##### Table of Contents





UNITED STATES SECURITIES AND
    EXCHANGE COMMISSIONWashington, D.C.
    20549
  Form 10-Q
   (Mark One)þ

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE
    SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    September 30,
    2010oro

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

34-6520107(I.R.S. EmployerIdentification No.)44124(Zip Code)   440/947-2000
 (Registrants telephone number, including area code)
  Pursuant to a corporate reorganization effective
    June 15, 1998,
 Park-Ohio Industries, Inc. became a wholly-owned subsidiary
    of Park-Ohio Holdings Corp.
       (1)
    Has filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the
    preceding twelve months (or for such shorter period that the
    registrant was required to file such reports) and(2)
    Has been subject to such filing requirements for the past
    90 days.  Yes o     No þ  Regulation S-T o o
    Large
    accelerated filer
    o
    Accelerated
    filer
    o
    
    Non-accelerated
    filer þ
    
    Smaller
    reporting
    Company o   Rule 12b-2 o þ
     The
    Exhibit Index is located on page 28.




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##### 





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


Financial Statements


3Condensed consolidated balance sheets 
    September 30, 2010 and December 31, 2009


3Condensed consolidated statements of
    operations  Three and nine months ended
    September 30, 2010 and 2009


4Condensed consolidated statement of
    shareholders equity  Nine months ended
    September 30, 2010


5Condensed consolidated statements of cash
    flows  Nine months ended September 30, 2010 and
    2009


6Notes to unaudited condensed consolidated
    financial statements  September 30, 2010


7Report of independent registered public
    accounting firm


19Item 2.


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


20Item 3.


Quantitative and Qualitative Disclosure About
    Market Risk


25Item 4.


Controls and Procedures


25PART II. OTHER INFORMATIONItem 1.


Legal Proceedings


26Item 1A.


Risk Factors


27Item 6.


Exhibits


27SIGNATURE


28EXHIBIT INDEX


29EX-31.1EX-31.2EX-32   2




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##### Table of Contents



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


December 31,2010


2009(Dollars in thousands)ASSETSCurrent AssetsCash and cash equivalents

$
35,544


$
21,976Accounts receivable, less allowances for doubtful accounts of
    $4,268 at September 30, 2010 and $8,388 at
    December 31, 2009


137,024



104,643Inventories


193,021



182,116Deferred tax assets


8,104



8,104Unbilled contract revenue


10,209



19,411Other current assets


726



13,783Total Current Assets


384,628



350,033Property, Plant and Equipment


255,557



242,505Less accumulated depreciation


184,006



167,54671,551



74,959Other AssetsGoodwill


8,586



4,155Other


74,356



70,695$
539,121


$
499,842LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
97,470


$
75,078Accrued expenses


61,796



39,074Current portion of long-term debt


12,115



10,894Current portion of other postretirement benefits


2,197



2,197Total Current Liabilities


173,578



127,243Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


183,835



183,835Revolving credit and term loan facility


121,000



134,600Other long-term debt


5,407



4,668Deferred tax liability


7,200



7,200Other postretirement benefits and other long-term liabilities


21,993



21,831339,435



352,134Shareholders EquityCommon Stock


-0-



-0-Additional paid-in capital


47,850



55,362Retained deficit


(16,690
)


(29,783
)Accumulated other comprehensive (loss)


(5,052
)


(5,114
)26,108



20,465$
539,121


$
499,842   Note:
    The balance sheet at December 31, 2009 has been derived
    from the audited financial statements at that date, but does not
    include all of the information and footnotes required by
    generally accepted accounting principles for complete financial
    statements.   3




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##### Table of Contents



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


Nine Months EndedSeptember 30,


September 30,2010


2009


2010


2009(Amounts in thousands, except per share data)Net sales

$
202,986


$
168,597


$
592,990


$
513,252Cost of products sold


168,006



145,938



495,374



437,402Gross profit


34,980



22,659



97,616



75,850Selling, general and administrative expenses


21,727



20,776



63,969



63,385Asset impairment charge


3,539



-0-



3,539



-0-Operating income


9,714



1,883



30,108



12,465Gain on purchase of 8.375% senior subordinated notes


-0-



(2,011
)


