Securities and Exchange Commission
                          Washington, DC  20549
                                
                                FORM 10-K
                                
    (Mark One)
    [  X  ]  Annual  report pursuant to section 13 or  15(d)  of  the
    Securities Exchange Act of 1934 (Fee Required)
    For the fiscal year ended October 31, 1998 or
    [     ]  Transition report pursuant to section 13 or 15(d) of the
    Securities Exchange Act of 1934 (No Fee Required)
    For the transition period from _________ to ___________

    Commission file number 0-12619
                                
    Collins Industries, Inc.
    (Exact name of registrant as specified in its charter)
                                
    Missouri                                   
    (State or other jurisdiction of incorporation)

    43-0985160
    (I.R.S. Employer Identification Number)
                                
    15 Compound Drive     Hutchinson, Kansas            67502-4349 
    (Address of principal executive offices)            (Zip Code)
                                
    Registrant's telephone number including area code     316-663-5551
                                
    Securities registered pursuant to Section 12(b) of the Act:

    Title of each class        Name of each exchange on which registered  

            None                               N/A

    Securities registered pursuant to Section 12(g) of the Act:

                      Common Stock, Par Value $.10 per share
                                  (Title of class)
                                
    Indicate  by check mark whether the registrant (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  12  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  X      No  

    Indicate  by  check  mark  if  disclosure  of  delinquent  filers
    pursuant  to Item 405 of Regulation S-K is not contained  herein,
    and  will  not  be  contained, to the best  of  the  registrant's
    knowledge,   in   definitive  proxy  of  information   statements
    incorporated by reference in Part III of this Form  10-K  or  any
    amendment to this Form 10-K.  (X)
                                
    The aggregate market value of voting stock held by non-affiliates
    of the registrant was $  20,377,531  as of January 18, 1999.

    The number of shares of Common Stock outstanding on January 18, 1999 was
    7,406,481.

                    Documents Incorporated by Reference

    The following are the documents incorporated by reference and the
    part of the Form 10-K into which the document is incorporated:

             Document:                     Part of Form 10-K

    Proxy Statement for Annual Meeting
    of Shareholders on February 26, 1999        Part  III

                                    PART I
                                
    Item 1.  BUSINESS

    General Development of Business

    Collins Industries, Inc. was founded in 1971 as a manufacturer of
    small school buses and ambulances built from modified cargo vans.
    The  Company's initial product was the first "Type A" school bus,
    designed  to  carry  16  to  20 passengers.   Today  the  Company
    manufactures specialty vehicles and accessories for various basic
    service  niches  of the transportation industry.   The  Company's
    products include ambulances, small school buses, shuttle and mid-
    size  commercial  buses,  terminal  trucks,  and  commercial  bus
    chassis.   From its inception, Collins' stated goal has  been  to
    become the largest manufacturer of specialty vehicles in the U.S.
    The  Company has grown primarily through the internal development
    of  new  products  and  the acquisition of complementary  product
    lines.

    In  the  U.S., Collins is the largest manufacturer of ambulances,
    the  second largest manufacturer of terminal trucks and a leading
    manufacturer   of  small  school  buses,  shuttle  and   mid-size
    commercial  buses and commercial bus chassis.  The Company  sells
    its  products  under  several well-known trade  names,  including
    Wheeled  Coach  (ambulances), Collins Bus (small  school  buses),
    World Trans (commercial buses), and Capacity (terminal trucks).
    On December 1, 1998, the Company completed the acquisition of all
    of the common stock of Mid Bus, Inc., a manufacturer of Type A-I
    and A-II school buses.

    Most Collins products are built to customer specifications from a
    wide  range of options offered by the Company.  Collins sells  to
    niche   markets   which   demand  manufacturing   processes   too
    sophisticated  for  small job shop assemblers,  but  is  not  the
    highly  automated  assembly line operations  of  mass  production
    vehicle   manufacturers.    The  Company   emphasizes   specialty
    engineering  and product innovation.  In the last few  years,  it
    has  introduced  new  products  and product  improvements,  which
    include  the Moduvan ambulance, the first ambulance of  its  size
    with  advanced  life-support  system  capability,  the  Dura-Ride
    suspension  system, the first frame-isolating  suspension  system
    for  terminal  trucks, and the innovation  of  a  larger  seating
    capacity,  Type A Super Bantam school bus capable of carrying  up
    to 24 passengers, the largest Type A in the industry.
    
    Description of Business

    The   Company  principally  manufactures  and  markets  Specialty
    Vehicles.

    Ambulances.   The Company manufactures both modular and  van-type
    ambulances at its Hutchinson, Kansas and Orlando, Florida plants.
    Modular ambulances are produced by attaching an all-aluminum, box-
    type, patient compartment to either a dual rear-wheel cab chassis
    ("Type  I")  ambulance  or a dual rear-wheel,  van-type,  cutaway
    chassis  ("Type III") ambulance or to a single rear-wheel cutaway
    chassis  ("Moduvan")  ambulance.  A cutaway chassis  consists  of
    only the front portion of the driver's compartment, engine, drive
    train,  frame,  axle and wheels.  Van ("Type II") ambulances  are
    cargo vans modified to include a patient compartment and a raised
    fiberglass  roof.   Type  II  ambulances  are  smaller  and  less
    expensive than modular ambulances.

    The  Company  also produces a limited number of  medical  support
    vans  designed  to transport medical and life-support  equipment.
    Medical  support vans are modified commercial vehicles  which  do
    not have a patient compartment for advanced life support systems.

    Buses.   The  Company manufactures small school buses, commercial
    and  shuttle buses at its Hutchinson and South Hutchinson, Kansas
    facilities.

    School Buses.  The Company manufactures small Type A school buses
    which  carry from 16 to 24 passengers.  The Company built Type  A
    school buses by extensively modifying vendor-supplied cargo vans.
    The  majority of Type A school buses built by the Company are now
    produced  by  fabricating the body and mounting it on  a  vendor-
    supplied, dual rear-wheel or single rear-wheel, cutaway  chassis.
    The Company was the first manufacturer to produce a Type A school
    bus  on  this  type  of  chassis, which permits  greater  seating
    capacity  than  a  van  chassis.  School buses  are  produced  in
    compliance  with  Federal, state and local laws regarding  school
    transportation vehicles.

    Commercial  and Shuttle Buses.  The Company produces shuttle  and
    transit  buses  for  car  rental agencies,  transit  authorities,
    hotels and resorts, retirement centers, nursing homes and similar
    users.  These buses are built to customer specifications and  are
    designed to transport 14 to 30 passengers over short distances.

    Collins  offers commercial bus products in various price  ranges.
    The  Diplomat  is  a  steel body bus built on a  vendor-supplied,
    cutaway  chassis that carries 17 to 25 passengers and  targets  a
    low- to mid-price range market.  The World Trans 3000, introduced
    in  early  1993, is an aluminum body bus built on  the  Company's
    rear-engine, rail-type chassis.  This product is designed for the
    medium duty segment of the transit and shuttle markets.

    Terminal  Trucks.   The  Company produces  two  basic  models  of
    terminal  trucks  at its Longview, Texas, facility,  the  Trailer
    Jockey   and  the Yardmaster.  Terminal trucks are  designed  and
    built  to  withstand  heavy-duty  use  by  moving  trailers   and
    containers at warehouses, rail yards, rail terminals and shipping
    ports.   Most  terminal trucks manufactured by  the  Company  are
    built  to customer specifications.  The Company manufactures  the
    entire  truck  except for major drivetrain components  which  are
    purchased  from  outside  suppliers.   The  Dura-Ride  suspension
    system,  an increasingly popular option on the Company's terminal
    trucks,  was  installed on approximately  half  of  the  terminal
    trucks built by the Company during fiscal 1998.
 
    Bus  Chassis.  The Company produces a rear-engine bus chassis for
    use  by  the  Company and for sale to other manufacturers.   This
    chassis  is suitable for both commercial and large school  buses.
    To  date, the Company has produced and sold limited quantities of
    these  chassis.  The Company plans to continue manufacturing  bus
    chassis  suitable  for its own products and  for  sale  to  other
    manufacturers.

    Manufacturing

    Manufacturing consists of the assembly of component parts  either
    purchased  from  others  or  fabricated  internally.   With   the
    exception  of  chassis, chassis components and  certain  terminal
    truck components which are purchased from outside suppliers,  the
    Company  fabricates  the principal components  of  its  products.
    Collins'  internal capabilities include CNC punching and  forming
    of  sheet  metal, metal stamping, tooling, molding of  fiberglass
    components,   mechanical  and  electrical   component   assembly,
    upholstery, painting and finishing and Computer-Aided-Design  and
    Manufacturing (CAD/CAM) systems.

    Collins   intends  to  continue  to  improve  its   manufacturing
    facilities  from time-to-time through the selective upgrading  of
    equipment  and  the  mechanization or automation  of  appropriate
    portions  of the manufacturing process.  Management believes  the
    Company's manufacturing facilities are in good condition and  are
    adequate for the purposes for which they currently are used.  The
    capacity  of  the  Company's current facilities, particularly  if
    operated  on  a multiple shift basis, is considered  adequate  to
    meet current needs and anticipated sales volumes.
 
