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

                                    FORM 10-Q

/X/    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
       AND EXCHANGE ACT OF 1934
       For the quarterly period ended March 31, 2003

                                       or

/ /    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 number 1-5978

                             SIFCO INDUSTRIES, INC.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                    Ohio                                        34-0553950
--------------------------------------------------------    --------------------
(State or other jurisdiction of incorporation or            (I.R.S. Employer
                   organization)                           Identification No.)

         970 East 64th Street, Cleveland Ohio                      44103
--------------------------------------------------------    --------------------
(Address of principal executive offices)                        (Zip Code)

                                 (216) 881-8600
                    ----------------------------------------
              (Registrant's telephone number, including area code)



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 and 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 whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).
Yes         No  X
      ---      ---

The number of the Registrant's Common Shares outstanding at April 30, 2003 was
5,127,733.

<PAGE>

PART I.   FINANCIAL INFORMATION

ITEM 1.           FINANCIAL STATEMENTS


                     SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                  (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>

                                                                     THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                          MARCH 31,                    MARCH 31,
                                                                    --------------------           -----------------
                                                                    2003            2002           2003         2002
                                                                    ----            ----           ----         ----

<S>                                                          <C>            <C>             <C>            <C>
Net sales                                                    $     18,430   $      20,747   $     35,854   $    41,085
Operating expenses:
    Cost of goods sold                                             17,048          18,410         33,983        39,481
    Selling, general and administrative expenses                    4,175           4,074          7,149         8,372
                                                             ------------   -------------   ------------   -----------

         Total operating expenses                                  21,223          22,484         41,132        47,853
                                                             ------------   -------------   ------------   -----------

               Operating loss                                      (2,793)         (1,737)        (5,278)       (6,768)

Interest income                                                       (13)            (73)           (45)         (165)
Interest expense                                                      217             203            414           429
Foreign currency exchange loss, net                                    40              47            227           152
Other income, net                                                     (39)            (37)           (64)         (147)
                                                             ------------   -------------   ------------   -----------

               Loss before income tax provision (benefit)          (2,998)         (1,877)        (5,810)       (7,037)


Income tax provision (benefit)                                         16            (544)            30        (2,014)
                                                             ------------   -------------   ------------   -----------
               Net loss                                      $     (3,014)  $      (1,333)        (5,840)       (5,023)
                                                             ------------   -------------   ------------   -----------


Net loss per share (basic)                                   $      (0.57)  $       (0.26)  $      (1.11)  $     (0.96)
Net loss per share (diluted)                                 $      (0.57)  $       (0.26)  $      (1.11)  $     (0.96)

Weighted-average number of common shares (basic)                    5,258           5,214          5,258         5,221
Weighted-average number of common shares (diluted)                  5,258           5,232          5,258         5,241

</TABLE>

See notes to unaudited consolidated condensed financial statements.


                                       2
<PAGE>



                     SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED CONDENSED BALANCE SHEETS
                  (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>

                                                                                     MARCH 31,           SEPTEMBER 30,
                                                                                       2003                  2002
                                                                                ------------------    -------------------
                                                                                   (UNAUDITED)

                                   ASSETS

<S>                                                                             <C>                   <C>
Current assets:
    Cash and cash equivalents                                                   $            4,590    $            7,583
    Receivables, net                                                                        14,020                14,505
    Inventories                                                                             11,090                10,701
    Refundable income taxes                                                                  1,423                 1,423
    Prepaid expenses and other current assets                                                1,337                 1,501
                                                                                ------------------    -------------------

               Total current assets                                                         32,460                35,713

Property, plant and equipment, net                                                          26,846                29,106

Other assets:
    Goodwill, net                                                                            2,574                 2,574
    Other assets                                                                             1,117                   946
                                                                                ------------------    -------------------

               Total other assets                                                            3,691                 3,520
                                                                                ------------------    -------------------

                      Total assets                                              $           62,997    $           68,339
                                                                                ==================    ===================

                    LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
    Current maturities of long-term debt                                        $            1,440    $            1,440
    Accounts payable                                                                         4,718                 4,130
    Accrued liabilities                                                                     10,273                 9,618
                                                                                ------------------    -------------------

               Total current liabilities                                                    16,431                15,188

Long-term debt, net of current maturities                                                   11,137                11,093

Other long-term liabilities                                                                  3,693                 4,323

Shareholders' equity:
    Serial preferred shares, no par value, authorized 1,000 shares                             ---                   ---
    Common shares, par value $1 per share, authorized 10,000 shares;
         issued 5,338 and 5,358 shares at March 31, 2003 and
         September 30, 2002, respectively; outstanding 5,258 shares                          5,338                 5,358

    Additional paid-in capital                                                               6,838                 6,936
    Retained earnings                                                                       27,789                33,629
    Accumulated other comprehensive loss                                                    (7,264)               (7,034)
    Unearned compensation - restricted common shares                                          (491)                 (562)
    Common shares held in treasury at cost, 80 and 100 shares at
         March 31, 2003 and September 30, 2002, respectively                                  (474)                 (592)
                                                                                ------------------    -------------------

               Total shareholders' equity                                                   31,736                37,735
                                                                                ------------------    -------------------

                      Total liabilities and shareholders' equity                $           62,997    $           68,339
                                                                                ------------------    -------------------
</TABLE>

See notes to unaudited consolidated condensed financial statements.