-0-



(5,108
)Gain on acquisition of business


(2,210
)


-0-



(2,210
)


-0-Interest expense


6,488



6,131



18,130



18,719Income (loss) before income taxes


5,436



(2,237
)


14,188



(1,146
)Income taxes


(1,152
)


296



1,095



1,838Net income (loss)

$
6,588


$
(2,533
)

$
13,093


$
(2,984
)    4




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##### Table of Contents



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





OtherCommon


Paid-In


Retained


ComprehensiveStock


Capital


Deficit


Income (Loss)


Total(Dollars in thousands)Balance at January 1, 2010

$
-0-


$
55,362


$
(29,783
)

$
(5,114
)

$
20,465Comprehensive income:Net income










13,093







13,093Foreign currency translation adjustment














(775
)


(775
)Pension and post retirement benefit adjustments, net of tax














837



837Comprehensive income


















13,155Capital contribution from shareholder






(6,762
)










(6,762
)Distribution of capital to shareholder






(750
)










(750
)Balance at September 30, 2010

$
-0-


$
47,850


$
(16,690
)

$
(5,052
)

$
26,108    5




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONDENSED
    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
  Nine Months EndedSeptember 30,2010


2009(Dollars in thousands)OPERATING ACTIVITIESNet income (loss)

$
13,093


$
(2,984
)Adjustments to reconcile net income (loss) to net cash provided
    (used) by operating activities:Depreciation and amortization


12,099



14,015Gain on acquisition of business


(2,210
)


-0-Asset impairment charge


3,539



-0-Gain on purchase of 8.375% senior subordinated notes


-0-



(5,107
)Changes in operating assets and liabilities, net of businesses
    acquired:Accounts receivable


(21,403
)


43,409Inventories and other current assets


29,107



50,102Accounts payable and accrued expenses


35,552



(67,588
)Other


(11,240
)


(1,156
)Net Cash Provided by Operating Activities


58,537



30,691INVESTING ACTIVITIESPurchases of property, plant and equipment, net


(3,516
)


(4,594
)Acquisitions


(16,000
)


-0-Net Cash Used by Investing Activities


(19,516
)


(4,594
)FINANCING ACTIVITIESPayments on debt, net


(13,800
)


(19,441
)Debt issue costs


(4,141
)


-0-Distribution of capital to shareholder


(750
)


(750
)Capital contribution from parent


(6,762
)


-0-Purchase of 8.375% senior subordinated notes


-0-



(5,108
)Net Cash Used by Financing Activities


(25,453
)


(25,299
)Increase in Cash and Cash Equivalents


13,568



798Cash and Cash Equivalents at Beginning of Period


21,976



17,623Cash and Cash Equivalents at End of Period

$
35,544


$
18,421Taxes paid

$
1,241


$
2,577Interest paid


13,169



12,506    6




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIESNOTES TO UNAUDITED CONDENSED CONSOLIDATED
    FINANCIAL STATEMENTS 
    September 30, 2010
    (Dollars and shares in thousands, except per share
    amounts)
  NOTE A 
    Basis of
    Presentation      Form 10-Q Regulation S-X. Form 10-K
  NOTE B 
    Segments  tm tm just-in-time point-of-use
 7




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##### Table of Contents



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


Nine Months EndedSeptember 30,


September 30,2010


2009


2010


2009Net sales:Supply Technologies

$
103,885


$
82,464


$
295,308


$
242,879Aluminum products


35,554



31,663



109,714



75,656Manufactured products


63,547



54,470



187,968



194,717$
202,986


$
168,597


$
592,990


$
513,252Income (loss) before income taxes:Supply Technologies

$
6,428


$
2,078


$
16,223


$
5,509Aluminum products


1,913



(1,337
)


6,148



(6,793
)Manufactured products


8,258



3,413



20,787



20,49816,599



4,154



43,158



19,214Corporate expenses


(3,346
)


(2,271
)


(9,511
)


(6,748
)Gain on purchase of 8.375% senior subordinated notes


-0-



2,011



-0-



5,107Gain on acquisition of business


2,210



-0-



2,210



-0-Asset impairment charge


(3,539
)


-0-



(3,539
)


-0-Interest expense


(6,488
)


