FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

          (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                      SECURITIES AND EXCHANGE ACT OF 1934

               For the Quarterly Period ended September 30, 1995

          ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                      SECURITIES AND EXCHANGE ACT OF 1934


   For the Transition Period From __________________ to ____________________

                           Commission File No. 0-4723


                                  FARR COMPANY
             (Exact name of registrant as specified in its charter)

           Delaware                                  95-1288401
(State of other jurisdiction of               (I.R.S. Employer I.D. No.)
 incorporation or organization)

    2221 Park Place, El Segundo, California             90245
------------------------------------------------------------------------------- 
   (Address of principal executive offices)           (Zip Code) 

Registrants phone number   (310) 536-6300

------------------------------------------------------------------------------
Prior name, address & fiscal year if changed since last report


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
                                  -----    -----


                                   3,792,586
Number of shares of  registrants  common  stock  outstanding  as of close of the
period covered by this report.



<PAGE>

                         PART I - FINANCIAL INFORMATION

                         FARR COMPANY AND SUBSIDIARIES

                                    INDEX TO

                  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 1995



Part I - Financial Information


Introduction


Condensed Consolidated Financial Statements

         Balance Sheets - September 30, 1995 and December 31, 1994

         Income  Statements  for the three months ended  September  30, 1995 and
         October 1, 1994 and for the nine months  ended  September  30, 1995 and
         October 1, 1994.

         Statements  of Cash Flows for the nine months ended  September  30,1995
         and October 1, 1994.

         Notes to Condensed Consolidated Financial Statements


Management's Discussion and Analysis


Part II - Other Information


Exhibits




<PAGE>


                         FARR COMPANY AND SUBSIDIARIES

                                INTRODUCTION TO

                  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 1995



         The Condensed  Consolidated  Financial  Statements included herein have
been prepared by the Company,  without audit, and include all adjustments  which
are, in the opinion of  management,  necessary  for a fair  presentation  of the
financial  position as of September 30, 1995 and the results of  operations  for
the three and nine month  periods  ended  September 30, 1995 and October 1, 1994
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with generally accepted accounting  principles
have been condensed or omitted  pursuant to such rules and regulations  although
the Company  believes that the  disclosures are adequate to make the information
presented not misleading. These condensed financial statements should be read in
conjunction  with  the  consolidated  financial  statements  and  notes  thereto
included in the Company's latest annual report on Form 10-K.



<PAGE>
<TABLE>
                         FARR COMPANY AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                                     Assets
<CAPTION>
                                                     (Unaudited)     (Audited)
                                                    Sep. 30, 1995  Dec. 31,1994
                                                    -------------  ------------
<S>                                                <C>            <C>
Current Assets:
   Cash and cash equivalents ....................   $    253,000   $    127,000
   Accounts receivable, less allowances of
     $216,000 in 1995 and $266,000 in 1994 ......     20,618,000     21,011,000
   Inventories ..................................     15,753,000     14,655,000
   Prepaid expenses .............................        909,000        597,000
   Asset held for investment ....................      2,083,000      2,083,000
   Deferred tax benefit .........................        946,000      1,602,000
                                                    ------------   ------------
     Total current assets .......................     40,562,000     40,075,000
                                                    ------------   ------------

Property, Plant and Equipment at cost
   Land .........................................      2,098,000      2,092,000
   Buildings and improvements ...................     15,141,000     14,879,000
   Machinery and equipment ......................     34,285,000     33,766,000
                                                    ------------   ------------
                                                      51,524,000     50,737,000
   Less-accumulated depreciation and amortization     34,765,000     32,807,000
                                                    ------------   ------------
                                                      16,759,000     17,930,000

