##### Table of Contents



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

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended
    September 30, 2007oro

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

34-6520107(State or other jurisdiction
    of

(I.R.S. Employerincorporation or
    organization)

Identification No.)6065 Parkland Boulevard, Cleveland, Ohio

44124(Address of principal executive
    offices)

(Zip Code)   440/947-2000
 (Registrants telephone number, including area code)
       (1)
    Has filed all reports required to be filed by Section 13 or
    15(d) of the Securities Exchange Act of 1934 during the
    preceding twelve months (or for such shorter period that the
    registrant was required to file such reports) and(2)
    Has been subject to such filing requirements for the past
    90 days.  Yes o     No þ  Rule 12b-2
 o o þ
  Rule 12b-2 o þ
     The
    Exhibit Index is located on page 31.




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##### 



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


Financial Statements


3Consolidated balance sheets 
    September 30, 2007 and December 31, 2006


3Consolidated statements of income 
    Three and nine months ended September 30, 2007 and 2006


4Consolidated statement of shareholders
    equity  Nine months ended September 30, 2007


5Consolidated statements of cash flows 
    Nine months ended September 30, 2007 and 2006


6Notes to consolidated financial
    statements  September 30, 2007


7Report of independent registered public
    accounting firm


20Item 2.


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


21Item 3.


Quantitative and Qualitative Disclosure About
    Market Risk


27Item 4.


Controls and Procedures


27PART II. OTHER INFORMATIONItem 1.


Legal Proceedings


28Item 1A.


Risk Factors


29Item 6.


Exhibits


29SIGNATURE


30EXHIBIT INDEX


31EX-31.1EX-31.2EX-32   2




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##### Table of Contents



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


December 31,2007


2006(Dollars in thousands)ASSETSCurrent AssetsCash and cash equivalents

$
12,822


$
20,872Accounts receivable, less allowances for doubtful accounts of
    $4,001 at September 30, 2007 and $4,305 at
    December 31, 2006


197,644



181,893Inventories


206,828



223,936Deferred tax assets


34,142



34,142Other current assets


48,342



29,715Total Current Assets


499,778



490,558Property, Plant and Equipment


257,442



245,330Less accumulated depreciation


157,357



146,352100,085



98,978Other AssetsGoodwill


99,097



98,180Net assets held for sale


4,112



4,967Other


94,429



91,377$
797,501


$
784,060LIABILITIES AND SHAREHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
118,729


$
132,859Accrued expenses


79,028



78,225Current portion of long-term liabilities


9,535



5,873Total Current Liabilities


207,292



216,957Long-Term Liabilities, less current portion
    8.375% Senior Subordinated Notes due 2014


210,000



210,000Revolving credit


155,600



156,700Other long-term debt


1,918



4,790Deferred tax liability


32,089



32,089Other postretirement benefits and other long-term liabilities


28,238



24,434427,845



428,013Shareholders EquityCommon Stock, par value $1 a share


-0-



-0-Additional paid-in capital


64,844



64,844Retained earnings


84,517



68,422Accumulated other comprehensive income


13,003



5,824162,364



139,090$
797,501


$
784,060   Note:
    The balance sheet at December 31, 2006 has been derived
    from the audited financial statements at that date, but does not
    include all of the information and footnotes required by
    generally accepted accounting principles for complete financial
    statements.   3




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##### Table of Contents



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


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006(Amounts in thousands)Net sales

$
269,104


$
257,167


$
823,626


$
785,841Cost of products sold


226,880



220,967



700,413



675,039Gross profit


42,224



36,200



123,213



110,802Selling, general and administrative expenses


23,656



22,138



72,816



65,544Operating income


18,568



14,062



50,397



45,258Interest expense


7,993



8,065



24,286



23,170Income before income taxes


10,575



5,997



26,111



22,088Income taxes


3,816



1,984



9,408



7,957Net income

$
6,759


$
4,013


$
16,703


$
14,131    4




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##### Table of Contents



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





OtherCommon


Paid-In


Retained


ComprehensiveStock


Capital


Earnings


Income


Total(Dollars in thousands)Balance at January 1, 2007

$
-0-


$
64,844


$
68,422


$
5,824


$
139,090Adjustment relating to adoption of FIN 48










(608
)






