##### Table of Contents









UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|          
|           |  | For the quarterly period ended September 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




o þ














---










PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


INDEX


|                                                  |  |                                                                                                            |    |      |    | 
|------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                                  |  |                                                                                                            |    | Page |   
|                                                  |  |                                                                                                            |    |      |   
|                                                  |  |                                                                                                            |    |      |    | 
|PART I. FINANCIAL INFORMATION                    
|Item 1.                                           |  | Financial Statements                                                                                       |    |      | 3  | 
|                                                  |  | Consolidated balance sheets 
    September 30, 2005 and December 31, 2004                                 |    |      | 3  | 
|                                                  |  | Consolidated statements of income 
    Three months and nine months ended September 30, 2005 and
    2004 |    |      | 4  | 
|                                                  |  | Consolidated statement of shareholders
    equity 
    Nine months ended September 30, 2005              |    |      | 5  | 
|                                                  |  | Consolidated statements of cash flows 
    Nine months ended September 30, 2005 and 2004                  |    |      | 6  | 
|                                                  |  | Notes to consolidated financial statements 
    September 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 | 
|                                                  |  |                                                                                                            |    |      |    | 
|SIGNATURES                                        |  |                                                                                                            | 27 |     
|                                                  |  |                                                                                                            |    |      |    | 
|EXHIBIT INDEX                                     |  |                                                                                                            | 28 |     
|EX-31.1 CEO Certification Pursuant to Section 302
|EX-31.2 CFO Certification Pursuant to Section 302
|EX-32 Section 906 Certification                  



2



---



##### Table of Contents






PART I. Financial Information







|        |                     
|------- | --------------------
|Item 1. | Financial Statements

PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED BALANCE SHEETS


|                                                                                          |                                                                                                                                    |                           |         |         |              |   |         |         |         | 
|----------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ------------------------- | ------- | ------- | ------------ | - | ------- | ------- | ------- | 
|                                                                                          |                                                                                                                                    | (Unaudited)               |         |         |             
|                                                                                          |                                                                                                                                    | September 30,             |         |         | December 31, |  
|                                                                                          |                                                                                                                                    | 2005                      |         |         | 2004         |  
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    | (Dollars in thousands)    |        
|ASSETS                                                                                   
|Current Assets                                                                            |                                                                                                                                    |                           |         |         |              |   |         |        
|                                                                                          | Cash and cash equivalents                                                                                                          |                           | $       | 10,046  |              |   | $       | 6,407   |        
|                                                                                          | Accounts receivable, less allowances for doubtful accounts of
    $4,821 at September 30, 2005 and $3,976 at
    December 31, 2004 |                           |         | 171,064 |              |   |         | 145,475 |        
|                                                                                          | Inventories                                                                                                                        |                           |         | 195,170 |              |   |         | 177,294 |        
|                                                                                          | Other current assets                                                                                                               |                           |         | 18,432  |              |   |         | 20,655  |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    | Total Current Assets      |         |         | 394,712      |   |         |         | 349,831 | 
|Property, Plant and Equipment                                                             |                                                                                                                                    |                           | 236,016 |         |              |   | 228,494 |        
|                                                                                          | Less accumulated depreciation                                                                                                      |                           |         | 124,660 |              |   |         | 118,613 |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    |                           | 111,356 |         |              |   | 109,881 |        
|Other Assets                                                                              |                                                                                                                                    |                           |         |         |              |   |         |        
|                                                                                          | Goodwill                                                                                                                           |                           |         | 82,715  |              |   |         | 82,565  |        
|                                                                                          | Net assets held for sale                                                                                                           |                           |         | -0-     |              |   |         | 1,035   |        
|                                                                                          | Other                                                                                                                              |                           |         | 71,343  |              |   |         | 68,535  |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    | $                         | 660,126 |         |              | $ | 611,847 |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|LIABILITIES AND SHAREHOLDERS EQUITY                                                     
|Current Liabilities                                                                       |                                                                                                                                    |                           |         |         |              |   |         |        
|                                                                                          | Trade accounts payable                                                                                                             |                           | $       | 110,697 |              |   | $       | 108,862 |        
|                                                                                          | Accrued expenses                                                                                                                   |                           |         | 69,414  |              |   |         | 59,745  |        
|                                                                                          | Current portion of long-term liabilities                                                                                           |                           |         | 4,449   |              |   |         | 5,812   |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    | Total Current Liabilities |         |         | 184,560      |   |         |         | 174,419 | 
|Long-Term Liabilities, less current portion
    8.375% Senior Subordinated Notes due 2014 |                                                                                                                                    |                           | 210,000 |         |              |   | 210,000 |        
|                                                                                          | Revolving credit                                                                                                                   |                           |         | 139,300 |              |   |         | 120,600 |        
|                                                                                          | Other long-term debt                                                                                                               |                           |         | 5,905   |              |   |         | 4,776   |        
|                                                                                          | Other postretirement benefits and other long-term liabilities                                                                      |                           |         | 25,713  |              |   |         | 27,570  |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    |                           | 380,918 |         |              |   | 362,946 |        
|Shareholders Equity                                                                      |                                                                                                                                    |                           |         |         |              |   |         |        
|                                                                                          | Common Stock                                                                                                                       |                           |         | -0-     |              |   |         | -0-     |        
|                                                                                          | Additional paid-in capital                                                                                                         |                           |         | 64,844  |              |   |         | 64,844  |        
|                                                                                          | Retained earnings                                                                                                                  |                           |         | 30,785  |              |   |         | 11,314  |        
|                                                                                          | Accumulated other comprehensive loss                                                                                               |                           |         | (981    | )            |   |         | (1,676  | )      
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    |                           | 94,648  |         |              |   | 74,482  |        
|                                                                                          |                                                                                                                                    |                           |         |         |              |  
|                                                                                          |                                                                                                                                    | $                         | 660,126 |         |              | $ | 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.



