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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 1934 
|          
|           |  | For the quarterly period ended June 30, 2005                                                
|          
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission file number 333-43005


Park-Ohio Industries, Inc.


(Exact name of registrant as specified in its charter)


|                                                                             |  |                                         
|---------------------------------------------------------------------------- |  | ----------------------------------------
|Ohio                                                                         |  | 34-6520107                              
|(State or other jurisdiction of
    incorporation or organization)           |  | (I.R.S. Employer
    Identification No.)
|                                                                            
|23000 Euclid Avenue, Cleveland, Ohio(Address of principal executive offices) |  | 44117(Zip Code)                         

216/692-7200


(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.                                                                                                                                                                         

þ o




o þ














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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


INDEX


|                                         |  |                                                                                                      |    |      |    | 
|---------------------------------------- |  | ---------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                         |  |                                                                                                      |    | Page |   
|                                         |  |                                                                                                      |    |      |   
|PART I. FINANCIAL
    INFORMATION       
|Item 1.                                  |  | Financial Statements                                                                                 |    |      | 3  | 
|                                         |  | Consolidated balance sheets 
    June 30, 2005 and December 31, 2004                                |    |      | 3  | 
|                                         |  | Consolidated statements of
    income  Three months and six months ended
    June 30, 2005 and 2004 |    |      | 4  | 
|                                         |  | Consolidated statement of
    shareholders equity 
    Six months ended June 30, 2005              |    |      | 5  | 
|                                         |  | Consolidated statements of cash
    flows 
    Six months ended June 30, 2005 and 2004              |    |      | 6  | 
|                                         |  | Notes to consolidated financial
    statements  June 30, 2005                                       |    |      | 7  | 
|                                         |  | Report of Independent Registered Public
    Accounting Firm                                          |    |      | 19 | 
|Item 2.                                  |  | Managements Discussion and Analysis of Financial Condition
    and
    Results of Operations        |    |      | 20 | 
|Item 4.                                  |  | Controls and Procedures                                                                              |    |      | 25 | 
|PART II. OTHER
    INFORMATION          
|Item 1.                                  |  | Legal Proceedings                                                                                    |    |      | 25 | 
|Item 6.                                  |  | Exhibits                                                                                             |    |      | 26 | 
|SIGNATURE                                |  |                                                                                                      | 27 |     
|EXHIBIT INDEX                            |  |                                                                                                      | 28 |     
|EX-31.1 Certification 302 - CEO         
|EX-31.2 Certification 302 - CFO         
|EX-32.1 Certifications 906 - CEO and CFO



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PART I. Financial Information





Item 1. Financial Statements





PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS


|                                            |                                                                                                                           |                           |         |         |              |   |         |         |         | 
|------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------- | ------- | ------------ | - | ------- | ------- | ------- | 
|                                            |                                                                                                                           | (Unaudited)               |         |         |             
|                                            |                                                                                                                           | June 30,                  |         |         | December 31, |  
|                                            |                                                                                                                           | 2005                      |         |         | 2004         |  
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           | (Dollars in thousands)    |        
|ASSETS                                      |                                                                                                                           |                           |         |         |              |   |         |        
|Current Assets                              |                                                                                                                           |                           |         |         |              |   |         |        
|                                            | Cash and cash equivalents                                                                                                 |                           | $       | 664     |              |   | $       | 6,407   |        
|                                            | Accounts receivable, less allowances for doubtful accounts of
    $3,653 at June 30, 2005 and $3,976 at December 31, 2004 |                           |         | 154,656 |              |   |         | 145,475 |        
|                                            | Inventories                                                                                                               |                           |         | 190,722 |              |   |         | 177,294 |        
|                                            | Other current assets                                                                                                      |                           |         | 20,295  |              |   |         | 20,655  |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           | Total Current Assets      |         |         | 366,337      |   |         |         | 349,831 | 
|Property, Plant and Equipment               |                                                                                                                           |                           | 234,606 |         |              |   | 228,494 |        
|                                            | Less accumulated depreciation                                                                                             |                           |         | 124,941 |              |   |         | 118,613 |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           |                           | 109,665 |         |              |   | 109,881 |        
|Other Assets                                |                                                                                                                           |                           |         |         |              |   |         |        
|                                            | Goodwill                                                                                                                  |                           |         | 82,442  |              |   |         | 82,565  |        
|                                            | Net assets held for sale                                                                                                  |                           |         | -0-     |              |   |         | 1,035   |        
|                                            | Other                                                                                                                     |                           |         | 68,528  |              |   |         | 68,535  |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           | $                         | 626,972 |         |              | $ | 611,847 |        
|                                            |                                                                                                                           |                           |         |         |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY        |                                                                                                                           |                           |         |         |              |   |         |        
|Current Liabilities                         |                                                                                                                           |                           |         |         |              |   |         |        
|                                            | Trade accounts payable                                                                                                    |                           | $       | 90,399  |              |   | $       | 108,862 |        
|                                            | Accrued expenses                                                                                                          |                           |         | 64,062  |              |   |         | 59,745  |        
|                                            | Current portion of long-term liabilities                                                                                  |                           |         | 7,540   |              |   |         | 5,812   |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           | Total Current Liabilities |         |         | 162,001      |   |         |         | 174,419 | 
|Long-Term Liabilities, less current portion |                                                                                                                           |                           |         |         |              |   |         |        
|                                            | 8.375% Senior Subordinated Notes due 2014                                                                                 |                           |         | 210,000 |              |   |         | 210,000 |        
|                                            | Revolving credit                                                                                                          |                           |         | 135,600 |              |   |         | 120,600 |        
|                                            | Other long-term debt                                                                                                      |                           |         | 5,524   |              |   |         | 4,776   |        
|                                            | Other postretirement benefits and other long-term liabilities                                                             |                           |         | 26,098  |              |   |         | 27,570  |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           |                           | 377,222 |         |              |   | 362,946 |        
|Shareholders Equity                        |                                                                                                                           |                           |         |         |              |   |         |        
|Common Stock                                |                                                                                                                           |                           | -0-     |         |              |   | -0-     |        
|Additional paid-in capital                  |                                                                                                                           |                           | 64,844  |         |              |   | 64,844  |        
|Retained earnings                           |                                                                                                                           |                           | 25,270  |         |              |   | 11,314  |        
|Accumulated other comprehensive loss        |                                                                                                                           |                           | (2,365  | )       |              |   | (1,676  | )      
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           |                           | 87,749  |         |              |   | 74,482  |        
|                                            |                                                                                                                           |                           |         |         |              |  
|                                            |                                                                                                                           | $                         | 626,972 |         |              | $ | 611,847 |        
|                                            |                                                                                                                           |                           |         |         |              |  



|      |                                                                                                                                                                                                                                                                              
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Note: | The balance sheet at December 31, 2004 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.