Investments & Other .............................        729,000      1,264,000
                                                    ------------   ------------
                                                    $ 58,050,000   $ 59,269,000
                                                    ============   ============
<FN>
The accompanying notes are an integral part of these balance sheets.
</FN>
</TABLE>
<TABLE>
                         FARR COMPANY AND SUBSIDIARIES
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                     Liabilities & Stockholders' Investment
<CAPTION>
                                                     (Unaudited)     (Audited)
                                                    Sep. 30, 1995  Dec. 31,1994
                                                    -------------  ------------
<S>                                                <C>            <C>
Current Liabilities:
   Notes/overdraft payable to banks .............   $     240,000  $          0
   Current portion of long-term debt ............       1,942,000     2,012,000
   Accounts payable .............................       8,250,000     8,326,000
   Accrued liabilities ..........................       8,071,000     7,692,000
   Income taxes payable and deferred taxes ......         432,000       263,000
                                                    -------------  ------------
      Total current liabilities .................      18,935,000    18,293,000

Long-Term Debt ..................................      14,564,000    18,957,000

Deferred Income Taxes ...........................         847,000       847,000
Commitments and Contingencies
Stockholders' Investment:
  Common stock, $0.10 par value--
    Authorized--10,000,000 shares
    Outstanding--3,792,586 shares at
    September 30, 1995 and 3,782,806 shares
    at December 31, 1994 ........................         368,000       368,000
  Additional paid-in capital ....................      12,174,000    12,005,000
  Cumulative translation adjustments ............      (1,579,000)   (1,847,000)
  Retained earnings:
    Balance beginning of year ...................      11,281,000    11,636,000
    Net income(loss) for the period .............       2,034,000      (355,000)
    Balance at end of period ....................      13,315,000    11,281,000
  Loan to ESOPs .................................        (574,000)     (635,000)
                                                    -------------  ------------
      Total stockholders' investment ............      23,704,000    21,172,000
                                                    -------------  ------------
                                                    $  58,050,000  $ 59,269,000
                                                    =============  ============
<FN>
The accompanying notes are an integral part of these balance sheets.
</FN>
</TABLE>
<PAGE>
<TABLE>
                         FARR COMPANY AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED INCOME STATEMENTS
                                  (Unaudited)

                                             Three Months Ended             Nine Months Ended
                                        Sep. 30, 1995  Oct. 1, 1994    Sep. 30, 1995  Oct. 1, 1994
                                        -------------  ------------    -------------  ------------
<S>                                    <C>            <C>             <C>            <C>
Net Sales ............................. $ 28,444,000   $ 27,462,000    $ 84,379,000   $ 79,158,000

Costs and Expenses:
  Cost of sales .......................   21,692,000     21,687,000      64,275,000     63,326,000
  Selling, general and administration .    5,142,000      4,803,000      15,286,000     14,454,000
  Interest expense ....................      426,000        552,000       1,484,000      1,600,000
  Restructuring costs .................                                                  1,000,000
                                        ------------   ------------     -----------   ------------

Total Costs and Expenses ..............   27,260,000     27,042,000      81,045,000     80,380,000
                                        ------------   ------------     -----------   ------------

Income (Loss) Before Income Taxes .....    1,184,000        420,000       3,334,000     (1,222,000)
  Income taxes ........................      458,000        145,000       1,300,000       (457,000)
                                        ------------   ------------    ------------   ------------

Net Income (Loss) ..................... $    726,000   $    275,000    $  2,034,000   ($   765,000)
                                        ============   ============    ============   ============




Earnings (Loss) per Common Share * .... $       0.20   $       0.07    $       0.55   ($      0.21)
                                        ============   ============    ============   ============





<FN>

* Based upon 3,685,914 and 3,678,152 average shares outstanding at September 30,
  1995 and October 1, 1994, respectively.