    New Products

    The  Company  is not presently engaged in activities which  would
    require  a significant amount of expenditures or use of  material
    amounts  of  assets for development of products in  the  planning
    stage or otherwise for the foreseeable future.
  
    Suppliers

    In  order  to  ensure that it has a readily available  supply  of
    chassis for ambulance and bus production, the Company has entered
    into  consignment  agreements  with  General  Motors  Corporation
    ("GMC") and Ford Motor Company ("Ford").  Under those agreements,
    chassis  are kept at Company production facilities at no cost  to
    the Company other than chassis storage costs.  When an individual
    chassis  is selected from the Company's consignment pool for  use
    in vehicle production, title to the chassis passes to the Company
    and  the Company becomes liable to the consignor for the cost  of
    the  chassis.   Chassis  currently in the  consignment  pool  are
    supplied  by Ford and GMC.  While an interruption in supply  from
    one  source  may  cause a temporary slowdown in  production,  the
    Company believes that it could obtain adequate numbers of chassis
    from alternate sources of supply.

    The  Company uses substantial amounts of steel in the  production
    of  its terminal truck products and purchases certain other major
    components (primarily engines, transmissions and axles).  Collins
    also  uses large amounts of aluminum, steel, fiberglass and glass
    in  the production of ambulances and buses.  There is substantial
    competition among suppliers of such raw materials and components,
    and  the Company does not believe that a loss of a single  source
    of supply would have a material adverse effect on its business.
 
    Patents, Trademarks and Licenses

    The Company owns federal registrations for most of the trademarks
    which  it uses on its products. The Company also owns patents  on
    its  bus  body design, ambulance design, Dura-Ride air suspension
    system,  ambulance  warning light system  and  air-activated  bus
    door.  The Company believes that its patents are helpful, because
    they  may force competitors to do more extensive design  work  to
    produce  a  competitive product.  The Company believes  that  its
    production  techniques  and skills are as  important  as  product
    design,  and,  therefore, in management's opinion,  any  lack  of
    patent  protection  would  not  adversely  affect  the  Company's
    business.

    Seasonality of Business
 
    Historically a major portion of the Company's net income has been
    earned  in the second and third fiscal quarters ending  April  30
    and  July  31, respectively.  The purchasing patterns  of  school
    districts are typically strongest in the spring and summer months
    which accounts for typically stronger sales of small school buses
    in  the  quarters  ending April 30 and July 31.   Generally,  the
    Company's  sales tend to be lower in the fall and  winter  months
    due  to  the  purchasing patterns of the Company's  customers  in
    general and purchasing activities are normally lower near the end
    of the calendar year.

    Sales Terms

    The  Company produces the majority of its products on  an  order-
    only  basis.   Most  products  are delivered  on  a  cash  basis.
    Products sold on a direct basis (not through dealers) are sold on
    trade  terms  common to the respective industry.  Finished  goods
    that are reflected on the financial statements are generally sold
    units  that  are ready for customer delivery.  Sales  to  dealers
    have generally been financed through an unrelated third party for
    the  dealers, resulting in payment generally within days  of  the
    sale.

    Customer Concentration

    The  Company  has  no single customer whose  loss  would  have  a
    material adverse effect on the Company  as a whole.

    Sales Backlog

    The  sales  backlog  at October 31, 1998 was approximately  $33.6
    million.  This compares to $45.5 million at October 31, 1997.  In
    the  opinion  of management, the majority of this  sales  backlog
    will be shipped during the coming year.

    Governmental Sales

    The  Company  has, and will continue to, pursue opportunities  in
    government  sales  as  they occur. No  material  portion  of  the
    Company's  business,  however, is  subject  to  renegotiation  of
    profits  or  termination  of contracts  or  subcontracts  at  the
    election of the government.

    Marketing and Distribution

    The  Company, through its wholly owned subsidiaries, markets  its
    products  throughout the U.S. and, to a limited  extent,  abroad,
    through   independent  dealers  and  distributors,  Company-owned
    stores  and the direct sales efforts of Company personnel.   Each
    of  the  Company's  product groups is  responsible  for  its  own
    marketing activities and maintains independent relationships with
    dealers  and  distributors.  Support is provided to  dealers  and
    distributors  in  bidding  specification  writing  and   customer
    service.

    The  Company regularly advertises in consumer and trade magazines
    and  other  print  media and actively participates  in  national,
    regional   and   local   trade  shows.   In   addition,   Company
    representatives  attend  a  number of  national  conventions  and
    regional meetings of important constituent groups such as  school
    boards and emergency medical groups.

    Competition
  
    The  markets  for most of the Company's product  lines  are  very
    competitive,  and  the  Company  currently  has  several   direct
    competitors in most markets.  Some of these competitors may  have
    greater  relative resources.  The Company believes it can compete
    successfully  (i)  in the ambulance market on the  basis  of  the
    quality  and  price of its products, its design  engineering  and
    product  innovation capabilities and the strength of the  Wheeled
    Coach  brand  name, (ii) in the small school bus  market  on  the
    basis  of its product price and quality and favorable recognition
    of  its  Collins  Bus brand name and (iii) in the commercial  bus
    market  on  the  basis  of  its various product  models,  product
    quality, price and distribution network.

    In the terminal truck market, the Company competes primarily with
    one larger domestic competitor, Ottawa Truck which is owned by
    Kalmar Industries. Kalmar  has  international  distribution
    channels and may  have greater   relative  resources  than  the 
    Company.   The  Company believes it can compete successfully in this
    market on the  basis of  its  Capacity brand name, price, product
    quality and customer demand for its exclusive Dura-Ride suspension
    system.
 
    Research and Development Costs
                                         1998      1997      1996 
    Research and Development Expenses  $185,982  $162,002  $215,313

    This table cites the level of research and development costs  the
    Company incurred the past three fiscal years.  It should be noted
    the Company does significant research and development work on the
    production  line and, therefore, the major costs of new  programs
    are recorded as cost of sales and are expensed as prototypes.

    Regulation

    The  Company  is  subject to various laws  and  regulations  with
    respect to employees' health and safety and the protection of the
    environment.  In addition, all of the Company's on-road  vehicles
    must  satisfy  certain  standards  applicable  to  such  vehicles
    established  by  the United States Department of  Transportation.
    Certain   of   its  products  must  also  satisfy  specifications
    established   by  other  federal,  state  and  local   regulatory
    agencies,   primarily   dealing  with  safety   and   performance
    standards.  In management's opinion, the Company and its products
    are  in  compliance in all material respects with all  applicable
    governmental  regulations.   A substantial  change  in  any  such
    regulation could have a significant impact on the business of the
    Company.

    Employees

    The   Company  employs  approximately  900  persons  full   time,
    including officers and administrative personnel.  The Company has
    not  experienced  any  strikes or work  stoppages  due  to  labor
    problems  and  considers its relations with its employees  to  be
    satisfactory.
 
    Export Sales

    The Company has no significant foreign or export sales.

    Item 2.  PROPERTIES

    The  following table sets forth certain information with  respect
    to  the  Company's  manufacturing  and  office  facilities.   The
    Company owns all properties listed below in fee simple, except as
    otherwise noted.
  
                                                                   Approximate
    Location                         Use                          Size (sq ft)

    Hutchinson, Kansas               Corporate headquarters             5,000

    Hutchinson, Kansas               Ambulance production; Wheelchair 300,000
                                     lifts and accessories production;
                                     Office space

    Hutchinson, Kansas (1)           Building presently leased and     60,000
                                     available for future production

    So. Hutchinson, Kansas (1), (2)  Small school bus and commercial  250,000
                                     Office space

    Orlando, Florida (1)             Ambulance production; Office     229,000
                                     space 

    Longview, Texas                  Terminal truck production;       120,000
                                     Chassis production; Office space

    Mansfield, Texas (1)             Ambulance sales, service and      25,000
                                     distribution center

    (1)  This property is pledged as collateral to secure payment of
         the Company's debt obligations. See "Note 2 to Consolidated
         Financial Statements."
    (2)  This facility and certain related equipment are financed by
         industrial revenue bonds in the original principal amounts
         of $3,500,000 in 1998 and $1,750,000 in 1984 issued by the
         city of South Hutchinson under lease purchase agreements
         similar to the one in effect for the Hutchinson production
         facility.

    The Company leases several facilities throughout the U.S. for the
    sale and distribution of ambulances.   Although the Company evaluates
    opportunities  to acquire additional properties at favorable prices as
    they arise, it  believes that its facilities are well maintained and
    will  be adequate  to serve its needs in the foreseeable future.
    Several Company facilities have room to expand in existing buildings
    and others   have  land  upon  which  additional  buildings  can   be
    constructed.

    Item 3.  LEGAL PROCEEDINGS

    There  are  no  material  pending legal proceedings,  other  than
    ordinary routine litigation incidental to the business, to  which
    the  Company  is  a  party or of which any  of  its  property  is
    subject.

    Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    The Company did not submit any matter to a vote of security
    holders during the fourth quarter of the fiscal year ended
    October 31, 1998.
                                
                                    PART II
                                
    Item 5.  MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
             STOCKHOLDER MATTERS

    Collins  Industries, Inc. common stock is quoted  on  the  Nasdaq
    Stock  Market  under the symbol COLL.  The following  table  sets
    forth the high and low sales prices per share of the common stock
    as  reported  by  the Nasdaq Stock Market.  On October  31,  1998
    there  were  650  shareholders of record of the Company's  common
    stock.

                                  FISCAL 1998

                                                    Volume
                       Quarter     High     Low     (000s)

                       First       7-3/4    6-1/4    382
                       Second      7        5-3/4    857
                       Third       6        4-1/4    710
                       Fourth      5-5/32   2-7/8    564

                                  FISCAL 1997

                                                    Volume
                       Quarter     High     Low     (000s)

                       First       6        4-1/2   1,261
                       Second      5-1/4    4         547
                       Third       8-1/4    4-1/4   1,660
                       Fourth      8-7/8    6-1/2     997

    During  the  period covered by this Report, the Company  did  not
    sell  any  equity securities that were not registered  under  the
    Securities Act.

    Item 6.  SELECTED FINANCIAL DATA
    Operating History
    (In thousands except share and per-share data)

    Fiscal years ended     
    October 31,               1998      1997     1996      1995      1994
                                                              
    Sales                  $156,445  $157,522  $151,879  $140,725  $143,763
    Cost of sales           134,544   131,920   129,652   123,911   126,664
     Gross profit            21,901    25,602    22,227    16,814    17,099
    Selling, general
     & administrative
     (includes research
      & development)         16,124    15,379    15,236    13,925    13,661
    Income from
     operations               5,777    10,223     6,991     2,889     3,438
    Other income (expenses):                                        
     Interest, net           (1,400)   (1,642)   (2,241)   (2,783)   (3,410)
    Other, net (Note A)         360       262       262       (27)     (999)
    Income (loss) from                                            
     continuing operations
     before provision for                                        
     income taxes and
     extraordinary 
     items                    4,737     8,843     5,012        79      (971)
    Provision for income     
     taxes                    1,710     1,600         -         -         -
    Income (loss) before  
     extraordinary
     items                    3,027     7,243     5,012        79      (971)
    Extraordinary items        -         -         -         (420)        -
    Net income (loss)        $3,027    $7,243    $5,012     $(341)    $(971)
    Earnings (loss) per                                             
     share-basic:
    Income (loss) before     
     extraordinary items      $ .40     $ .99     $ .69     $ .01     $(.14)
    Extraordinary items           -         -         -      (.06)        -
    Net income (loss)           .40       .99       .69      (.05)     (.14)
    Dividends per share       $ .23     $.075     $   -     $   -     $   -
    Weighted average shares                                         
     outstanding-basic    7,498,751 7,347,751  7,311,796 7,240,926 7,106,082
    Non-cash charges       $  1,795  $  1,782    $ 2,128  $  3,040  $  2,889

    Note A:      Includes  non-recurring expenses of $1,010,761 in
                 1994 associated with the restatement of the October
                 31, 1992 consolidated financial statements.

    Financial Position
    (In thousands except share and per-share data)

    Fiscal years ended 
    October 31,                1998     1997     1996     1995     1994
                                                                
    Current assets           $31,747  $34,002  $32,640   $32,086   $37,733
    Current liabilities       16,072   18,959   18,436    18,670    23,769
    Working capital           15,675   15,043   14,204    13,416    13,964
    Total assets              49,076   47,163   45,744    46,881    54,794
    Long-term debt and                                              
     capitalized leases        
     (less current 
      maturities)              12,733   8,362   13,418    19,406    20,544
    Shareholders'investment    20,271  19,842   13,891     8,805     8,994
    Book value per share         2.73    2.69     1.91      1.21      1.26

    Financial Comparisons

    Fiscal years ended
    October 31,                1998     1997     1996     1995     1994
                                                                
    Gross profit margin        14.0%    16.3%    14.6%    11.9%    11.9%
    Net profit margin           1.9%     4.6%     3.3%      NA       NA
    Selling, general and                                            
     administrative             
     (including R&D) as        
     percent of sales          10.3%     9.8%    10.0%     9.9%     9.5%
    Current ratio              2.0:1    1.8:1    1.8:1    1.7:1    1.6:1
    Long-term debt and                                              
     capitalized leases
     to shareholders'         
     investment                0.6:1    0.4:1    1.0:1    2.2:1    2.3:1
    Manufacturing space        
     (000's square feet)         988      898      898      978      978


    Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
             CONDITION AND RESULTS OF OPERATIONS

    The  following discussion and analysis provides information which
    management   believes   is  relevant   to   an   assessment   and
    understanding of the Company's consolidated results of operations
    and  financial  condition.   The discussion  should  be  read  in
    conjunction with the consolidated financial statements and  notes
    thereto.

    RESULTS OF OPERATIONS

    Fiscal  1998  Compared  to Fiscal 1997.  Sales  for  fiscal  1998
    decreased  slightly to $156.4 million compared to $157.5  million
    in fiscal 1997.  This decrease was principally due to lower sales
    of  ambulances  and terminal trucks and was partially  offset  by
    higher sales of bus products.

    At October 31, 1998, the Company's consolidated sales backlog was
    $33.6 million compared to $45.5 million at October 31, 1997.  The
    Company  believes  a majority of its consolidated  sales  backlog
    will be shipped in fiscal 1999.

    Cost  of  sales  for fiscal 1998 was 86.0% of sales  compared  to
    83.7%  of  sales  in  fiscal 1997.  The percentage  increase  was
    principally  due  to the impact of higher program  discounts  and
    sales incentives in fiscal 1998 on closing out 1997 models,  wage
    increases  in fiscal 1998 at rates higher than inflation  due  to
    work force shortages in all geographic areas, and a one-time $1.2
    million gain from the sale of the Company's UVL product line  in
    fiscal 1997 which was recorded as a reduction of cost of sales.

    Selling, general and administrative expenses for fiscal 1998 were
    $15.9 million or 10.2% of sales compared to $15.2 million or 9.6%
    of  sales  in fiscal 1997.  These increases principally  resulted
    from  higher  marketing  expenses associated  with  direct  sales
    personnel and advertising.

    Interest  expense  decreased principally due  to  negotiation  of
    lower  interest  rates  with its lead Bank.   This  decrease  was
    partially offset by additional borrowings from its lead Bank  and
    from  additional IRB ("Industrial Revenue Bond") debt which  were
    principally used to fund capital expenditures.

    Income  tax expense in fiscal 1998 was $1.7 million.  Income  tax
    expense  as a percentage of pretax income was 36% in fiscal  1998
    compared to 18% in fiscal 1997.  Income tax expense as a  percent
    of  pretax  income  increased principally  as  a  result  of  the
    utilization  of  net  operating loss  carryforwards  and  general
    business  tax  credits in fiscal 1997.  All  net  operating  loss
    carryforwards  and business tax credits were utilized  in  fiscal
    1997.

    The Company's net income in fiscal 1998 decreased to $3.0 million
    ($.40  per share-basic) compared to $7.2 million ($.99 per share-
    basic)  in fiscal 1997.  This decrease principally resulted  from
    profit  declines  from  ambulance and  terminal  truck  products,
    higher  income taxes and the one-time gain from the sale  of  the
    UVL  product line recorded in fiscal 1997.  These decreases were
    partially offset by higher profit contributions from bus products
    and lower interest costs.
 
    Fiscal  1997  Compared  to Fiscal 1996.  Sales  for  fiscal  1997
    increased  to  $157.5  million compared to $151.9  million.   The
    sales  increase for fiscal 1997 was principally due  to  improved
    sales of terminal truck products.  The sales increase of terminal
    trucks  was principally due to a sales contract with U.S.  Postal
    Service.

    Cost  of  sales  for fiscal 1997 was 83.7% of sales  compared  to
    84.5%  of  sales in fiscal 1996.  The principal reasons for  this
    improvement include:  The $1.2 million gain from the sale of  the
    Company's UVL product line which was recorded as a reduction  of
    cost  of  sales  and  lower  material costs  associated  with  an
    improved sales mix in ambulance products.

    Selling, general and administrative expenses for fiscal 1997 were
    $15.2 million or 9.6% of sales compared to $15.0 million or  9.9%
    of  sales  in  fiscal  1996.   The overall  dollar  increase  was
    principally   due  to  higher  marketing  and  selling   expenses
    associated  with  new  sales personnel  and  the  addition  of  a
    corporate telemarketing center.

    Interest  expense  for  fiscal 1997 decreased  $.6  million  over
    fiscal  1996.   This  decrease  was principally  due  to  reduced
    average borrowings during fiscal 1997.

    Income  tax expense in fiscal 1997 was $1.6 million.  Income  tax
    expense  as a percentage of pretax income was 18% in fiscal  1997
    and  was less than the Federal statutory rate principally due  to
    the  utilization of net operating loss carryforwards and  general
    business tax credits.  There was no provision for income taxes in
    fiscal 1996 due to the Company's utilization of its net operating
    loss carryforwards from prior years.

