<PAGE>

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

                                  FORM 10-KSB
(Mark One)
[x]  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

For the fiscal year ended June 30, 2001

[ ]  Transition Report Pursuant to Section 13 or 15(d) of the Securities
     Exchange Act of 1934

For the transition period from _________ to _________

Commission File Number: 0-4036

                      Kreisler Manufacturing Corporation
--------------------------------------------------------------------------------
                (Name of small business issuer in its charter)

               Delaware                                      22-1044792
--------------------------------------------------------------------------------
  (State of other jurisdiction of                          I.R.S. employer
  incorporation or organization)                        Identification Number)

         5960 Central Avenue, Suite H., St. Petersburg, Florida 33707
--------------------------------------------------------------------------------
              (Address of principal executive offices) (zip code)

Issuer's telephone number: 727-347-1144

Securities registered pursuant to Section 12(b) of the Exchange Act:
                                Not applicable

Securities registered pursuant to Section 12(g) of the Exchange Act:
                    Common Stock, $.125 par value per share
--------------------------------------------------------------------------------
                               (Title of Class)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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.
[x] Yes     [ ] No

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in
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definitive proxy or information statements incorporated by reference in Part III
of this Form 10-KSB or any amendment to this Form 10-KSB. [x]

The Issuer's revenues for its most recent fiscal year was $18,661,950.

The aggregate market value of the voting and non voting common equity held by
non-affiliates of the issuer is approximately $6,480,146.20(1).

The number of shares of Common Stock outstanding as of September 1, 2001 was
1,966,047 shares.

                      DOCUMENTS INCORPORATED BY REFERENCE

Certain portions of the Company's Annual Report to Shareholders for the fiscal
year ended June 30, 2001 are incorporated by reference in Parts I and II of this
Report. With the exception of the information incorporated by reference in Parts
I and II of this Report, the Company's Annual Report to Shareholders for the
fiscal year ended June 30, 2001 is not to be deemed "filed" with the Securities
and Exchange Commission for any purpose.

Certain portions of the Company's Proxy Statement to be filed in connection with
its 2001 Annual Meeting of Shareholders are incorporated by reference in Part
III of this Report.

Transitional Small Business Disclosure Format (check one)
[  ] Yes  [X] No
-----------------------
(1) The aggregate dollar amount of the voting and non-voting common equity stock
set forth equals the number of shares of Common Stock outstanding, reduced by
the number of shares of Common Stock held by executive officers, directors and
stockholders owning in excess of 10% of the registrant's Common Stock multiplied
by the last closing price for the Common Stock as quoted on the Nasdaq Small Cap
Market on September 1, 2001. The information provided shall in no way be
construed as an admission that any person whose holdings are excluded from this
figure is an affiliate of the registrant or that any person whose holdings are
included in this figure is not an affiliate of the registrant and any such
admission is hereby disclaimed. The information provided herein is included
solely for record keeping purposes of the Securities and Exchange Commission.
<PAGE>

                               TABLE OF CONTENTS

                        FORM 10-KSB ANNUAL REPORT 2001
                        ------------------------------

                      KREISLER MANUFACTURING CORPORATION

                                                                        PAGE NO.
                                                                        --------

PART I.......................................................................  1
         ITEM 1.  DESCRIPTION OF BUSINESS....................................  1
         ITEM 2.  DESCRIPTION OF PROPERTY....................................  3
         ITEM 3.  LEGAL PROCEEDINGS..........................................  3
         ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS........  3

PART II......................................................................  4
         ITEM 5.  MARKET FOR THE COMMON EQUITY AND RELATED
                  STOCKHOLDER MATTERS........................................  4
         ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
                  OPERATION..................................................  4
         ITEM 7.  FINANCIAL STATEMENTS.......................................  4
         ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
                  ACCOUNTING AND FINANCIAL DISCLOSURE........................  5

PART III.....................................................................  5
         ITEM 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
                  PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE
                  ACT........................................................  5
         ITEM 10. EXECUTIVE COMPENSATION.....................................  5
         ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
                  MANAGEMENT.................................................  5
         ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.............  5
         ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K...........................  5
<PAGE>

     PART I
     ------

Item 1.  Description of Business
--------------------------------

Kreisler Manufacturing Corporation is a Delaware business corporation which was
incorporated on December 13, 1968, which succeeded a New Jersey business
corporation which was incorporated in New Jersey in 1940, which succeeded a New
York corporation which was incorporated in 1930. Kreisler Manufacturing
Corporation and its only wholly-owned subsidiary, Kreisler Industrial
Corporation (collectively the "Company") which was incorporated in New Jersey on
July 3, 1956 manufacture precision metal components and assemblies at Elmwood
Park, New Jersey for use in military and commercial aircraft engines.