(6,131
)


(18,130
)


(18,719
)Income (loss) before income taxes

$
5,436


$
(2,237
)

$
14,188


$
(1,146
)   September 30,


December 31,2010


2009Identifiable assets were as follows:Supply Technologies

$
244,494


$
207,729Aluminum products


86,430



76,443Manufactured products


182,336



178,715General corporate


25,861



36,955$
539,121


$
499,842   NOTE C 
    Recent
    Accounting Pronouncements  No. 2010-06, No. 2010-06
  No. 2009-13, No. 2009-13
 8




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  No. 2009-13
  ASC 810-10,
  NOTE D 
    Inventories    September 30,


December 31,2010


2009Finished goods

$
118,199


$
100,309Work in process


24,319



26,778Raw materials and supplies


50,503



55,029$
193,021


$
182,116   NOTE E 
    Pension
    Plans and Other Postretirement Benefits    Pension Benefits


Postretirement BenefitsThree Months


Nine Months


Three Months


Nine MonthsEnded September 30,


Ended September 30,


Ended September 30,


Ended September 30,2010


2009


2010


2009


2010


2009


2010


2009Service costs

$
81


$
123


$
243


$
369


$
9


$
24


$
27


$
72Interest costs


643



694



1,929



2,082



248



296



744



888Expected return on plan assets


(1,984
)


(1,758
)


(5,952
)


(5,275
)


-0-



-0-



-0-



-0-Transition obligation


(10
)


(10
)


(30
)


(30
)


-0-



-0-



-0-



-0-Amortization of prior service cost


15



32



45



96



(24
)


-0-



(72
)


-0-Recognized net actuarial loss


82



231



246



693



107



119



321



357Benefit (income) costs

$
(1,173
)

$
(688
)

$
(3,519
)

$
(2,065
)

$
340


$
439


$
1,020


$
1,317    9




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##### Table of Contents



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


Nine Months EndedSeptember 30,


September 30,2010


2009


2010


2009Net income (loss)

$
6,588


$
(2,533
)

$
13,093


$
(2,984
)Foreign currency translation


5,115



2,245



(775
)


1,893Pension and post retirement benefit adjustments, net of tax


447



373



837



1,116Total comprehensive income (loss)

$
12,150


$
85


$
13,155


$
25     September 30,


December 31,2010


2009Foreign currency translation adjustment

$
6,175


$
6,950Pension and postretirement benefit adjustments, net of tax


(11,227
)


(12,064
)$
(5,052
)

$
(5,114
)   NOTE G 
    Accrued
    Warranty Costs    2010


2009Balance at January 1

$
2,760


$
5,402Claims paid during the year


(789
)


(2,456
)Additional warranties issued during the first nine months


1,416



1,312Balance at September 30

$
3,387


$
4,258   NOTE H 
    Income
    Taxes         10




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE I 
    Fair
    Value Measurements    Level 1
  Level 2
  Level 3
    NOTE J 
    Asset
    Impairment    NOTE K 
    Financing
    Arrangement      September 30,


December 31,2010


20098.375% senior subordinated notes due 2014

$
183,835


$
183,835Revolving credit


92,400



101,200Term loan A


26,600



28,000Term loan B


9,600



12,000Other


9,922



8,962322,357



333,997Less current maturities


12,115



10,894Total

$
310,242


$
323,103  11




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE L 
    Accounts
    Receivable    NOTE M 
    Acquisitions    Accounts receivable

$
9,059Inventories


16,711Prepaid expenses and other current assets


42Property, plant and equipment


299Customer relationships


990Accounts payable


(5,047
)Accrued expenses


(330
)Deferred tax liability


(1,354
)Gain on acquisition


(2,210
)Total estimated purchase price

$
18,160    12




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Accounts receivable

$
1,918Inventories


1,000Property, plant and equipment


2,800Accounts payable


(2,314
)Accrued expenses


(516
)Goodwill


4,572Total purchase price

$
7,460     Three Months Ended


Nine Months EndedSeptember 30,


September 30,2010


2009


2010


2009Pro forma revenues

$
216,082


$
182,125


$
642,685


$
553,716Pro forma net income


5,414



(2,304
)