    The  Company's income before extraordinary items in  fiscal  1997
    increased to $7.2 million ($.99 per share-basic) compared to $5.0
    million ($.69 per share-basic) in fiscal 1996.  This increase was
    principally  a  result of profit improvements from ambulance  and
    terminal  truck  products, the gain from the  sale  of  the  UVL
    product  line and lower interest costs associated with an overall
    reduction   in  interest-bearing  debt.   These  increases   were
    partially offset by income taxes of $1.6 million in fiscal 1997.
 
    LIQUIDITY AND CAPITAL RESOURCES

    Historically,  the Company has principally relied  on  internally
    generated   funds,  supplier  financing,  bank   borrowings   and
    industrial  revenue bonds to finance its operations  and  capital
    expenditures.   The  Company's working capital requirements  vary
    from  period  to period depending on the production  volume,  the
    timing of vehicle deliveries and the payment terms offered to its
    customers.

    Cash  provided  by  operations was $4.1 million  in  fiscal  1998
    compared  to $8.1 million in fiscal 1997.  Principal  sources  of
    the  1998  cash provided by operations were from Company  profits
    and  reductions of accounts receivable, inventories  and  prepaid
    expenses.   These sources of cash from operations were offset  by
    reductions in accounts payable and accrued expenses.
 
    Cash  provided  by  operations was $8.1 million  in  fiscal  1997
    compared to $5.8 million in fiscal 1996.  Primary sources of  the
    1997  cash  provided  by  operations  related  to  the  Company's
    improved  profit  levels and reductions in  accounts  receivable.
    The  sources  of  cash from operations were partially  offset  by
    increased  income  taxes  paid ($1.6 million)  and  increases  in
    inventories ($2.1 million) and a prepaid expense ($.9 million).

    Cash  provided  by  operations was $5.8 million  in  fiscal  1996
    compared to $5.3 million in fiscal 1995.  Primary sources of  the
    1996  cash  provided  by  operations  related  to  the  Company's
    improved profit levels.  The sources of cash from operations were
    partially  offset by increases in receivables and a reduction  in
    accounts payable.

    Cash used in investing activities was $5.8 million in fiscal 1998
    compared  to  $1.8 million in fiscal 1997.  In  fiscal  1998  the
    principal  use  of  cash  for  investing  purposes  was  for  the
    acquisition  of  new  property  and  equipment  ($6.0   million).
    Approximately  $3.8  million of fiscal 1998 capital  expenditures
    related   to  the  Company's  expansion  of  its  bus  production
    facilities.   Cash used in investing activities was $1.8  million
    in fiscal 1997 compared to $.3 million in fiscal 1996.  In fiscal
    1997  the principal use of cash for investing activities  related
    to  the  acquisition of property and equipment ($.8 million)  and
    certain other assets ($.2 million).

    Cash  provided by financing activities was $1.7 million in fiscal
    1998  compared  to  cash  used in financing  activities  of  $6.4
    million  in  fiscal  1997.   In fiscal  1998,  the  Company  made
    additional long-term borrowings of $6.4 million and used cash  of
    $2.2  million  to  reduce other long-term debt,  $.9  million  to
    purchase  and retire common stock and $1.7 million  to  pay  cash
    dividends.  Cash used in financing activities was $6.4 million in
    fiscal  1997 compared to $6.0 million in fiscal 1996.  In  fiscal
    1997 the Company used cash to reduce its long-term borrowings  by
    $5.1  million, to purchase and retire common stock of $.8 million
    and  to  pay cash dividends totalling $.6 million.  Cash used  in
    financing activities was $6.0 million in fiscal 1996 compared  to
    $8.0 million in fiscal 1995.  In fiscal 1996, the Company reduced
    its  net long-term borrowings by $6.0 million compared to  a  net
    reduction of $3.7 million in fiscal 1995.
 
    The  Company believes that its cash flows from operations and its
    credit  facility with its lead Bank will be sufficient to satisfy
    its  future working capital, capital expenditure requirements and
    anticipated dividends.

    At  October  31,  1998  there  were  no  significant  or  unusual
    contractual commitments or capital expenditure commitments.
  
    On December 1, 1998, the Company completed the purchase of all of
    the  common stock, of Mid Bus, Inc., a manufacturer of  Type  A-I
    and  A-II  school  buses.   The  purchase  was  financed  through
    borrowings on the Company's revolving credit facility.

    Recently Issued Accounting Standards

    Statement  of  Financial  Accounting Standards  (SFAS)  No.  130,
    "Reporting  Comprehensive  Income"  and  Statement  of  Financial
    Accounting Standards (SFAS) No.131, "Disclosure about Segments of
    an  Enterprise  and  Related Information" are effective  for  the
    Company's  1999  fiscal  year and are  not  expected  to  have  a
    material effect on the Company's financial position or results of
    operations.

    Year 2000 Issue

    The  Year  2000 ("Y2K") issue is the result of computer  programs
    being  written  using two digits rather than four to  define  the
    applicable  year.  The Company's computer equipment and  software
    and  devices with imbedded technology that are time-sensitive may
    recognize a date using "00" as the year 1900 rather than the year
    2000.   This  could result in a system failure or miscalculations
    causing disruptions of operations, including, among other things,
    a  temporary inability to process transactions, send invoices, or
    engage in similar normal business activities.

    The  Company has developed and begun implementing a plan intended
    to  ensure that its computer equipment and software will function
    properly  with respect to dates in the year 2000 and  thereafter.
    For  this  purpose,  the term "computer equipment  and  software"
    includes  systems  that are commonly thought  of  as  information
    technology  ("IT") systems, including accounting, data processing
    and   telephone/PBX   systems,  hand-held   terminals,   scanning
    equipment,  and other miscellaneous systems, as well  as  systems
    that  are  not commonly thought of as IT systems, such  as  alarm
    systems, fax machines, or other miscellaneous systems.   Both  IT
    and   non-IT  systems  may  contain  imbedded  technology,  which
    complicates   the   Company's  Y2K  identification,   assessment,
    remediation,  and testing efforts.  Based upon its identification
    and assessment efforts to date, the Company believes that certain
    of  the  computer equipment and software that it  currently  uses
    will  require replacement or modification.  A substantial portion
    of  the  Company's  software relates to prepackaged,  copyrighted
    software  written  by Mapics, Actionware and American  Viking.
    The Company has obtained Y2K compliant versions of these software
    packages  and  has or intends to convert to the Y2K  versions  of
    such  software in 1999.  Additionally, in the ordinary course  of
    replacing  computer equipment and software, the Company  attempts
    to  obtain  replacements  that are Y2K  compliant.   The  Company
    expects  that  its overall Y2K plan, which began in fiscal  1998,
    will  be completed by October 31, 1999.  However, the Company  is
    in  the  process  of developing a contingency  plan  for  certain
    internal systems.

    The  Company  has  also contacted significant suppliers  such  as
    Ford, General Motors and Cummins concerning the Company's use  of
    embedded technology from such vendors.

    The  cost  of the Y2K issue is not expected to have a  materially
    adverse impact on the Company's results of operation or adversely
    affect  the  Company's relationships with customers,  vendors  or
    others.   Additionally, there can be no assurance  that  the  Y2K
    issues  of other entities will not have a material adverse impact
    on the Company's systems or results of operations.

    Cautionary Statement Regarding Risks and Uncertainties  That  May
    Affect Future Results

    This  annual report and other written reports and oral statements
    made  from  time  to  time by the Company may  contain  so-called
    "forward-looking   statements"  about  the  business,   financial
    conditions, prospects of the Company and year 2000 issues, all of
    which  are subject to risks and uncertainties.  One can  identify
    these  forward-looking statements by their use of words  such  as
    "expects", "plans", "will", "estimates", "forecasts", "projects",
    and  other words of similar meaning.  One can also identify  them
    by  the  fact  that they do not relate strictly to historical  or
    current facts.  One should understand that it is not possible  to
    predict   or  identify  all  factors  which  involve  risks   and
    uncertainties.  Consequently, the reader should not consider  any
    such  list or listing to be a complete statement of all potential
    risks or uncertainties.
 
    No  forward-looking statement can be guaranteed and actual future
    results  may vary materially.  The actual results of the  Company
    could  differ  materially from those indicated  by  the  forward-
    looking  statements  because of various risks  and  uncertainties
    including  without  limitation, changes in  product  demand,  the
    availability  of  vehicle chassis, adequate direct  labor  pools,
    changes  in  competition, interest rate fluctuations, development
    of new products, various inventory risks due to changes in market
    conditions,  changes  in  tax and other  governmental  rules  and
    regulations applicable to the Company, substantial dependence  on
    third   parties  for  product  quality,  reliability  and  timely
    fulfillment of orders and other risks indicated in the  Company's
    filings    with   the   Securities   and   Exchange   Commission.
    Additionally, the Company's recent acquisition of Mid  Bus,  Inc.
    involves  certain  risks  and  uncertainties  including   without
    limitation,  the Company's ability to operate Mid Bus  profitably
    and to retain Mid Bus' customers, suppliers and labor force.
  