3



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |         |  |   |         |        | 
|-------------------------------------------- | -------------------------- | ---------------------------------------------- | ------- | ------ | ----------------- | - | ------- | ------ |  | - | ------- | ------- |  | - | ------- | ------ | 
|                                             |                            | Three Months Ended                             |         |        | Nine Months Ended |  
|                                             |                            | September 30,                                  |         |        | September 30,     |  
|                                             |                            |                                                |         |        |                   |  
|                                             |                            | 2005                                           |         |        | 2004              |   |         | 2005   |  |   | 2004    |        
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        
|                                             |                            | (Amounts in thousands  except per share data) |        
|Net sales                                    |                            | $                                              | 234,247 |        |                   | $ | 200,875 |        |  | $ | 691,925 |         |  | $ | 594,154 |       
|Cost of products sold                        |                            |                                                | 198,327 |        |                   |   | 169,549 |        |  |   | 585,543 |         |  |   | 498,938 |       
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        
|                                             | Gross profit               |                                                |         | 35,920 |                   |   |         | 31,326 |  |   |         | 106,382 |  |   |         | 95,216 | 
|Selling, general and administrative expenses |                            |                                                | 22,454  |        |                   |   | 19,806  |        |  |   | 64,277  |         |  |   | 57,134  |       
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        
|                                             | Operating income           |                                                |         | 13,466 |                   |   |         | 11,520 |  |   |         | 42,105  |  |   |         | 38,082 | 
|Interest expense                             |                            |                                                | 7,200   |        |                   |   | 6,510   |        |  |   | 20,374  |         |  |   | 18,842  |       
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        
|                                             | Income before income taxes |                                                |         | 6,266  |                   |   |         | 5,010  |  |   |         | 21,731  |  |   |         | 19,240 | 
|Income taxes                                 |                            |                                                | 751     |        |                   |   | 949     |        |  |   | 2,260   |         |  |   | 2,575   |       
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        
|                                             | Net income                 |                                                | $       | 5,515  |                   |   | $       | 4,061  |  |   | $       | 19,471  |  |   | $       | 16,665 | 
|                                             |                            |                                                |         |        |                   |   |         |        |  |   |         |        



4



---



##### Table of Contents



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                              |                        |     |            |         |   |        |             |               |   |        | 19,471 |  |       |        |     |  |   |        | 19,471 | 
|                              | Foreign currency translation adjustment |                        |     |            |         |   |        |             |               |   |        |        |  |       |        | 695 |  |   |        | 695    | 
|                              |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       
|                              | Comprehensive income                    |                        |     |            |         |   |        |             |               |   |        |        |  |       |        |     |  |   |        | 20,166 | 
|                              |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       
|Balance at September 30, 2005 |                                         | $                      | -0- |            |         | $ | 64,844 |             |               | $ | 30,785 |        |  | $     | (981   | )   |  | $ | 94,648 |       
|                              |                                         |                        |     |            |         |   |        |             |               |   |        |        |  |       |       



5



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


|                                                 |                                                                                   |                                           |                                                  |         |         |       |        |        |         |        |  
|------------------------------------------------ | --------------------------------------------------------------------------------- | ----------------------------------------- | ------------------------------------------------ | ------- | ------- | ----- | ------ | ------ | ------- | ------ | -
|                                                 |                                                                                   | Nine Months Ended                         |                                                 
|                                                 |                                                                                   | September 30,                             |                                                 
|                                                 |                                                                                   |                                           |                                                 
|                                                 |                                                                                   | 2005                                      |                                                  |         | 2004    |      
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|                                                 |                                                                                   | (Dollars in thousands)                    |                                                 
|OPERATING ACTIVITIES                             |                                                                                   |                                           |                                                  |         |         |       |        |       
|                                                 | Net income                                                                        |                                           | $                                                | 19,471  |         |       | $      | 16,665 |        
|                                                 | Adjustments to reconcile net income to net cash used by
    operating activities: |                                           |                                                  |         |         |       |        |        |        
|                                                 |                                                                                   | Depreciation and amortization             |                                                  |         | 12,843  |       |        |        | 11,813  |       
|                                                 | Changes in operating assets and liabilities:                                      |                                           |                                                  |         |         |       |        |        |        
|                                                 |                                                                                   | Accounts receivable                       |                                                  |         | (14,695 | )     |        |        | (41,298 | )     
|                                                 |                                                                                   | Inventories and other current assets      |                                                  |         | (3,845  | )     |        |        | (39,142 | )     
|                                                 |                                                                                   | Accounts payable and accrued expenses     |                                                  |         | (4,122  | )     |        |        | 45,399  |       
|                                                 |                                                                                   | Other                                     |                                                  |         | (5,691  | )     |        |        | (1,881  | )     
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|                                                 |                                                                                   |                                           | Net Cash Provided (Used) by Operating Activities |         |         | 3,961 |        |        |         | (8,444 | )
|                                                
|INVESTING ACTIVITIES                             |                                                                                   |                                           |                                                  |         |         |       |        |       
|                                                 | Purchases of property, plant and equipment, net                                   |                                           |                                                  | (12,405 | )       |       |        | (6,394 | )      
|                                                 | Acquisition, net of cash acquired                                                 |                                           |                                                  | (7,000  | )       |       |        | (9,998 | )      
|                                                 | Proceeds from sale of assets held for sale                                        |                                           |                                                  | 1,100   |         |       |        | -0-    |        
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|                                                 |                                                                                   | Net Cash Used by Investing Activities     |                                                  |         | (18,305 | )     |        |        | (16,392 | )     
|                                                
|FINANCING ACTIVITIES                             |                                                                                   |                                           |                                                  |         |         |       |        |       
|                                                 | Proceeds from debt, net                                                           |                                           |                                                  | 17,983  |         |       |        | 28,623 |        
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|                                                 |                                                                                   | Net Cash Provided by Financing Activities |                                                  |         | 17,983  |       |        |        | 28,623  |       
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|Increase in Cash and Cash Equivalents            |                                                                                   |                                           | 3,639                                            |         |         |       | 3,787  |       
|Cash and Cash Equivalents at Beginning of Period |                                                                                   |                                           | 6,407                                            |         |         |       | 2,191  |       
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|Cash and Cash Equivalents at End of Period       |                                                                                   | $                                         | 10,046                                           |         |         | $     | 5,978  |       
|                                                 |                                                                                   |                                           |                                                  |         |         |      
|Taxes paid                                       |                                                                                   | $                                         | 1,623                                            |         |         | $     | 2,191  |       
|Interest paid                                    |                                                                                   |                                           | 13,072                                           |         |         |       | 13,592 |       



6



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES





NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


September 30, 2005


(Amounts in thousands  except share and per share
data)


