##### 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
    June 30, 2008oro

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission file number 333-43005
  Park-Ohio Industries,
    Inc.
 (Exact name of registrant as
    specified in its charter)
   Ohio(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    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 27.




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##### 





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


Financial Statements


3Consolidated balance sheets 
    June 30, 2008 and December 31, 2007


3Consolidated statements of income 
    Three and six months ended June 30, 2008 and 2007


4Consolidated statement of shareholders
    equity  Six months ended June 30, 2008


5Consolidated statements of cash flows 
    Six months ended June 30, 2008 and 2007


6Notes to consolidated financial
    statements  June 30, 2008


7Report of independent registered public
    accounting firm


17Item 2.


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


18Item 3.


Quantitative and Qualitative Disclosures About
    Market Risk


23Item 4.


Controls and Procedures


23PART II. OTHER INFORMATIONItem 1.


Legal Proceedings


24Item 1A.


Risk Factors


25Item 6.


Exhibits


25SIGNATURE


26EXHIBIT INDEX


27EX-31.1EX-31.2EX-32   2




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##### Table of Contents



PART I.
    Financial Information  ITEM 1.
    Financial
    Statements PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES



CONSOLIDATED
    BALANCE SHEETS  (Unaudited)June 30,


December 31,2008


2007(Dollars in thousands)ASSETSCurrent AssetsCash and cash equivalents

$
32,096


$
13,077Accounts receivable, less allowances for doubtful accounts of
    $3,273 at June 30, 2008 and $3,724 at December 31, 2007


194,451



172,357Inventories


233,056



215,409Deferred tax assets


21,976



21,897Unbilled contract revenue


21,570



24,817Other current assets


23,000



19,757Total Current Assets


526,149



467,314Property, Plant and Equipment


273,069



263,488Less accumulated depreciation


169,381



159,896103,688



103,592Other AssetsGoodwill


101,060



100,997Net assets held for sale


3,203



3,330Other


101,617



94,185$
835,717


$
769,418LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
139,306


$
121,870Accrued expenses


78,804



66,923Current portion of long-term debt


8,172



2,362Current portion of other postretirement benefits


2,041



2,041Total Current Liabilities


228,323



193,196Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



210,000Revolving credit


164,400



145,400Other long-term debt


2,770



2,287Deferred tax liability


22,722



22,722Other postretirement benefits and other long-term liabilities


23,227



24,017423,119



404,426Shareholders EquityCommon Stock, par value $1 per share


-0-



-0-Additional paid-in capital


64,844



64,844Retained earnings


99,795



88,868Accumulated other comprehensive income


19,636



18,084184,275



171,796$
835,717


$
769,418   Note:
    The balance sheet at December 31, 2007 has been derived
    from the audited financial statements at that date, but does not
    include all of the information and footnotes required by
    generally accepted accounting principles for complete financial
    statements.   3




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES



CONSOLIDATED
    STATEMENTS OF INCOME (UNAUDITED)  Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007(Amounts in thousands)Net sales

$
285,940


$
286,636


$
553,030


$
554,522Cost of products sold


242,205



244,256



470,602



473,533Gross profit


43,735



42,380



82,428



80,989Selling, general and administrative expenses


27,025



24,274



52,229



49,159Operating income


16,710



18,106



30,199



31,830Interest expense


6,632



8,286



13,896



16,293Income before income taxes


10,078



9,820



16,303



15,537Income taxes


3,374



3,386



5,376



5,593Net income

$
6,704


$
6,434


$
10,927


$
9,944    4




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##### Table of Contents



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





OtherCommon


Paid-In


Retained


ComprehensiveStock


Capital


Earnings


Income


Total(Dollars in thousands)Balance at January 1, 2008

$
-0-


$
64,844


$
88,868


$
18,084


$
171,796Comprehensive income:Net income










10,927







10,927Foreign currency translation adjustment














1,615



1,615Unrealized loss on marketable securities, net of tax














(145
)


(145
)Pension and postretirement benefit adjustments, net of tax














82



82Comprehensive income


















12,479Balance at June 30, 2008

$
-0-


$
64,844


$
99,795


$
19,636


$
184,275    5




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES



CONSOLIDATED
    STATEMENTS OF CASH FLOWS (UNAUDITED)  Six Months EndedJune 30,2008