    The Company does not assume the obligation to update any forward-
    looking statement.  One should carefully evaluate such statements
    in  light of factors described in the Company's filings with  the
    Securities and Exchange Commission, especially on Forms 10-K, 10-
    Q and 8-K (if any).

    Quantative and Qualitative Disclosures About Market Risk

    The  Company is exposed to market risk relating to interest rates
    on  its  fixed rate debt.  Interest rate risk is not material  to
    the  Company's  consolidated financial  position  or  results  of
    operations.

    Item 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF INCOME
    For  the years ended October 31,

                                        1998          1997          1996
                                                      
    Sales                          $156,445,451  $157,522,016  $151,878,862
    Cost of sales                   134,544,521   131,919,939   129,651,654
        Gross profit                 21,900,930    25,602,077    22,227,208
                                                      
    Selling, general and                   
     administrative expenses         15,937,649    15,216,609    15,020,673
                                                              
    Research and development                                          
     expenses                           185,982       162,002       215,313
                                                      
        Income from operations        5,777,299    10,223,466     6,991,222
                                                      
    Other income (expense):                               
     Interest, net                   (1,399,984)   (1,642,573)   (2,241,575)
     Other, net                         359,785       262,323       262,420
                                     (1,040,199)   (1,380,250)   (1,979,155)
                                                      
        Income before provision
         for income taxes             4,737,100     8,843,216     5,012,067
                                                      
    Provision for income taxes        1,710,000     1,600,000             -
                                                      
         Net income                  $3,027,100    $7,243,216    $5,012,067
                                                      
    Earnings per share                                    
     Basic                           $      .40    $      .99     $     .69
     Diluted                         $      .39    $      .94     $     .66
    
    Dividends per share              $      .23    $     .075     $       - 
                                                    
    The accompanying notes are an integral part of these statements.

    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED BALANCE SHEETS
    October 31,

                    ASSETS                         1998          1997
    Current assets:                                          
      Cash                                   $   143,995   $   189,152
      Receivables                              5,346,051     6,745,973
      Inventories                             25,271,242    25,686,022
      Prepaid expenses and other current         985,420     1,380,998
          Total current assets                31,746,708    34,002,145
                                                         
    Property and equipment, at cost:                         
      Land and improvements                    2,538,457     2,341,943
      Buildings and improvements              17,466,615    15,072,087
      Machinery and equipment                 14,498,992    11,817,691
      Office furniture and fixtures            3,279,853     3,000,769
                                              37,783,917    32,232,490
      Less - accumulated depreciation         21,038,717    19,800,671
                                              16,745,200    12,431,819
    Other assets                                 584,141       729,166
                                             $49,076,049   $47,163,130
                                                         
         LIABILITIES & SHAREHOLDERS'INVESTMENT
    Current liabilities:                                     
     Current maturities of long-term debt 
      and capitalized leases                 $ 1,108,750   $ 1,094,948
     Accounts payable                         12,017,444    14,200,975
     Accrued expenses                          2,946,167     3,663,382
          Total current liabilities           16,072,361    18,959,305
                                                         
    Long-term debt and capitalized leases     12,733,085     8,361,887
                                                         
    Commitments and contingencies                            
                                                         
    Shareholders' investment:                                
     Preferred stock, $.10 par value                      
        Authorized - 750,000 shares                      
        Outstanding - No shares outstanding                        
     Capital stock, $.10 par value                        
        Authorized - 3,000,000 shares                    
        Outstanding - No share oustanding                          
     Common stock, $.10 par value                                   
        Authorized - 17,000,000 shares                             
        Issued - 7,430,881 shares in 1998;                        
                 7,385,681 in 1997                743,088      738,568
     Paid-in capital                           18,051,859   18,918,903
     Retained earnings                          1,475,656      184,467
                                                                   
          Total shareholders' investment       20,270,603   19,841,938
                                                                   
                                              $49,076,049  $47,163,130
                                                                   
    The accompanying notes are an integral part of these balance sheets.
 
    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    For the years ended October 31,

                                       1998          1997           1996
    Cash flow from operations:                          
     Cash received from
      customers                    $157,845,373   $159,086,052   $150,944,345
     Cash paid to suppliers  
      and employees                (150,697,953)  (147,534,561)  (142,919,078)
     Interest paid, net              (1,456,095)    (1,759,087)    (2,265,324)
     Income taxes paid               (1,628,444)    (1,650,700)             -
        Cash provided by                                         
         operations                   4,062,881      8,141,704      5,759,943
                                                                 
    Cash flow from investing activities:
     Capital expenditures            (5,958,283)    (1,731,543)      (862,889)
     Sale of property and     
      equipment                         478,150         16,500        668,038
     Expenditures for other  
      assets                           (284,849)       (97,995)      (176,305)
     Other, net                               -              -         57,863
        Cash used in                                             
         investing activities        (5,764,982)    (1,813,038)      (313,293)
                                                                 
    Cash flow from financing activities:
     Principal payments of                                        
      long-term debt and
      capitalized leases             (2,168,041)    (5,087,017)    (6,019,948)
     Addition to long-term                                          
      debt and capitalized leases    6,423,421               -              -
     Purchase of common stock                                     
      and other capital 
      transactions                    (862,525)       (754,230)       (14,250)
     Payment of dividend            (1,735,911)       (553,672)             -
        Cash provided by (used                                    
         in) financing
         activities                  1,656,944      (6,394,919)    (6,034,198)

    Net decrease in cash               (45,157)        (66,253)      (587,548)
    Cash at beginning of year          189,152         255,405        842,953
                                                                 
    Cash at end of year               $143,995        $189,152       $255,405
                                                                 
    Reconciliation of net income                                     
     to net cash provided by operations:                                     
    Net income                      $3,027,100      $7,243,216     $5,012,067
    Depreciation and                                  
     amortization                    1,795,336       1,781,740      2,019,938
    Common stock issued for               
     benefit of employees                    -               -        108,170
    Decrease (increase) in   
     receivables                     1,399,922       1,564,036       (934,517)
    Decrease (increase) in     
     inventories                       414,780      (2,070,863)      (148,432)
    Decrease (increase) in
     prepaid expenses                  395,578        (921,723)       (58,522)
    Increase (decrease) in 
     accounts payables              (2,183,531)        471,931       (425,847)
    Increase (decrease) in 
     accrued expenses                 (717,215)         82,651        223,521
    Gain on sale of property                                     
     and equipment                     (69,089)         (9,284)       (36,435)
        Cash provided by             
         operations                 $4,062,881      $8,141,704     $5,759,943
                                                      
    The accompanying notes are an integral part of these statements.

    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
    For the years ended October 31,

                                          Common Stock           Paid-In
                                       Shares     Amount         Capital
    Balance October 31, 1995         7,286,887   $ 728,689    $ 19,593,605
                                                                        
    Stock issued (rescinded)
     under various discretionary
     arrangements                      (54,500)     (5,450)         18,451
    Stock issued to Tax Deferred
     Savings Plan and Trust             31,723       3,172          71,685
    Stock issued under Stock
     Option Plans                       10,000       1,000          17,750 
    Net income                               -           -               -
    Purchase of treasury stock               -           -               - 
                                                                      
    Balance October 31, 1996         7,274,110     727,411      19,701,491
                                                                      
    Stock issued under Stock
     Option Plans                      275,196      27,520         (86,097)
    Amortization of deferred
     compensation                            -           -          15,799
    Net income                               -           -               - 
    Cash dividends paid                      -           -               - 
    Purchase of treasury stock               -           -               - 
    Retirement of treasury stock      (163,625)    (16,363)       (934,825)
    Tax benefit from exercise of
     stock options                           -           -         222,535 
                                                                       
    Balance October 31, 1997         7,385,681     738,568      18,918,903
                                                                      
    Stock issued under Stock
     Option Plans                      228,500      22,850          75,028
    Net income                               -           -               - 
    Cash dividends paid                      -           -               -
    Purchase of treasury stock               -           -               - 
    Retirement of treasury stock      (183,300)    (18,330)       (955,729)
    Tax benefit from exercise of
     stock options                           -           -          13,657
                                                                      
    Balance October 31, 1998         7,430,881    $743,088     $18,051,859
                                                                      
    The accompanying notes are an integral part of these statements.
    
