##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, 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
    September 30,
    2009oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number 333-43005-01
  Park-Ohio Industries,
    Inc.
 (Exact name of registrant as
    specified in its charter)
   Ohio(State or other jurisdiction ofincorporation or organization)6065 Parkland Boulevard, Cleveland, Ohio(Address of principal executive offices)

34-6520107(I.R.S. EmployerIdentification No.)44124(Zip Code)   440/947-2000
 (Registrants telephone number, including area code)
  Pursuant to a corporate reorganization effective
    June 15, 1998,
 Park-Ohio Industries, Inc. became a wholly-owned subsidiary
    of Park-Ohio Holdings Corp.
       (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  Regulation S-T o o
    Large
    accelerated filer
    o
    Accelerated
    filer
    o
    
    Non-accelerated
    filer þ
    
    Smaller
    reporting
    Company o   Rule 12b-2 o þ
     The
    Exhibit Index is located on page 28.




---



##### 





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


Financial Statements


3Consolidated balance sheets 
    September 30, 2009 and December 31, 2008


3Consolidated statements of operations 
    Three and nine months ended September 30, 2009 and 2008


4Consolidated statement of shareholders
    equity  Nine months ended September 30, 2009


5Consolidated statements of cash flows 
    Nine months ended September 30, 2009 and 2008


6Notes to consolidated financial
    statements  September 30, 2009


7Report of independent registered public
    accounting firm


17Item 2.


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


18Item 3.


Quantitative and Qualitative Disclosures About
    Market Risk


24Item 4.


Controls and Procedures


24PART II. OTHER INFORMATIONItem 1.


Legal Proceedings


24Item 1A.


Risk Factors


25Item 6.


Exhibits


26SIGNATURE


27EXHIBIT INDEX


28EX-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)September 30,


December 31,2009


2008(Dollars in thousands)ASSETSCurrent AssetsCash and cash equivalents

$
18,421


$
17,623Accounts receivable, less allowances for doubtful accounts of
    $6,792 at September 30, 2009 and $3,044 at
    December 31, 2008


122,370



165,779Inventories


199,171



228,817Deferred tax assets


9,446



9,446Unbilled contract revenue


9,151



25,602Other current assets


15,261



19,266Total Current Assets


373,820



466,533Property, Plant and Equipment


250,989



245,739Less accumulated depreciation


169,486



156,91181,503



88,828Other AssetsGoodwill


4,206



4,109Other


64,834



63,375$
524,363


$
622,845LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
76,037


$
122,107Accrued expenses


52,876



74,394Current portion of long-term debt


2,369



8,778Current portion of other postretirement benefits


2,290



2,290Total Current Liabilities


133,572



207,569Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


199,785



210,000Revolving credit


147,800



164,600Other long-term debt


6,051



2,283Deferred tax liability


9,090



9,090Other postretirement benefits and other long-term liabilities


23,580



24,093386,306



410,066Shareholders EquityCommon Stock


-0-



-0-Additional paid-in capital


55,362



56,112Retained deficit


(36,784
)


(33,800
)Accumulated other comprehensive loss


(14,093
)


(17,102
)4,485



5,210$
524,363


$
622,845   Note:
    The balance sheet at December 31, 2008 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 OPERATIONS (UNAUDITED)
  Three Months Ended


Nine Months EndedSeptember 30,


September 30,2009


2008


2009


2008(Amounts in thousands, except per share data)Net sales

$
168,597


$
266,148


$
513,252


$
819,178Cost of products sold


145,938



226,759



437,402



697,361Gross profit


22,659



39,389



75,850



121,817Selling, general and administrative expenses


20,776



27,936



63,385



80,164Impairment charges


-0-



17,480



-0-



17,480Gain on purchase of 8.375% senior subordinated notes


(2,011
)


-0-



(5,108
)


-0-Operating income (loss)


3,894



(6,027
)


17,573



24,173Interest expense


6,131



6,775



18,719



20,672Income (loss) before income taxes


(2,237
)


(12,802
)


(1,146
)


3,501Income taxes (benefit)