2007(Dollars in thousands)OPERATING ACTIVITIESNet income

$
10,927


$
9,944Adjustments to reconcile net income to net cash provided (used)
    by operating activities:Depreciation and amortization


10,388



10,527Changes in operating assets and liabilities:Accounts receivable


(22,094
)


(7,381
)Inventories and other current assets


(17,641
)


2,015Accounts payable and accrued expenses


29,315



(28,743
)Other


(8,161
)


3,510Net Cash Provided (Used) by Operating Activities


2,734



(10,128
)INVESTING ACTIVITIESPurchases of property, plant and equipment, net


(9,008
)


(8,964
)Net Cash Used by Investing Activities


(9,008
)


(8,964
)FINANCING ACTIVITIESProceeds from debt, net


25,293



13,637Net Cash Provided by Financing Activities


25,293



13,637Increase (decrease) in Cash and Cash Equivalents


19,019



(5,455
)Cash and Cash Equivalents at Beginning of Period


13,077



20,872Cash and Cash Equivalents at End of Period

$
32,096


$
15,417Taxes paid

$
4,002


$
2,660Interest paid


13,282



15,170    6




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)



June 30, 2008

(Dollar amounts in thousands)  NOTE A 
    Basis of
    Presentation    Form 10-Q Regulation S-X. Form 10-K
  NOTE B 
    Segments  tm tm just-in-time point-of-use
    Three Months Ended


Six Months EndedJune 30,


June 30,2008


2007


2008


2007Net sales:Supply Technologies

$
138,551


$
131,133


$
267,784


$
269,890Aluminum Products


43,984



48,563



84,520



90,650Manufactured Products


103,405



106,940



200,726



193,982$
285,940


$
286,636


$
553,030


$
554,522Income before income taxes:Supply Technologies

$
6,585


$
5,548


$
11,292


$
12,132Aluminum Products


(62
)


1,404



(1,117
)


2,154Manufactured Products


14,419



14,164



27,641



23,67320,942



21,116



37,816



37,959Corporate costs


(4,232
)


(3,010
)


(7,617
)


(6,129
)Interest expense


(6,632
)


(8,286
)


(13,896
)


(16,293
)Income before income taxes

$
10,078


$
9,820


$
16,303


$
15,537  7




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##### Table of Contents



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


December 31,2008


2007Identifiable assets were as follows:Supply Technologies

$
389,673


$
354,165Aluminum Products


112,819



98,524Manufactured Products


277,710



231,459General corporate


55,515



85,270$
835,717


$
769,418   NOTE C 
    Recent
    Accounting Pronouncements      indefinite-lived
     8




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##### Table of Contents



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


December 31,2008


2007Finished goods

$
135,481


$
129,074Work in process


30,652



26,249Raw materials and supplies


66,923



60,086$
233,056


$
215,409   NOTE E 
    Pension
    Plans and Other Postretirement Benefits    Pension Benefits


Postretirement BenefitsThree Months


Six Months


Three Months


Six MonthsEnded June 30,


Ended June 30,


Ended June 30,


Ended June 30,2008


2007


2008


2007


2008


2007


2008


2007Service costs

$
108


$
91


$
216


$
182


$
43


$
41


$
86


$
82Interest costs


722



702



1,444



1,403



290



334



580



668Expected return on plan assets


(2,408
)


(2,213
)


(4,816
)


(4,425
)


-0-



-0-



-0-



-0-Transition obligation


(12
)


(2
)


(24
)


(4
)


-0-



-0-



-0-



-0-Amortization of prior service cost


34



34



68



68



(13
)


(16
)


(26
)


(32
)Recognized net actuarial loss


(29
)


-0-



(58
)


-0-



71



146



142



292Benefit (income) costs

$
(1,585
)

$
(1,388
)

$
(3,170
)

$
(2,776
)

$
391


$
505


$
782


$
1,010  9




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##### Table of Contents



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


EndedJune 30,


June 30,2008


2007


2008


2007Net income

$
6,704


$
6,434


$
10,927


$
9,944Foreign currency translation


268



2,628



1,615



3,246Unrealized loss on marketable securities, net of tax


(145
)


-0-



(145
)


-0-Pension and postretirement benefit adjustments, net of tax


41



41



82



119Total comprehensive income

$
6,868


$
9,103


$
12,479


$
13,309     June 30,


December 31,2008


2007Foreign currency translation adjustment

$
14,327


$
12,712Unrealized net losses on marketable securities, net of tax


(145
)


