In


Retained


ComprehensiveStock


Capital


Earnings


Income


Total(Dollars in thousands)Balance at January 1, 2007

$
-0-


$
64,844


$
68,422


$
5,824


$
139,090Adjustment relating to adoption of
    FIN 48










(608
)






(608
)Comprehensive income:Net income










9,944







9,944Foreign currency translation
    adjustment














3,246



3,246Pension and postretirement benefit
    adjustments, net of tax














119



119Comprehensive income


















13,309Balance at June 30, 2007

$
-0-


$
64,844


$
77,758


$
9,189


$
151,791    5




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
  Six Months EndedJune 30,2007


2006(Dollars in thousands)OPERATING ACTIVITIESNet income

$
9,944


$
10,118Adjustments to reconcile net
    income to net cash used by operating activities:Depreciation and amortization


10,527



9,827Changes in operating assets and
    liabilities:Accounts receivable


(7,381
)


(33,655
)Inventories and other current
    assets


2,015



(26,232
)Accounts payable and accrued
    expenses


(28,743
)


20,605Other


3,510



(1,495
)Net Cash Used by Operating
    Activities


(10,128
)


(20,832
)INVESTING ACTIVITIESPurchases of property, plant and
    equipment, net


(8,964
)


(7,523
)Acquisitions, net of cash acquired


-0-



(3,219
)Net Cash Used by Investing
    Activities


(8,964
)


(10,742
)FINANCING ACTIVITIESProceeds from debt, net


13,637



29,907Net Cash Provided by Financing
    Activities


13,637



29,907Decrease in Cash and Cash
    Equivalents


(5,455
)


(1,667
)Cash and Cash Equivalents at
    Beginning of Period


20,872



17,868Cash and Cash Equivalents at End
    of Period

$
15,417


$
16,201Taxes paid

$
2,660


$
3,022Interest paid


15,170



13,897    6




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)
  June 30, 2007
 (Dollar amounts in thousands)
  NOTE A 
    Basis of Presentation
    Form 10-Q Regulation S-X. Form 10-K
  NOTE B 
    Segments
   7




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
    Three Months Ended


Six Months EndedJune 30,


June 30,2007


2006


2007


2006Net sales:ILS

$
131,133


$
150,338


$
269,890


$
300,497Aluminum products


48,563



44,913



90,650



87,615Manufactured products


106,940



73,202



193,982



140,562$
286,636


$
268,453


$
554,522


$
528,674Income before income taxes:ILS

$
5,548


$
10,231


$
12,132


$
20,653Aluminum products


1,404



2,396



2,154



4,436Manufactured products


14,164



6,132



23,673



11,79421,116



18,759



37,959



36,883Corporate costs


(3,010
)


(2,997
)


(6,129
)


(5,687
)Interest expense


(8,286
)


(7,735
)


(16,293
)


(15,105
)$
9,820


$
8,027


$
15,537


$
16,091   June 30,


December 31,2007


2006Identifiable assets were as
    follows:ILS

$
391,845


$
382,101Aluminum products


110,606



98,041Manufactured products


223,844



206,089General corporate


59,373



97,829$
785,668


$
784,060   NOTE C 
    Recent Accounting Pronouncements
     8




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
        accrue-in-advance
      NOTE D 
    Acquisitions
    Regulation S-X.
 9




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
    Cash acquisition price, less cash
    acquired

$
20,053AssetsAccounts receivable


(11,460
)Inventories


(4,326
)Other current assets


(201
)Equipment


(365
)Intangible assets subject to
    amortization


(8,020
)Other assets


(724
)LiabilitiesAccounts payable


8,989Accrued expenses and other current
    liabilities


3,904Deferred tax liability


3,128Goodwill

$
10,978   No. 95-3,
  Severance and


Exit andPersonnel


Relocation


TotalBalance at October 18, 2006

$
-0-


$
-0-


$
-0-Add: Accruals


650



250



900Less: Payments


(136
)


(46
)


(182
)Balance at December 31, 2006


514



204



718Add: Accruals


-0-



-0-



-0-Less: Payments


(389
)


(181
)


(570
)Balance at June 30, 2007

$
125


$
23


$
148   Regulation S-X.
  No. 95-3,
 10




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
    Severance and


Exit andPersonnel


Relocation


TotalBalance at June 30, 2005

$
-0-


$
-0-


$
-0-Add: Accruals


250



1,750



2,000Less: Payments


(551
)