296



(4,597
)


1,838



779Net income (loss)

$
(2,533
)

$
(8,205
)

$
(2,984
)

$
2,722    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


(Deficit)


Income (Loss)


Total(Dollars in thousands)Balance at January 1, 2009

$
-0-


$
56,112


$
(33,800
)

$
(17,102
)

$
5,210Comprehensive income:Net loss










(2,984
)






(2,984
)Foreign currency translation adjustment














1,893



1,893Pension and postretirement benefit adjustments, net of tax














1,116



1,116Comprehensive income


















25Distribution of capital to shareholder






(750
)










(750
)Balance at September 30, 2009

$
-0-


$
55,362


$
(36,784
)

$
(14,093
)

$
4,485    5




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS (UNAUDITED)
  Nine Months EndedSeptember 30,2009


2008(Dollars in thousands)OPERATING ACTIVITIESNet (loss) income

$
(2,984
)

$
2,722Adjustments to reconcile net (loss) income to net cash used by
    operating activities:Depreciation and amortization


14,015



15,974Impairment charges


-0-



17,480Gain on purchase of 8.375% senior subordinated notes


(5,107
)


-0-Changes in operating assets and liabilities:Accounts receivable


43,409



(13,309
)Inventories and other current assets


50,102



(18,685
)Accounts payable and accrued expenses


(67,588
)


22,049Other


(1,156
)


(15,493
)Net Cash Provided by Operating Activities


30,691



10,738INVESTING ACTIVITIESPurchases of property, plant and equipment, net


(4,594
)


(15,756
)Net Cash Used by Investing Activities


(4,594
)


(15,756
)FINANCING ACTIVITIES(Payments on) proceeds from long-term debt, net


(2,641
)


5,528(Payments on) proceeds from revolving credit, net


(16,800
)


14,800Distribution of capital to shareholder


(750
)


-0-Purchase of 8.375% senior subordinated notes


(5,108
)


-0-Net Cash (Used) Provided by Financing Activities


(25,299
)


20,328Increase in Cash and Cash Equivalents


798



15,310Cash and Cash Equivalents at Beginning of Period


17,623



13,077Cash and Cash Equivalents at End of Period

$
18,421


$
28,387Taxes paid

$
2,577


$
5,826Interest paid


12,506



15,236    6




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
  September 30,
    2009
 (Dollar
    amounts in thousands, except per share data)
  NOTE A 
    Basis of
    Presentation    Form 10-Q Regulation S-X. Form 10-K
    NOTE B 
    Segments  tm tm just-in-time point-of-use
    Three Months Ended


Nine Months EndedSeptember 30,


September 30,2009


2008


2009


2008Net sales:Supply Technologies

$
82,464


$
131,668


$
242,879


$
399,452Aluminum products


31,663



35,784



75,656



120,304Manufactured products


54,470



98,696



194,717



299,422$
168,597


$
266,148


$
513,252


$
819,178Income (loss) before income taxes:Supply Technologies

$
2,078


$
5,259


$
5,509


$
16,551Aluminum products


(1,337
)


(17,557
)


(6,793
)


(18,674
)Manufactured products


3,413



10,062



20,498



37,7034,154



(2,236
)


19,214



35,580Corporate costs


(260
)


(3,791
)


(1,641
)


(11,407
)Interest expense


(6,131
)


(6,775
)


(18,719
)


(20,672
)Income (loss) before income taxes

$
(2,237
)

$
(12,802
)

$
(1,146
)

$
3,501  7




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  September 30,


December 31,2009


2008Identifiable assets were as follows:Supply Technologies

$
229,483


$
256,161Aluminum products


68,304



87,215Manufactured products


220,561



242,057General corporate


6,015



37,412$
524,363


$
622,845   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)
   NOTE D 
    Inventories    September 30,


December 31,2009


2008Finished goods

$
102,778


$
129,939Work in process


29,365



29,648Raw materials and supplies


67,028



69,230$
199,171


$
228,817   NOTE E 
    Pension
    Plans and Other Postretirement Benefits    Pension Benefits