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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |        |  |   |         |        | 
|-------------------------------------------- | -------------------------- | -------------------------------------------- | ------- | ------ | ---------------- | - | ------- | ------ |  | - | ------- | ------ |  | - | ------- | ------ | 
|                                             |                            | Three Months Ended                           |         |        | Six Months Ended |  
|                                             |                            | June 30,                                     |         |        | June 30,         |  
|                                             |                            |                                              |         |        |                  |  
|                                             |                            | 2005                                         |         |        | 2004             |   |         | 2005   |  |   | 2004    |       
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       
|                                             |                            | (Amounts in thousands except per share data) |        
|Net sales                                    |                            | $                                            | 228,795 |        |                  | $ | 200,908 |        |  | $ | 457,678 |        |  | $ | 393,278 |       
|Cost of products sold                        |                            |                                              | 193,429 |        |                  |   | 167,256 |        |  |   | 387,216 |        |  |   | 329,388 |       
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       
|                                             | Gross profit               |                                              |         | 35,366 |                  |   |         | 33,652 |  |   |         | 70,462 |  |   |         | 63,890 | 
|Selling, general and administrative expenses |                            |                                              | 20,264  |        |                  |   | 19,684  |        |  |   | 41,823  |        |  |   | 37,328  |       
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       
|                                             | Operating income           |                                              |         | 15,102 |                  |   |         | 13,968 |  |   |         | 28,639 |  |   |         | 26,562 | 
|Interest expense                             |                            |                                              | 6,715   |        |                  |   | 6,196   |        |  |   | 13,174  |        |  |   | 12,332  |       
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       
|                                             | Income before income taxes |                                              |         | 8,387  |                  |   |         | 7,772  |  |   |         | 15,465 |  |   |         | 14,230 | 
|Income taxes                                 |                            |                                              | 710     |        |                  |   | 1,035   |        |  |   | 1,509   |        |  |   | 1,626   |       
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       
|                                             | Net income                 |                                              | $       | 7,677  |                  |   | $       | 6,737  |  |   | $       | 13,956 |  |   | $       | 12,604 | 
|                                             |                            |                                              |         |        |                  |   |         |        |  |   |         |       



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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY


|                           |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |        |      |   |   |        |        |  
|-------------------------- | --------------------------------------- | ---------------------- | --- | ---------- | ------- | - | ------ | ----------- | ------------- | - | ------ | ------ |  | ----- | ------ | ---- | - | - | ------ | ------ | -
|                           |                                         |                        |     |            |         |   |        | Accumulated |               |   |       
|                           |                                         |                        |     |            |         |   |        | Other       |               |   |       
|                           |                                         |                        |     | Additional |         |   |        |             | Comprehensive |   |        |       
|                           |                                         | Common                 |     |            | Paid-In |   |        | Retained    |               |   | Income |        |  |      
|                           |                                         | Stock                  |     |            | Capital |   |        | Earnings    |               |   | (Loss) |        |  | Total |       
|                           |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       
|                           |                                         | (Dollars in thousands) |    
|Balance at January 1, 2005 |                                         | $                      | -0- |            |         | $ | 64,844 |             |               | $ | 11,314 |        |  | $     | (1,676 | )    |   | $ | 74,482 |       
|Comprehensive income:      |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |        |      |   |   |        |       
|                           | Net income                              |                        |     |            |         |   |        |             |               |   |        | 13,956 |  |       |        |      |   |   |        | 13,956 |  
|                           | Foreign currency translation adjustment |                        |     |            |         |   |        |             |               |   |        |        |  |       |        | (689 | ) |   |        | (689   | )
|                           |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       
|                           | Comprehensive income                    |                        |     |            |         |   |        |             |               |   |        |        |  |       |        |      |   |   |        | 13,267 |  
|                           |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       
|Balance at June 30, 2005   |                                         | $                      | -0- |            |         | $ | 64,844 |             |               | $ | 25,270 |        |  | $     | (2,365 | )    |   | $ | 87,749 |       
|                           |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       



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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


|                                                 |                                                                                   |                                           |                                       |        |         |         |        |        |         |        |  
|------------------------------------------------ | --------------------------------------------------------------------------------- | ----------------------------------------- | ------------------------------------- | ------ | ------- | ------- | ------ | ------ | ------- | ------ | -
|                                                 |                                                                                   | Six Months Ended                          |                                      
|                                                 |                                                                                   | June 30,                                  |                                      
|                                                 |                                                                                   |                                           |                                      
|                                                 |                                                                                   | 2005                                      |                                       |        | 2004    |        
|                                                 |                                                                                   |                                           |                                       |        |         |        
|                                                 |                                                                                   | (Dollars in thousands)                    |                                      
|OPERATING ACTIVITIES                             |                                                                                   |                                           |                                       |        |         |         |        |       
|                                                 | Net income                                                                        |                                           | $                                     | 13,956 |         |         | $      | 12,604 |        
|                                                 | Adjustments to reconcile net income to net cash used by
    operating activities: |                                           |                                       |        |         |         |        |        |        
|                                                 |                                                                                   | Depreciation and amortization             |                                       |        | 8,876   |         |        |        | 7,863   |       
|                                                 | Changes in operating assets and liabilities:                                      |                                           |                                       |        |         |         |        |        |        
|                                                 |                                                                                   | Accounts receivable                       |                                       |        | (9,181  | )       |        |        | (41,307 | )     
|                                                 |                                                                                   | Inventories and other current assets      |                                       |        | (13,068 | )       |        |        | (22,774 | )     
|                                                 |                                                                                   | Accounts payable and accrued expenses     |                                       |        | (14,147 | )       |        |        | 37,433  |       
|                                                 |                                                                                   | Other                                     |                                       |        | (3,090  | )       |        |        | (2,531  | )     
|                                                 |                                                                                   |                                           |                                       |        |         |        
|                                                 |                                                                                   |                                           | Net Cash Used by Operating Activities |        |         | (16,654 | )      |        |         | (8,712 | )
|                                                
|INVESTING ACTIVITIES                             |                                                                                   |                                           |                                       |        |         |         |        |       
|                                                 | Purchases of property, plant and equipment, net                                   |                                           |                                       | (7,665 | )       |         |        | (3,566 | )      
|                                                 | Proceeds from sale of assets held for sale                                        |                                           |                                       | 1,100  |         |         |        | -0-    |        
|                                                 |                                                                                   |                                           |                                       |        |         |        
|                                                 |                                                                                   | Net Cash Used by Investing Activities     |                                       |        | (6,565  | )       |        |        | (3,566  | )     
|                                                
|FINANCING ACTIVITIES                             |                                                                                   |                                           |                                       |        |         |         |        |       
|                                                 | Proceeds from debt, net                                                           |                                           |                                       | 17,476 |         |         |        | 12,247 |        
|                                                 |                                                                                   |                                           |                                       |        |         |        
|                                                 |                                                                                   | Net Cash Provided by Financing Activities |                                       |        | 17,476  |         |        |        | 12,247  |       
|                                                 |                                                                                   |                                           |                                       |        |         |        
|Decrease in Cash and Cash Equivalents            |                                                                                   |                                           | (5,743                                | )      |         |         | (31    | )     
|Cash and Cash Equivalents at Beginning of Period |                                                                                   |                                           | 6,407                                 |        |         |         | 2,191  |       
|                                                 |                                                                                   |                                           |                                       |        |         |        
|Cash and Cash Equivalents at End of Period       |                                                                                   | $                                         | 664                                   |        |         | $       | 2,160  |       
|                                                 |                                                                                   |                                           |                                       |        |         |        
|Taxes paid                                       |                                                                                   | $                                         | 1,334                                 |        |         | $       | 1,457  |       
|Interest paid                                    |                                                                                   |                                           | 11,328                                |        |         |         | 12,076 |       



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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


June 30, 2005


(Amounts in Thousands  except per share data)