(608
)Comprehensive income:Net income










16,703







16,703Foreign currency translation adjustment














7,001



7,001Pension and postretirement benefit adjustments, net of tax














178



178Comprehensive income


















23,882Balance at September 30, 2007

$
-0-


$
64,844


$
84,517


$
13,003


$
162,364    5




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS (UNAUDITED)
  Nine Months EndedSeptember 30,2007


2006(Dollars in thousands)OPERATING ACTIVITIESNet income

$
16,703


$
14,131Adjustments to reconcile net income to net cash used by
    operating activities:Depreciation and amortization


15,782



14,097Changes in operating assets and liabilities:Accounts receivable


(15,751
)


(30,145
)Inventories and other current assets


(1,518
)


(39,782
)Accounts payable and accrued expenses


(13,328
)


30,462Other


4,665



(2,335
)Net Cash Provided (Used) by Operating Activities


6,553



(13,572
)INVESTING ACTIVITIESPurchases of property, plant and equipment, net


(14,292
)


(7,923
)Acquisitions, net of cash acquired


-0-



(3,219
)Net Cash Used by Investing Activities


(14,292
)


(11,142
)FINANCING ACTIVITIESProceeds from debt, net


(311
)


23,493Net Cash (Used) Provided by Financing Activities


(311
)


23,493Decrease in Cash and Cash Equivalents


(8,050
)


(1,221
)Cash and Cash Equivalents at Beginning of Period


20,872



17,868Cash and Cash Equivalents at End of Period

$
12,822


$
16,647Taxes paid

$
4,386


$
3,927Interest paid


18,048



17,046    6




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
  September 30,
    2007
    (Dollar amounts in thousands)
  NOTE A 
    Basis of
    Presentation    Form 10-Q Regulation S-X. Form 10-K
  NOTE B 
    Segments   7




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##### Table of Contents



Three Months Ended


Nine Months EndedSeptember 30,


September 30,2007


2006


2007


2006Net sales:ILS

$
134,066


$
149,133


$
403,956


$
449,630Aluminum products


41,188



33,274



131,838



120,889Manufactured products


93,850



74,760



287,832



215,322$
269,104


$
257,167


$
823,626


$
785,841Income before income taxes:ILS

$
8,288


$
8,796


$
20,420


$
29,449Aluminum products


1,131



(118
)


3,285



4,318Manufactured products


11,619



8,148



35,292



19,94221,038



16,826



58,997



53,709Corporate costs


(2,470
)


(2,764
)


(8,600
)


(8,451
)Interest expense


(7,993
)


(8,065
)


(24,286
)


(23,170
)$
10,575


$
5,997


$
26,111


$
22,088   September 30,


December 31,2007


2006Identifiable assets were as follows:ILS

$
402,324


$
382,101Aluminum products


110,770



98,041Manufactured products


249,064



206,089General corporate


35,343



97,829$
797,501


$
784,060   NOTE C 
    Recent
    Accounting Pronouncements         8




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##### Table of Contents



accrue-in-advance
      NOTE D 
    Acquisitions    Regulation S-X.
  Cash acquisition price, less cash acquired

$
20,053AssetsAccounts receivable


(11,460
)Inventories


(4,326
)Other current assets


(201
)Equipment


(365
)Intangible assets subject to amortization


(8,020
)Other assets


(724
)LiabilitiesAccounts payable


8,989Accrued expenses and other current liabilities


3,904Deferred tax liability


3,128Goodwill

$
10,978  9




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##### Table of Contents



No. 95-3,
  Severance and


Exit andPersonnel


Relocation


TotalBalance at October 18, 2006

$
-0-


$
-0-


$
-0-Add: Accruals


650



250



900Less: Payments


(136
)


(46
)


(182
)Balance at December 31, 2006


514



204



718Add: Accruals


-0-



-0-



-0-Less: Payments


(514
)


(204
)


(718
)Balance at September 30, 2007

$
-0-


$
-0-


$
-0-   Regulation S-X.
  No. 95-3,
  Severance and


Exit andPersonnel


Relocation


TotalBalance at June 30, 2005

$
-0-


$
-0-


$
-0-Add: Accruals


250



1,750



2,000Less: Payments


(551
)


(594
)


(1,145
)Transfers


400



(400
)