NOTE A  Basis of Presentation






NOTE B  Recent Accounting Pronouncements






NOTE C  Acquisitions




7



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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




|                       |                     |   |       |         |  
|---------------------- | ------------------- | - | ----- | ------- | -
|Cash acquisition price |                     | $ | 7,000 |        
|Assets                 |                     |   |       |        
|                       | Accounts receivable |   |       | (10,894 | )
|                       | Inventories         |   |       | (10,606 | )
|                       | Prepaid expenses    |   |       | (1,201  | )
|                       | Equipment           |   |       | (407    | )
|                      
|Liabilities            |                     |   |       |        
|                       | Accounts payable    |   |       | 13,255  |  
|                       | Accrued expenses    |   |       | 2,370   |  
|                       | Note payable        |   |       | 483     |  
|                       |                     |   |      
|Goodwill               |                     | $ | -0-   |        
|                       |                     |   |      



|                              |  |           |      |   |      |   |       |            |  |   |       |  |  |   |       |  
|----------------------------- |  | --------- | ---- | - | ---- | - | ----- | ---------- |  | - | ----- |  |  | - | ----- | -
|                              |  | Severance |      |   | Exit |   |       | Relocation |  |   | Total | 
|                              |  |           |      |   |      |   |       |            |  |   |       | 
|Balance at June 30, 2005      |  | $         | -0-  |   |      | $ | -0-   |            |  | $ | -0-   |  |  | $ | -0-   |  
|Add: Accruals                 |  |           | 250  |   |      |   | 1,335 |            |  |   | 415   |  |  |   | 2,000 |  
|Less: Payments                |  |           | (125 | ) |      |   | (379  | )          |  |   | -0-   |  |  |   | (504  | )
|                              |  |           |      |   |      |   |       |            |  |   |       | 
|Balance at September 30, 2005 |  | $         | 125  |   |      | $ | 956   |            |  | $ | 415   |  |  | $ | 1,496 |  
|                              |  |           |      |   |      |   |       |            |  |   |       | 





8



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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




|                       |                        |   |        |         |  
|---------------------- | ---------------------- | - | ------ | ------- | -
|Cash acquisition price |                        | $ | 10,000 |        
|Assets                 |                        |   |        |        
|                       | Accounts receivable    |   |        | (8,948  | )
|                       | Inventories            |   |        | (2,044  | )
|                       | Property and equipment |   |        | (15,499 | )
|                       | Other                  |   |        | (115    | )
|                      
|Liabilities            |                        |   |        |        
|                       | Accounts payable       |   |        | 4,041   |  
|                       | Compensation accruals  |   |        | 3,825   |  
|                       | Other accruals         |   |        | 8,740   |  
|                       |                        |   |       
|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 | 
|Transfer                      |  |           | -0-   |  |      |   | 48  |            |  |   | (48   | ) |  |   | -0-   | 
|Less: Payments                |  |           | 1,009 |  |      |   | 148 |            |  |   | 102   |   |  |   | 1,259 | 
|                              |  |           |       |  |      |   |     |            |  |   |       |  
|Balance at September 30, 2005 |  | $         | 612   |  |      | $ | -0- |            |  | $ | 113   |   |  | $ | 725   | 
|                              |  |           |       |  |      |   |     |            |  |   |       |  



NOTE D  Inventories




|                           |  |               |         |  |              |   |         | 
|-------------------------- |  | ------------- | ------- |  | ------------ | - | ------- | 
|                           |  | September 30, |         |  | December 31, |  
|                           |  | 2005          |         |  | 2004         |  
|                           |  |               |         |  |              |  
|Finished goods             |  | $             | 135,383 |  |              | $ | 121,832 | 
|Work in process            |  |               | 28,771  |  |              |   | 27,959  | 
|Raw materials and supplies |  |               | 31,016  |  |              |   | 27,503  | 
|                           |  |               |         |  |              |  
|                           |  | $             | 195,170 |  |              | $ | 177,294 | 
|                           |  |               |         |  |              |  

9



---



##### Table of Contents



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 |        |               | Nine Months |  
|                                     |  | Three Months        |        |                         | Nine Months         |              |        | Ended         |             |   | Ended         |  
|                                     |  | Ended September 30, |        |                         | Ended September 30, |              |        | September 30, |             |   | September 30, |  
|                                     |  |                     |        |                         |                     |              |        |               |             |   |               |  
|                                     |  | 2005                |        |                         | 2004                |              |        | 2005          |             |   | 2004          |   |  | 2005 |        |   | 2004 |   |     | 2005 |  |   | 2004 |  
|                                     |  |                     |        |                         |                     |              |        |               |             |   |               |   |  |      |        |   |      |   |     |      |  |   |      |  
|Service costs                        |  | $                   | 97     |                         |                     | $            | 72     |               |             | $ | 291           |   |  | $    | 228    |   |      | $ | 35  |      |  | $ | 23   |   |  | $ | 105   |   |  | $ | 102   |  
|Interest costs                       |  |                     | 796    |                         |                     |              | 860    |               |             |   | 2,388         |   |  |      | 2,530  |   |      |   | 348 |      |  |   | 306  |   |  |   | 1,044 |   |  |   | 1,149 |  
|Expected return on plan assets       |  |                     | (2,211 | )                       |                     |              | (2,099 | )             |             |   | (6,633        | ) |  |      | (6,285 | ) |      |   | -0- |      |  |   | -0-  |   |  |   | -0-   |   |  |   | -0-   |  
|Transition obligation                |  |                     | (12    | )                       |                     |              | (12    | )             |             |   | (36           | ) |  |      | (36    | ) |      |   | -0- |      |  |   | -0-  |   |  |   | -0-   |   |  |   | -0-   |  
|Amortization of prior service cost   |  |                     | 41     |                         |                     |              | 32     |               |             |   | 123           |   |  |      | 97     |   |      |   | (17 | )    |  |   | (20  | ) |  |   | (51   | ) |  |   | (60   | )
|Recognized net actuarial (gain) loss |  |                     | (60    | )                       |                     |              | (48    | )             |             |   | (180          | ) |  |      | (211   | ) |      |   | 50  |      |  |   | (43  | ) |  |   | 150   |   |  |   | 74    |  
|                                     |  |                     |        |                         |                     |              |        |               |             |   |               |   |  |      |        |   |      |   |     |      |  |   |      |  
|Benefit (income) costs               |  | $                   | (1,349 | )                       |                     | $            | (1,195 | )             |             | $ | (4,047        | ) |  | $    | (3,677 | ) |      | $ | 416 |      |  | $ | 266  |   |  | $ | 1,248 |   |  | $ | 1,265 |  
|                                     |  |                     |        |                         |                     |              |        |               |             |   |               |   |  |      |        |   |      |   |     |      |  |   |      |  