Postretirement BenefitsThree Months


Nine Months


Three Months


Nine MonthsEnded September 30,


Ended September 30,


Ended September 30,


Ended September 30,2009


2008


2009


2008


2009


2008


2009


2008Service costs

$
123


$
108


$
369


$
324


$
24


$
43


$
72


$
129Interest costs


694



722



2,082



2,166



296



290



888



870Expected return on plan assets


(1,758
)


(2,408
)


(5,275
)


(7,224
)


-0-



-0-



-0-



-0-Transition obligation


(10
)


(12
)


(30
)


(36
)


-0-



-0-



-0-



-0-Amortization of prior service cost


32



34



96



102



-0-



(13
)


-0-



(39
)Recognized net actuarial loss


231



(29
)


693



(87
)


119



71



357



213Benefit (income) costs

$
(688
)

$
(1,585
)

$
(2,065
)

$
(4,755
)

$
439


$
391


$
1,317


$
1,173     NOTE F 
    Comprehensive
    Income    Three Months Ended


Nine Months EndedSeptember 30,


September 30,2009


2008


2009


2008Net income (loss)

$
(2,533
)

$
(8,205
)

$
(2,984
)

$
2,722Foreign currency translation


2,245



(4,775
)


1,893



(3,160
)Pension and post retirement benefit adjustments, net of tax


373



40



1,116



123Total comprehensive income (loss)

$
85


$
(12,940
)

$
25


$
(315
)  9




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
    September 30,


December 31,2009


2008Foreign currency translation adjustment

$
5,875


$
3,982Pension and postretirement benefit adjustments, net of tax


(19,968
)


(21,084
)$
(14,093
)

$
(17,102
)   NOTE G 
    Accrued
    Warranty Costs    2009


2008Balance at January 1

$
5,402


$
5,799Claims paid during the year


(2,456
)


(2,105
)Additional warranties issued during the first nine months


1,312



3,506Balance at September 30

$
4,258


$
7,200   NOTE H 
    Income
    Taxes          NOTE I 
    Restructuring   10




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
      Balance at December 31, 2008

$
545Cash payments made in 2009


(404
)Balance at September 30, 2009

$
141   NOTE J 
    Contingencies      NOTE K 
    Supplemental Guarantor Information
     11




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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
 September 30, 2009
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(37,555
)

$
33,342


$
17,886


$
4,748


$
18,421Accounts receivable, net


(600
)


94,084



28,886



-0-



122,370Inventories


-0-



156,952



42,219



-0-



199,171Other current assets


9,865



11,832



6,389



(3,674
)


24,412Deferred tax assets


-0-



-0-



-0-



9,446



9,446Total Current Assets


(28,290
)


296,210



95,380



10,520



373,820Investment in subsidiaries


300,508



26,109



(26,109
)


(300,508
)


-0-Inter-company advances


408,920



266,543



16,550



(692,013
)


-0-Property, Plant and Equipment, net


2,608



74,213



10,727



(6,045
)


81,503Other Assets:Goodwill


-0-



1,346



2,860



-0-



4,206Other


11,355



46,899



6,276



304



64,834Total Other Assets


11,355



48,245



9,136



304



69,040Total Assets

$
695,101


$
711,320


$
105,684


$
(987,742
)

$
524,363LIABILITIES AND SHAREHOLDERS (DEFICIT) EQUITYCurrent Liabilities:Trade accounts payable

$
2,747


$
57,282


$
14,173


$
1,835


$
76,037Accrued expenses


6,565



29,596



16,715



-0-



52,876Current portion of long-term liabilities


-0-



102



2,227



2,330



4,659Total Current Liabilities


9,312



86,980



33,115



4,165



133,572Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



(10,215
)


199,785Revolving credit maturing on December 31, 2010


147,800



-0-



-0-



-0-



147,800Other long-term debt


-0-



4,419



1,672



(40
)


6,051Deferred tax liability


7,686



-0-



1,135



269



9,090Other postretirement benefits and other long-term liabilities


3,046



53,699



363



(33,528
)