-0-Balance at December 31, 2005


99



756



855Less: Payments and adjustments


(43
)


(417
)


(460
)Transfers


(17
)


17



-0-Balance at December 31, 2006


39



356



395Less: Payments


(39
)


(356
)


(395
)Balance at September 30, 2007

$
-0-


$
-0-


$
-0-   NOTE E 
    Inventories    September 30,


December 31,2007


2006Finished goods

$
132,827


$
143,071Work in process


16,119



42,405Raw materials and supplies


57,882



38,460$
206,828


$
223,936  10




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##### Table of Contents



NOTE F 
    Pension
    Plans and Other Postretirement Benefits    Pension Benefits


Postretirement BenefitsThree Months


Nine Months


Three Months


Nine MonthsEnded September 30,


Ended September 30,


Ended September 30,


Ended September 30,2007


2006


2007


2006


2007


2006


2007


2006Service costs

$
91


$
87


$
273


$
261


$
41


$
50


$
123


$
150Interest costs


702



726



2,105



2,178



333



323



1,000



969Expected return on plan assets


(2,213
)


(2,078
)


(6,638
)


(6,234
)


-0-



-0-



-0-



-0-Transition obligation


(2
)


(12
)


(6
)


(36
)


-0-



-0-



-0-



-0-Amortization of prior service cost


34



39



102



117



(16
)


(16
)


(48
)


(48
)Recognized net actuarial loss


-0-



81



-0-



243



146



94



438



282Benefit (income) costs

$
(1,388
)

$
(1,157
)

$
(4,164
)

$
(3,471
)

$
504


$
451


$
1,513


$
1,353   NOTE G 
    Comprehensive
    Income    Three Months


Nine MonthsEnded September 30,


Ended September 30,2007


2006


2007


2006Net income

$
6,759


$
4,013


$
16,703


$
14,131Foreign currency translation


3,755



99



7,001



2,682Pension and postretirement benefits, net of tax


59



-0-



178



-0-Total comprehensive income

$
10,573


$
4,112


$
23,882


$
16,813     September 30,


December 31,2007


2006Foreign currency translation adjustment

$
12,385


$
5,384Pension and postretirement benefit adjustments, net of tax


618



440$
13,003


$
5,824     NOTE H 
    Restructuring
    Activities  Form 10-K
 11




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##### Table of Contents



Balance at December 31, 2006

$
284Cash payments


(284
)Balance at September 30, 2007

$
-0-   NOTE I 
    Accrued
    Warranty Costs    Balance at January 1, 2007

$
3,557Claims paid during the year


(1,167
)Additional warranties issued during the year


3,312Balance at September 30, 2007

$
5,702   NOTE J 
    Income
    Taxes               12




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##### Table of Contents



NOTE K 
    Financing
    Arrangements    NOTE L 
    Supplemental Guarantor Information
     13




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 September 30, 2007
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(73,548
)

$
60,778


$
10,607


$
14,985


$
12,822Accounts receivable, net


(550
)


153,000



45,194



-0-



197,644Inventories


-0-



165,606



41,222



-0-



206,828Other current assets


1,423



21,799



18,643



6,477



48,342Deferred tax assets


-0-



-0-



-0-



34,142



34,142Total Current Assets


(72,675
)


401,183



115,666



55,604



499,778Investment in subsidiaries


423,121



28,724



(28,724
)


(423,121
)


-0-Inter-company advances


342,090



307,423



5,713



(655,226
)


-0-Property, Plant and Equipment, net


1,273



77,910



20,902



-0-



100,085Other Assets:Goodwill


-0-



91,316



7,781



-0-



99,097Other


48,425



46,262



1,139



2,715



98,541Total Other Assets


48,425



137,578



8,920



2,715



197,638Total Assets

$
742,234


$
952,818


$
122,477


$
(1,020,028
)

$
797,501LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
2,114


$
85,806


$
18,716


$
12,093


$
118,729Accrued expenses


7,361



35,422



23,373



12,872



79,028Current portion of long-term liabilities


-0-



2,808



4,165



2,562



9,535Total Current Liabilities


9,475



124,036



46,254



27,527



207,292Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on December 31, 2010


155,600



-0-



-0-



-0-



155,600Other long-term debt


-0-



383



1,535



-0-



1,918Deferred tax liability


-0-



-0-



(14
)