Products
--------

The Company fabricates precision metal components and assemblies primarily for
aircraft engines with both military and commercial applications and for
industrial gas turbines. The primary function of the Company's tubular products
is to transport fluids, including air, oil and gas to various parts of the
aircraft, aircraft engine or industrial gas turbine.

Tube assemblies may be made of various materials and configurations, including
titanium, inconel and stainless steel. These quality controlled and highly
engineered manifold assemblies transfer fuel for combustion, oil for
lubrication, hydraulic fluid to activate thrust reversers and impingement tubes
or baffles to cool vanes in the combustion section of the engine.

Over the past three years, ninety percent of the Company's products were tubular
assemblies. For the fiscal year ended June 30, 2001, the sales activity was
approximately fifteen percent for military aircraft engines, seventy percent for
commercial aircraft engines and fifteen percent for industrial gas turbines.

Substantially all sales of products are made through an in-house sales staff
supported by a government sales representative. All products are manufactured to
the blueprints and specifications of the particular customer. Orders for these
are received through competitive proposals, which are made in response to
requests for bids from contractors who are frequently supplying engines to
various branches of the Untied States Government or to commercial businesses.

Customers
---------

Four customers of the Company accounted for 67% of the consolidated net sales of
the Company in the fiscal year ended June 30, 2001.

Competition
-----------

The fields in which the Company operates are highly competitive and among the
Company's competitors are enterprises which are substantially larger than the
Company and possess greater

                                       1
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financial, production and marketing resources, as well as numerous smaller
concerns. The Company is not a significant factor in its fields. The principal
methods of competition are price, quality and delivery. In today's market,
flexibility, quality, cost and speed of delivery are required elements. The
Company believes that it is competitive on all the above elements.

Sources of Supply
-----------------

The Company does not have any long-term or fixed requirement agreements with its
suppliers.

Materials for the products within the Company are purchased, as required, from
various suppliers. At times, approved vendors are designated by the Company's
customers.  The Company believes alternative sources of supply for material are
available at reasonable prices.

Production
----------

Fabricated precision metal components or assemblies are manufactured and
assembled by the Company to customer specifications.  To meet the exacting
requirements of its customers, the Company must exercise rigid quality control.

Employees
---------

At June 30, 2001, the Company employed approximately 147 persons, all of whom
are full-time employees. Approximately 70 are subject to a collective bargaining
agreement with the United Service Employees Union which terminates on December
4, 2003.

Government Regulations
----------------------

The Company is subject to various Federal and State regulations concerning the
conduct of its business including regulations under the Occupational Health and
Safety Act and various acts dealing with the environment.

A material portion of the business of the Company is subject to provisions which
permit the termination of contracts at the election of the U.S Government or its
prime contractors. Contracts with the U.S. Government and with suppliers to the
U.S. Government generally provide for termination at any time for the
convenience of the U.S. Government and its prime contractors, and upon such
termination a contractor is entitled to receive payment for the work performed
plus a pro rata portion of the profit it would have earned but for the
termination.

Compliance with Environmental Laws
----------------------------------

In July 1999, the Company became aware of historical releases of hazardous
substances at its leased manufacturing facility located at 180 Van Riper Avenue,
Elmwood Park, New Jersey (Facility). The Company promptly notified the new
Jersey Department of Environmental Protection (Department) as required by the
New Jersey Spill Compensation and Control Act

                                       2
<PAGE>

(Spill Act), J.J.S.A. 58:10-23.11, and retained the services of environmental
remediation consultants to perform a full site characterization in accordance
with the Department's Technical Requirement for Site Remediation, J.J.A.C.
7:26E-1.1. The site characterization has been completed. The preliminary cost
estimated for remediation of the site is approximately $1,992,000 (present value
using a discount rate of 6.16%) to be incurred over the next six years. It is
reasonably possible that the Company's recorded estimate of remediation cost may
change in the near term.