NOTE A  Basis of Presentation






NOTE B  Recent Accounting Pronouncements






NOTE C  Acquisitions






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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                       |                        |   |        |         |  
|---------------------- | ---------------------- | - | ------ | ------- | -
|Cash acquisition price |                        | $ | 10,000 |        
|Assets                 |                        |   |        |        
|                       | Accounts receivable    |   |        | (8,931  | )
|                       | Inventories            |   |        | (1,677  | )
|                       | Property and equipment |   |        | (16,964 | )
|                       | Other                  |   |        | (115    | )
|Liabilities            |                        |   |        |        
|                       | Accounts payable       |   |        | 4,041   |  
|                       | Compensation accruals  |   |        | 5,504   |  
|                       | Other accruals         |   |        | 8,142   |  
|                       |                        |   |       
|Goodwill               |                        | $ | -0-    |        
|                       |                        |   |       



|                             |  |           |       |  |      |   |     |            |  |   |       |  |  |   |       | 
|---------------------------- |  | --------- | ----- |  | ---- | - | --- | ---------- |  | - | ----- |  |  | - | ----- | 
|                             |  | Severance |       |  | Exit |   |     | Relocation |  |   | Total | 
|                             |  |           |       |  |      |   |     |            |  |   |       | 
|Balance at June 30, 2004     |  | $         | -0-   |  |      | $ | -0- |            |  | $ | -0-   |  |  | $ | -0-   | 
|Add: Accruals                |  |           | 1,916 |  |      |   | 100 |            |  |   | 265   |  |  |   | 2,281 | 
|Less: Payments               |  |           | 295   |  |      |   | -0- |            |  |   | 2     |  |  |   | 297   | 
|                             |  |           |       |  |      |   |     |            |  |   |       | 
|Balance at December 31, 2004 |  |           | 1,621 |  |      |   | 100 |            |  |   | 263   |  |  |   | 1,984 | 
|Less: Payments               |  |           | 777   |  |      |   | 32  |            |  |   | 96    |  |  |   | 905   | 
|                             |  |           |       |  |      |   |     |            |  |   |       | 
|Balance at June 30, 2005     |  | $         | 844   |  |      | $ | 68  |            |  | $ | 167   |  |  | $ | 1,079 | 
|                             |  |           |       |  |      |   |     |            |  |   |       | 



NOTE D  Inventories




|                           |  |          |         |  |              |   |         | 
|-------------------------- |  | -------- | ------- |  | ------------ | - | ------- | 
|                           |  | June 30, |         |  | December 31, |  
|                           |  | 2005     |         |  | 2004         |  
|                           |  |          |         |  |              |  
|Finished goods             |  | $        | 138,405 |  |              | $ | 121,832 | 
|Work in process            |  |          | 21,822  |  |              |   | 27,959  | 
|Raw materials and supplies |  |          | 30,495  |  |              |   | 27,503  | 
|                           |  |          |         |  |              |  
|                           |  | $        | 190,722 |  |              | $ | 177,294 | 
|                           |  |          |         |  |              |  

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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


NOTE E  Pension Plans and Other Postretirement
Benefits




|                                     |  |                  |        |                         |                |              |        |          |  |   |                |   |  |      |        |   |      |   |     |      |  |   |      |   |  |   |     |   |  |   |       |  
|------------------------------------ |  | ---------------- | ------ | ----------------------- | -------------- | ------------ | ------ | -------- |  | - | -------------- | - |  | ---- | ------ | - | ---- | - | --- | ---- |  | - | ---- | - |  | - | --- | - |  | - | ----- | -
|                                     |  |                  |        | Postretirement Benefits |               
|                                     |  | Pension Benefits |        |                         |                |             
|                                     |  |                  |        |                         |                |              |       
|                                     |  |                  |        |                         |                | Three Months |        |          | 
|                                     |  | Three Months     |        |                         | Six Months     |              |        | Ended    |  |   | Six Months     |  
|                                     |  | Ended June 30,   |        |                         | Ended June 30, |              |        | June 30, |  |   | Ended June 30, |  
|                                     |  |                  |        |                         |                |              |        |          |  |   |                |  
|                                     |  | 2005             |        |                         | 2004           |              |        | 2005     |  |   | 2004           |   |  | 2005 |        |   | 2004 |   |     | 2005 |  |   | 2004 |  
|                                     |  |                  |        |                         |                |              |        |          |  |   |                |   |  |      |        |   |      |   |     |      |  |   |      |  
|Service costs                        |  | $                | 97     |                         |                | $            | 78     |          |  | $ | 194            |   |  | $    | 156    |   |      | $ | 35  |      |  | $ | 40   |   |  | $ | 70  |   |  | $ | 80    |  
|Interest costs                       |  |                  | 796    |                         |                |              | 834    |          |  |   | 1,592          |   |  |      | 1,668  |   |      |   | 348 |      |  |   | 421  |   |  |   | 696 |   |  |   | 842   |  
|Expected return on plan assets       |  |                  | (2,211 | )                       |                |              | (2,093 | )        |  |   | (4,422         | ) |  |      | (4,186 | ) |      |   | -0- |      |  |   | -0-  |   |  |   | -0- |   |  |   | -0-   |  
|Transition obligation                |  |                  | (12    | )                       |                |              | (12    | )        |  |   | (24            | ) |  |      | (24    | ) |      |   | -0- |      |  |   | -0-  |   |  |   | -0- |   |  |   | -0-   |  
|Amortization of prior service cost   |  |                  | 41     |                         |                |              | 32     |          |  |   | 82             |   |  |      | 64     |   |      |   | (17 | )    |  |   | (20  | ) |  |   | (34 | ) |  |   | (40   | )
|Recognized net actuarial (gain) loss |  |                  | (60    | )                       |                |              | (81    | )        |  |   | (120           | ) |  |      | (162   | ) |      |   | 50  |      |  |   | 59   |   |  |   | 100 |   |  |   | 118   |  
|                                     |  |                  |        |                         |                |              |        |          |  |   |                |   |  |      |        |   |      |   |     |      |  |   |      |  
|Benefit (income) costs               |  | $                | (1,349 | )                       |                | $            | (1,242 | )        |  | $ | (2,698         | ) |  | $    | (2,484 | ) |      | $ | 416 |      |  | $ | 500  |   |  | $ | 832 |   |  | $ | 1,000 |  
|                                     |  |                  |        |                         |                |              |        |          |  |   |                |   |  |      |        |   |      |   |     |      |  |   |      |  

NOTE F  Segments




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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)




|                            |                       |                |         |         |                |   |         |         |  |   |         |         |  |   |         |         | 
|--------------------------- | --------------------- | -------------- | ------- | ------- | -------------- | - | ------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | 
|                            |                       | Three Months   |         |         | Six Months     |  
|                            |                       | Ended June 30, |         |         | Ended June 30, |  
|                            |                       |                |         |         |                |  
|                            |                       | 2005           |         |         | 2004           |   |         | 2005    |  |   | 2004    |        
|                            |                       |                |         |         |                |   |         |         |  |   |         |        
|Net sales:                  |                       |                |         |         |                |   |         |         |  |   |         |         |  |   |         |        
|                            | ILS                   |                | $       | 129,515 |                |   | $       | 114,849 |  |   | $       | 256,402 |  |   | $       | 231,114 | 
|                            | Aluminum products     |                |         | 43,094  |                |   |         | 28,269  |  |   |         | 85,984  |  |   |         | 55,850  | 
|                            | Manufactured products |                |         | 56,186  |                |   |         | 57,790  |  |   |         | 115,292 |  |   |         | 106,314 | 
|                            |                       |                |         |         |                |   |         |         |  |   |         |        
|                            |                       | $              | 228,795 |         |                | $ | 200,908 |         |  | $ | 457,678 |         |  | $ | 393,278 |        
|                            |                       |                |         |         |                |   |         |         |  |   |         |        
|Income before income taxes: |                       |                |         |         |                |   |         |         |  |   |         |         |  |   |         |        
|                            | ILS                   |                | $       | 8,271   |                |   | $       | 8,269   |  |   | $       | 16,475  |  |   | $       | 17,478  | 
|                            | Aluminum products     |                |         | 3,481   |                |   |         | 2,744   |  |   |         | 5,904   |  |   |         | 4,331   | 
|                            | Manufactured products |                |         | 5,949   |                |   |         | 5,229   |  |   |         | 11,762  |  |   |         | 8,521   | 
|                            |                       |                |         |         |                |   |         |         |  |   |         |        
|                            |                       |                | 17,701  |         |                |   | 16,242  |         |  |   | 34,141  |         |  |   | 30,330  |        
|Corporate costs             |                       |                | (2,599  | )       |                |   | (2,274  | )       |  |   | (5,502  | )       |  |   | (3,768  | )      
|Interest expense            |                       |                | (6,715  | )       |                |   | (6,196  | )       |  |   | (13,174 | )       |  |   | (12,332 | )      
|                            |                       |                |         |         |                |   |         |         |  |   |         |        
|                            |                       | $              | 8,387   |         |                | $ | 7,772   |         |  | $ | 15,465  |         |  | $ | 14,230  |        
|                            |                       |                |         |         |                |   |         |         |  |   |         |        