    Collins Industries, Inc. and Subsidiaries
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT (CON'T)
    For the years ended October 31,

                                          Retained
                                          Earnings         Treasury Stock
                                          (Deficit)       Shares     Amount
    Balance October 31, 1995            (11,517,144)          -   $      -

    Stock issued (rescinded) under
     various discretionary 
     arrangements                                 -           -          -
    Stock issued to Tax Deffered
     Savings Plan and Trust                       -           -          -
    Stock issued under Stock
     Option Plans                                 -           -          -
    Net income                            5,012,067           -          -
    Purchase of treasury stock                    -       6,000    (33,000)

    Balance October 31, 1996             (6,505,077)      6,000    (33,000)
 
    Stock issued under Stock
     Option Plans                                 -           -          -
    Amortization of deferred
     compensation                                 -           -          -
    Net income                            7,243,216           -          -
    Cash dividends paid                    (553,672)          -          -
    Purchase of treasury stock                    -     157,625   (918,188)
    Retirement of treasury stock                  -    (163,625)   951,188
    Tax benefit from exercise of
     stock options                                -           -          -

    Balance October 31, 1997                184,467           -          -
 
    Stock issued under Stock
     Option Plans                                 -           -          -
    Net income                            3,027,100           -          -
    Cash dividends paid                  (1,735,911)          -          -
    Purchase of treasury stock                    -     183,300   (974,059)
    Retirement of treasury stock                  -    (183,300)   974,059
    Tax benefit from exercise of
     stock options                                -           -          -

    Balance October 31, 1998             $1,475,656           -    $     -

    The accompanying notes are an integral part of these statements.

    Collins Industries, Inc. and Subsidiaries
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    For the three years ended October 31, 1998

    (1)  Summary of Significant Accounting Policies

    (a)   Consolidation  and Operations - The consolidated  financial
    statements include the accounts of Collins Industries, Inc.  (the
    Company)  and  its  wholly owned subsidiaries.   All  significant
    intercompany  accounts and transactions have been  eliminated  in
    consolidation.

    The   Company   primarily  operates  in  the  Specialty   Vehicle
    Manufacturing   segment   and   related   vehicle    accessories.
    Manufacturing  activities are carried on  solely  in  the  United
    States.   However, the Company does market its products in  other
    countries.   Revenues derived from export sales  to  unaffiliated
    customers  were  less than 10% of consolidated  sales  in  fiscal
    1998, 1997 and 1996.

    (b)   Cash and Cash Management -  Cash includes checking accounts
    and  funds  invested in overnight and other short-term, interest-
    bearing accounts of three months or less.

    The  Company maintains controlled disbursement accounts with  its
    lead  bank  under  an arrangement whereby all cash  receipts  and
    checks  are  centralized and presented to the  bank  daily.   All
    deposits  are  applied directly against the  Company's  revolving
    credit  line  and  all  checks  presented  for  payment  in   the
    controlled  disbursement accounts are funded  through  borrowings
    under  the  Company's revolving credit facility.  At October  31,
    1998  and 1997 accounts payable included outstanding checks drawn
    on controlled disbursement accounts of $3,122,255 and $2,082,355,
    respectively.

    (c)   Inventories -  Inventories are stated at the lower of  cost
    (first-in,  first-out) or market.  Major classes  of  inventories
    which   include  material,  labor,  and  manufacturing   overhead
    required  in  production  of Company products  consisted  of  the
    following as of October 31, 1998 and 1997:

                                      1998             1997
    Chassis                       $ 7,916,058      $ 7,675,115
    Raw materials & components      8,871,980        8,673,308
    Work-in-process                 3,408,167        4,173,173
    Finished goods                  5,075,037        5,164,426
                                  $25,271,242      $25,686,022

    (d)   Depreciation  and Maintenance -  Depreciation  is  provided
    using  the straight-line method for financial reporting  purposes
    and  accelerated methods for income tax purposes.  The  estimated
    useful lives of property are as follows:

      Land improvements               10 to 20 years
      Buildings and improvements      10 to 30 years
      Machinery and equipment          3 to 15 years
      Office furniture and fixtures    3 to 10 years

    Maintenance and repairs are charged to expense as incurred.   The
    cost of additions and betterments are capitalized.  The cost  and
    related depreciation of property retired or sold are removed from
    the  applicable  accounts and any gain  or  loss  is  taken  into
    income.

    (e)   Revenue Recognition - The Company records vehicle sales  at
    the  earlier  of  completion of the vehicle and receipt  of  full
    payment  or shipment or delivery to the customer as specified  by
    the  customer  purchase  order.  Customer  deposits  for  partial
    payment   of  vehicles  are  deferred  and  treated  as   current
    liabilities  until  the vehicle is completed  and  recognized  as
    revenue.

    (f)   Earnings  Per  Share - During the first quarter  of  fiscal
    1998,  the Company adopted Statement of Financial Accounting  No.
    128,  "Earnings Per Share".  Prior period earnings per share  has
    been  restated  to reflect current presentation.  Basic  earnings
    per  share  is computed based on the weighted average  number  of
    common   shares   outstanding.   Potentially   dilutive   shares,
    calculated  using  the treasury stock method, consist  of  shares
    issued under the Company's stock option plans.
 
    The  following  is a reconciliation of shares used  to  calculate
    basic and diluted earnings per share:
 
                                              1998       1997       1996
    Average share outstanding for basic    7,498,751  7,347,751  7,311,796
    Effect of potentially dilutive shares    186,516    363,470    309,607
    Average shares outstanding for diluted 7,685,267  7,711,221  7,621,403

    (g)  Cost of Sales - Cost of sales for the year ended October 31,
    1997  has been reduced by the $1.2 million gain from the sale  of
    the Company's UVL product line which was completed in May, 1997.

    (2)  Long-term Debt and Capitalized Leases
   
    Long-term  debt and capitalized leases at October  31,  1998  and
    1997 consist of the following:
 
                                                       1998       1997
    Bank credit facility:                                      
     Revolving credit borrowings                   $ 7,873,921  $4,780,277
     Term Loan A                                     2,655,517   3,474,167
    Capitalized leases:                                        
     City of South Hutchinson, Kansas, 4.75%-11%.
      Annual principal and sinking fund payments
      range from $519,000 in 1999 to $323,000 in
      2007                                           3,312,397     375,000
     City of Hutchinson, Kansas, 8.25% to
      8.5% due in 1998                                       -     164,891
    10.75%, Term Loan from insurance company                 -     662,500
                                                    13,841,835   9,456,835
    Less - current maturities                        1,108,750   1,094,948
                                                   $12,733,085  $8,361,887

    At  October  31,  1997,  the Company had a  Loan  Agreement  with
    NationsBank of Georgia, N.A., Atlanta, Georgia (the "Bank")  for
    a  revolving  credit facility of $25.0 million  and  a  long-term
    credit  facility of $8.05 million.  The revolving credit facility
    required  payment of interest (only) at 1% over the Bank's  prime
    rate which was 8.50% at October 31, 1997.  The long-term facility
    included  a  $6.2 million term loan which was payable in  monthly
    installments of $49,167 plus interest at 1% over the Bank's prime
    rate.
  
    On  July  31, 1998, the Company entered into a new Loan Agreement
    for  a revolving credit facility of $17.0 million and a long-term
    credit  facility  (Term  Loans A and B) of  $5.1  million.   Both
    credit  facilities  bear  interest  based  on  a  combination  of
    Eurodollar  (LIBOR plus 1.75%) and the Bank's prime lending  rate
    (8%  at October 31, 1998) and mature May 31, 2001.  The revolving
    credit  facility also provides for a maximum of $3.0  million  in
    letters  of  credit,  of which $1.2 million were  outstanding  at
    October  31,  1998.  The long-term credit facility also  provides
    for  an  additional $2.0 million credit line (Term  Loan  B)  for
    future   capital  expenditures.   The  total  amount  of   unused
    revolving  credit available to the Company was  $3.7  million  at
    October  31,  1998.   At  October 31,  1998  no  borrowings  were
    outstanding under Term Loan B.

    The   credit   facility   is   collateralized   by   receivables,
    inventories,  equipment  and certain real  property.   Under  the
    terms  of  the  Agreement, the Company is  required  to  maintain
    certain  financial  ratios and other financial  conditions.   The
    Agreement  also  prohibits  the Company  from  incurring  certain
    additional indebtedness, limits certain investments, advances  or
    loans   and   restricts  substantial  asset  sales  and   capital
    expenditures.   At October 31, 1998 and 1997 the Company  was  in
    compliance with all loan covenants.

    Certain  of the Company's manufacturing facilities were  financed
    from  the  proceeds of industrial revenue bonds.  Lease  purchase
    agreements  with the respective cities provide that  the  Company
    may  purchase the manufacturing facilities at any time during the
    lease  terms  by paying the outstanding principal amount  of  the
    bonds plus a nominal amount.

    In fiscal 1996, the Company deposited approximately $1,023,000 in
    cash and U.S. Government securities into an irrevocable trust  to
    complete  an  in-substance  defeasance  of  the  Company's   1989
    Industrial  Revenue Bonds with the City of Newton,  Kansas.   The
    transaction  did  not result in any material gain  or  loss.   At
    October  31, 1998 the principal balance of the defeased debt  was
    approximately $740,000.

    At  October  31,  1998,  the  net  book  value  of  manufacturing
    facilities  subject  to  these  lease  purchase  agreements   was
    approximately $3,334,000.
 
    In  March,  1998, the Company retired at par value a 10.75%  term
    loan from an insurance company.

    During  the  fourth  quarter of fiscal  year  1998,  the  Company
    defeased  the  1979 Industrial Revenue Bonds  with  the  City  of
    Hutchinson, Kansas.  The transaction did not result in  any  gain
    or  loss.   At  October 31, 1998, the principal  balance  of  the
    defeased debt was approximately $400,000.
 