(594
)


(1,145
)Transfers


400



(400
)


-0-Balance at December 31, 2005


99



756



855Less: Payments and adjustments


(43
)


(417
)


(460
)Transfers


(17
)


17



-0-Balance at December 31, 2006


39



356



395Less: Payments


(39
)


(313
)


(352
)Balance at June 30, 2007

$
-0-


$
43


$
43   NOTE E 
    Inventories
    June 30,


December 31,2007


2006Finished goods

$
136,871


$
143,071Work in process


19,022



42,405Raw materials and supplies


55,919



38,460$
211,812


$
223,936   NOTE F 
    Pension Plans and Other Postretirement Benefits
    Pension Benefits


Postretirement BenefitsThree Months


Six Months


Three Months


Six MonthsEnded June 30,


Ended June 30,


Ended June 30,


Ended June 30,2007


2006


2007


2006


2007


2006


2007


2006Service costs

$
91


$
87


$
182


$
174


$
41


$
50


$
82


$
100Interest costs


702



726



1,403



1,452



334



323



668



646Expected return on plan assets


(2,213
)


(2,078
)


(4,425
)


(4,156
)


-0-



-0-



-0-



-0-Transition obligation


(2
)


(12
)


(4
)


(24
)


-0-



-0-



-0-



-0-Amortization of prior service cost


34



39



68



78



(16
)


(16
)


(32
)


(32
)Recognized net actuarial loss


-0-



81



-0-



162



146



94



292



188Benefit (income) costs

$
(1,388
)

$
(1,157
)

$
(2,776
)

$
(2,314
)

$
505


$
451


$
1,010


$
902  11




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  NOTE G 
    Comprehensive Income
    Three Months


Six MonthsEnded June 30,


Ended June 30,2007


2006


2007


2006Net income

$
6,434


$
5,127


$
9,944


$
10,118Foreign currency translation


2,628



2,105



3,246



2,583Pension and postretirement
    benefits, net of tax


41



-0-



119



-0-Total comprehensive income

$
9,103


$
7,232


$
13,309


$
12,701     June 30,


December 31,2007


2006Foreign currency translation
    adjustment

$
8,630


$
5,384Pension and postretirement benefit
    adjustments, net of tax


559



440$
9,189


$
5,824     NOTE H 
    Restructuring Activities
  Form 10-K
    Balance at December 31, 2006

$
284Cash payments


(284
)Balance at June 30, 2007

$
-0-   NOTE I 
    Accrued Warranty Costs
    Balance at January 1, 2007

$
3,557Claims paid during the year


(647
)Additional warranties issued
    during the year


1,939Balance at June 30, 2007

$
4,849  12




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  NOTE J 
    Income Taxes
                NOTE K 
    Financing Arrangements
   13




---



##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  NOTE L 
    Supplemental Guarantor Information
     14




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 June 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)ASSETSCurrent assets:Cash and cash equivalents

$
(44,206
)

$
38,289


$
10,065


$
11,269


$
15,417Accounts receivable, net


(616
)


152,463



37,427



-0-



189,274Inventories






171,744



40,068



-0-



211,812Other current assets


2,144



20,545



11,508



5,627



39,824Deferred tax assets














34,142



34,142Total Current Assets


(42,678
)


383,041



99,068



51,038



490,469Investment in subsidiaries


387,222



28,691



(28,691
)


(387,222
)


-0-Inter-company advances


361,485



278,954



3,366



(643,805
)


-0-Property, Plant and Equipment, net


491



79,393



18,910



-0-



98,794Other Assets:Goodwill






91,316



7,360



-0-



98,676Other


47,805



45,826



1,383



2,715



97,729Total Other Assets


47,805



137,142



8,743



2,715



196,405Total Assets

$
754,325


$
907,221


$
101,396


$
(977,274
)

$
785,668LIABILITIES AND
    SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
3,352


$
86,849


$
16,683


$
9,579


$
116,463Accrued expenses


1,230



37,044



14,734



12,870



65,878Current portion of long-term
    liabilities






552



4,800



2,563



7,915Total Current Liabilities


4,582



124,445



36,217



25,012



190,256Long-Term Liabilities, less
    current portion8.375% Senior Subordinated
    Notes due 2014


210,000















210,000Revolving credit maturing on
    December 31, 2010


169,100















169,100Other long-term debt






2,769



1,216







3,985Deferred tax liability










(40
)