|                                     |                       |          |         |         |              |   |         |         | 
|------------------------------------ | --------------------- | -------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                                     |                       | June 30, |         |         | December 31, |  
|                                     |                       | 2005     |         |         | 2004         |  
|                                     |                       |          |         |         |              |  
|Identifiable assets were as follows: |                       |          |         |         |              |   |         |        
|                                     | ILS                   |          | $       | 325,299 |              |   | $       | 297,002 | 
|                                     | Aluminum products     |          |         | 112,084 |              |   |         | 105,535 | 
|                                     | Manufactured products |          |         | 174,777 |              |   |         | 163,230 | 
|                                     | General corporate     |          |         | 14,812  |              |   |         | 46,080  | 
|                                     |                       |          |         |         |              |  
|                                     |                       | $        | 626,972 |         |              | $ | 611,847 |        
|                                     |                       |          |         |         |              |  

NOTE G  Comprehensive Income




|                             |  |                |        |   |                |   |       |      |  |   |        |   |  |   |        | 
|---------------------------- |  | -------------- | ------ | - | -------------- | - | ----- | ---- |  | - | ------ | - |  | - | ------ | 
|                             |  | Three Months   |        |   | Six Months     |  
|                             |  | Ended June 30, |        |   | Ended June 30, |  
|                             |  |                |        |   |                |  
|                             |  | 2005           |        |   | 2004           |   |       | 2005 |  |   | 2004   |  
|                             |  |                |        |   |                |   |       |      |  |   |        |  
|Net income                   |  | $              | 7,677  |   |                | $ | 6,737 |      |  | $ | 13,956 |   |  | $ | 12,604 | 
|Foreign currency translation |  |                | (1,018 | ) |                |   | (721  | )    |  |   | (689   | ) |  |   | 93     | 
|                             |  |                |        |   |                |   |       |      |  |   |        |  
|Total comprehensive income   |  | $              | 6,659  |   |                | $ | 6,016 |      |  | $ | 13,267 |   |  | $ | 12,697 | 
|                             |  |                |        |   |                |   |       |      |  |   |        |  



|                                        |  |          |        |   |              |   |        |  
|--------------------------------------- |  | -------- | ------ | - | ------------ | - | ------ | -
|                                        |  | June 30, |        |   | December 31, |  
|                                        |  | 2005     |        |   | 2004         |  
|                                        |  |          |        |   |              |  
|Foreign currency translation adjustment |  | $        | (2,473 | ) |              | $ | (3,162 | )
|Minimum pension liability               |  |          | 4,838  |   |              |   | 4,838  |  
|                                        |  |          |        |   |              |  
|                                        |  | $        | 2,365  |   |              | $ | 1,676  |  
|                                        |  |          |        |   |              |  

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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


NOTE H  Restructuring Activities






|                             |  |   |      |  
|---------------------------- |  | - | ---- | -
|Balance at December 31, 2004 |  | $ | 462  |  
|Cash payments                |  |   | (236 | )
|                             |  |   |     
|Balance at June 30, 2005     |  | $ | 226  |  
|                             |  |   |     

NOTE I  Accrued Warranty Costs




|                     |                                              |      |       |        |      |   |       |        |  
|-------------------- | -------------------------------------------- | ---- | ----- | ------ | ---- | - | ----- | ------ | -
|                     |                                              | 2005 |       |        | 2004 |  
|                     |                                              |      |       |        |      |  
|Balance at January 1 |                                              | $    | 4,281 |        |      | $ | 5,614 |       
|                     | Claims paid during the year                  |      |       | (1,545 | )    |   |       | (2,742 | )
|                     | Additional warranties issued during the year |      |       | 1,538  |      |   |       | 1,252  |  
|                     | Acquired warranty liabilities                |      |       | -0-    |      |   |       | 501    |  
|                     |                                              |      |       |        |      |  
|Balance at June 30   |                                              | $    | 4,274 |        |      | $ | 4,625 |       
|                     |                                              |      |       |        |      |  

NOTE J  Income Taxes






NOTE K  Subsequent Event




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PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)  (Continued)


NOTE L  Supplemental Guarantor Information






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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, 2005