-0-Pension and postretirement benefit adjustments, net of tax


5,454



5,372$
19,636


$
18,084     NOTE G 
    Accrued
    Warranty Costs    2008


2007Balance at January 1

$
5,799


$
3,557Claims paid during the first six months


(1,757
)


(647
)Additional warranties issued during the first six months


4,368



1,939Balance at June 30

$
8,410


$
4,849   NOTE K 
    Income
    Taxes     10




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  NOTE L 
    Supplemental Guarantor Information
     11




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 June 30, 2008
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(44,645
)

$
44,984


$
17,374


$
14,383


$
32,096Accounts receivable, net


(550
)


153,862



41,139



-0-



194,451Inventories


-0-



186,350



46,706



-0-



233,056Other current assets


(10,859
)


11,406



23,168



20,855



44,570Deferred tax assets


-0-



-0-



-0-



21,976



21,976Total Current Assets


(56,054
)


396,602



128,387



57,214



526,149Investment in subsidiaries


429,503



25,183



(25,183
)


(429,503
)


-0-Inter-company advances


383,725



345,615



6,654



(735,994
)


-0-Property, Plant and Equipment, net


2,964



78,191



22,533



-0-



103,688Other Assets:Goodwill


-0-



93,028



8,032



-0-



101,060Other


48,677



52,904



1,214



2,025



104,820Total Other Assets


48,677



145,932



9,246



2,025



205,880Total Assets

$
808,815


$
991,523


$
141,637


$
(1,106,258
)

$
835,717LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
4,255


$
99,539


$
22,091


$
13,421


$
139,306Accrued expenses


(10,457
)


52,231



24,848



12,182



78,804Current portion of long-term liabilities


-0-



94



8,078



2,041



10,213Total Current Liabilities


(6,202
)


151,864



55,017



27,644



228,323Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on December 31, 2010


164,400



-0-



-0-



-0-



164,400Other long-term debt


-0-



1,176



1,594



-0-



2,770Deferred tax liability


(3,324
)


-0-



1,878



24,168



22,722Other postretirement benefits and other long-term liabilities


2,938



53,137



514



(33,362
)


23,227Total Long-Term Liabilities


374,014



54,313



3,986



(9,194
)


423,119Inter-company advances


271,855



419,520



23,826



(715,201
)


-0-Shareholders Equity


169,148



365,826



58,808



(409,507
)


184,275Total Liabilities and Shareholders Equity

$
808,815


$
991,523


$
141,637


$
(1,106,258
)

$
835,717  12




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 December 31, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(19,232
)

$
607


$
11,626


$
20,076


$
13,077Accounts receivable, net


(550
)


127,972



44,935



-0-



172,357Inventories


-0-



174,238



41,171



-0-



215,409Other current assets


(10,464
)


16,364



17,936



20,738



44,574Deferred tax assets


-0-



-0-



-0-



21,897



21,897Total Current Assets


(30,246
)


319,181



115,668



62,711



467,314Investment in subsidiaries


397,880



28,729



(28,729
)


(397,880
)


-0-Inter-company advances


370,880



349,186



(382
)


(719,684
)


-0-Property, Plant and Equipment, net


2,913



77,894



22,785



-0-



103,592Other Assets:Goodwill


-0-



93,029



7,968



-0-



100,997Other


47,176



47,364



949



2,026



97,515Total Other Assets


47,176



140,393



8,917



2,026



198,512Total Assets

$
788,603


$
915,383


$
118,259


$
(1,052,827
)

$
769,418LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
4,141


$
75,879


$
22,339


$
19,511


$
121,870Accrued expenses


(9,477
)


45,962



18,259



12,179



66,923Current portion of long-term liabilities


-0-



185



2,138



2,080



4,403Total Current Liabilities


(5,336
)


122,026



42,736



33,770



193,196Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on December 31, 2010


145,400



-0-



-0-



-0-



145,400Other long-term debt


-0-



776



1,551



(40
)


2,287Deferred tax liability


(3,366
)


-0-



2,101



23,987



22,722Other postretirement benefits and other long-term liabilities


4,125



52,689



557



(33,354
)


24,017Total Long-Term Liabilities


356,159



53,465



4,209



(9,407
)


404,426Inter-company advances


279,672



398,938



20,947



(699,557
)