32,129



32,089Other postretirement benefits and
    other long-term liabilities


10,947



56,407



2,959



(41,866
)


28,447Total Long-Term Liabilities


390,047



59,176



4,135



(9,737
)


443,621Inter-company advances


216,613



389,490



18,378



(624,481
)


-0-Shareholders Equity


143,083



334,110



42,666



(368,068
)


151,791Total Liabilities and
    Shareholders Equity

$
754,325


$
907,221


$
101,396


$
(977,274
)

$
785,668  15




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 December 31, 2006
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)ASSETSCurrent assets:Cash and cash equivalents

$
(15,770
)

$
570


$
12,382


$
23,690


$
20,872Accounts receivable, net


(1,043
)


147,834



35,102



-0-



181,893Inventories


-0-



187,649



36,287



-0-



223,936Other current assets


3,362



12,278



8,575



9,927



34,142Deferred tax assets


-0-



-0-



-0-



29,715



29,715Total Current Assets


(13,451
)


348,331



92,346



63,332



490,558Investment in subsidiaries


388,117



17,169



(17,169
)


(388,117
)


-0-Inter-company advances


338,471



531,453



4,427



(874,351
)


-0-Property, Plant and Equipment, net


448



83,478



15,052



-0-



98,978Other Assets:Goodwill


(5,514
)


96,830



6,864



-0-



98,180Other


52,312



40,599



719



2,714



96,344Total Other Assets


46,798



137,429



7,583



2,714



194,524Total Assets

$
760,383


$
1,117,860


$
102,239


$
(1,196,422
)

$
784,060LIABILITIES AND
    SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
3,759


$
84,003


$
21,610


$
23,487


$
132,859Accrued expenses


1,579



51,638



12,138



12,870



78,225Current portion of long-term
    liabilities


-0-



552



2,758



2,563



5,873Total Current Liabilities


5,338



136,193



36,506



38,920



216,957Long-Term Liabilities, less
    current portion8.375% Senior Subordinated
    Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on
    December 31, 2010


156,700



-0-



-0-



-0-



156,700Other long-term debt


-0-



3,027



1,763



-0-



4,790Deferred tax liability


-0-



-0-



42



32,047



32,089Other postretirement benefits and
    other long-term liabilities


9,199



54,136



2,692



(41,593
)


24,434Total Long-Term Liabilities


375,899



57,163



4,497



(9,546
)


428,013Inter-company advances


242,672



594,730



17,423



(854,825
)


-0-Shareholders Equity


136,474



329,774



43,813



(370,971
)


139,090Total Liabilities and
    Shareholders Equity

$
760,383


$
1,117,860


$
102,239


$
(1,196,422
)

$
784,060  16




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF INCOME
    For the Six Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$



$
464,805


$
90,422


$
(705
)

$
554,522Cost of sales






404,386



68,052



1,095



473,533Gross profit






60,419



22,370



(1,800
)


80,989Operating expenses:Selling, general and
    administrative expenses


(28,780
)


53,907



13,054



10,978



49,159Operating income


28,780



6,512



9,316



(12,778
)


31,830Interest expense


15,885



517



191



(300
)


16,293Income before income taxes


12,895



5,995



9,125



(12,478
)


15,537Income taxes


3,143







2,450







5,593Net income

$
9,752


$
5,995


$
6,675


$
(12,478
)

$
9,944   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Six Months Ended June 30, 2006
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
464,682


$
63,992



-0-


$
528,674Cost of sales


-0-



404,302



49,770



-0-



454,072Gross profit


-0-



60,380



14,222



-0-



74,602Operating Expenses:Selling, general and
    administrative expenses


1,345



34,282



7,479



300



43,406Operating Income (loss)


(1,345
)


26,098



6,743



(300
)


31,196Interest expense


(3,113
)


17,619



899



(300
)


15,105Income before income taxes


1,768



8,479



5,844



-0-



16,091Income taxes


3,629



25



2,319



-0-



5,973Net income (loss)

$
(1,861
)

$
8,454


$
3,525


$
-0-


$
10,118  17




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF INCOME
    For the Three Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$



$
238,139


$
49,202


$
(705
)

$
286,636Cost of sales






206,596



37,365



295



244,256Gross profit






31,543



11,837



(1,000
)


42,380Operating Expenses:Selling, general and
    administrative expenses


(15,969
)


27,277



6,641



6,325



24,274Operating Income


15,969



4,266



5,196



(7,325
)


18,106Interest expense


8,053



254



129



(150
)