10,471



(6,081
)   NOTE N 
    Supplemental Guarantor Information
     13




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 September 30, 2010
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(4,242
)

$
2,145


$
35,982


$
1,659


$
35,544Accounts receivable, net


(1,300
)


111,360



26,964



-0-



137,024Inventories


(525
)


161,620



31,926



-0-



193,021Other current assets


5,009



13,199



8,436



(15,709
)


10,935Deferred tax assets


-0-



-0-



-0-



8,104



8,104Total Current Assets


(1,058
)


288,324



103,308



(5,946
)


384,628Investment in subsidiaries


351,564



26,219



(24,541
)


(353,242
)


-0-Inter-company advances


361,883



304,891



30,538



(697,312
)


-0-Property, Plant and Equipment, net


2,286



70,178



5,131



(6,044
)


71,551Other Assets:Goodwill


-0-



5,919



2,667



-0-



8,586Other


32,038



43,008



15,643



(16,333
)


74,356Total Other Assets


32,038



48,927



18,310



(16,333
)


82,942Total Assets

$
746,713


$
738,539


$
132,746


$
(1,078,877
)

$
539,121LIABILITIES AND SHAREHOLDERS (DEFICIT) EQUITYCurrent Liabilities:Trade accounts payable

$
3,110


$
79,146


$
14,073


$
1,141


$
97,470Accrued expenses


9,190



37,182



15,424



-0-



61,796Current portion of long-term liabilities


-0-



87



2,991



11,234



14,312Total Current Liabilities


12,300



116,415



32,488



12,375



173,578Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



(26,165
)


183,835Revolving credit maturing on April 30, 2014


128,600



-0-



-0-



(7,600
)


121,000Other long-term debt


-0-



4,000



-0-



1,407



5,407Deferred tax liability


6,007



-0-



1,325



(132
)


7,200Other postretirement benefits and other long-term liabilities


6,402



54,336



287



(39,032
)


21,993Total Long-Term Liabilities


351,009



58,336



1,612



(71,522
)


339,435Inter-company advances


378,902



267,623



44,189



(690,714
)


-0-Shareholders (Deficit) Equity


4,502



296,165



54,457



(329,016
)


26,108Total Liabilities and Shareholders (Deficit) Equity

$
746,713


$
738,539


$
132,746


$
(1,078,877
)

$
539,121  14




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 December 31, 2009
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(2,876
)

$
1,613


$
21,839


$
1,400


$
21,976Accounts receivable, net


(1,300
)


84,669



24,477



(3,203
)


104,643Inventories


-0-



148,658



33,458



-0-



182,116Other current assets


8,769



18,365



9,878



(3,818
)


33,194Deferred tax assets


-0-



-0-



-0-



8,104



8,104Total Current Assets


4,593



253,305



89,652



2,483



350,033Investment in subsidiaries


313,315



26,129



(26,129
)


(313,315
)


-0-Inter-company advances


383,098



292,128



21,935



(697,161
)


-0-Property, Plant and Equipment, net


(464
)


70,962



10,506



(6,045
)


74,959Other Assets:Goodwill


-0-



1,346



2,809



-0-



4,155Other


25,864



38,660



14,528



(8,357
)


70,695Total Other Assets


25,864



40,006



17,337



(8,357
)


74,850Total Assets

$
726,406


$
682,530


$
113,301


$
(1,022,395
)

$
499,842LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
3,360


$
55,920


$
14,375


$
1,423


$
75,078Accrued expenses


1,581



25,889



11,604



-0-



39,074Current portion of long-term liabilities


6,600



102



2,163



4,226



13,091Total Current Liabilities


11,541



81,911



28,142



5,649



127,243Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



(26,165
)


183,835Revolving credit maturing on April 30, 2014


134,600



-0-



-0-



-0-



134,600Other long-term debt


-0-



4,409



1,623



(1,364
)


4,668Deferred tax liability


6,007



-0-



1,193



-0-



7,200Other postretirement benefits and other long-term liabilities


2,710



52,637



314



(33,830
)


21,831Total Long-Term Liabilities


353,317



57,046



3,130



(61,359
)


352,134Inter-company advances


361,789



286,093



37,505



(685,387
)


-0-Shareholders Equity


(241
)