NOTE F  Segments






|                            |                       |                     |         |         |                     |   |         |         |  |   |         |         |  |   |         |         | 
|--------------------------- | --------------------- | ------------------- | ------- | ------- | ------------------- | - | ------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | 
|                            |                       | Three Months        |         |         | Nine Months         |  
|                            |                       | Ended September 30, |         |         | Ended September 30, |  
|                            |                       |                     |         |         |                     |  
|                            |                       | 2005                |         |         | 2004                |   |         | 2005    |  |   | 2004    |        
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        
|Net sales:                  |                       |                     |         |         |                     |   |         |         |  |   |         |         |  |   |         |        
|                            | ILS                   |                     | $       | 137,810 |                     |   | $       | 112,158 |  |   | $       | 394,212 |  |   | $       | 343,272 | 
|                            | Aluminum products     |                     |         | 36,816  |                     |   |         | 35,741  |  |   |         | 122,800 |  |   |         | 91,591  | 
|                            | Manufactured products |                     |         | 59,621  |                     |   |         | 52,976  |  |   |         | 174,913 |  |   |         | 159,291 | 
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        
|                            |                       | $                   | 234,247 |         |                     | $ | 200,875 |         |  | $ | 691,925 |         |  | $ | 594,154 |        
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        
|Income before income taxes: |                       |                     |         |         |                     |   |         |         |  |   |         |         |  |   |         |        
|                            | ILS                   |                     | $       | 8,200   |                     |   | $       | 6,216   |  |   | $       | 24,675  |  |   | $       | 23,694  | 
|                            | Aluminum products     |                     |         | 1,515   |                     |   |         | 2,235   |  |   |         | 7,419   |  |   |         | 6,566   | 
|                            | Manufactured products |                     |         | 5,995   |                     |   |         | 5,183   |  |   |         | 17,757  |  |   |         | 13,704  | 
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        
|                            |                       |                     | 15,710  |         |                     |   | 13,634  |         |  |   | 49,851  |         |  |   | 43,964  |        
|Corporate costs             |                       |                     | (2,244  | )       |                     |   | (2,114  | )       |  |   | (7,746  | )       |  |   | (5,882  | )      
|Interest expense            |                       |                     | (7,200  | )       |                     |   | (6,510  | )       |  |   | (20,374 | )       |  |   | (18,842 | )      
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        
|                            |                       | $                   | 6,266   |         |                     | $ | 5,010   |         |  | $ | 21,731  |         |  | $ | 19,240  |        
|                            |                       |                     |         |         |                     |   |         |         |  |   |         |        

10



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


|                                     |                       |               |         |         |              |   |         |         | 
|------------------------------------ | --------------------- | ------------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                                     |                       | September 30, |         |         | December 31, |  
|                                     |                       | 2005          |         |         | 2004         |  
|                                     |                       |               |         |         |              |  
|Identifiable assets were as follows: |                       |               |         |         |              |   |         |        
|                                     | ILS                   |               | $       | 352,661 |              |   | $       | 297,002 | 
|                                     | Aluminum products     |               |         | 113,352 |              |   |         | 105,535 | 
|                                     | Manufactured products |               |         | 181,261 |              |   |         | 163,230 | 
|                                     | General corporate     |               |         | 12,852  |              |   |         | 46,080  | 
|                                     |                       |               |         |         |              |  
|                                     |                       | $             | 660,126 |         |              | $ | 611,847 |        
|                                     |                       |               |         |         |              |  

NOTE G  Comprehensive Income




|                             |  |               |       |  |               |   |       |      |  |   |        |  |  |   |        | 
|---------------------------- |  | ------------- | ----- |  | ------------- | - | ----- | ---- |  | - | ------ |  |  | - | ------ | 
|                             |  | Three Months  |       |  | Nine Months   |  
|                             |  | Ended         |       |  | Ended         |  
|                             |  | September 30, |       |  | September 30, |  
|                             |  |               |       |  |               |  
|                             |  | 2005          |       |  | 2004          |   |       | 2005 |  |   | 2004   | 
|                             |  |               |       |  |               |   |       |      |  |   |        | 
|Net income                   |  | $             | 5,515 |  |               | $ | 4,061 |      |  | $ | 19,471 |  |  | $ | 16,665 | 
|Foreign currency translation |  |               | 1,383 |  |               |   | 1,438 |      |  |   | 695    |  |  |   | 1,532  | 
|                             |  |               |       |  |               |   |       |      |  |   |        | 
|Total comprehensive income   |  | $             | 6,898 |  |               | $ | 5,499 |      |  | $ | 20,166 |  |  | $ | 18,197 | 
|                             |  |               |       |  |               |   |       |      |  |   |        | 



|                                        |  |               |        |   |              |   |        |  
|--------------------------------------- |  | ------------- | ------ | - | ------------ | - | ------ | -
|                                        |  | September 30, |        |   | December 31, |  
|                                        |  | 2005          |        |   | 2004         |  
|                                        |  |               |        |   |              |  
|Foreign currency translation adjustment |  | $             | (3,857 | ) |              | $ | (3,162 | )
|Minimum pension liability               |  |               | 4,838  |   |              |   | 4,838  |  
|                                        |  |               |        |   |              |  
|                                        |  | $             | 981    |   |              | $ | 1,676  |  
|                                        |  |               |        |   |              |  

NOTE H  Restructuring Activities






|                              |  |   |      |  
|----------------------------- |  | - | ---- | -
|Balance at December 31, 2004  |  | $ | 462  |  
|Cash payments                 |  |   | (264 | )
|                              |  |   |     
|Balance at September 30, 2005 |  | $ | 198  |  
|                              |  |   |     

NOTE I  Accrued Warranty Costs




11



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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




|                        |                                              |      |       |        |      |   |       |        |  
|----------------------- | -------------------------------------------- | ---- | ----- | ------ | ---- | - | ----- | ------ | -
|                        |                                              | 2005 |       |        | 2004 |  
|                        |                                              |      |       |        |      |  
|Balance at January 1    |                                              | $    | 4,281 |        |      | $ | 5,614 |       
|                        | Claims paid during the year                  |      |       | (2,650 | )    |   |       | (3,855 | )
|                        | Additional warranties issued during the year |      |       | 2,250  |      |   |       | 2,182  |  
|                        | Acquired warranty liabilities                |      |       | -0-    |      |   |       | 501    |  
|                        |                                              |      |       |        |      |  
|Balance at September 30 |                                              | $    | 3,881 |        |      | $ | 4,442 |       
|                        |                                              |      |       |        |      |  