8,286Income before income taxes


7,916



4,012



5,067



(7,175
)


9,820Income taxes


1,571







1,815



-0-



3,386Net income

$
6,345


$
4,012


$
3,252


$
(7,175
)

$
6,434   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Three Months Ended June 30, 2006
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
236,691


$
31,762



-0-


$
268,453Cost of sales


-0-



206,736



24,002



-0-



230,738Gross profit


-0-



29,955



7,760



-0-



37,715Operating Expenses:Selling, general and
    administrative expenses


836



16,997



3,970



150



21,953Operating Income (loss)


(836
)


12,958



3,790



(150
)


15,762Interest expense


(1,656
)


9,023



518



(150
)


7,735Income before income taxes


820



3,935



3,272



-0-



8,027Income taxes


1,498



-0-



1,402



-0-



2,900Net income (loss)

$
(678
)

$
3,935


$
1,870


$
-0-


$
5,127  18




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net cash provided (used) by
    operations

$
(53,048
)

$
41,896


$
1,024


$
-0-


$
(10,128
)Cash flows from investing
    activities:Purchases of property, plant and
    equipment, net


(209
)


(3,919
)


(4,836
)


-0-



(8,964
)Net cash provided (used) in
    investing activities


(209
)


(3,919
)


(4,836
)


-0-



(8,964
)Cash flows from financing
    activities:Proceeds from revolving credit
    arrangements


12,400



-0-



1,495



-0-



13,895Principal payments on revolving
    credit and long-term debt


-0-



(258
)


-0-



-0-



(258
)Net cash provided (used) by
    financing activities


12,400



(258
)


1,495



-0-



13,637Increase (decrease) in cash and
    cash equivalents


(40,857
)


37,719



(2,317
)


-0-



(5,455
)Cash and cash equivalents at
    beginning of period


7,920



570



12,382



-0-



20,872Cash and cash equivalents at end of
    period

$
(32,937
)

$
38,289


$
10,065


$
-0-


$
15,417  19




---



##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended June 30, 2006
   Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net cash provided (used) by
    operations

$
(38,311
)

$
17,436


$
43


$
-0-


$
(20,832
)Cash flows from investing
    activities:Acquisitions, net of cash acquired


-0-



-0-



(3,219
)


-0-



(3,219
)Purchases of property, plant and
    equipment, net


(132
)


(6,460
)


(931
)


-0-



(7,523
)Net cash provided (used) in
    investing activities


(132
)


(6,460
)


(4,150
)


-0-



(10,742
)Cash flows from financing
    activities:Proceeds from bank arrangements


29,100



-0-



1,033



-0-



30,133Principal payments on revolving
    credit and long-term debt


-0-



(226
)


-0-



-0-



(226
)Net cash provided (used) by
    financing activities


29,100



(226
)


1,033



-0-



29,907Increase (decrease) in cash and
    cash equivalents


(9,343
)


10,750



(3,074
)


-0-



(1,667
)Cash and cash equivalents at
    beginning of period


5,343



626



11,899







17,868Cash and cash equivalents at end of
    period

$
(4,000
)

$
11,376


$
8,825


$
-0-


$
16,201  20




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM               
    21




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Executive
    Overview
  just-in-time
       22




---



##### Table of Contents



Accounting
    Changes
  SFAS No. 158 Form 10-K
  FIN 48
     23




---



##### Table of Contents



Results
    of Operations
  Six
    Months 2007 versus Six Months 2006
  Net
    Sales by Segment:
  Six MonthsEnded








Acquired/June 30,





Percent


(Divested)2007


2006


Change


Change


SalesILS

$
269.9


$
300.5


$
(30.6
)


(10
)%

$
18.8Aluminum products


90.6



87.6



3.0



3
%Manufactured products


194.0



140.6



53.4



38
%Consolidated Net Sales

$
554.5


$
528.7


$
25.8



5
%

$
18.8   ramp-up
  Cost
    of Products Sold & Gross Profit:
  Six MonthsEndedJune 30,





Percent2007


2006


Change


ChangeConsolidated cost of products sold

$
473.5


$
454.1


$
19.4



4
%Consolidated gross profit

$
81.0


$
74.6


$
6.4



9
%Gross Margin


14.6
%


14.1
%     ramp-ups.
 24




---



##### Table of Contents



Selling,
    General & Administrative (SG&A)
    Expenses:
  Six MonthsEndedJune 30,