257,480



44,524



(281,298
)


20,465Total Liabilities and Shareholders Equity

$
726,406


$
682,530


$
113,301


$
(1,022,395
)

$
499,842  15




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Nine Months Ended September 30, 2010
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
491,400


$
101,590


$
-0-


$
592,990Cost of sales


-0-



418,302



77,072



-0-



495,374Gross profit


-0-



73,098



24,518



-0-



97,616Selling, general and administrative expenses


(31,946
)


38,938



13,738



43,239



63,969Asset impairment charge


-0-



3,539



-0-



-0-



3,539Operating income


31,946



30,621



10,780



(43,239
)


30,108Gain on acquisition of business


-0-



-0-



-0-



(2,210
)


(2,210
)Interest expense


18,828



555



741



(1,994
)


18,130Income before income taxes


13,118



30,066



10,039



(39,035
)


14,188Income taxes


22



39



1,034



-0-



1,095Net income

$
13,096


$
30,027


$
9,005


$
(39,035
)

$
13,093   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Nine Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
424,429


$
88,823


$
-0-


$
513,252Cost of sales


-0-



369,253



68,149



-0-



437,402Gross profit


-0-



55,176



20,674



-0-



75,850Selling, general and administrative expenses


(6,841
)


42,814



14,541



12,871



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


-0-



-0-



-0-



(5,108
)


(5,108
)Operating income


6,841



12,362



6,133



(7,763
)


17,573Interest expense


17,828



567



633



(309
)


18,719Income (loss) before income taxes


(10,987
)


11,795



5,500



(7,454
)


(1,146
)Income taxes


1,008



24



806



-0-



1,838Net income (loss)

$
(11,995
)

$
11,771


$
4,694


$
(7,454
)

$
(2,984
)  16




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Three Months Ended September 30, 2010
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
170,475


$
32,511


$
-0-


$
202,986Cost of sales


-0-



143,164



24,842



-0-



168,006Gross profit


-0-



27,311



7,669



-0-



34,980Selling, general and administrative expenses


(13,323
)


10,541



5,350



19,159



21,727Asset impairment charge


-0-



3,539



-0-



-0-



3,539Operating income


13,323



13,231



2,319



(19,159
)


9,714Gain on acquisition of business


-0-



-0-



-0-



(2,210
)


(2,210
)Interest expense


6,658



231



283



(684
)


6,488Income before income taxes


6,665



13,000



2,036



(16,265
)


5,436Income taxes


(798
)


-0-



(354
)


-0-



(1,152
)Net income

$
7,463


$
13,000


$
2,390


$
(16,265
)

$
6,588   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONSOLIDATING STATEMENT OF OPERATIONS
 For the Three Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
136,941


$
31,656


$
-0-


$
168,597Cost of sales


-0-



120,532



25,406



-0-



145,938Gross profit


-0-



16,409



6,250



-0-



22,659Selling, general and administrative expenses


(2,092
)


16,323



4,541



2,004



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


-0-



-0-



-0-



(2,011
)


(2,011
)Operating income


2,092



86



1,709



7



3,894Interest expense


5,902



38



306



(115
)


6,131Income (loss) before income taxes


(3,810
)


48



1,403



122



(2,237
)Income taxes


1,136



-0-



(840
)


-0-



296Net income (loss)

$
(4,946
)

$
48


$
2,243


$
122


$
(2,533
)  17




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 For the Nine Months Ended September 30, 2010
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net cash provided by operations

$
23,171


$
25,100


$
10,266


$
-0-


$
58,537Cash flows from investing activities:Acquisitions


-0-



(16,000
)


-0-



-0-



(16,000
)Purchases of property, plant and equipment, net


(25
)


(8,163
)


4,672



-0-



(3,516
)Net cash provided (used) in investing activities


(25
)


(24,163
)


4,672



-0-



(19,516
)Cash flows from financing activities:(Payments) Proceeds on debt


(12,600
)


(405
)


(795
)


-0-



(13,800
)Distribution of capital to shareholder


(750
)


-0-



-0-



-0-



(750
)Capital contributions from parent


(6,762
)


-0-



-0-



-0-



(6,762
)Debt issue costs


(4,141
)