The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
                         FARR COMPANY AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
<CAPTION>
Cash Provided by ( Used in ) :                                                     Year-to-Date
                                                                          Sep. 30, 1995   Oct. 1, 1994
                                                                          -------------   ------------
<S>                                                                      <C>             <C>
Operating Activities:
  Net (Loss) Income .............................................         $  2,034,000   ($   765,000)
    Adjustments to reconcile net income to net
     cash (used in) provided by operating activities:
     Depreciation and amortization ..............................            2,248,000      2,475,000
     Provision for loss on accounts receivable ..................              114,000        162,000
     Change in deferred income taxes ............................              711,000       (850,000)
     Net (gain) loss on sale/retirement of P,P & E ..............              (23,000)             0
     Net gain from investments ..................................             (115,000)             0
     Decrease (increase) in inventories .........................             (981,000)       798,000
     Decrease (increase) in receivables and prepaid expenses ....              335,000       (546,000)
     (Decrease) increase in accounts payable & accrued expense ..              (84,000)     1,932,000
     Net change in current income taxes receivable and payable ..               (9,000)      (160,000)
     Exchange gain ..............................................               (5,000)       (14,000)
                                                                          ------------    -----------
     Net cash provided by (used in) operating activities ........            4,225,000      3,032,000
                                                                          ------------    -----------

Investing Activities:
  Purchases of property, plant and equipment ....................             (674,000)      (868,000)
  Proceeds from sale of property, plant and equipment ...........               23,000              0
  Proceeds from sale of investments .............................              501,000              0
                                                                          ------------    -----------
     Net cash provided by (used in) investing activities ........             (150,000)      (868,000)
                                                                          ------------    -----------

Financing Activities:
  Proceeds from revolving line of credit,
   and long-term borrowings .....................................              240,000      19,086,000
  Principal payments on revolving line of credit
   and long-term debt borrowings & overdrafts ...................           (4,280,000)    (20,890,000)
  Principal payments received on ESOP loans .....................               61,000          90,000
  Proceeds from sale of stock, stock option plans ...............              167,000               0
  Deferred financing costs ......................................                    0        (533,000)
  Long-term note receivable .....................................             (174,000)              0
                                                                          ------------    ------------
     Net cash (used in) provided by financing activities ........           (3,986,000)     (2,247,000)
                                                                          ------------    ------------

Effect of Exchange Rate Changes on Cash .........................               37,000          (6,000)

Increase (Decrease) in Cash and Cash Equivalents ................              126,000         (77,000)
Cash and Cash Equivalents at Beginning of Period ................              127,000         671,000
                                                                          ------------    ------------

  Cash and Cash Equivalents at End of Period ....................         $    253,000    $    594,000
                                                                          ============    ============



<FN>

The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
<PAGE>


                         FARR COMPANY AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                               September 30, 1995

                                  (UNAUDITED)



         1.       Significant Accounting Policies

         2.       Restricted Cash

         3.       Inventories

         4.       Restructuring Costs

         5.       Extraordinary Item

         6.       Common Stock

         7.       Notes Payable and Long-Term Debt

         8.       Income Taxes

         9.       Employee Benefit Plans

         10.      Stock Options

         11.      Per Share Amounts

         12.      Commitments and Contingencies

         13.      Segment Information






<PAGE>

MANAGEMENT'S DISCUSSION AND ANALYSIS

Financial Condition

     As of  September  30, 1995,  working  capital was  $21,627,000  compared to
$21,782,000  at the end of  1994,  representing  a  $155,000  decrease  in total
working  capital  for the first nine  months of 1995.  The  decrease  in working
capital  is  primarily   accounted  for  by  decreases  in  accounts  receivable
($393,000),  and deferred income taxes ($825,000) partially offset by a increase
in inventory ($1,098,000) .

     The decrease in accounts receivable during the first nine months of 1995 is
related to the  implementation  of new  collection  programs,  the  decrease  in
deferred  taxes is  attributable  to the  utilization  of the  Company's NOL tax
carryforward  from prior years and the  increase  in  inventories  is  primarily
related to a increase in work in process  inventories  associated  with  several
large filter house projects scheduled to be shipped during the fourth quarter.

     Long-term debt decreased  $4,463,000  and short term  borrowings  increased
$240,000 during the first nine months primarily due to the Company's strong cash
flow  provided  by  operating   activities   ($4,225,000).   Surplus   borrowing
availability  under the Company's  domestic revolving credit facility at the end
of the third quarter increased to over $7 million.

     Capital  expenditures  of $674,000  during the first nine months  decreased
over the same  period  last  year by  $194,000.  Overall,  capital  expenditures
continue to be  maintained  at low levels  commensurate  with  lender  financial
covenants and to conserve cash resources.