-0-Shareholders Equity


158,108



340,954



50,367



(377,633
)


171,796Total Liabilities and Shareholders Equity

$
788,603


$
915,383


$
118,259


$
(1,052,827
)

$
769,418  13




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Six Months Ended June 30, 2008
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
452,932


$
100,098



-0-


$
553,030Cost of sales


-0-



395,785



74,817



-0-



470,602Gross profit


-0-



57,147



25,281



-0-



82,428Operating Expenses:Selling, general and administrative expenses


(25,717
)


33,437



14,485



30,024



52,229Operating Income (loss)


25,717



23,710



10,796



(30,024
)


30,199Interest expense


13,468



588



88



(248
)


13,896Income before income taxes


12,249



23,122



10,708



(29,776
)


16,303Income taxes


1,495



-0-



3,881



-0-



5,376Net income (loss)

$
10,754


$
23,122


$
6,827


$
(29,776
)

$
10,927   PARK-OHIO
    INDUSTRIES, INC AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF INCOME
    For the Six Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
464,805


$
90,422


$
(705
)

$
554,522Cost of sales


-0-



404,386



68,052



1,095



473,533Gross profit


-0-



60,419



22,370



(1,800
)


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


(28,780
)


53,907



13,054



10,978



49,159Operating income


28,780



6,512



9,316



(12,778
)


31,830Interest expense


15,885



517



191



(300
)


16,293Income before income taxes


12,895



5,995



9,125



(12,478
)


15,537Income taxes


3,143



-0-



2,450



-0-



5,593Net income (loss)

$
9,752


$
5,995


$
6,675


$
(12,478
)

$
9,944  14




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Three Months Ended June 30, 2008
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
232,568


$
53,372



-0-


$
285,940Cost of sales


-0-



201,588



40,617



-0-



242,205Gross profit


-0-



30,980



12,755



-0-



43,735Operating Expenses:Selling, general and administrative expenses


(14,625
)


16,992



7,321



17,337



27,025Operating Income (loss)


14,625



13,988



5,434



(17,337
)


16,710Interest expense


6,429



251



76



(124
)


6,632Income before income taxes


8,196



13,737



5,358



(17,213
)


10,078Income taxes


1,551



-0-



1,823



-0-



3,374Net income (loss)

$
6,645


$
13,737


$
3,535


$
(17,213
)

$
6,704   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF INCOME
    For the Three Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
238,139


$
49,202


$
(705
)

$
286,636Cost of sales


-0-



206,596



37,365



295



244,256Gross profit


-0-



31,543



11,837



(1,000
)


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


(15,969
)


27,277



6,641



6,325



24,274Operating Income


15,969



4,266



5,196



(7,325
)


18,106Interest expense


8,053



254



129



(150
)


8,286Income before income taxes


7,916



4,012



5,067



(7,175
)


9,820Income taxes


1,571



-0-



1,815



-0-



3,386Net income (loss)

$
6,345


$
4,012


$
3,252


$
(7,175
)

$
6,434  15




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##### Table of Contents



PARK-OHIO
    INDUSTRIES INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)  (Continued)
  PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended June 30, 2008
   Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(49,768
)

$
51,836


$
666


$
-0-


$
2,734Cash flows from investing activities:Purchases of property, plant and equipment, net


(338
)


(7,769
)


(901
)


-0-



(9,008
)Net cash provided (used) in investing activities


(338
)


(7,769
)


(901
)


-0-



(9,008
)Cash flows from financing activities:Proceeds from bank arrangements


19,000



310



5,983



-0-



25,293Net cash provided (used) by financing activities


19,000



310



5,983



-0-



25,293Increase (decrease) in cash and cash equivalents


(31,106
)


44,377



5,748



-0-



19,019Cash and cash equivalents at beginning of period


844



607



11,626



-0-



13,077Cash and cash equivalents at end of period

$
(30,262
)

$
44,984


$
17,374


$
-0-


$
32,096   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Six Months Ended June 30, 2007
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(53,048
)

$
41,896


$
1,024


$
-0-


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


(209
)


(3,919
)


(4,836
)


-0-



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


(209
)


(3,919
)


(4,836
)


-0-



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


12,400



-0-



1,495



-0-



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


-0-



(258
)


-0-



-0-



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


12,400



(258
)


1,495



-0-



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


(40,857
)