-0-



-0-



-0-



(4,141
)Net cash provided (used) by financing activities


(24,253
)


(405
)


(795
)


-0-



(25,453
)(Decrease) increase in cash and cash equivalents


(1,107
)


532



14,143



-0-



13,568Cash and cash equivalents at beginning of period


(1,476
)


1,613



21,839



-0-



21,976Cash and cash equivalents at end of period

$
(2,583
)

$
2,145


$
35,982


$
-0-


$
35,544   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
 For the Nine Months Ended September 30, 2009
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(22,260
)

$
32,676


$
20,275


$
-0-


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


223



(3,469
)


(1,348
)


-0-



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


223



(3,469
)


(1,348
)


-0-



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


(750
)


-0-



-0-



-0-



(750
)Purchase of 8.375% senior subordinated notes


-0-



-0-



(5,108
)


-0-



(5,108
)Proceeds (Payments) on debt


(16,800
)


3,796



(6,437
)


-0-



(19,441
)Net cash provided (used) by financing activities


(17,550
)


3,796



(11,545
)


-0-



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


(39,587
)


33,003



7,382



-0-



798Cash and cash equivalents at beginning of period


6,780



339



10,504



-0-



17,623Cash and cash equivalents at end of period

$
(32,807
)

$
33,342


$
17,886


$
-0-


$
18,421  18




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM             
    19




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Executive
    Overview
  tm tm tm just-in-time point-of-use sub-assemblers
         20




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##### Table of Contents



Critical
    Accounting Policies
  Form 10-K. Form 10-Q.
  Results
    of Operations
  Nine
    Months 2010 versus Nine Months 2009
  Net
    Sales by Segment:
  Nine MonthsEndedSeptember 30,





Percent2010


2009


Change


Change(Dollars in millions)Supply Technologies

$
295.3


$
242.9


$
52.4



22
%Aluminum Products


109.7



75.7



34.0



45
%Manufactured Products


188.0



194.7



(6.7
)


(3
)%Consolidated Net Sales

$
593.0


$
513.3


$
79.7



16
%     Cost
    of Products Sold & Gross Profit:
  Nine MonthsEndedSeptember 30,





Percent2010


2009


Change


Change(Dollars in millions)Consolidated cost of products sold

$
495.4


$
437.4


$
58.0



13
%Consolidated gross profit

$
97.6


$
75.9


$
21.7



29
%Gross Margin


16.5
%


14.8
%      21




---



##### Table of Contents



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



Percent2010

2009

Change

Change(Dollars in millions)Consolidated SG&A expenses

$
64.0


$
63.4


$
.6



1
%SG&A percent


10.8
%


12.4
%     Gain
    on Purchase of 8.375% Senior Subordinated
    Notes:
    Interest
    Expense:
  Nine MonthsEndedSeptember 30,



Percent2010

2009

Change

Change(Dollars in millions)Interest expense

$
18.1


$
18.7


$
(.6
)

(3)%Average outstanding borrowings

$
324.2


$
382.2


$
(58.0
)

(15)%Average borrowing rate


7.44
%


6.53
%


91


basis points     Income
    Tax:
   22




---



##### Table of Contents



Results
    of Operations
  Third
    Quarter 2010 versus Third Quarter 2009
  Net
    Sales by Segment:
  Three MonthsEndedSeptember 30,





Percent2010


2009


Change


Change(Dollars in millions)Supply Technologies

$
103.9


$
82.5


$
21.4



26
%Aluminum Products


35.6



31.6



4.0



13
%Manufactured Products


63.5



54.5



9.0



17
%Consolidated Net Sales

$
203.0


$
168.6


$
34.4



20
%     Cost
    of Products Sold & Gross Profit:
  Three MonthsEndedSeptember 30,





Percent2010


2009


Change


Change(Dollars in millions)Consolidated cost of products sold

$
168.0


$
145.9


$
22.1



15
%Consolidated gross profit

$
35.0


$
22.7


$
12.3



54
%Gross Margin


17.2
%


13.5
%       SG&A
    Expenses:
  Three MonthsEndedSeptember 30,



Percent2010

2009

Change

Change(Dollars in millions)Consolidated SG&A expenses

$
21.7


$
20.8


$
.9



4
%SG&A percent


10.7
%


12.3
%    23




---



##### Table of Contents



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



Percent2010

2009

Change

Change(Dollars in millions)Interest expense

$
6.5


$
6.1


$
.4


7%Average outstanding borrowings

$
315.4


$
368.1


$
(52.7
)