NOTE J  Income Taxes






NOTE K  Supplemental Guarantor Information






12



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING BALANCE SHEET


September 30, 2005


|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |         |         | 
|------------------------------------------- | ------------------------------------------------------------- | ------------------------------------------ | ------- | --------- | ------------ | - | ------------- | ------------ | ------- | ------------------ | ------------ | ------ | ------ | ------------ | -------- | ------- | -------- | - | ------- | ------- | ------- | 
|                                            |                                                               |                                            |         | Combined  |              |   | Combined      |              |         |                    |              |       
|                                            |                                                               |                                            |         | Guarantor |              |   | Non-Guarantor |              |         | Reclassifications/ |              |        |       
|                                            |                                                               | Parent                                     |         |           | Subsidiaries |   |               | Subsidiaries |         |                    | Eliminations |        |        | Consolidated |         
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | (In thousands)                             |        
|ASSETS                                     
|Current assets:                             |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Cash and cash equivalents                                     |                                            | $       | (47,692   | )            |   | $             | 36,302       |         |                    | $            | 8,653  |        |              | $        | 12,783  |          |   | $       | 10,046  |        
|                                            | Accounts receivable, net                                      |                                            |         | -0-       |              |   |               | 144,224      |         |                    |              | 27,014 |        |              |          | (174    | )        |   |         | 171,064 |        
|                                            | Inventories                                                   |                                            |         | -0-       |              |   |               | 170,869      |         |                    |              | 24,301 |        |              |          | -0-     |          |   |         | 195,170 |        
|                                            | Other current assets                                          |                                            |         | 977       |              |   |               | 9,360        |         |                    |              | 5,094  |        |              |          | 3,001   |          |   |         | 18,432  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Assets                       |         |           | (46,715      | ) |               |              | 360,755 |                    |              |        | 65,062 |              |          |         | 15,610   |   |         |         | 394,712 | 
|Investment in subsidiaries                  |                                                               |                                            | 350,774 |           |              |   | -0-           |              |         |                    | -0-          |        |        |              | (350,774 | )       |          |   | -0-     |        
|Inter-company advances                      |                                                               |                                            | 288,937 |           |              |   | 312,442       |              |         |                    | 6,870        |        |        |              | (608,249 | )       |          |   | -0-     |        
|Property, Plant and Equipment, net          |                                                               |                                            | 2,436   |           |              |   | 96,882        |              |         |                    | 12,038       |        |        |              | -0-      |         |          |   | 111,356 |        
|Other Assets:                               |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Goodwill                                                      |                                            |         | -0-       |              |   |               | 78,424       |         |                    |              | 4,291  |        |              |          | -0-     |          |   |         | 82,715  |        
|                                            | Other                                                         |                                            |         | 45,324    |              |   |               | 37,849       |         |                    |              | 936    |        |              |          | (12,766 | )        |   |         | 71,343  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Other Assets                         |         |           | 45,324       |   |               |              | 116,273 |                    |              |        | 5,227  |              |          |         | (12,766  | ) |         |         | 154,058 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Assets                               |         | $         | 640,756      |   |               | $            | 886,352 |                    |              | $      | 89,197 |              |          | $       | (956,179 | ) |         | $       | 660,126 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                           
|LIABILITIES AND SHAREHOLDERS EQUITY       
|Current Liabilities:                        |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |          |         |          |   |         |        
|                                            | Trade accounts payable                                        |                                            | $       | 2,291     |              |   | $             | 96,890       |         |                    | $            | 7,691  |        |              | $        | 3,825   |          |   | $       | 110,697 |        
|                                            | Accrued expenses                                              |                                            |         | 17,586    |              |   |               | 42,950       |         |                    |              | 8,878  |        |              |          | -0-     |          |   |         | 69,414  |        
|                                            | Current portion of long-term liabilities                      |                                            |         | -0-       |              |   |               | 966          |         |                    |              | 1,041  |        |              |          | 2,442   |          |   |         | 4,449   |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Current Liabilities                  |         |           | 19,877       |   |               |              | 140,806 |                    |              |        | 17,610 |              |          |         | 6,267    |   |         |         | 184,560 | 
|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                |                                            |         | 139,300   |              |   |               | -0-          |         |                    |              | -0-    |        |              |          | -0-     |          |   |         | 139,300 |        
|                                            | Other long-term debt                                          |                                            |         | -0-       |              |   |               | 33,839       |         |                    |              | 2,596  |        |              |          | (30,530 | )        |   |         | 5,905   |        
|                                            | Other postretirement benefits and other long-term liabilities |                                            |         | 3,523     |              |   |               | 22,566       |         |                    |              | 2,505  |        |              |          | (2,881  | )        |   |         | 25,713  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Long-Term Liabilities                |         |           | 352,823      |   |               |              | 56,405  |                    |              |        | 5,101  |              |          |         | (33,411  | ) |         |         | 380,918 | 
|Inter-company advances                      |                                                               |                                            | 177,172 |           |              |   | 397,624       |              |         |                    | 22,649       |        |        |              | (597,445 | )       |          |   | -0-     |        
|Shareholders Equity                        |                                                               |                                            | 90,884  |           |              |   | 291,517       |              |         |                    | 43,837       |        |        |              | (331,590 | )       |          |   | 94,648  |        
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         
|                                            |                                                               | Total Liabilities and Shareholders Equity |         | $         | 640,756      |   |               | $            | 886,352 |                    |              | $      | 89,197 |              |          | $       | (956,179 | ) |         | $       | 660,126 | 
|                                            |                                                               |                                            |         |           |              |   |               |              |         |                    |              |        |        |              |         

13



---



##### 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 |        
|                                            | 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



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Three Months Ended September 30, 2005


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 207,428       |              |  | $ | 29,498       |       |  | $            | (2,679 | )   |  | $ | 234,247 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 177,017       |              |  |   | 23,989       |       |  |              | (2,679 | )   |  |   | 198,327 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 30,411        |              |  |   | 5,509        |       |  |              | -0-    |     |  |   | 35,920  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 1,258     |              |   |               | 17,314       |  |   |              | 3,732 |  |              |        | 150 |  |   |         | 22,454 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (1,258 | )         |              |   | 13,097        |              |  |   | 1,777        |       |  |              | (150   | )   |  |   | 13,466  |       
|Interest expense                  |                                              |                | (934   | )         |              |   | 7,524         |              |  |   | 760          |       |  |              | (150   | )   |  |   | 7,200   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | (324   | )         |              |   | 5,573         |              |  |   | 1,017        |       |  |              | -0-    |     |  |   | 6,266   |       
|Income taxes                      |                                              |                | 540    |           |              |   | -0-           |              |  |   | 211          |       |  |              | -0-    |     |  |   | 751     |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | (864      | )            |   | $             | 5,573        |  |   | $            | 806   |  |              | $      | -0- |  |   | $       | 5,515  | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Three Months Ended September 30, 2004