32,103



32,089Other postretirement benefits and other long-term liabilities


10,774



56,616



2,789



(41,941
)


28,238Total Long-Term Liabilities


376,374



56,999



4,310



(9,838
)


427,845Inter-company advances


206,582



407,807



19,794



(634,183
)


-0-Shareholders Equity


149,803



363,976



52,119



(403,534
)


162,364Total Liabilities and Shareholders Equity

$
742,234


$
952,818


$
122,477


$
(1,020,028
)

$
797,501  14




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATING BALANCE SHEET
 December 31, 2006
  Combined


CombinedGuarantor


Non-Guarantor


Reclassifications/Parent


Subsidiaries


Subsidiaries


Eliminations


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

$
(15,770
)

$
570


$
12,382


$
23,690


$
20,872Accounts receivable, net


(1,043
)


147,834



35,102



-0-



181,893Inventories


-0-



187,649



36,287



-0-



223,936Other current assets


3,362



12,278



8,575



9,927



34,142Deferred tax assets


-0-



-0-



-0-



29,715



29,715Total Current Assets


(13,451
)


348,331



92,346



63,332



490,558Investment in subsidiaries


388,117



17,169



(17,169
)


(388,117
)


-0-Inter-company advances


338,471



531,453



4,427



(874,351
)


-0-Property, Plant and Equipment, net


448



83,478



15,052



-0-



98,978Other Assets:Goodwill


(5,514
)


96,830



6,864



-0-



98,180Other


52,312



40,599



719



2,714



96,344Total Other Assets


46,798



137,429



7,583



2,714



194,524Total Assets

$
760,383


$
1,117,860


$
102,239


$
(1,196,422
)

$
784,060LIABILITIES AND SHAREHOLDERS EQUITYCurrent Liabilities:Trade accounts payable

$
3,759


$
84,003


$
21,610


$
23,487


$
132,859Accrued expenses


1,579



51,638



12,138



12,870



78,225Current portion of long-term liabilities


-0-



552



2,758



2,563



5,873Total Current Liabilities


5,338



136,193



36,506



38,920



216,957Long-Term Liabilities, less current portion8.375% Senior Subordinated Notes due 2014


210,000



-0-



-0-



-0-



210,000Revolving credit maturing on December 31, 2010


156,700



-0-



-0-



-0-



156,700Other long-term debt


-0-



3,027



1,763



-0-



4,790Deferred tax liability


-0-



-0-



42



32,047



32,089Other postretirement benefits and other long-term liabilities


9,199



54,136



2,692



(41,593
)


24,434Total Long-Term Liabilities


375,899



57,163



4,497



(9,546
)


428,013Inter-company advances


242,672



594,730



17,423



(854,825
)


-0-Shareholders Equity


136,474



329,774



43,813



(370,971
)


139,090Total Liabilities and Shareholders Equity

$
760,383


$
1,117,860


$
102,239


$
(1,196,422
)

$
784,060  15




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Nine Months Ended September 30, 2007
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
686,366


$
137,260


$
-0-


$
823,626Cost of sales


-0-



596,561



102,369



1,483



700,413Gross profit


-0-



89,805



34,891



(1,483
)


123,213Operating Expenses:Selling, general and administrative expenses


(45,323
)


52,488



18,404



47,247



72,816Operating Income (loss)


45,323



37,317



16,487



(48,730
)


50,397Interest expense


23,619



990



128



(451
)


24,286Income (loss) before income taxes


21,704



36,327



16,359



(48,279
)


26,111Income taxes


5,293



11



4,104



-0-



9,408Net income (loss)

$
16,411


$
36,316


$
12,255


$
(48,279
)

$
16,703   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Nine Months Ended September 30, 2006
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
689,263


$
96,578


$
-0-


$
785,841Cost of sales


-0-



598,756



76,283



-0-



675,039Gross profit


-0-



90,507



20,295



-0-



110,802Operating Expenses:Selling, general and administrative expenses


6,975



51,115



10,460



(3,006
)


65,544Operating Income (loss)


(6,975
)


39,392



9,835



3,006



45,258Interest expense


(4,008
)


26,336



1,292



(450
)


23,170Income (loss) before income taxes


(2,967
)


13,056



8,543



3,456



22,088Income taxes


4,756



25



3,176



-0-



7,957Net income (loss)