23,580Total Long-Term Liabilities


368,532



58,118



3,170



(43,514
)


386,306Inter-company advances


325,016



321,024



26,432



(672,472
)


-0-Shareholders (Deficit) Equity


(7,759
)


245,198



42,967



(275,921
)


4,485Total Liabilities and Shareholders (Deficit) Equity

$
695,101


$
711,320


$
105,684


$
(987,742
)

$
524,363  12




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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, 2008
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(1,960
)

$
339


$
10,504


$
8,740


$
17,623Accounts receivable, net


(425
)


124,167



42,037



-0-



165,779Inventories


-0-



185,852



42,965



-0-



228,817Other current assets


9,996



23,035



14,030



(2,193
)


44,868Deferred tax assets


-0-



-0-



-0-



9,446



9,446Total Current Assets


7,611



333,393



109,536



15,993



466,533Investment in subsidiaries


385,803



23,876



(23,876
)


(385,803
)


-0-Inter-company advances


408,900



417,572



9,065



(835,537
)


-0-Property, Plant and Equipment, net


3,119



74,923



10,786



-0-



88,828Other Assets:Goodwill


-0-



1,346



2,763



-0-



4,109Other


11,218



45,077



1,564



5,516



63,375Total Other Assets


11,218



46,423



4,327



5,516



67,484Total Assets

$
816,651


$
896,187


$
109,838


$
(1,199,831
)

$
622,845LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
3,726


$
92,134


$
17,880


$
8,367


$
122,107Accrued expenses


205



52,203



21,986



-0-



74,394Current portion of long-term liabilities


-0-



195



8,543



2,330



11,068Total Current Liabilities


3,931



144,532



48,409



10,697



207,569Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on December 31, 2010


164,600



-0-



-0-



-0-



164,600Other long-term debt


-0-



547



1,776



(40
)


2,283Deferred tax liability


7,686



-0-



1,404



-0-



9,090Other postretirement benefits and other long-term liabilities


3,078



53,841



434



(33,260
)


24,093Total Long-Term Liabilities


385,364



54,388



3,614



(33,300
)


410,066Inter-company advances


426,584



371,557



13,830



(811,971
)


-0-Shareholders Equity


772



325,710



43,985



(365,257
)


5,210Total Liabilities and Shareholders Equity

$
816,651


$
896,187


$
109,838


$
(1,199,831
)

$
622,845  13




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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 OPERATIONS
 For the Nine Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
424,429


$
88,823


$
-0-


$
513,252Cost of sales


-0-



369,253



68,149



-0-



437,402Gross profit


-0-



55,176



20,674



-0-



75,850Selling, general and administrative expenses


(6,841
)


42,814



14,541



12,871



63,385Gain on purchase of 8.375% senior subordinated rates


-0-



-0-



-0-



(5,108
)


(5,108
)Operating income


6,841



12,362



6,133



(7,763
)


17,573Interest expense


17,828



567



633



(309
)


18,719Income (loss) before income taxes


(10,987
)


11,795



5,500



(7,454
)


(1,146
)Income taxes


1,008



24



806



-0-



1,838Net income (loss)

$
(11,995
)

$
11,771


$
4,694


$
(7,454
)

$
(2,984
)   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Nine Months Ended September 30, 2008
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
669,663


$
149,515


$
-0-


$
819,178Cost of sales


-0-



586,591



110,770



-0-



697,361Gross profit


-0-



83,072



38,745



-0-



121,817Selling, general and administrative expenses


(18,291
)


49,003



24,339



25,113



80,164Impairment charges


-0-



17,480



-0-



-0-



17,480Operating income (loss)


18,291



16,589



14,406



(25,113
)


24,173Interest expense


19,900



839



304



(371
)


20,672Income (loss) before income taxes


(1,609
)


15,750



14,102



(24,742
)


3,501Income taxes


(4,330
)


55



5,054



-0-



779Net income (loss)

$
2,721


$
15,695


$
9,048


$
(24,742
)

$
2,722  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
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Three Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
136,941