|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |         |         | 
|------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------ | ------- | --------- | ------------ | - | ------------- | ------------ | ------- | ------------------ | ------------ | ------ | ------ | ------------ | -------- | ------- | -------- | - | ------- | ------- | ------- | 
|                                            |                                                               |                                            |         | Combined  |              |   | Combined      |              |         |                    |              |       
|                                            |                                                               |                                            |         | Guarantor |              |   | Non-Guarantor |              |         | Reclassifications/ |              |        |       
|                                            |                                                               | Parent                                     |         |           | Subsidiaries |   |               | Subsidiaries |         |                    | Eliminations |        |        | Consolidated |         
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | (In thousands)                             |        
|ASSETS                                     
|Current assets:                             |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Cash and cash equivalents                                     |                                            | $       | (30,981   | )            |   | $             | 24,235       |         |                    | $            | 7,410  |        |              | $        | -0-     |          |   | $       | 664     |        
|                                            | Accounts receivable, net                                      |                                            |         | -0-       |              |   |               | 130,817      |         |                    |              | 24,206 |        |              |          | (367    | )        |   |         | 154,656 |        
|                                            | Inventories                                                   |                                            |         | -0-       |              |   |               | 161,099      |         |                    |              | 29,623 |        |              |          | -0-     |          |   |         | 190,722 |        
|                                            | Other current assets                                          |                                            |         | 1,154     |              |   |               | 11,166       |         |                    |              | 5,015  |        |              |          | 2,960   |          |   |         | 20,295  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Assets                       |         |           | (29,827      | ) |               |              | 327,317 |                    |              |        | 66,254 |              |          |         | 2,593    |   |         |         | 366,337 | 
|Investment in subsidiaries                  |                                                               |                                            | 343,852 |           |              |   | -0-           |              |         |                    | -0-          |        |        |              | (343,852 | )       |          |   | -0-     |        
|Inter-company advances                      |                                                               |                                            | 271,488 |           |              |   | 281,358       |              |         |                    | 6,409        |        |        |              | (559,255 | )       |          |   | -0-     |        
|Property, Plant and Equipment, net          |                                                               |                                            | 2,378   |           |              |   | 94,776        |              |         |                    | 12,511       |        |        |              | -0-      |         |          |   | 109,665 |        
|Other Assets:                               |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Goodwill                                                      |                                            |         | -0-       |              |   |               | 78,424       |         |                    |              | 4,018  |        |              |          | -0-     |          |   |         | 82,442  |        
|                                            | Other                                                         |                                            |         | 44,859    |              |   |               | 37,187       |         |                    |              | 1,128  |        |              |          | (14,646 | )        |   |         | 68,528  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Other Assets                         |         |           | 44,859       |   |               |              | 115,611 |                    |              |        | 5,146  |              |          |         | (14,646  | ) |         |         | 150,970 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Assets                               |         | $         | 632,750      |   |               | $            | 819,062 |                    |              | $      | 90,320 |              |          | $       | (915,160 | ) |         | $       | 626,972 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                           
|LIABILITIES AND SHAREHOLDERS EQUITY       
|Current Liabilities:                        |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Trade accounts payable                                        |                                            | $       | 3,317     |              |   | $             | 90,583       |         |                    | $            | 7,525  |        |              | $        | (11,026 | )        |   | $       | 90,399  |        
|                                            | Accrued expenses                                              |                                            |         | 11,352    |              |   |               | 41,570       |         |                    |              | 11,334 |        |              |          | (194    | )        |   |         | 64,062  |        
|                                            | Current portion of long-term liabilities                      |                                            |         | -0-       |              |   |               | 544          |         |                    |              | 4,115  |        |              |          | 2,881   |          |   |         | 7,540   |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Liabilities                  |         |           | 14,669       |   |               |              | 132,697 |                    |              |        | 22,974 |              |          |         | (8,339   | ) |         |         | 162,001 | 
|Long-Term Liabilities, less current portion |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | 8.375% Senior Subordinated Notes due 2014                     |                                            |         | 210,000   |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 210,000 |        
|                                            | Revolving credit maturing on December 31, 2010                |                                            |         | 135,600   |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 135,600 |        
|                                            | Other long-term debt                                          |                                            |         | -0-       |              |   |               | 34,856       |         |                    |              | 1,636  |        |              |          | (30,968 | )        |   |         | 5,524   |        
|                                            | Other postretirement benefits and other long-term liabilities |                                            |         | 3,893     |              |   |               | 21,094       |         |                    |              | 3,992  |        |              |          | (2,881  | )        |   |         | 26,098  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Long-Term Liabilities                |         |           | 349,493      |   |               |              | 55,950  |                    |              |        | 5,628  |              |          |         | (33,849  | ) |         |         | 377,222 | 
|Inter-company advances                      |                                                               |                                            | 183,692 |           |              |   | 337,028       |              |         |                    | 20,269       |        |        |              | (540,989 | )       |          |   | -0-     |        
|Shareholders Equity                        |                                                               |                                            | 84,896  |           |              |   | 293,387       |              |         |                    | 41,449       |        |        |              | (331,983 | )       |          |   | 87,749  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Liabilities and Shareholders Equity |         | $         | 632,750      |   |               | $            | 819,062 |                    |              | $      | 90,320 |              |          | $       | (915,160 | ) |         | $       | 626,972 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         

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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, 2004


|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |         |         | 
|------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------ | ------- | --------- | ------------ | - | ------------- | ------------ | ------- | ------------------ | ------------ | ------ | ------ | ------------ | -------- | ------- | -------- | - | ------- | ------- | ------- | 
|                                            |                                                               |                                            |         | Combined  |              |   | Combined      |              |         |                    |              |       
|                                            |                                                               |                                            |         | Guarantor |              |   | Non-Guarantor |              |         | Reclassifications/ |              |        |       
|                                            |                                                               | Parent                                     |         |           | Subsidiaries |   |               | Subsidiaries |         |                    | Eliminations |        |        | Consolidated |         
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | (In thousands)                             |        
|ASSETS                                     
|Current assets:                             |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Cash and cash equivalents                                     |                                            | $       | (14,387   | )            |   | $             | 199          |         |                    | $            | 6,851  |        |              | $        | 13,744  |          |   | $       | 6,407   |        
|                                            | Accounts receivable, net                                      |                                            |         | 114       |              |   |               | 117,097      |         |                    |              | 30,208 |        |              |          | (1,944  | )        |   |         | 145,475 |        
|                                            | Inventories                                                   |                                            |         | (81       | )            |   |               | 151,187      |         |                    |              | 26,188 |        |              |          | -0-     |          |   |         | 177,294 |        
|                                            | Other current assets                                          |                                            |         | 499       |              |   |               | 12,215       |         |                    |              | 1,799  |        |              |          | 6,142   |          |   |         | 20,655  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Assets                       |         |           | (13,855      | ) |               |              | 280,698 |                    |              |        | 65,046 |              |          |         | 17,942   |   |         |         | 349,831 | 
|Investment in subsidiaries                  |                                                               |                                            | 341,088 |           |              |   | -0-           |              |         |                    | -0-          |        |        |              | (341,088 | )       |          |   | -0-     |        
|Inter-company advances                      |                                                               |                                            | 251,357 |           |              |   | 224,918       |              |         |                    | 5,145        |        |        |              | (481,420 | )       |          |   | -0-     |        
|Property, Plant and Equipment, net          |                                                               |                                            | 2,266   |           |              |   | 95,494        |              |         |                    | 12,121       |        |        |              | -0-      |         |          |   | 109,881 |        
|Other Assets:                               |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Goodwill                                                      |                                            |         | -0-       |              |   |               | 78,424       |         |                    |              | 4,141  |        |              |          | -0-     |          |   |         | 82,565  |        
|                                            | Net assets held for sale                                      |                                            |         | -0-       |              |   |               | 1,035        |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 1,035   |        
|                                            | Other                                                         |                                            |         | 43,908    |              |   |               | 37,316       |         |                    |              | 1,490  |        |              |          | (14,179 | )        |   |         | 68,535  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Other Assets                         |         |           | 43,908       |   |               |              | 116,775 |                    |              |        | 5,631  |              |          |         | (14,179  | ) |         |         | 152,135 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Assets                               |         | $         | 624,764      |   |               | $            | 717,885 |                    |              | $      | 87,943 |              |          | $       | (818,745 | ) |         | $       | 611,847 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                           
|LIABILITIES AND SHAREHOLDERS EQUITY       
|Current Liabilities:                        |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Trade accounts payable                                        |                                            | $       | 4,347     |              |   | $             | 87,291       |         |                    | $            | 16,130 |        |              | $        | 1,094   |          |   | $       | 108,862 |        
|                                            | Accrued expenses                                              |                                            |         | 6,291     |              |   |               | 44,529       |         |                    |              | 8,925  |        |              |          | -0-     |          |   |         | 59,745  |        
|                                            | Current portion of long-term liabilities                      |                                            |         | -0-       |              |   |               | 587          |         |                    |              | 2,344  |        |              |          | 2,881   |          |   |         | 5,812   |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Liabilities                  |         |           | 10,638       |   |               |              | 132,407 |                    |              |        | 27,399 |              |          |         | 3,975    |   |         |         | 174,419 | 
|Long-Term Liabilities, less current portion |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | 8.375% Senior Subordinated Notes due 2014                     |                                            |         | 210,000   |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 210,000 |        
|                                            | 9.25% Senior Subordinated Notes due 2007                      |                                            |         | -0-       |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | -0-     |        
|                                            | Revolving credit maturing on December 31, 2010                |                                            |         | 120,600   |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 120,600 |        
|                                            | Other long-term debt                                          |                                            |         | -0-       |              |   |               | 35,037       |         |                    |              | 707    |        |              |          | (30,968 | )        |   |         | 4,776   |        
|                                            | Other postretirement benefits and other long-term liabilities |                                            |         | 5,315     |              |   |               | 21,875       |         |                    |              | 3,261  |        |              |          | (2,881  | )        |   |         | 27,570  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Long-Term Liabilities                |         |           | 335,915      |   |               |              | 56,912  |                    |              |        | 3,968  |              |          |         | (33,849  | ) |         |         | 362,946 | 
|Inter-company advances                      |                                                               |                                            | 206,503 |           |              |   | 242,202       |              |         |                    | 17,425       |        |        |              | (466,130 | )       |          |   | -0-     |        
|Shareholders Equity                        |                                                               |                                            | 71,708  |           |              |   | 286,364       |              |         |                    | 39,151       |        |        |              | (322,741 | )       |          |   | 74,482  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Liabilities and Shareholders Equity |         | $         | 624,764      |   |               | $            | 717,885 |                    |              | $      | 87,943 |              |          | $       | (818,745 | ) |         | $       | 611,847 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         