$
(7,723
)

$
13,031


$
5,367


$
3,456


$
14,131  16




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Three Months Ended September 30, 2007
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-



221,561


$
46,838


$
705


$
269,104Cost of sales


-0-



192,175



34,317



388



226,880Gross profit


-0-



29,386



12,521



317



42,224Operating Expenses:Selling, general and administrative expenses


(16,543
)


(1,419
)


5,350



36,268



23,656Operating Income (loss)


16,543



30,805



7,171



(35,951
)


18,568Interest expense


7,734



473



(63
)


(151
)


7,993Income (loss) before income taxes


8,809



30,332



7,234



(35,800
)


10,575Income taxes


2,149



13



1,654



-0-



3,816Net income (loss)

$
6,660


$
30,319


$
5,580


$
(35,800
)

$
6,759   PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONSOLIDATING STATEMENT OF OPERATIONS
    For the Three Months Ended September 30, 2006
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


Consolidated(In thousands)Net sales

$
-0-


$
224,581


$
32,586


$
-0-


$
257,167Cost of sales


-0-



194,454



26,513



-0-



220,967Gross profit


-0-



30,127



6,073



-0-



36,200Operating Expenses:Selling, general and administrative expenses


5,630



16,833



2,981



(3,306
)


22,138Operating Income (loss)


(5,630
)


13,294



3,092



3,306



14,062Interest expense


(895
)


8,717



393



(150
)


8,065Income (loss) before income taxes


(4,735
)


4,577



2,699



3,456



5,997Income taxes


1,126



-0-



858



-0-



1,984Net income (loss)

$
(5,861
)

$
4,577


$
1,841


$
3,456


$
4,013  17




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Nine Months Ended September 30, 2007
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(64,312
)

$
66,437


$
4,428


$
-0-


$
6,553Cash flows from investing activities:Purchases of property, plant and equipment, net


(1,071
)


(5,839
)


(7,382
)


-0-



(14,292
)Net cash used in investing activities


(1,071
)


(5,839
)


(7,382
)


-0-



(14,292
)Cash flows from financing activities:Proceeds from revolving credit arrangements


-0-



-0-



1,179



-0-



1,179Principal payments on long-term debt


(1,100
)


(390
)


-0-



-0-



(1,490
)Net cash provided (used) by financing activities


(1,100
)


(390
)


1,179



-0-



(311
)Increase (decrease) in cash and cash equivalents


(66,483
)


60,208



(1,775
)


-0-



(8,050
)Cash and cash equivalents at beginning of period


7,920



570



12,382



-0-



20,872Cash and cash equivalents at end of period

$
(58,563
)

$
60,778


$
10,607


$
-0-


$
12,822  18




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##### Table of Contents



PARK-OHIO
    INDUSTRIES, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
    For the Nine Months Ended September 30, 2006
  Combined


CombinedGuarantor


Non-GuarantorParent


Subsidiaries


Subsidiaries


Eliminations


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

$
(52,092
)

$
33,659


$
4,861


$
-0-


$
(13,572
)Cash flows from investing activities:Purchases of property, plant and equipment, net


1,272



(6,055
)


(3,140
)


-0-



(7,923
)Acquisition, net of cash acquired


-0-



-0-



(3,219
)


-0-



(3,219
)Net cash provided (used) in investing activities


1,272



(6,055
)


(6,359
)


-0-



(11,142
)Cash flows from financing activities:Proceeds from revolving credit arrangements


24,400



-0-



-0-



-0-



24,400Principal payments on long-term debt


-0-



(853
)


(54
)


-0-



(907
)Net cash provided (used ) by financing activities


24,400



(853
)


(54
)


-0-



23,493Increase (decrease) in cash and cash equivalents


(26,420
)


26,751



(1,552
)


-0-



(1,221
)Cash and cash equivalents at beginning of period


5,343



626



11,899



-0-



17,868Cash and cash equivalents at end of period

$
(21,077
)

$
27,377


$
10,347


$
-0-


$
16,647  19




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##### Table of Contents



REPORT
    OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
               
    20




---



##### Table of Contents



Item 2.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations    Executive
    Overview
  just-in-time
  ramping-up
       21