    The  carrying amount of the Company's long-term obligations  does
    not  differ  materially from fair value based on  current  market
    rates available to the Company.

    The aggregate maturities of capitalized leases and long-term debt
    for the year subsequent to October 31, 1998 are as follows:

          1999                 $1,108,750
          2000                    893,750
          2001                  9,668,188
          2002                    335,000
          2003                    353,750
          2004 and thereafter   1,482,397

    (3)  Income Taxes

    The  provision  for income taxes for the year ended  October  31,
    1998  includes  current  income tax  expense  of  $1,424,000  and
    deferred income tax expense of $286,000.

    The  provision  for income taxes for the year ended  October  31,
    1997  includes  current  income tax  expense  of  $1,954,000  and
    deferred income tax benefits of $354,000.

    There  was no current or deferred tax expense for the years ended
    October  31,  1996.   The  Company utilized  net  operating  loss
    carryforwards  in  1997  and  1996.  The  benefits  of  temporary
    differences were not recorded prior to 1997.

    Realization  of the future tax benefits related to  the  deferred
    tax  assets is dependent on many factors, including the Company's
    ability to generate taxable income within the net operating  loss
    carryforward   period.   The  income  tax  effect  of   temporary
    differences  comprising the deferred tax assets and deferred  tax
    liabilities on the accompanying consolidated balance sheets is  a
    result of the following:
     
                                             1998             1997
    Deferred tax assets:                            
     Self-insurance reserves              $ 88,000        $  106,000
     Vacation                              172,000           153,000
     Warranty                               82,000            88,000
     Doubtful accounts                      10,000            15,000
     Inventories                           265,000           349,000
     Amortization                          198,000           189,000
     Revenue recognition                    40,000            80,000
     Other                                       -            58,000
                                           855,000         1,038,000

    Deferred tax liabilities:                               
     Depreciation                         (765,000)         (684,000)
     Other                                 (22,000)                -
                                          (787,000)         (684,000)
                                                        
    Net deferred tax assets              $  68,000       $   354,000

    A  reconciliation between the statutory federal income  tax  rate
    (34%) and the effective rate of income tax expense for  each  of
    the three years during the period ended October 31, 1998 follows:
 
                                            1998        1997        1996
    Statutory federal income tax rate        34%         34%         34%
    Increase (decrease) in taxes
     resulting from:                                         
      State tax, net of federal benefit       3           4           4
      Utilization of net operating loss
       carryforwards                          -         (14)        (38)
      Decrease in tax asset valuation
       allowance                              -          (9)          -
      Other                                  (1)          3           -
                                                          
    Effective tax rate                       36%         18%          -


    (4) Capital Stock

    Preferred  Stock  -  On  March 28, 1995 the  Company's  Board  of
    Directors adopted a stockholders rights plan (Plan) and  declared
    a dividend distribution of one right (Right) for each outstanding
    share  of  common stock to stockholders of record  on  April  20,
    1995.  Under the terms of the Plan each Right entitles the holder
    to   purchase   one  one-hundredth  of  a  share  of   Series   A
    Participating  Preferred Stock (Unit) at  an  exercise  price  of
    $7.44 per Unit.  The Rights are exercisable a specified number of
    days  following  (i)  the acquisition by a  person  or  group  of
    persons of 20% or more of the Company's common stock or (ii)  the
    commencement of a tender offer or an exchange offer  for  20%  or
    more  of  the Company's common stock or (iii) when a majority  of
    the Company's unaffiliated directors (as defined) declares that a
    person  is  deemed  to  be an adverse person  (as  defined)  upon
    determination that such adverse person has become the  beneficial
    owner of at least 10% of the Company's common stock.  The Company
    has  authorized  and reserved 750,000 shares of preferred  stock,
    $.10  par  value, for issuance upon the exercise of  the  Rights.
    The Company may redeem the Rights in whole, but not in part, at a
    price of $.01 per Right in accordance with the provisions of  the
    plan.   Rights  expire on April 1, 2005 unless  redeemed  by  the
    Company.

    Stock-Based Compensation Plans - The Company has two shareholder-
    approved stock plans, the 1997 Omnibus Incentive Plan (the  "1997
    Plan")  and 1995 Stock Option Plan (the "1995 Plan").  Under  the
    1997  Plan, directors, officers and key employees may be  granted
    stock options and other stock-based awards.  A total of 2,000,000
    shares may be granted under the 1997 Plan.  At October 31,  1998,
    options for 675,000 shares were outstanding under the 1997 Plan.
 
    Under the 1995 Plan, a total of 1,000,000 shares of the Company's
    common stock were available for grant to officers, directors  and
    key  employees.  As of October 31, 1998, all of these shares  had
    been  granted  and  options for 248,200 shares  were  outstanding
    under the 1995 Plan.

    Under  both  plans,  the exercise price of  all  options  granted
    through October 31, 1998 equaled the stock's market price on  the
    date  of  grant  and fully vested six months after  the  date  of
    grant.   The expiration dates of the options range from 5  to  10
    years.   Options outstanding at October 31, 1998 had  a  weighted
    average contractual life of eight years, five months and exercise
    prices ranged from $1.75 to $5.13.
 
    A  summary of the Company's two stock option plans at October 31,
    1998,  1997 and 1996 and changes during the years then ended  are
    presented in the table following:

                                   1998              1997              1996
                                    Per               Per               Per
                          Shares  Share(a)  Shares  Share(a)  Shares  Share(a)
    Outstanding at                                                       
      beginning   
      of year          1,072,400   $3.57    814,500   $1.89   745,000   $1.80
                                                             
    Granted              182,500    4.33    677,300    4.55   147,000    2.27
                                                             
    Exercised           (318,000)   1.82   (411,400)   1.84   (10,000)   1.88
                                                             
    Forfeited            (13,700)   6.26     (8,000)   4.81   (67,500)   1.86
                                                             
    Outstanding at
      end of year        923,200   $4.11  1,072,400   $3.57   814,500   $1.89
                                                             
    Exercisable at
      end of year        748,200   $4.08  1,069,900   $3.56   797,000   $1.82
                                                             
    Weighted average
    fair value
    of options                     $2.08              $1.50             $ .81

    (a) Weighted average exercise price per share.

    The fair value of each option grant is estimated using the Black-
    Scholes option pricing model with the following assumptions  used
    for  grants  in  1998,  1997 and 1996  respectively:   Risk  free
    interest  rate  ranging from 5.33% to 6.76%  for  the  1997  Plan
    options  and  ranging  from 5.36% to  7.37%  for  the  1995  Plan
    options; expected dividend yield of 1.5%; expected life  of  four
    years; and expected volatility of 50.5% for options granted prior
    to fiscal 1998 and 47.5% for options granted in fiscal 1998.

    The  Company applies Accounting Principles Board Opinion No.  25,
    accounting for Stock Issued to Employees, in accounting  for  its
    Plans.   Accordingly, no compensation expense has been recognized
    for  its stock-based compensation plans other than for restricted
    stock awards, which was not significant.

    Had compensation cost for the Company's stock options been
    determined consistent with the methodology prescribed under FASB
    Statement No. 123, "Accounting for Stock-Based Compensation", the
    Company's net income and income per share would have been reduced
    to the following pro forma amounts:

                                     1998           1997           1996
    Net income:                                        
     As reported                  $3,027,100     $7,243,216     $5,012,067
     Pro forma                     2,675,035      6,993,318      4,940,057
    Diluted earnings per share
     As reported                  $      .39     $      .94     $      .66
     Pro forma                           .35            .91            .65

    (5)  Tax Deferred Savings Plan and Trust

    In  1985 the Company made available to all eligible employees the
    opportunity to participate in the Company's Tax Deferred  Savings
    Plan and Trust.  The Company provides a 50% matching contribution
    in  the  form of cash or unregistered common stock of the Company
    on  the  eligible amount invested by participants in the plan  to
    purchase common stock of the Company.  The Company's contribution
    to  this plan was $75,269 in 1998, $71,130 in 1997 and $74,858 in
    1996.   This  plan  held 425,279 shares of the  Company's  common
    stock at October 31, 1998 and 405,325 shares at October 31, 1997.
  
    (6)  Commitments and Contingencies
  
    (a)   General  -  The  preparation  of  financial  statements  in
    conformity with generally accepted accounting principles requires
    management  to  make estimates and assumptions  that  affect  the
    reported  amounts  of assets and liabilities  and  disclosure  of
    contingent  assets and liabilities at the date of  the  financial
    statements  and  the  reported amounts of revenues  and  expenses
    during  the  reporting period.  Actual results could differ  from
    those estimates.

    (b)   Letters of Credit - The Company has outstanding letters  of
    credit as more fully described in Note 2.
   
    (c)    Operating  Leases  -  The  Company  has  operating  leases
    principally  for  certain vehicles and equipment.   Future  lease
    payments required under these operating leases are not material.
  