                                       3
<PAGE>



                     SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                             (AMOUNTS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                                          SIX MONTHS ENDED
                                                                                               MARCH 31,
                                                                                    -------------------------------
                                                                                        2003              2002
                                                                                    ------------      -------------
<S>                                                                                 <C>               <C>
      Cash flows from operating activities:
          Net loss                                                                  $     (5,840)     $      (5,023)
          Adjustments to reconcile net loss to net cash
              provided (used) by operating activities:
                 Depreciation and amortization                                             2,184              2,449
                 Loss on disposal of property, plant and equipment                            (2)                (5)
                 Deferred income taxes                                                        22                 29
                 Asset impairment charges                                                  1,175              4,088


          Changes in operating assets and liabilities:
                 Receivables                                                                 484              3,457
                 Inventories                                                                (389)               507
                 Prepaid expenses and other current assets                                   164                 87
                 Other assets                                                               (171)              (364)
                 Accounts payable                                                            589             (1,474)
                 Accrued liabilities                                                         655             (2,972)
                 Other long-term liabilities                                                (948)              (438)
                                                                                    ------------      -------------

                        Net cash provided (used) by operating activities                  (2,077)               341

      Cash flows from investing activities:
                 Capital expenditures                                                     (1,106)            (3,107)
                 Decrease in funds held by trustee for capital project                       ---                 92
                 Proceeds from sale of property, plant and equipment                          15                 24
                 Other                                                                        60                (55)
                                                                                    ------------      -------------

                        Net cash used for investing activities                            (1,031)            (3,046)

      Cash flows from financing activities:
                 Proceeds from revolving credit agreement                                 12,458             12,770
                 Repayments of revolving credit agreement                                (11,814)           (14,983)
                 Repayments of long-term debt                                               (600)              (600)
                 Repurchase of common shares                                                 ---               (143)
                 Share transactions under employee stock plan                                 71                 46
                                                                                    ------------      -------------

                        Net cash used for financing activities                               115             (2,910)
                                                                                    ------------      -------------

      Decrease in cash and cash equivalents                                               (2,993)            (5,615)
      Cash and cash equivalents at the beginning of the period                             7,583             13,787
                                                                                    ------------      -------------

      Cash and cash equivalents at the end of the period                            $      4,590      $       8,172
                                                                                    ------------      -------------

      Supplemental disclosure of cash flow information:
                 Cash paid for interest                                             $       (380)     $        (452)
                 Cash recovered from (paid for) income taxes, net                             10               (764)

</TABLE>


       See notes to unaudited consolidated condensed financial statements.

                                       4
<PAGE>



                     SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
         NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                             (AMOUNTS IN THOUSANDS)


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.  DESCRIPTION OF BUSINESS
The unaudited consolidated condensed financial statements included herein
include the accounts of SIFCO Industries, Inc. and its wholly owned subsidiaries
(the "Company"). All significant intercompany accounts and transactions have
been eliminated. In the opinion of management, all adjustments, which include
only normal recurring adjustments necessary for a fair presentation of the
results of operations, financial position, and cash flows for the periods
presented, have been included. These unaudited consolidated condensed financial
statements should be read in conjunction with the consolidated financial
statements and related notes included in the Company's fiscal 2002 Annual Report
on Form 10-K/A. The results of operations for any interim period are not
necessarily indicative of the results to be expected for other interim periods
or the full year. Certain prior period amounts have been reclassified in order
to conform to current period classifications.

B.  NEW ACCOUNTING STANDARDS
In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other
Intangible Assets". This standard is effective for fiscal years beginning after
December 15, 2001. The Company adopted this standard on October 1, 2002, the
beginning of the first quarter of the Company's fiscal year 2003. The standard
changes financial accounting and reporting for acquired goodwill and indefinite
life intangible assets. SFAS No. 142 provides that intangible assets with finite
useful lives will continue to be amortized and goodwill and intangible assets
with indefinite lives will not be amortized, but rather will be tested for
impairment upon adoption and on an annual basis thereafter. The Company
completed the initial impairment test and concluded that goodwill was not
impaired as of October 1, 2002. Other than the cessation of goodwill
amortization, the adoption of SFAS No. 142 did not have an impact on the
Company's financial position or results of operations.