---



##### Table of Contents



Accounting
    Changes
  SFAS No. 158 Form 10-K
  FIN 48
       22




---



##### Table of Contents



Results
    of Operations
  Nine
    Months 2007 versus Nine Months 2006
  Net
    Sales by Segment:
  Nine MonthsEnded








Acquired/September 30,





Percent


(Divested)2007


2006


Change


Change


SalesILS

$
404.0


$
449.6


$
(45.6
)


(10
)%

$
29.5Aluminum products


131.8



120.9



10.9



9
%


0.0Manufactured products


287.8



215.3



72.5



34
%


0.0Consolidated Net Sales

$
823.6


$
785.8


$
37.8



5
%

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





Percent2007


2006


Change


ChangeConsolidated cost of products sold

$
700.4


$
675.0


$
25.4



4
%Consolidated gross profit

$
123.2


$
110.8


$
12.4



11
%Gross Margin


15.0
%


14.1
%     ramp-ups
  Selling,
    General & Administrative (SG&A)
    Expenses:
  Nine MonthsEndedSeptember 30,



Percent2007

2006

Change

ChangeConsolidated SG&A expenses

$
72.8


$
65.5


$
7.3



11
%SG&A percent


8.8
%


8.3
%  23




---



##### Table of Contents



Interest
    Expense:
  Nine MonthsEndedSeptember 30,





Percent2007


2006


Change


ChangeInterest expense

$
24.3


$
23.2


$
1.1


5%Average outstanding borrowings

$
387.6


$
372.2


$
15.4


4%Average borrowing rate


8.35
%


8.30
%


5


basis points     Income
    Tax:
      Results
    of Operations
  Third
    Quarter 2007 versus Third Quarter 2006
  Net
    Sales by Segment:
  Three MonthsEnded








Acquired/September 30,





Percent


(Divested)2007


2006


Change


Change


SalesILS

$
134.1


$
149.1


$
(15.0
)


(10
)%

$
10.0Aluminum products


41.2



33.3



7.9



24
%


0.0Manufactured products


93.8



74.8



19.0



25
%


0.0Consolidated Net Sales

$
269.1


$
257.2


$
11.9



5
%

$
10.0    24




---



##### Table of Contents



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





Percent2007


2006


Change


ChangeConsolidated cost of products sold

$
226.9


$
221.0


$
5.9



3
%Consolidated gross profit

$
42.2


$
36.2


$
6.0



17
%Gross Margin


15.7
%


14.1
%       SG&A
    Expenses:
  Three MonthsEndedSeptember 30,



Percent2007

2006

Change

ChangeConsolidated SG&A expenses

$
23.7


$
22.1


$
1.6



7
%SG&A percent


8.8
%


8.6
%     Interest
    Expense:
  Three MonthsEndedSeptember 30,





Percent2007


2006


Change


ChangeInterest expense

$
8.0


$
8.1


$
(0.1
)

(1)%Average outstanding borrowings

$
384.4


$
379.6


$
4.8


1%Average borrowing rate


8.32
%


8.50
%


(18
)

basis points    25




---



##### Table of Contents



Income
    Tax:
      Seasonality;
    Variability of Operating Results
      Forward-Looking
    Statements
  Form 10-Q
  Review By
    Independent Registered Public Accounting Firm
   26




---



##### Table of Contents



Item 3.
    Quantitative
    and Qualitative Disclosure About Market Risk        Item 4.
    Controls
    and Procedures  Rules 13a-15(e)
     27




---



##### Table of Contents



PART II
  OTHER INFORMATION
  Item 1.
    Legal
    Proceedings             28




---



##### Table of Contents



Item 1A.
    Risk
    Factors  Form 10-K
  Item 6.
    Exhibits    31
.1

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

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


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




---



##### Table of Contents



SIGNATURE
    
  By
    /s/  Richard
    P. Elliott   Title:
    Vice President and Chief Financial Officer    30




---



##### Table of Contents



EXHIBIT INDEX
    QUARTERLY REPORT ON
    FORM 10-Q
    PARK-OHIO INDUSTRIES, INC. AND SUBSIDIARIES
    FOR THE QUARTER ENDED SEPTEMBER 30, 2007
  Exhibit31
.1

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

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


Certification requirement under Section 906 of the
    Sarbanes-Oxley Act of 2002  31