$
31,656


$
-0-


$
168,597Cost of sales


-0-



120,532



25,406



-0-



145,938Gross profit


-0-



16,409



6,250



-0-



22,659Selling, general and administrative expenses


(2,092
)


16,323



4,541



2,004



20,776Gain on purchase of 8.375% senior subordinated notes


-0-



-0-



-0-



(2,011
)


(2,011
)Operating income


2,092



86



1,709



7



3,894Interest expense


5,902



38



306



(115
)


6,131Income (loss) before income taxes


(3,810
)


48



1,403



122



(2,237
)Income taxes


1136



-0-



(840
)


-0-



296Net income (loss)

$
(4,946
)

$
48


$
2,243


$
122


$
(2,533
)   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Three Months Ended September 30, 2008
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
216,731


$
49,417


$
-0-


$
266,148Cost of sales


-0-



190,806



35,953



-0-



226,759Gross profit


-0-



25,925



13,464



-0-



39,389Selling, general and administrative expenses


7,426



15,566



9,854



(4,910
)


27,936Impairment charges


-0-



17,480



-0-



-0-



17,480Operating income (loss)


(7,426
)


(7,121
)


3,610



4,910



(6,027
)Interest expense


6,432



251



216



(124
)


6,775Income (loss) before income taxes


(13,858
)


(7,372
)


3,394



5,034



(12,802
)Income taxes


(5,825
)


55



1,173



-0-



(4,597
)Net income (loss)

$
(8,033
)

$
(7,427
)

$
2,221


$
5,034


$
(8,205
)  15




---



##### 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 Nine Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(22,260
)

$
32,676


$
20,275


$
-0-


$
30,691Cash flows from investing activities:Purchases of property, plant and equipment, net


223



(3,469
)


(1,348
)


-0-



(4,594
)Net cash provided (used) in investing activities


223



(3,469
)


(1,348
)


-0-



(4,594
)Cash flows from financing activities:Distribution of capital to shareholder


(750
)


-0-



-0-



-0-



(750
)Purchase of 8.375% senior subordinated notes


-0-



-0-



(5,108
)


-0-



(5,108
)Payments on bank arrangements, net


(16,800
)


-0-



-0-



-0-



(16,800
)Proceeds from long term debt, net


-0-



3,796



-0-



-0-



3,796Principal payments on revolving credit and long term debt


-0-



-0-



(6,437
)


-0-



(6,437
)Net cash provided (used) by financing activities


(17,550
)


3,796



(11,545
)


-0-



(25,299
)Increase (decrease) in cash and cash equivalents


(39,587
)


33,003



7,382



-0-



798Cash and cash equivalents at beginning of period


6,780



339



10,504



-0-



17,623Cash and cash equivalents at end of period

$
(32,807
)

$
33,342


$
17,886


$
-0-


$
18,421   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 For the Nine Months Ended September 30, 2008
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(54,056
)

$
62,421


$
2,373


$
-0-


$
10,738Cash flows from investing activities:Purchases of property, plant and equipment, net


(354
)


(15,071
)


(331
)


-0-



(15,756
)Net cash provided (used) in investing activities


(354
)


(15,071
)


(331
)


-0-



(15,756
)Cash flows from financing activities:Proceeds from revolving credit arrangements


14,800



-0-



5,739



-0-



20,539Principal payments on long-term debt


-0-



(211
)


-0-



-0-



(211
)Net cash provided (used) by financing activities


14,800



(211
)


5,739



-0-



20,328Increase (decrease) in cash and cash equivalents


(39,610
)


47,139



7,781



-0-



15,310Cash and cash equivalents at beginning of period


844



607



11,626



-0-



13,077Cash and cash equivalents at end of period

$
(38,766
)

$
47,746


$
19,407


$
-0-


$
28,387  16




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM             
    17




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Executive
    Overview
  tm tm tm just-in-time point-of-use sub-assemblers
       18




---



##### Table of Contents



Accounting
    Changes
            Results
    of Operations
  Nine
    Months 2009 versus Nine Months 2008
  Net
    Sales by Segment:
  Nine MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Supply Technologies