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |   |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ----- |  | ------------ | ------ | --- | - | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |      
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |      
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |       |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 174,874       |              |  | $ | 29,595       |       |  | $            | (3,594 | )   |   | $ | 200,875 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 149,933       |              |  |   | 23,210       |       |  |              | (3,594 | )   |   |   | 169,549 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 24,941        |              |  |   | 6,385        |       |  |              | -0-    |     |   |   | 31,326  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |        |     |   |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 1,431     |              |   |               | 13,524       |  |   |              | 4,880 |  |              |        | (29 | ) |   |         | 19,806 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Operating Income (loss)           |                                              |                | (1,431 | )         |              |   | 11,417        |              |  |   | 1,505        |       |  |              | 29     |     |   |   | 11,520  |       
|Interest expense                  |                                              |                | (704   | )         |              |   | 8,245         |              |  |   | (1,060       | )     |  |              | 29     |     |   |   | 6,510   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|Income (loss) before income taxes |                                              |                | (727   | )         |              |   | 3,172         |              |  |   | 2,565        |       |  |              | -0-    |     |   |   | 5,010   |       
|Income taxes                      |                                              |                | 300    |           |              |   | -0-           |              |  |   | 649          |       |  |              | -0-    |     |   |   | 949     |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       
|                                  | Net income (loss)                            |                | $      | (1,027    | )            |   | $             | 3,172        |  |   | $            | 1,916 |  |              | $      | -0- |   |   | $       | 4,061  | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |       |  |              |       

15



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Nine Months Ended September 30, 2005


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |        |     |  |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ------ |  | ------------ | ------ | --- |  | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |       
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |       
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |        |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 613,621       |              |  | $ | 85,133       |        |  | $            | (6,829 | )   |  | $ | 691,925 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 523,886       |              |  |   | 68,486       |        |  |              | (6,829 | )   |  |   | 585,543 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 89,735        |              |  |   | 16,647       |        |  |              | -0-    |     |  |   | 106,382 |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |        |     |  |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 3,771     |              |   |               | 49,965       |  |   |              | 10,091 |  |              |        | 450 |  |   |         | 64,277 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Operating Income (loss)           |                                              |                | (3,771 | )         |              |   | 39,770        |              |  |   | 6,556        |        |  |              | (450   | )   |  |   | 42,105  |       
|Interest expense                  |                                              |                | (3,839 | )         |              |   | 22,833        |              |  |   | 1,830        |        |  |              | (450   | )   |  |   | 20,374  |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Income (loss) before income taxes |                                              |                | 68     |           |              |   | 16,937        |              |  |   | 4,726        |        |  |              | -0-    |     |  |   | 21,731  |       
|Income taxes                      |                                              |                | 25     |           |              |   | -0-           |              |  |   | 2,235        |        |  |              | -0-    |     |  |   | 2,260   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|                                  | Net income (loss)                            |                | $      | 43        |              |   | $             | 16,937       |  |   | $            | 2,491  |  |              | $      | -0- |  |   | $       | 19,471 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       

PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONSOLIDATING STATEMENT OF OPERATIONS


For the Nine Months Ended September 30, 2004


|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |        |     |   |   |         |        | 
|--------------------------------- | -------------------------------------------- | -------------- | ------ | --------- | ------------ | - | ------------- | ------------ |  | - | ------------ | ------ |  | ------------ | ------ | --- | - | - | ------- | ------ | 
|                                  |                                              |                |        | Combined  |              |   | Combined      |              |  |   |              |       
|                                  |                                              |                |        | Guarantor |              |   | Non-Guarantor |              |  |   |              |       
|                                  |                                              | Parent         |        |           | Subsidiaries |   |               | Subsidiaries |  |   | Eliminations |        |  | Consolidated |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|                                  |                                              | (In thousands) |       
|Net sales                         |                                              | $              | -0-    |           |              | $ | 517,702       |              |  | $ | 85,775       |        |  | $            | (9,323 | )   |   | $ | 594,154 |       
|Cost of sales                     |                                              |                | -0-    |           |              |   | 441,287       |              |  |   | 66,974       |        |  |              | (9,323 | )   |   |   | 498,938 |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Gross profit                      |                                              |                | -0-    |           |              |   | 76,415        |              |  |   | 18,801       |        |  |              | -0-    |     |   |   | 95,216  |       
|Operating Expenses:               |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |        |     |   |   |         |       
|                                  | Selling, general and administrative expenses |                |        | 3,636     |              |   |               | 43,424       |  |   |              | 10,102 |  |              |        | (28 | ) |   |         | 57,134 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Operating Income (loss)           |                                              |                | (3,636 | )         |              |   | 32,991        |              |  |   | 8,699        |        |  |              | 28     |     |   |   | 38,082  |       
|Interest expense                  |                                              |                | (1,621 | )         |              |   | 19,502        |              |  |   | 933          |        |  |              | 28     |     |   |   | 18,842  |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|Income (loss) before income taxes |                                              |                | (2,015 | )         |              |   | 13,489        |              |  |   | 7,766        |        |  |              | -0-    |     |   |   | 19,240  |       
|Income taxes                      |                                              |                | 750    |           |              |   | -0-           |              |  |   | 1,825        |        |  |              | -0-    |     |   |   | 2,575   |       
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       
|                                  | Net income (loss)                            |                | $      | (2,765    | )            |   | $             | 13,489       |  |   | $            | 5,941  |  |              | $      | -0- |   |   | $       | 16,665 | 
|                                  |                                              |                |        |           |              |   |               |              |  |   |              |        |  |              |       

16



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the Nine Months Ended September 30, 2005


|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |         |  
|------------------------------------------------- | --------------------------------------------------------- | -------------- | ------- | --------- | ------------ | - | ------------- | ------------ | - | - | ------------ | ------ | - | ------------ | --- | --- |  | - | ------- | ------- | -
|                                                  |                                                           |                |         | Combined  |              |   | Combined      |              |   |   |              |       
|                                                  |                                                           |                |         | Guarantor |              |   | Non-Guarantor |              |   |   |              |       
|                                                  |                                                           | Parent         |         |           | Subsidiaries |   |               | Subsidiaries |   |   | Eliminations |        |   | Consolidated |    
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|                                                  |                                                           | (In thousands) |        
|Net cash provided (used ) by operations           |                                                           | $              | (52,663 | )         |              | $ | 53,194        |              |   | $ | 3,430        |        |   | $            | -0- |     |  | $ | 3,961   |        
|Cash flows from investing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |        
|                                                  | Purchases of property, plant and equipment, net           |                |         | (303      | )            |   |               | (11,082      | ) |   |              | (1,020 | ) |              |     | -0- |  |   |         | (12,405 | )
|                                                  | Acquisition, net of cash acquired                         |                |         | -0-       |              |   |               | (5,807       | ) |   |              | (1,193 | ) |              |     | -0- |  |   |         | (7,000  | )
|                                                  | Proceeds from sale of assets held for sale                |                |         | -0-       |              |   |               | 1,100        |   |   |              | -0-    |   |              |     | -0- |  |   |         | 1,100   |  
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash used in investing activities             |                                                           |                | (303    | )         |              |   | (15,789       | )            |   |   | (2,213       | )      |   |              | -0- |     |  |   | (18,305 | )      
|Cash flows from financing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |        
|                                                  | Proceeds from revolving credit arrangements               |                |         | 18,700    |              |   |               | -0-          |   |   |              | 585    |   |              |     | -0- |  |   |         | 19,285  |  
|                                                  | Principal payments on revolving credit and long-term debt |                |         | -0-       |              |   |               | (1,302       | ) |   |              | -0-    |   |              |     | -0- |  |   |         | (1,302  | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used ) by financing activities |                                                           |                | 18,700  |           |              |   | (1,302        | )            |   |   | 585          |        |   |              | -0- |     |  |   | 17,983  |        
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Increase (decrease) in cash and cash equivalents  |                                                           |                | (34,266 | )         |              |   | 36,103        |              |   |   | 1,802        |        |   |              | -0- |     |  |   | 3,639   |        
|Cash and cash equivalents at beginning of period  |                                                           |                | (643    | )         |              |   | 199           |              |   |   | 6,851        |        |   |              | -0- |     |  |   | 6,407   |        
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Cash and cash equivalents at end of period        |                                                           | $              | (34,909 | )         |              | $ | 36,302        |              |   | $ | 8,653        |        |   | $            | -0- |     |  | $ | 10,046  |        
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    