14



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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 June 30, 2005


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 203,545       |              |  | $ | 26,984       |       |  | $            | (1,734 | )   |  | $ | 228,795 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 173,373       |              |  |   | 21,790       |       |  |              | (1,734 | )   |  |   | 193,429 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 30,172        |              |  |   | 5,194        |       |  |              | -0-    |     |  |   | 35,366  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 392       |              |   |               | 16,520       |  |   |              | 3,202 |  |              |        | 150 |  |   |         | 20,264 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (392   | )         |              |   | 13,652        |              |  |   | 1,992        |       |  |              | (150   | )   |  |   | 15,102  |       
|Interest expense                  |                                              |                | (1,482 | )         |              |   | 7,811         |              |  |   | 536          |       |  |              | (150   | )   |  |   | 6,715   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | 1,090  |           |              |   | 5,841         |              |  |   | 1,456        |       |  |              | -0-    |     |  |   | 8,387   |       
|Income taxes                      |                                              |                | 146    |           |              |   | -0-           |              |  |   | 564          |       |  |              | -0-    |     |  |   | 710     |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | 944       |              |   | $             | 5,841        |  |   | $            | 892   |  |              | $      | -0- |  |   | $       | 7,677  | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Three Months Ended June 30, 2004


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 175,078       |              |  | $ | 28,940       |       |  | $            | (3,110 | )   |  | $ | 200,908 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 148,819       |              |  |   | 21,547       |       |  |              | (3,110 | )   |  |   | 167,256 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 26,259        |              |  |   | 7,393        |       |  |              | -0-    |     |  |   | 33,652  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 1,544     |              |   |               | 15,458       |  |   |              | 2,682 |  |              |        | -0- |  |   |         | 19,684 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (1,544 | )         |              |   | 10,801        |              |  |   | 4,711        |       |  |              | -0-    |     |  |   | 13,968  |       
|Interest expense                  |                                              |                | (686   | )         |              |   | 5,845         |              |  |   | 1,037        |       |  |              | -0-    |     |  |   | 6,196   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | (858   | )         |              |   | 4,956         |              |  |   | 3,674        |       |  |              | -0-    |     |  |   | 7,772   |       
|Income taxes                      |                                              |                | 200    |           |              |   | -0-           |              |  |   | 835          |       |  |              | -0-    |     |  |   | 1,035   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | (1,058    | )            |   | $             | 4,956        |  |   | $            | 2,839 |  |              | $      | -0- |  |   | $       | 6,737  | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

15



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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 Six Months Ended June 30, 2005


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 406,194       |              |  | $ | 55,635       |       |  | $            | (4,151 | )   |  | $ | 457,678 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 346,870       |              |  |   | 44,497       |       |  |              | (4,151 | )   |  |   | 387,216 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 59,324        |              |  |   | 11,138       |       |  |              | -0-    |     |  |   | 70,462  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 2,513     |              |   |               | 32,652       |  |   |              | 6,358 |  |              |        | 300 |  |   |         | 41,823 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (2,513 | )         |              |   | 26,672        |              |  |   | 4,780        |       |  |              | (300   | )   |  |   | 28,639  |       
|Interest expense                  |                                              |                | (2,906 | )         |              |   | 15,308        |              |  |   | 1,072        |       |  |              | (300   | )   |  |   | 13,174  |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | 393    |           |              |   | 11,364        |              |  |   | 3,708        |       |  |              | -0-    |     |  |   | 15,465  |       
|Income taxes                      |                                              |                | (515   | )         |              |   | -0-           |              |  |   | 2,024        |       |  |              | -0-    |     |  |   | 1,509   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | 908       |              |   | $             | 11,364       |  |   | $            | 1,684 |  |              | $      | -0- |  |   | $       | 13,956 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Six Months Ended June 30, 2004


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 342,827       |              |  | $ | 56,180       |       |  | $            | (5,729 | )   |  | $ | 393,278 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 291,354       |              |  |   | 43,763       |       |  |              | (5,729 | )   |  |   | 329,388 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 51,473        |              |  |   | 12,417       |       |  |              | -0-    |     |  |   | 63,890  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 2,205     |              |   |               | 29,901       |  |   |              | 5,222 |  |              |        | -0- |  |   |         | 37,328 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (2,205 | )         |              |   | 21,572        |              |  |   | 7,195        |       |  |              | -0-    |     |  |   | 26,562  |       
|Interest expense                  |                                              |                | (917   | )         |              |   | 11,256        |              |  |   | 1,993        |       |  |              | -0-    |     |  |   | 12,332  |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | (1,288 | )         |              |   | 10,316        |              |  |   | 5,202        |       |  |              | -0-    |     |  |   | 14,230  |       
|Income taxes                      |                                              |                | 450    |           |              |   | -0-           |              |  |   | 1,176        |       |  |              | -0-    |     |  |   | 1,626   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | (1,738    | )            |   | $             | 10,316       |  |   | $            | 4,026 |  |              | $      | -0- |  |   | $       | 12,604 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

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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, 2005


|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |        |  
|------------------------------------------------- | --------------------------------------------------------- | -------------- | ------- | --------- | ------------ | - | ------------- | ------------ | - | - | ------------ | ------ | - | ------------ | --- | --- |  | - | ------- | ------ | -
|                                                  |                                                           |                |         | Combined  |              |   | Combined      |              |   |   |              |       
|                                                  |                                                           |                |         | Guarantor |              |   | Non-Guarantor |              |   |   |              |       
|                                                  |                                                           | Parent         |         |           | Subsidiaries |   |               | Subsidiaries |   |   | Eliminations |        |   | Consolidated |    
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|                                                  |                                                           | (In thousands) |        
|Net cash provided (used ) by operations           |                                                           | $              | (45,135 | )         |              | $ | 29,496        |              |   | $ | (1,015       | )      |   | $            | -0- |     |  | $ | (16,654 | )     
|Cash flows from investing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |       
|                                                  | Purchases of property, plant and equipment, net           |                |         | (203      | )            |   |               | (6,335       | ) |   |              | (1,127 | ) |              |     | -0- |  |   |         | (7,665 | )
|                                                  | Proceeds from sale of assets held for sale                |                |         | -0-       |              |   |               | 1,100        |   |   |              | -0-    |   |              |     | -0- |  |   |         | 1,100  |  
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used ) in investing activities |                                                           |                | (203    | )         |              |   | (5,235        | )            |   |   | (1,127       | )      |   |              | -0- |     |  |   | (6,565  | )     
|Cash flows from financing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |       
|                                                  | Proceeds from revolving credit arrangements               |                |         | 15,000    |              |   |               | -0-          |   |   |              | 2,701  |   |              |     | -0- |  |   |         | 17,701 |  
|                                                  | Principal payments on revolving credit and long-term debt |                |         | -0-       |              |   |               | (225         | ) |   |              | -0-    |   |              |     | -0- |  |   |         | (225   | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used ) by financing activities |                                                           |                | 15,000  |           |              |   | (225          | )            |   |   | 2,701        |        |   |              | -0- |     |  |   | 17,476  |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Increase (decrease) in cash and cash equivalents  |                                                           |                | (30,338 | )         |              |   | 24,036        |              |   |   | 559          |        |   |              | -0- |     |  |   | (5,743  | )     
|Cash and cash equivalents at beginning of period  |                                                           |                | (643    | )         |              |   | 199           |              |   |   | 6,851        |        |   |              | -0- |     |  |   | 6,407   |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Cash and cash equivalents at end of period        |                                                           | $              | (30,981 | )         |              | $ | 24,235        |              |   | $ | 7,410        |        |   | $            | -0- |     |  | $ | 664     |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    