The Company has notified its liability insurance carriers which issued liability
policies to the Company during the period from 1959 to 1985. The Company reached
a settlement with one of its insurance carriers in the amount of $2,500,000.

Item 2.  Description of Property
-------  -----------------------

The Company's industrial plant is located at Elmwood Park, New Jersey and
consists of 52,000 square feet of leased space. The facility is approximately 50
years old and the average age of the equipment is 15 years. The lease expires
September 30, 2006. The remaining balance on the lease facility is $1,147,243.

During fiscal 2001, $877,000 of capital expenditures were made. Management
believes that the Company's present industrial plant facilities are suitable for
the Company's current and near term operations and that these properties are
adequately covered by insurance.

The Company's principal executive office is located at St. Petersburg, Florida
and consists of approximately 1,000 square feet of leased space. The lease is
currently on a month to month basis. The annual rental expense is approximately
$11,862. The Company does not intend on making any renovations or capital
improvements to the leased space. This location is adequately covered by
insurance.


Item 3.  Legal Proceedings.
------   -----------------
Not applicable

Item 4.  Submission of Matters to a Vote of Security Holders
------   ---------------------------------------------------
Not applicable.

                                       3
<PAGE>

          PART II

Item 5.  Market for the Common Equity and Related Stockholder Matters
------   ------------------------------------------------------------

The Company's Common Stock is traded on the Nasdaq Small Cap Market under the
symbol "KRSL." The following table sets forth the high and low per share sales
prices for the Common Stock on the Nasdaq Small Cap Market for each quarter in
the two year period ended June 30, 2001.

<TABLE>
<CAPTION>
Quarter                                             Fiscal Year 2001                           Fiscal Year 2000
                                                High                 Low                  High                   Low
<S>                                            <C>                  <C>                   <C>                   <C>
First Quarter - September 30                    4.75                 3.50                 12.00                  4.56

Second Quarter -December 31                     4.00                 3.25                  8.25                  4.19

Third Quarter - March 31                        7.13                 3.50                  4.84                  3.50

Fourth Quarter -June 30                         7.00                 4.95                  4.50                  3.84
</TABLE>

The Company has not paid any dividends during the last two fiscal years. The
holders of the Company's Common Stock are entitled to receive dividends when, as
and if declared by the Board of Directors out of funds legally available
therefore. It is the Company's current policy not to pay dividends and to retain
earnings for future growth of the Company.

At June 30, 2001, the Company had approximately 600 stockholders of record.

Item 6.  Management's Discussion and Analysis or Plan of Operation
------   ---------------------------------------------------------

"Management's Discussion and Analysis" on page 10 of the Company's 2001 Annual
Report to Stockholders is incorporated herein by reference.

Item 7.  Financial Statements
------   --------------------

The following consolidated financial statements of the Company and its
subsidiaries and the Auditor's Report included on pages 1 through 9 of the
Company's 2001 Annual Report to Stockholders are incorporated herein by
reference:

     Consolidated Balance Sheets - June 30, 2001 and 2000

     Consolidated Statements of Operations - Years Ended June 30, 2001, 2000 and
1999

     Consolidated Statements of Changes in Stockholders' Equity - June 30, 2001,
2000 and 1999

                                       4
<PAGE>

     Consolidated Statements of Cash Flows - Years Ended June 30, 2001, 2000 and
1999.

     Notes to Consolidated Financial Statements

     Report of Independent Certified Public Accountants

Item 8.  Changes in and Disagreements with Accountants on Accounting and
------   ---------------------------------------------------------------
Financial Disclosure
--------------------

None

     PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
------   -------------------------------------------------------------
Compliance with Section 16(a) of the Exchange Act
-------------------------------------------------

Incorporated by reference to the Company's Proxy Statement relating to the 2001
Annual Meeting of Stockholders.

Item 10.  Executive Compensation
-------   ----------------------

Incorporated by reference to the Company's Proxy Statement relating to the 2001
Annual Meeting of Stockholders.

Item 11.  Security Ownership of Certain Beneficial Owners and Management
-------   --------------------------------------------------------------

Incorporated by reference to the Company's Proxy Statement relating to the 2001
Annual Meeting of Stockholders.