17



---



##### Table of Contents



PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


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


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the Nine Months Ended September 30, 2004


|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |        |  
|------------------------------------------------- | --------------------------------------------------------- | -------------- | ------- | --------- | ------------ | - | ------------- | ------------ | - | - | ------------ | ------ | - | ------------ | --- | --- |  | - | ------- | ------ | -
|                                                  |                                                           |                |         | Combined  |              |   | Combined      |              |   |   |              |       
|                                                  |                                                           |                |         | Guarantor |              |   | Non-Guarantor |              |   |   |              |       
|                                                  |                                                           | Parent         |         |           | Subsidiaries |   |               | Subsidiaries |   |   | Eliminations |        |   | Consolidated |    
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|                                                  |                                                           | (In thousands) |        
|Net cash provided (used) by operations            |                                                           | $              | (52,832 | )         |              | $ | 36,646        |              |   | $ | 7,742        |        |   | $            | -0- |     |  | $ | (8,444  | )     
|Cash flows from investing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |       
|                                                  | Purchases of property, plant and equipment, net           |                |         | (29       | )            |   |               | (4,513       | ) |   |              | (1,852 | ) |              |     | -0- |  |   |         | (6,394 | )
|                                                  | Acquisition, net of cash acquired                         |                |         | -0-       |              |   |               | (9,998       | ) |   |              | -0-    |   |              |     | -0- |  |   |         | (9,998 | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash used in investing activities             |                                                           |                | (29     | )         |              |   | (14,511       | )            |   |   | (1,852       | )      |   |              | -0- |     |  |   | (16,392 | )     
|Cash flows from financing activities:             |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |     |     |  |   |         |       
|                                                  | Proceeds from bank arrangements                           |                |         | 29,700    |              |   |               | -0-          |   |   |              | -0-    |   |              |     | -0- |  |   |         | 29,700 |  
|                                                  | Principal payments on revolving credit and long-term debt |                |         | -0-       |              |   |               | (335         | ) |   |              | (742   | ) |              |     | -0- |  |   |         | (1,077 | )
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Net cash provided (used ) by financing activities |                                                           |                | 29,700  |           |              |   | (335          | )            |   |   | (742         | )      |   |              | -0- |     |  |   | 28,623  |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Increase (decrease) in cash and cash equivalents  |                                                           |                | (23,161 | )         |              |   | 21,800        |              |   |   | 5,148        |        |   |              | -0- |     |  |   | 3,787   |       
|Cash and cash equivalents at beginning of period  |                                                           |                | (1,392  | )         |              |   | 881           |              |   |   | 2,702        |        |   |              | -0- |     |  |   | 2,191   |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    
|Cash and cash equivalents at end of period        |                                                           | $              | (24,553 | )         |              | $ | 22,681        |              |   | $ | 7,850        |        |   | $            | -0- |     |  | $ | 5,978   |       
|                                                  |                                                           |                |         |           |              |   |               |              |   |   |              |        |   |              |    

18



---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















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





19



---



##### Table of Contents








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



Executive Overview










20



---



##### Table of Contents







Results of Operations




| |                                         
| | ----------------------------------------
| | Nine Months 2005 versus Nine Months 2004



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

|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |    |   |  |   |      | 
|---------------------- |  | ------------- | ----- |  | ---- | - | ------- | ------ | --------- | ---------- | ------ |  |  | ----- | -- | - |  | - | ---- | 
|                       |  | Nine Months   |       |  |      |   |         |        |          
|                       |  | Ended         |       |  |      |   |         |        |          
|                       |  | September 30, |       |  |      |   |         |        | Acquired/ |           
|                       |  |               |       |  |      |   | Percent |        |           | (Divested) |       
|                       |  | 2005          |       |  | 2004 |   |         | Change |           |            | Change |  |  | Sales |   
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   
|ILS                    |  | $             | 394.2 |  |      | $ | 343.3   |        |           | $          | 50.9   |  |  |       | 15 | % |  | $ | 14.7 | 
|Aluminum products      |  |               | 122.8 |  |      |   | 91.6    |        |           |            | 31.2   |  |  |       | 34 | % |  |   | 40.7 | 
|Manufactured products  |  |               | 174.9 |  |      |   | 159.3   |        |           |            | 15.6   |  |  |       | 10 | % |  |   | 3.5  | 
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   
|Consolidated net sales |  | $             | 691.9 |  |      | $ | 594.2   |        |           | $          | 97.7   |  |  |       | 16 | % |  | $ | 58.9 | 
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   





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

|                                   |  |               |       |   |      |   |         |        |  |   |        |  |  |  |    |  
|---------------------------------- |  | ------------- | ----- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                   |  | Nine Months   |       |   |      |   |        
|                                   |  | Ended         |       |   |      |   |        
|                                   |  | September 30, |       |   |      |   |        
|                                   |  |               |       |   |      |   | Percent |       
|                                   |  | 2005          |       |   | 2004 |   |         | Change |  |   | Change | 
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Consolidated cost of products sold |  | $             | 585.5 |   |      | $ | 498.9   |        |  | $ | 86.6   |  |  |  | 17 | %
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Consolidated gross profit          |  | $             | 106.4 |   |      | $ | 95.2    |        |  | $ | 11.2   |  |  |  | 12 | %
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Gross margin                       |  |               | 15.4  | % |      |   | 16.0    | %      |  |   |        |  |  |  |    |  