(14)%Average borrowing rate


8.24
%


6.66
%


158


basis points     Income
    Tax:
    Seasonality;
    Variability of Operating Results
      Forward-Looking
    Statements
  Form 10-Q
 24




---



##### Table of Contents



Review By
    Independent Registered Public Accounting Firm
    Item 3.
    Quantitative
    and Qualitative Disclosure About Market Risk        Item 4.
    Controls
    and Procedures  Rules 13a-15(e)
     25




---



##### Table of Contents



PART II



OTHER
    INFORMATION Item 1.
    Legal
    Proceedings             26




---



##### Table of Contents



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

Consent and Amendment No. 1 to Third Amended and Restated
    Credit Agreement (filed as exhibit 4.1 of the Form 10-Q of
    Park-Ohio Holdings Corp. filed on November 15, 2010, SEC
    File No. 000-03134 and incorporated by reference and made a
    part hereof)4
.2

Consent and Amendment No. 2 to Third Amended and Restated
    Credit Agreement (filed as exhibit 4.2 of the Form 10-Q of
    Park-Ohio Holdings Corp. filed on November 15, 2010, SEC
    File No. 000-03134 and incorporated by reference and made a
    part hereof)10
.1

Asset Purchase Agreement By and Among Assembly Component
    Systems, Inc., Lawson Products, Inc., Supply Technologies LLC
    and Park-Ohio Industries, Inc. (filed as exhibit 10.1 of the
    Form 10-Q of Park-Ohio Holdings Corp. filed on November 15,
    2010, SEC File No. 000-03134 and incorporated by reference
    and made a part hereof)10
.2

Bill of Sale by Rome Die Casting LLC and Johnny Johnson in favor
    of General Aluminum Mfg. Company (filed as exhibit 10.2 of the
    Form 10-Q of Park-Ohio Holdings Corp. filed on November 15,
    2010, SEC File No. 000-03134 and incorporated by reference
    and made a part hereof)31
.1

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

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


Certification requirement under Section 906 of the
    Sarbanes-Oxley Act of 2002  27




---



##### Table of Contents



SIGNATURE        By
    /s/  Jeffrey
    L. Rutherford   Title:
    Vice President and Chief Financial Officer    28




---



##### Table of Contents



EXHIBIT INDEX
    QUARTERLY REPORT ON
    FORM 10-Q PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    FOR THE QUARTER ENDED SEPTEMBER 30, 2010
  Exhibit4
.1

Consent and Amendment No. 1 to Third Amended and Restated
    Credit Agreement (filed as exhibit 4.1 of the Form 10-Q of
    Park-Ohio Holdings Corp. filed on November 15, 2010, SEC
    File No. 000-03134 and incorporated by reference and made a
    part hereof)4
.2

Consent and Amendment No. 2 to Third Amended and Restated
    Credit Agreement (filed as exhibit 4.2 of the Form 10-Q of
    Park-Ohio Holdings Corp. filed on November 15, 2010, SEC
    File No. 000-03134 and incorporated by reference and made a
    part hereof)10
.1

Asset Purchase Agreement By and Among Assembly Component
    Systems, Inc., Lawson Products, Inc., Supply Technologies LLC
    and Park-Ohio Industries, Inc. (filed as exhibit 10.1 of the
    Form 10-Q of Park-Ohio Holdings Corp. filed on November 15,
    2010, SEC File No. 000-03134 and incorporated by reference
    and made a part hereof)10
.2

Bill of Sale by Rome Die Casting LLC and Johnny Johnson in favor
    of General Aluminum Mfg. Company (filed as exhibit 10.2 of the
    Form 10-Q of Park-Ohio Holdings Corp. filed on November 15,
    2010, SEC File No. 000-03134 and incorporated by reference
    and made a part hereof)31
.1

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

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


Certification requirement under Section 906 of the
    Sarbanes-Oxley Act of 2002  29