     During the third quarter, the Company entered into an agreement to sell its
Rialto, California manufacturing facility. The closing of this sale agreement is
expected to occur during the fourth quarter of 1995.

     Current debt maturities and operating  capital  requirements of the Company
are  anticipated  to be provided  through cash flows  generated  from  operating
activities and borrowing  availability  under the Company's  domestic  revolving
credit facility and foreign overdraft credit facilities.

Results of Operations

     During the third  quarter,  the Company's  net income  improved to $726,000
from $275,000  during the same period last year.  Third quarter sales  increased
from $27,462,000 reported last year to $28,444,000.

     Year to date third  quarter net income  improved to  $2,034,000,  up from a
loss of $765,000  during  1994.  The nine month  period  loss for 1994  included
$660,000 in  nonrecurring  expenses in connection with the closing of the Rialto
plant,   so  that   comparable  net  income  results  from   operations   before
restructuring  cost last year  showed a  $105,000  net loss.  Sales for the nine
months were $84,379,000,  up from $79,158,000.  Sales increases were realized in
products related to pollution control,  engine,  OEM and international  markets,
while  heating,   ventilating  and  air  conditioning   products  showed  slight
decreases.

     A modest price increase was initiated in July,  1995. This partially offset
material  and labor  cost  increases  for the year.  The  balance  of those cost
increases have been met through improved material usage and efficiency.

     Incoming  orders were  slightly off against  plan in the third  quarter and
while backlog decreased 11 percent during the quarter,  it remained ahead of the
prior year end level. Early fourth quarter orders remain somewhat sluggish,  but
are not viewed as having a  significant  negative  effect on the fourth  quarter
performance.

     The Company is cautiously  optimistic that its favorable  recent  operating
trends will continue into the first quarter of 1996.


<PAGE>




6.a.  Exhibits

The following is being filed with this Quarterly Report on Form 10-Q.

- Exhibit-11  Earnings per share calculation. (unaudited)







<PAGE>
<TABLE>

Exhibit-11        Farr Company and Subsidiaries - Earnings per Share Calculation (unaudited)

Earnings
<CAPTION>
                                                           Three Months Ended             Nine Months Ended
                                                      Sep. 30, 1995  Oct. 1, 1994   Sep. 30, 1995  Oct. 1, 1994
                                                      ------------   ------------   ------------   ------------

<S>                                                  <C>            <C>            <C>             <C>
Net income (loss) .................................   $    726,000   $    275,000   $  2,034,000   ($   765,000)
                                                      ============   ============   ============   ============

Shares
   Weighted average number of
   common shares outstanding ......................      3,685,914      3,678,152      3,685,914      3,678,152
                                                      ============   ============   ============   ============

Earnings per share

Net income (loss) per common share ................   $       0.20   $       0.07   $       0.55   ($      0.21)
                                                      ============   ============   ============   ============




Earnings assuming full dilution:

Net income (loss) .................................   $    726,000   $    275,000   $  2,034,000   ($   765,000)
                                                      ============   ============   ============   ============

Shares
  Weighted average number of
  common shares outstanding .......................      3,685,914      3,678,152      3,685,914      3,678,152

Assuming exercise of options reduced by the number
  of shares which could have been purchased
  with the proceeds from the exercise of 
  such options ....................................          8,448         16,461          8,448           --
                                                      ------------   ------------   ------------   ------------

                                                         3,694,362      3,694,613      3,694,362      3,678,152
                                                      ============   ============   ============   ============

Earnings per share

Net (loss) income per common share
  assuming full dilution ..........................   $       0.20   $       0.07   $       0.55   ($      0.21)
                                                      ============   ============   ============   ============

</TABLE>

<PAGE>


                                   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 hereunto duly authorized.



                                  FARR COMPANY
                                  (registrant)




November 13, 1995
                                                     /s/ Kenneth W. Gerstner
                                                     --------------------------
                                                     Kenneth W. Gerstner
                                                     Senior Vice President
                                                     Chief Financial Officer