21



---



##### Table of Contents







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

|                                    |  |               |      |   |      |   |         |        |  |   |        |  |  |  |    |  
|----------------------------------- |  | ------------- | ---- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                    |  | Nine Months   |      |   |      |   |        
|                                    |  | Ended         |      |   |      |   |        
|                                    |  | September 30, |      |   |      |   |        
|                                    |  |               |      |   |      |   | Percent |       
|                                    |  | 2005          |      |   | 2004 |   |         | Change |  |   | Change | 
|                                    |  |               |      |   |      |   |         |        |  |   |        | 
|Consolidated SG&A expenses          |  | $             | 64.3 |   |      | $ | 57.1    |        |  | $ | 7.2    |  |  |  | 13 | %
|SG&A expenses as a percent of sales |  |               | 9.3  | % |      |   | 9.6     | %      |  |   |        |  |  |  |    |  





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

|                               |  |                   |       |   |      |   |         |        |  |                   |        |  |  |  |     | 
|------------------------------ |  | ----------------- | ----- | - | ---- | - | ------- | ------ |  | ----------------- | ------ |  |  |  | --- | 
|                               |  | Nine Months Ended |       |   |      |   |        
|                               |  | September 30,     |       |   |      |   |        
|                               |  |                   |       |   |      |   | Percent |       
|                               |  | 2005              |       |   | 2004 |   |         | Change |  |                   | Change | 
|                               |  |                   |       |   |      |   |         |        |  |                   |        | 
|Interest expense               |  | $                 | 20.4  |   |      | $ | 18.8    |        |  | $                 | 1.6    |  |  |  | 9%  | 
|Average outstanding borrowings |  | $                 | 358.2 |   |      | $ | 323.0   |        |  | $                 | 35.2   |  |  |  | 11% | 
|Average borrowing rate         |  |                   | 7.58  | % |      |   | 7.78    | %      |  | (20) basis points





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



22



---



##### Table of Contents





| |                                             
| | --------------------------------------------
| | Third Quarter 2005 versus Third Quarter 2004



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

|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |    |   |  |   |      | 
|---------------------- |  | ------------- | ----- |  | ---- | - | ------- | ------ | --------- | ---------- | ------ |  |  | ----- | -- | - |  | - | ---- | 
|                       |  | Three Months  |       |  |      |   |         |        |          
|                       |  | Ended         |       |  |      |   |         |        |          
|                       |  | September 30, |       |  |      |   |         |        | Acquired/ |           
|                       |  |               |       |  |      |   | Percent |        |           | (Divested) |       
|                       |  | 2005          |       |  | 2004 |   |         | Change |           |            | Change |  |  | Sales |   
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   
|ILS                    |  | $             | 137.8 |  |      | $ | 112.2   |        |           | $          | 25.6   |  |  |       | 23 | % |  | $ | 14.7 | 
|Aluminum products      |  |               | 36.8  |  |      |   | 35.7    |        |           |            | 1.1    |  |  |       | 3  | % |  |   | 3.0  | 
|Manufactured products  |  |               | 59.6  |  |      |   | 53.0    |        |           |            | 6.6    |  |  |       | 12 | % |  |   | 0.0  | 
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   
|Consolidated net sales |  | $             | 234.2 |  |      | $ | 200.9   |        |           | $          | 33.3   |  |  |       | 17 | % |  | $ | 17.7 | 
|                       |  |               |       |  |      |   |         |        |           |            |        |  |  |       |   





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

|                                   |  |               |       |   |      |   |         |        |  |   |        |  |  |  |    |  
|---------------------------------- |  | ------------- | ----- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                   |  | Three Months  |       |   |      |   |        
|                                   |  | Ended         |       |   |      |   |        
|                                   |  | September 30, |       |   |      |   |        
|                                   |  |               |       |   |      |   | Percent |       
|                                   |  | 2005          |       |   | 2004 |   |         | Change |  |   | Change | 
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Consolidated cost of products sold |  | $             | 198.3 |   |      | $ | 169.5   |        |  | $ | 28.8   |  |  |  | 17 | %
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Consolidated gross profit          |  | $             | 35.9  |   |      | $ | 31.4    |        |  | $ | 4.5    |  |  |  | 14 | %
|                                   |  |               |       |   |      |   |         |        |  |   |        | 
|Gross margin                       |  |               | 15.3  | % |      |   | 15.6    | %      |  |   |        |  |  |  |    |  





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

|                                    |  |               |      |   |      |   |         |        |  |   |        |  |  |  |    |  
|----------------------------------- |  | ------------- | ---- | - | ---- | - | ------- | ------ |  | - | ------ |  |  |  | -- | -
|                                    |  | Three Months  |      |   |      |   |        
|                                    |  | Ended         |      |   |      |   |        
|                                    |  | September 30, |      |   |      |   |        
|                                    |  |               |      |   |      |   | Percent |       
|                                    |  | 2005          |      |   | 2004 |   |         | Change |  |   | Change | 
|                                    |  |               |      |   |      |   |         |        |  |   |        | 
|Consolidated SG&A expenses          |  | $             | 22.4 |   |      | $ | 19.8    |        |  | $ | 2.6    |  |  |  | 13 | %
|SG&A expenses as a percent of sales |  |               | 9.6  | % |      |   | 9.9     | %      |  |   |        |  |  |  |    |  



23



---



##### Table of Contents





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

|                               |  |               |       |   |      |   |         |        |  |                 |        |  |  |  |    |  
|------------------------------ |  | ------------- | ----- | - | ---- | - | ------- | ------ |  | --------------- | ------ |  |  |  | -- | -
|                               |  | Three Months  |       |   |      |   |        
|                               |  | Ended         |       |   |      |   |        
|                               |  | September 30, |       |   |      |   |        
|                               |  |               |       |   |      |   | Percent |       
|                               |  | 2005          |       |   | 2004 |   |         | Change |  |                 | Change | 
|                               |  |               |       |   |      |   |         |        |  |                 |        | 
|Interest expense               |  | $             | 7.2   |   |      | $ | 6.5     |        |  | $               | 0.7    |  |  |  | 11 | %
|Average outstanding borrowings |  | $             | 360.0 |   |      | $ | 334.5   |        |  | $               | 25.5   |  |  |  | 8  | %
|Average borrowing rate         |  |               | 8.00  | % |      |   | 7.78    | %      |  | 22 basis points





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



Seasonality; Variability of Operating Results






Forward-Looking Statements




24



---



##### Table of Contents





Review By Independent Registered Public Accounting Firm









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










PART II


OTHER INFORMATION







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







25



---



##### 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                        

26



---



##### Table of Contents






SIGNATURES






| |                           
| | --------------------------
| | 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 | November 10, 2005 | 

| |  |  | 
| |  |  | 
| |  | 

27



---



##### Table of Contents






EXHIBIT INDEX


QUARTERLY REPORT ON FORM 10-Q


PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES


FOR THE QUARTER ENDED SEPTEMBER 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