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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, 2004


|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |        |        |  
|------------------------------------------------- | --------------------------------------------------------- | -------------- | ------- | --------- | ------------ | - | ------------- | ------------ | - | - | ------------ | ------ | - | ------------ | --- | --- |  | - | ------ | ------ | -
|                                                  |                                                           |                |         | Combined  |              |   | Combined      |              |   |   |              |       
|                                                  |                                                           |                |         | Guarantor |              |   | Non-Guarantor |              |   |   |              |       
|                                                  |                                                           | Parent         |         |           | Subsidiaries |   |               | Subsidiaries |   |   | Eliminations |        |   | Consolidated |    
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|                                                  |                                                           | (In thousands) |        
|Net cash provided (used) by operations            |                                                           | $              | (28,041 | )         |              | $ | 15,113        |              |   | $ | 4,216        |        |   | $            | -0- |     |  | $ | (8,712 | )     
|Cash flows from investing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |        |       
|                                                  | Purchases of property, plant and equipment, net           |                |         | (27       | )            |   |               | (2,505       | ) |   |              | (1,034 | ) |              |     | -0- |  |   |        | (3,566 | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used) in investing activities  |                                                           |                | (27     | )         |              |   | (2,505        | )            |   |   | (1,034       | )      |   |              | -0- |     |  |   | (3,566 | )     
|Cash flows from financing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |        |       
|                                                  | Proceeds from bank arrangements                           |                |         | 11,700    |              |   |               | -0-          |   |   |              | 771    |   |              |     | -0- |  |   |        | 12,471 |  
|                                                  | Principal payments on revolving credit and long-term debt |                |         | -0-       |              |   |               | (224         | ) |   |              | -0-    |   |              |     | -0- |  |   |        | (224   | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used ) by financing activities |                                                           |                | 11,700  |           |              |   | (224          | )            |   |   | 771          |        |   |              | -0- |     |  |   | 12,247 |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Increase (decrease) in cash and cash equivalents  |                                                           |                | (16,368 | )         |              |   | 12,384        |              |   |   | 3,953        |        |   |              | -0- |     |  |   | (31    | )     
|Cash and cash equivalents at beginning of period  |                                                           |                | (1,392  | )         |              |   | 881           |              |   |   | 2,702        |        |   |              | -0- |     |  |   | 2,191  |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Cash and cash equivalents at end of period        |                                                           | $              | (17,760 | )         |              | $ | 13,265        |              |   | $ | 6,655        |        |   | $            | -0- |     |  | $ | 2,160  |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    

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##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |                      
| | ---------------------
| | /s/ Ernst & Young LLP





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##### Table of Contents






Item 2. Managements Discussion and Analysis
of Financial Condition and Results of Operations




Executive Overview












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##### Table of Contents





Results of Operations




| |                                       
| | --------------------------------------
| | Six Months 2005 versus Six Months 2004



| |                      
| | ---------------------
| | Net Sales by Segment:

|                       |  |                |       |  |      |   |         |        |           |            |        |  |  |       |    |   |  |   |      | 
|---------------------- |  | -------------- | ----- |  | ---- | - | ------- | ------ | --------- | ---------- | ------ |  |  | ----- | -- | - |  | - | ---- | 
|                       |  | Six Months     |       |  |      |   |         |        |          
|                       |  | Ended June 30, |       |  |      |   |         |        | Acquired/ |           
|                       |  |                |       |  |      |   | Percent |        |           | (Divested) |       
|                       |  | 2005           |       |  | 2004 |   |         | Change |           |            | Change |  |  | Sales |   
|                       |  |                |       |  |      |   |         |        |           |            |        |  |  |       |   
|ILS                    |  | $              | 256.4 |  |      | $ | 231.1   |        |           | $          | 25.3   |  |  |       | 11 | % |  | $ | 0.0  | 
|Aluminum products      |  |                | 86.0  |  |      |   | 55.9    |        |           |            | 30.1   |  |  |       | 54 | % |  |   | 37.7 | 
|Manufactured products  |  |                | 115.3 |  |      |   | 106.3   |        |           |            | 9.0    |  |  |       | 8  | % |  |   | 3.5  | 
|                       |  |                |       |  |      |   |         |        |           |            |        |  |  |       |   
|Consolidated net sales |  | $              | 457.7 |  |      | $ | 393.3   |        |           | $          | 64.4   |  |  |       | 16 | % |  | $ | 41.2 | 
|                       |  |                |       |  |      |   |         |        |           |            |        |  |  |       |   





| |                                      
| | -------------------------------------
| | Cost of Products Sold & Gross Profit:

|                                   |  |                |       |   |      |   |         |        |  |   |        |  |  |  |    |  
|---------------------------------- |  | -------------- | ----- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                   |  | Six Months     |       |   |      |   |        
|                                   |  | Ended June 30, |       |   |      |   |        
|                                   |  |                |       |   |      |   | Percent |       
|                                   |  | 2005           |       |   | 2004 |   |         | Change |  |   | Change | 
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Consolidated cost of products sold |  | $              | 387.2 |   |      | $ | 329.4   |        |  | $ | 57.8   |  |  |  | 18 | %
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Consolidated gross profit          |  | $              | 70.5  |   |      | $ | 63.9    |        |  | $ | 6.6    |  |  |  | 10 | %
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Gross margin                       |  |                | 15.4  | % |      |   | 16.2    | %      |  |   |        |  |  |  |    |  





| |                                                         
| | --------------------------------------------------------
| | Selling, General & Administrative
    (SG&A) Expenses:

|                           |  |                |      |   |      |   |         |        |  |   |        |  |  |  |    |  
|-------------------------- |  | -------------- | ---- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                           |  | Six Months     |      |   |      |   |        
|                           |  | Ended June 30, |      |   |      |   |        
|                           |  |                |      |   |      |   | Percent |       
|                           |  | 2005           |      |   | 2004 |   |         | Change |  |   | Change | 
|                           |  |                |      |   |      |   |         |        |  |   |        | 
|Consolidated SG&A expenses |  | $              | 41.8 |   |      | $ | 37.3    |        |  | $ | 4.5    |  |  |  | 12 | %
|SG&A percent               |  |                | 9.1  | % |      |   | 9.5     | %      |  |   |        |  |  |  |    |  