Percent2007


2006


Change


ChangeConsolidated SG&A expenses

$
49.2


$
43.4


$
6.4



13
%SG&A percent


8.9
%


8.2
%     Interest
    Expense:
  Six MonthsEndedJune 30,





Percent2007


2006


Change


ChangeInterest expense

$
16.3


$
15.1


$
1.2



8
%Average outstanding borrowings

$
389.5


$
368.6


$
20.9



6
%Average borrowing rate


8.37
%


8.19
%


18



basis points     Income
    Tax:
     25




---



##### Table of Contents



Results
    of Operations
  Second
    Quarter 2007 versus Second Quarter 2006
  Net
    Sales by Segment:
  Three MonthsEnded








Acquired/June 30,





Percent


(Divested)2007


2006


Change


Change


SalesILS

$
131.1


$
150.3


$
(19.2
)


(13
)%

$
9.5Aluminum products


48.6



44.9



3.7



8
%


0.0Manufactured products


106.9



73.2



33.7



46
%


0.0Consolidated Net Sales

$
286.6


$
268.4


$
18.2



7
%

$
9.5   ramp-up
  Cost
    of Products Sold & Gross Profit:
  Three MonthsEndedJune 30,





Percent2007


2006


Change


ChangeConsolidated cost of products sold

$
244.3


$
230.7


$
13.6



6
%Consolidated gross profit

$
42.4


$
37.7


$
4.7



12
%Gross Margin


14.8
%


14.0
%     ramp-ups.
  SG&A
    Expenses:
  Three MonthsEndedJune 30,





Percent2007


2006


Change


ChangeConsolidated SG&A expenses

$
24.3


$
22.0


$
2.3



10
%SG&A percent


8.5
%


8.2
%    26




---



##### Table of Contents



Interest
    Expense:
  Three MonthsEndedJune 30,





Percent2007


2006


Change


ChangeInterest expense

$
8.3


$
7.7


$
0.6



8
%Average outstanding borrowings

$
392.3


$
379.3


$
13.0



3
%Average borrowing rate


8.46
%


8.12
%


34



basis points     Income
    Tax:
      Seasonality;
    Variability of Operating Results
      Forward-Looking
    Statements
  Form 10-Q
 27




---



##### Table of Contents



Review By
    Independent Registered Public Accounting Firm
    Item 3.
    Quantitative
    and Qualitative Disclosure About Market Risk        Item 4.
    Controls
    and Procedures  Rules 13a-15(e)
     28




---



##### Table of Contents



PART II  OTHER INFORMATION
  Item 1.
    Legal
    Proceedings             29




---



##### Table of Contents



Item 1A.
    Risk
    Factors  Form 10-K
  Item 6.
    Exhibits    4
.1

Second Amended and Restated Credit
    Agreement, dated June 20, 2007, among Park-Ohio Industries,
    Inc., the other loan parties thereto, the lenders thereto and JP
    Morgan Chase Bank, N.A. (successor by merger to Bank One, NA),
    as agent (filed as exhibit 4.1 to Form 8-K of
    Park-Ohio Holdings Corp. on June 26, 2007, SEC File
    No. 000-03134, and incorporated by reference and made a
    part hereof).31
.1

Principal Executive Officers
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 200231
.2

Principal Financial Officers
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 200232


Certification requirement under
    Section 906 of the Sarbanes-Oxley Act of 2002  30




---



##### Table of Contents



SIGNATURE          By
    /s/  Richard
    P. Elliott     31




---



##### Table of Contents



EXHIBIT INDEX
    QUARTERLY REPORT ON
    FORM 10-Q
    PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES
    FOR THE QUARTER ENDED JUNE 30, 2007 Exhibit4
.1

Second Amended and Restated Credit
    Agreement, dated June 20, 2007, among Park-Ohio Industries,
    Inc., the other loan parties thereto, the lenders thereto and JP
    Morgan Chase Bank, N.A. (successor by merger to Bank One, NA),
    as agent (filed as exhibit 4.1 to Form 8-K of
    Park-Ohio Holdings Corp. on June 26, 2007, SEC File
    No. 000-03134, and incorporated by reference and made a
    part hereof).31
.1

Principal Executive Officers
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 200231
.2

Principal Financial Officers
    Certification Pursuant to Section 302 of the Sarbanes-Oxley
    Act of 200232


Certification requirement under
    Section 906 of the Sarbanes-Oxley Act of 2002  32