$
242.9


$
399.5


$
(156.6
)


(39
)%Aluminum Products


75.7



120.3



(44.6
)


(37
)%Manufactured Products


194.7



299.4



(104.7
)


(35
)%Consolidated Net Sales

$
513.3


$
819.2


$
(305.9
)


(37
)%    19




---



##### Table of Contents



ramp-up.
  Cost
    of Products Sold & Gross Profit:
  Nine MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Consolidated cost of products sold

$
437.4


$
697.4


$
(260.0
)


(37
)%Consolidated gross profit

$
75.9


$
121.8


$
(45.9
)


(38
)%Gross Margin


14.8
%


14.9
%       Selling,
    General & Administrative (SG&A)
    Expenses:
  Nine MonthsEndedSeptember 30,



Percent2009

2008

Change

Change(Dollars in millions)Consolidated SG&A expenses

$
63.4


$
80.2


$
(16.8
)


(21
)%SG&A percent of sales


12.4
%


9.8
%     Gain
    on Purchase of 8.375% Senior Subordinated
    Notes:
   20




---



##### Table of Contents



Interest
    Expense:
  Nine MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Interest expense

$
18.7


$
20.7


$
(2.0
)

(10)%Average outstanding borrowings

$
382.2


$
385.7


$
(3.5
)

(1)%Average borrowing rate


6.53
%


7.15
%


(62
)

basis points     Income
    Tax:
    Results
    of Operations
  Third
    Quarter 2009 versus Third Quarter 2008
  Net
    Sales by Segment:
  Three MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Supply Technologies

$
82.5


$
131.7


$
(49.2
)


(37
)%Aluminum Products


31.6



35.8



(4.2
)


(12
)%Manufactured Products


54.5



98.6



(44.1
)


(45
)%Consolidated Net Sales

$
168.6


$
266.1


$
(97.5
)


(37
)%    21




---



##### Table of Contents



Cost
    of Products Sold & Gross Profit:
  Three MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Consolidated cost of products sold

$
145.9


$
226.8


$
(80.9
)


(36
)%Consolidated gross profit

$
22.7


$
39.4


$
(16.7
)


(42
)%Gross Margin


13.5
%


14.8
%       SG&A
    Expenses:
  Three MonthsEndedSeptember 30,



Percent2009

2008

Change

Change(Dollars in millions)Consolidated SG&A expenses

$
20.8


$
27.9


$
(7.1
)


(25
)%SG&A percent of sales


12.3
%


10.5
%     Gain
    on Purchase of 8.375% Senior Subordinated
    Notes:
    Interest
    Expense:
  Three MonthsEndedSeptember 30,





Percent2009


2008


Change


Change(Dollars in millions)Interest expense

$
6.1


$
6.8


$
(.7
)

(10)%Average outstanding borrowings

$
368.1


$
388.6


$
(20.5
)

(5)%Average borrowing rate


6.66
%


7.00
%


(34
)

basis points  22




---



##### Table of Contents



Income
    Tax:
    Seasonality;
    Variability of Operating Results
      Forward-Looking
    Statements
  Form 10-Q
 23




---



##### Table of Contents



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



OTHER
    INFORMATION Item 1.
    Legal
    Proceedings     24




---



##### Table of Contents



Item 1A.
    Risk
    Factors  Form 10-K
  The
    current global financial crisis may have significant effects on
    our customers that would result in our inability to borrow or to
    meet our debt service coverage ratio in our revolving credit
    facility.
   25




---



##### Table of Contents



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 10-Q
    of Park-Ohio Holdings Corp. on November 9, 2009, 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  26




---



##### Table of Contents



SIGNATURE
        By
    /s/  Jeffrey
    L. Rutherford   Title:
    Vice President and Chief Financial Officer    27




---



##### Table of Contents



EXHIBIT INDEX
    QUARTERLY REPORT ON
    FORM 10-Q
 PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES
 FOR THE QUARTER ENDED SEPTEMBER 30, 2009
  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 10-Q
    of Park-Ohio Holdings Corp. on November 9, 2009, 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  28