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##### Table of Contents







| |                  
| | -----------------
| | Interest Expense:

|                               |  |                |       |   |      |   |         |        |  |   |        |   |  |  |              |  
|------------------------------ |  | -------------- | ----- | - | ---- | - | ------- | ------ |  | - | ------ | - |  |  | ------------ | -
|                               |  | Six Months     |       |   |      |   |        
|                               |  | Ended June 30, |       |   |      |   |        
|                               |  |                |       |   |      |   | Percent |       
|                               |  | 2005           |       |   | 2004 |   |         | Change |  |   | Change |  
|                               |  |                |       |   |      |   |         |        |  |   |        |  
|Interest expense               |  | $              | 13.2  |   |      | $ | 12.3    |        |  | $ | 0.9    |   |  |  | 7            | %
|Average outstanding borrowings |  | $              | 356.8 |   |      | $ | 316.4   |        |  | $ | 40.4   |   |  |  | 13           | %
|Average borrowing rate         |  |                | 7.39  | % |      |   | 7.80    | %      |  |   | (41    | ) |  |  | basis points |  





| |            
| | -----------
| | Income Tax:





| |                                               
| | ----------------------------------------------
| | Second Quarter 2005 versus Second Quarter 2004



| |                      
| | ---------------------
| | Net Sales by Segment:

|                       |  |                |       |  |      |   |         |        |           |            |        |   |  |       |    |    |  |   |      | 
|---------------------- |  | -------------- | ----- |  | ---- | - | ------- | ------ | --------- | ---------- | ------ | - |  | ----- | -- | -- |  | - | ---- | 
|                       |  | Three Months   |       |  |      |   |         |        |          
|                       |  | Ended June 30, |       |  |      |   |         |        | Acquired/ |           
|                       |  |                |       |  |      |   | Percent |        |           | (Divested) |       
|                       |  | 2005           |       |  | 2004 |   |         | Change |           |            | Change |   |  | Sales |   
|                       |  |                |       |  |      |   |         |        |           |            |        |   |  |       |   
|ILS                    |  | $              | 129.5 |  |      | $ | 114.8   |        |           | $          | 14.7   |   |  |       | 13 | %  |  | $ | 0.0  | 
|Aluminum products      |  |                | 43.1  |  |      |   | 28.3    |        |           |            | 14.8   |   |  |       | 52 | %  |  |   | 18.7 | 
|Manufactured products  |  |                | 56.2  |  |      |   | 57.8    |        |           |            | (1.6   | ) |  |       | (3 | )% |  |   | 0.0  | 
|                       |  |                |       |  |      |   |         |        |           |            |        |   |  |       |   
|Consolidated net sales |  | $              | 228.8 |  |      | $ | 200.9   |        |           | $          | 27.9   |   |  |       | 14 | %  |  | $ | 18.7 | 
|                       |  |                |       |  |      |   |         |        |           |            |        |   |  |       |   



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##### Table of Contents







| |                                      
| | -------------------------------------
| | Cost of Products Sold & Gross Profit:

|                                   |  |                |       |   |      |   |         |        |  |   |        |  |  |  |    |  
|---------------------------------- |  | -------------- | ----- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                   |  | Three Months   |       |   |      |   |        
|                                   |  | Ended June 30, |       |   |      |   |        
|                                   |  |                |       |   |      |   | Percent |       
|                                   |  | 2005           |       |   | 2004 |   |         | Change |  |   | Change | 
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Consolidated cost of products sold |  | $              | 193.4 |   |      | $ | 167.3   |        |  | $ | 26.1   |  |  |  | 16 | %
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Consolidated gross profit          |  | $              | 35.4  |   |      | $ | 33.7    |        |  | $ | 1.7    |  |  |  | 5  | %
|                                   |  |                |       |   |      |   |         |        |  |   |        | 
|Gross margin                       |  |                | 15.5  | % |      |   | 16.8    | %      |  |   |        |  |  |  |    |  





| |               
| | --------------
| | SG&A Expenses:

|                           |  |                |      |   |      |   |         |        |  |   |        |  |  |  |   |  
|-------------------------- |  | -------------- | ---- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | - | -
|                           |  | Three Months   |      |   |      |   |        
|                           |  | Ended June 30, |      |   |      |   |        
|                           |  |                |      |   |      |   | Percent |       
|                           |  | 2005           |      |   | 2004 |   |         | Change |  |   | Change | 
|                           |  |                |      |   |      |   |         |        |  |   |        | 
|Consolidated SG&A expenses |  | $              | 20.3 |   |      | $ | 19.7    |        |  | $ | 0.6    |  |  |  | 3 | %
|SG&A percent               |  |                | 8.9  | % |      |   | 9.8     | %      |  |   |        |  |  |  |   |  





| |                  
| | -----------------
| | Interest Expense:

|                               |  |                |       |   |      |   |         |        |  |      |        |  |  |  |              |  
|------------------------------ |  | -------------- | ----- | - | ---- | - | ------- | ------ |  | ---- | ------ |  |  |  | ------------ | -
|                               |  | Three Months   |       |   |      |   |        
|                               |  | Ended June 30, |       |   |      |   |        
|                               |  |                |       |   |      |   | Percent |       
|                               |  | 2005           |       |   | 2004 |   |         | Change |  |      | Change | 
|                               |  |                |       |   |      |   |         |        |  |      |        | 
|Interest expense               |  | $              | 6.7   |   |      | $ | 6.2     |        |  | $    | 0.5    |  |  |  | 8            | %
|Average outstanding borrowings |  | $              | 361.4 |   |      | $ | 319.2   |        |  | $    | 42.2   |  |  |  | 13           | %
|                               |  |                |       |   |      |   |         |        |  | (33)
|Average borrowing rate         |  |                | 7.43  | % |      |   | 7.76    | %      |  |      |        |  |  |  | basis points |  



23



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##### Table of Contents





| |            
| | -----------
| | Income Tax:



Seasonality; Variability of Operating Results






Forward-Looking Statements




Review By Registered Public Accounting Firm




24



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##### Table of Contents








|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures










PART II


OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings











25



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##### Table of Contents












|        |         
|------- | --------
|Item 6. | Exhibits



|     |  |                                                                                                          
|---- |  | ---------------------------------------------------------------------------------------------------------
|    
|31.1 |  | Principal Executive Officers Certification Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
|    
|31.2 |  | Principal Financial Officers Certification Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
|    
|32   |  | Certification requirement under Section 906 of the
    Sarbanes-Oxley Act of 2002                        

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##### Table of Contents






SIGNATURE






| |                           
| | --------------------------
| | PARK-OHIO INDUSTRIES, INC.
| |                           
| | (Registrant)              



| |    |                           
| | -- | --------------------------
| | By | /s/ Richard P.
    Elliott

| |                                                  
| | -------------------------------------------------
| | Name: Richard P. Elliott                         
| | Title: Vice President and Chief Financial Officer
| | (Principal Financial and Accounting Officer)     



|     |                 | 
|---- | --------------- | 
|Date | August 10, 2005 | 

| | 
| | 
| | 

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##### Table of Contents






EXHIBIT INDEX


QUARTERLY REPORT ON FORM 10-Q


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


FOR THE QUARTER ENDED JUNE 30, 2005


|        |      |  |  |                                                                                                          
|------- | ---- |  |  | ---------------------------------------------------------------------------------------------------------
|Exhibit |      | 
|        |      | 
|        | 31.1 |  |  | Principal Executive Officers Certification Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
|        | 31.2 |  |  | Principal Financial Officers Certification Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
|        | 32   |  |  | Certification requirement under Section 906 of the
    Sarbanes-Oxley Act of 2002                        

28