    Operating  lease expense was $351,435 in 1998, $184,813  in  1997
    and $222,542 in 1996.

    (d)   Litigation - At October 31, 1998 the Company has litigation
    pending   which  arose  in  the  ordinary  course  of   business.
    Litigation  is subject to many uncertainties and the  outcome  of
    the  individual  matters is not presently  determinable.   It  is
    management's  opinion that this litigation  will  not  result  in
    liabilities  that  would have a material adverse  effect  on  the
    Company's financial position or results of operations.
 
    (e)   Self-insurance Reserves - The Company is  self-insured  for
    workers  compensation,  health insurance, general  liability  and
    product  liability  claims,  subject to  specific  retention  and
    reinsurance levels.

    (f)  Chassis Contingent Liabilities - The Company obtains certain
    vehicle   chassis   from  two  automotive   manufacturers   under
    agreements  that  do  not transfer the vehicle's  certificate  of
    origin to the Company and, accordingly, the Company accounts  for
    the  chassis  as  consigned  inventory.   Chassis  are  typically
    converted and delivered to customers within 90 days.

    (7)  Subsequent Event
    
    On December 1, 1998, the Company completed the acquisition of all
    of  the common stock of Mid Bus, Inc., a manufacturer of Type A-I
    and  A-II  school  buses.  The acquisition,  which  was  financed
    through  borrowings on the Company's revolving  credit  facility,
    will be accounted for as a purchase.

   REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

   To the Board of Directors and
   Shareholders of Collins Industries, Inc.,

    We  have audited the accompanying consolidated balance sheets  of
    Collins   Industries,   Inc.    (a  Missouri   corporation)   and
    Subsidiaries  as  of October 31, 1998 and 1997, and  the  related
    consolidated  statements of income, shareholders' investment  and
    cash  flows  for  each  of the three years in  the  period  ended
    October   31,   1998.    These  financial  statements   are   the
    responsibility  of the Company's management.  Our  responsibility
    is  to express an opinion on these financial statements based  on
    our audits.

    We  conducted  our  audits in accordance with generally  accepted
    auditing  standards.  Those standards require that  we  plan  and
    perform  the  audit to obtain reasonable assurance about  whether
    the  financial statements are free of material misstatement.   An
    audit  includes  examining, on a test basis, evidence  supporting
    the  amounts  and  disclosures in the financial  statements.   An
    audit also includes assessing the accounting principles used  and
    significant  estimates made by management, as well as  evaluating
    the  overall  financial statement presentation.  We believe  that
    our audits provide a reasonable basis for our opinion.

    In  our  opinion,  the  financial statements  referred  to  above
    present  fairly, in all material respects, the financial position
    of  Collins  Industries, Inc. and Subsidiaries as of October  31,
    1998 and 1997, and the results of their operations and their cash
    flows for each of the three years in the period ended October 31,
    1998,   in   conformity   with  generally   accepted   accounting
    principles.

    ARTHUR ANDERSEN LLP



    Kansas City, Missouri
    December 1, 1998

                                
    Item 9.  DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE



    None.

                                PART III

    Item 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

    Information  with respect to Directors and Executive Officers  is
    contained  in  the  section entitled "Management"  in  the  Proxy
    Statement  for  the  Annual Meeting of Shareholders  to  be  held
    February 26, 1999, and is incorporated herein by reference.
  

    Item 11.  EXECUTIVE COMPENSATION

    Information  with respect to executive compensation is  contained
    in the section entitled "Executive Compensation" in the Company's
    Proxy Statement for the Annual Meeting of Shareholders to be held
    on February 26, 1999, and is incorporated herein by reference.
 

    Item 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
              MANAGEMENT

    Information  with  respect  to  security  ownership  of   certain
    beneficial  owners  and management is contained  in  the  section
    entitled  "Security  Ownership of Certain Beneficial  Owners  and
    Management"  in  the  Company's Proxy Statement  for  the  Annual
    Meeting of Shareholders to be held on February 26, 1999,  and  is
    incorporated herein by reference.
  

    Item 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
 
    None

                                 PART IV
                                
    Item 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, REPORTS
              ON FORM 8-K

      (a)  The following documents are filed as a part of this Report:

           (1) Financial Statements:

               All financial statements and notes thereto as set
               forth under Item 8 of this Report on Form 10-K:

               Report of Independent Public Accountants

               Consolidated Statements of Income for
               the Three Years Ended October 31, 1998

               Consolidated Statements of Shareholders' Investment
               for  the Three Years Ended October 31, 1998

               Consolidated Statements of Cash Flows for
               the Three Years Ended October 31, 1998

               Consolidated Balance Sheets--October 31, 1998
               and 1997


           (2) Financial Statement Schedules:

               All schedules have been omitted as not applicable
               or not required under the instructions contained in
               Regulation S-X or the information is included in
               the financial statements or notes thereto.

          (3)  Exhibits:

    Exhibit Number               Document

          3.1           -        Certificate of Incorporation of
                                 Registrant, as amended (included as
                                 Exhibit 3.1 of the Company's Amendment
                                 No. 2 to Form S-1, No. 2-93247 and
                                 incorporated herein by reference).

          3.2           -        Amendment to Certificate of
                                 Incorporation of Registrant (included
                                 as Exhibit 3.3 of the Company's
                                 Amendment No. 1 to Form S-1,
                                 No. 2-93247 and incorporated herein
                                 by reference).

          3.3           -        Amendment to Certificate of
                                 Incorporation of Registrant (included
                                 as Exhibit 3.3(c) of the Company's
                                 Amendment No. 1 to Form S-1,
                                 No. 33-48323 and incorporated herein
                                 by reference).

          3.4           -        By-Laws of the Registrant, as
                                 amended (included as Exhibit 3.4 of
                                 the Company's S-1, No. 33-48323 and
                                 incorporated herein by reference).

          4.1           -        Rights Agreement dated as of March 28,
                                 1995 between the Registrant and Mellon
                                 Bank, N.A. (included as Exhibit 1 to
                                 Form 8-A filed with the SEC as of
                                 March 28, 1995).

          4.2           -        First Amendment to the Rights Agreement
                                 dated as of April 25, 1995 (included as
                                 Exhibit 4 to Form 8-A/A filed with the SEC
                                 as of May 8, 1995).

         10.1           -        Various bailment and consignment
                                 agreements between the Registrant and
                                 Automotive manufacturers (included
                                 as Exhibit 10.2 to the Company's
                                 Registration Statement on Form S-1,
                                 No. 33-48323 and incorporated herein
                                 by reference).

    Exhibit Number               Document

         10.2           -        Form of Indemnification Agreement
                                 between Registrant and its directors.
                                 (Incorporated herein by reference to
                                 Exhibit 10.21 to the Registrant's
                                 Report on Form 10-K for the fiscal
                                 year ended October 31, 1991.)

         10.3           -        Amended and Restated Loan and
                                 Security Agreement for credit
                                 facility dated July 31, 1998, between
                                 Registrant and NationsBank, N.A.

         10.4           -        Amended and restated Lease dated
                                 November 15, 1997 between Registrant
                                 and the City of South Hutchinson,
                                 Kansas.

    Exhibit Number               Document

        22.1            -        The following are the names and
                                 jurisdiction of incorporation of
                                 the subsidiaries of the Company:
  
                                                            Jurisdiction
                                  Names                  of Incorporation

                             Collins Bus Corporation            Kansas
                             Capacity of Texas, Inc.            Texas
                             Wheeled Coach Industries, Inc.     Florida
                             Collins Ambulance Corporation      Kansas
                             Collins Financial Services, Inc.   Kansas
                             Global Captive Casualty
                               and Surety Company               Kansas
                             Mobile-Tech Corporation            Kansas
                             World Trans, Inc.                  Kansas

     27.0           -        EDGAR Financial Data Schedule

     (b)  Reports on Form 8-K

          There were no reports filed on Form 8-K by the Company
          during the fourth quarter ended October 31, 1998.



                           SIGNATURES

    Pursuant  to the requirements of the Securities Exchange  Act  of
    1934, the Registrant has duly caused this report to be signed  on
    its behalf by the undersigned, thereunto duly authorized.


                              COLLINS INDUSTRIES, INC.

         By                   /s/ Donald Lynn Collins
                              Donald Lynn Collins, President
                              and Chief Executive Officer

    Dated:  January 28, 1999

          By                  /s/ Larry W. Sayre
                              Larry W. Sayre, Vice President
                              Finance and Chief Financial Officer
                              (Principal Accounting Officer)

    Pursuant  to the requirements of the Securities Exchange  Act  of
    1934,  this  report has been signed by the following  persons  on
    behalf of the Registrant, in their capacities as Directors of the
    Registrant, and on the dates indicated.


    Dated:  January 28, 1999      /s/  Don L. Collins
                                  Don L. Collins

    Dated:  January 28, 1999      /s/  Donald Lynn Collins
                                  Donald Lynn Collins

    Dated:  January 28, 1999      /s/  Lewis W. Ediger
                                  Lewis W. Ediger

    Dated:  January 28, 1999      /s/  Donald S. Peters
                                  Donald S. Peters