Item 12.  Certain Relationships and Related Transactions
-------   ----------------------------------------------

Incorporated by reference to the Company's Proxy Statement relating to the 2001
Annual Meeting of Stockholders.

Item 13.  Exhibits and Reports on Form 8-K
-------   --------------------------------

(a)  The following exhibits are filed with this Report.

     3.1  Certificate of Incorporation, including amendments*

     3.2  Bylaws*

     10.1 1997 Stock Option Plan*

                                       5
<PAGE>

     10.2 Lease Agreement between Kreisler Manufacturing Corporation and T&T
          Investments dated October 1, 2000.

     10.3 Union Agreement between Kreisler Manufacturing Corporation and Local
          377, RWDSU, Affiliated with AFL-CIO dated December 5, 2000.

     10.4 Remediation Contract between Kreisler Manufacturing Corporation and
          RCC dated June 15, 2001.

     10.5 Supplemental Compensation Agreement between Kreisler Manufacturing
          Corporation and Wallace Kelly dated July 11, 2001.

     11   Statement re computation of per share earnings.

     13   Annual Report to Stockholders for the fiscal year ended June 30, 2001
          (such report, except for those portions expressly incorporated by
          reference to this Annual Report on Form 10-KSB, is furnished for the
          information of the Commission and is not to be deemed filed as part of
          this Report).

     21   Subsidiaries of the Registrant.

---------------------
* Incorporated by reference to the Company's form 10-K for the year ended June
  30, 1997

(b)  Reports on 8-K

     No reports on Form 8-K were filed during the last period covered by this
report.

                                       6
<PAGE>

     SIGNATURES
     ----------

In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                   KREISLER MANUFACTURING CORPORATION

                                   By:  /s/ Edward L. Stern
                                        --------------------------
                                        Edward L. Stern, President

Date: September 25, 2001

In accordance with the Securities Exchange Act, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.

<TABLE>
<CAPTION>
NAME                                         TITLE                                           DATE
----                                         -----                                           ----
<S>                                          <C>                                             <C>

/s/ Edward L. Stern                          Director, President and Chief Financial         September 25, 2001
-------------------------------------------  Officer (Principal Executive Officer,
Edward L. Stern                                   Principal Financial Officer and Principal
                                                  Accounting Officer)

/s/ Robert S. Krupp                          Director                                        September 25, 2001
-------------------------------------------
Robert S. Krupp

/s/ Wallace N. Kelly                         Director-Executive Vice President               September 25, 2001
-------------------------------------------
Wallace N. Kelly

/s/ Edward A. Stern                          Director, Vice President                        September 25, 2001
-------------------------------------------
Edward A. Stern

/s/ Michael D. Stern                         Director, Vice President                        September 25, 2001
-------------------------------------------
Michael D. Stern

/s/ William A. Kerr                          Director                                        September 25, 2001
-------------------------------------------
William A. Kerr

/s/ R. James Cudd                            Director                                        September 25, 2001
-------------------------------------------
R. James Cudd
</TABLE>

                                       7
<PAGE>

  EXHIBIT INDEX

  3.1     Certificate of Incorporation, including amendments*

  3.2     Bylaws*

  10.1    1997 Stock Option Plan*

  10.2    Lease Agreement between Kreisler Manufacturing Corporation and T&T
          Investments dated October 1, 2000.

  10.3    Union Agreement between Kreisler Manufacturing Corporation and Local
          377, RWDSU, Affiliated with AFL-CIO dated December 5, 2000.

  10.4    Remediation Contract between Kreisler Manufacturing Corporation and
          RCC dated June 15, 2001.

  10.5    Supplemental Compensation Agreement between Kreisler Manufacturing
          Corporation and Wallace Kelly dated July 11, 2001.

  11      Statement re computation of per share earnings.

  13      Annual Report to Stockholders for the fiscal year ended June 30, 2001
          (such report, except for those portions expressly incorporated by
          reference to this Annual Report on Form 10-KSB, is furnished for the
          information of the Commission and is not to be deemed filed as part of
          this Report).

  21     Subsidiaries of the Registrant.

-------------------------
  * Incorporated by reference to the companies form 10K for the year ended June
    30,1997

                                       8