37,719



(2,317
)


-0-



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


7,920



570



12,382



-0-



20,872Cash and cash equivalents at end of period

$
(32,937
)

$
38,289


$
10,065


$
-0-


$
15,417  16




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM     six-month
        
    17




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##### 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
    Accounting
    Changes
     18




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##### Table of Contents



indefinite-lived
        Results
    of Operations
  Six
    Months 2008 versus Six Months 2007
  Net
    Sales by Segment:
  Six MonthsEndedJune 30,





Percent2008


2007


Change


ChangeSupply Technologies

$
267.8


$
269.9


$
(2.1
)


(1
)%Aluminum Products


84.5



90.6



(6.1
)


(7
)%Manufactured Products


200.7



194.0



6.7



3
%Consolidated Net Sales

$
553.0


$
554.5


$
(1.5
)


0
%    19




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##### Table of Contents



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





Percent2008


2007


Change


ChangeConsolidated cost of products sold

$
470.6


$
473.5


$
(2.9
)


(1
)%Consolidated gross profit

$
82.4


$
81.0


$
1.4



2
%Gross Margin


14.9
%


14.6
%       Selling,
    General & Administrative (SG&A)
    Expenses:
  Six MonthsEndedJune 30,





Percent2008


2007


Change


ChangeConsolidated SG&A expenses

$
52.2


$
49.2


$
3.0



6
%SG&A percent


9.4
%


8.9
%     Interest
    Expense:
  Six MonthsEndedJune 30,





Percent2008


2007


Change


ChangeInterest expense

$
13.9


$
16.3


$
(2.4
)

(15)%Average outstanding borrowings

$
384.0


$
389.5


$
(5.5
)

(1)%Average borrowing rate


7.24
%


8.37
%


113


basis points    20




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##### Table of Contents



Income
    Tax:
    Results
    of Operations
  Second
    Quarter 2008 versus Second Quarter 2007
  Net
    Sales by Segment:
  Three MonthsEndedJune 30,





Percent2008


2007


Change


ChangeSupply Technologies

$
138.5


$
131.1


$
7.4



6
%Aluminum Products


44.0



48.6



(4.6
)


(9
)%Manufactured Products


103.4



106.9



(3.5
)


(3
)%Consolidated Net Sales

$
285.9


$
286.6


$
(.7
)


0
%   ramp-up
  Cost
    of Products Sold & Gross Profit:
  Three MonthsEndedJune 30,





Percent2008


2007


Change


ChangeConsolidated cost of products sold

$
242.2


$
244.3


$
(2.1
)


(1
)%Consolidated gross profit

$
43.7


$
42.4


$
1.3



3
%Gross Margin


15.3
%


14.8
%     ramp-ups.
  SG&A
    Expenses:
  Three MonthsEndedJune 30,





Percent2008


2007


Change


ChangeConsolidated SG&A expenses

$
27.0


$
24.3


$
2.7



11
%SG&A percent


9.4
%


8.5
%  21




---



##### Table of Contents



Interest
    Expense:
  Three MonthsEndedJune 30,





Percent2008


2007


Change


ChangeInterest expense

$
6.6


$
8.3


$
(1.7
)

(20)%Average outstanding borrowings

$
390.2


$
392.3


$
(2.1
)

(1)%Average borrowing rate


6.80
%


8.46
%


166


basis points     Income
    Tax:
    Seasonality;
    Variability of Operating Results
      Forward-Looking
    Statements
  Form 10-Q
 22




---



##### Table of Contents



Review By
    Independent Registered Public Accounting Firm
    Item 3.
    Quantitative
    and Qualitative Disclosures About Market Risk        Item 4.
    Controls
    and Procedures  Rules 13a-15(e)
   23




---



##### Table of Contents



PART II



OTHER
    INFORMATION Item 1.
    Legal
    Proceedings             24




---



##### Table of Contents



Item 1A.
    Risk
    Factors  Form 10-K
  Item 6.
    Exhibits    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  25




---



##### Table of Contents



SIGNATURE        By
    /s/  Jeffrey
    L. Rutherford   Title:
    Vice President and Chief Financial Officer    26




---



##### Table of Contents



EXHIBIT INDEXQUARTERLY REPORT ON
    FORM 10-Q
    PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES
    FOR THE QUARTER ENDED JUNE 30, 2008 Exhibit31
.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