The following table presents pro forma net loss and net loss per share
information, as if SFAS No. 142 had been adopted on October 1, 2001.

<TABLE>
<CAPTION>

                                                         THREE MONTHS ENDED                    SIX MONTHS ENDED
                                                              MARCH 31,                           MARCH 31,
                                                    ------------------------------       -----------------------------
                                                       2003             2002                2003             2002
                                                 -------------   --------------       ------------    --------------

<S>                                              <C>             <C>                  <C>             <C>
       Net loss as reported                      $      (3,014)  $       (1,333)      $     (5,840)   $       (5,023)
       Goodwill amortization                               ---               21                ---                50
       Trademark amortization                              ---                2                ---                 4
                                                 -------------   --------------       ------------    --------------

               Pro forma net loss                $      (3,014)  $       (1,310)      $     (5,840)   $       (4,969)
                                                 =============   ==============       ============    ==============

       Basic loss per share:
           Net loss as reported                  $       (0.57)  $        (0.26)      $      (1.11)   $        (0.96)
           Goodwill amortization                           ---              0.01               ---              0.01
           Trademark amortization                          ---              ---                ---               ---
                                                 -------------   --------------       ------------    --------------

               Pro forma net loss                $       (0.57)  $        (0.25)      $      (1.11)   $        (0.95)
                                                 =============   ==============       ============    ==============

       Diluted loss per share:
           Net loss as reported                  $       (0.57)  $        (0.26)      $      (1.11)   $        (0.96)
           Goodwill amortization                           ---             0.01                ---              0.01
           Trademark amortization                          ---               ---               ---               ---
                                                 -------------   --------------       ------------    --------------

               Pro forma net loss                $       (0.57)  $        (0.25)      $      (1.11)   $        (0.95)
                                                 =============   ==============       ============    ==============

</TABLE>

                                       5

<PAGE>

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations". This standard addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement cost. The standard applies to legal obligations
associated with the retirement of long-lived assets that result from
acquisition, construction, development and/or the normal operation of a
long-lived asset, except for certain obligations of lessees. This standard
requires entities to record the fair value of a liability for an asset
retirement obligation in the period incurred. SFAS No. 143 is effective for
fiscal years beginning after June 15, 2002 and was adopted by the Company
effective October 1, 2002. The adoption of this standard did not have a material
impact on the Company's financial position or results of operations.

In September 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets". This statement superceded SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets to be Disposed of" and the
accounting and reporting provisions of Accounting Principals Board Opinion No.
30, "Reporting Results of Operations-Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions", related to the disposal of a segment of a business.
This statement amends certain provisions of Accounting Research bulletin No. 51,
"Consolidated Financial Statements". SFAS No. 144 is effective for fiscal years
beginning after December 15, 2001 and was adopted by the Company effective
October 1, 2002. The adoption of this standard did not have a material impact on
the Company's financial position or results of operations.


In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities". This standard addresses financial and
accounting and reporting for costs associated with exit or disposal activities
and replaces Emerging Issues Task Force No. 94-3, "Liability Recognition for
Certain Employee Termination Benefits and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring)" ("EITF No. 94-3"). SFAS
No. 146 requires that a liability for costs associated with an exit or disposal
activity be recognized when the liability is incurred. Under EITF No. 94-3, a
liability for exit costs is recognized at the date of an entity's commitment to
an exit plan. Beginning January 1, 2003, the Company recognizes liabilities
associated with exit or disposal activities as they are incurred in accordance
with SFAS No. 146.


In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure - an Amendment of FASB Statement No.
123". SFAS No. 148 provides alternative methods of transition for an entity that
voluntarily changes to the fair value based method of accounting for stock-based
compensation. It also requires prominent disclosure in the significant
accounting policy note of both annual and interim financial statements of the
method of accounting for stock-based compensation and the related pro forma
disclosures when the intrinsic value method continues to be used. The statement
is effective for fiscal years beginning after December 15, 2002, and disclosure
provisions are effective for the first fiscal quarters beginning after December
15, 2002. Early application of the disclosure provisions is encouraged. The
Company adopted the disclosure provisions of SFAS 148 in the quarter ended
December 31, 2002. The adoption of this standard did not have a material impact
on the Company's financial position and results of operations.

On April 30, 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities". SFAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under SFAS
No. 133. SFAS No. 149 is generally effective for contracts entered into or
modified after June 30, 2003. The Company has not yet determined the impact, if
any, of adopting this standard.


                                       6
<PAGE>

C. STOCK-BASED COMPENSATION

The Company employs the disclosure-only provisions of Statement of Financial
Accounting Standards No. 123, "Accounting for Stock-Based Compensation" ("SFAS
No. 123"). The following pro forma information regarding net income and earnings
per share was determined as if the Company had accounted for its stock options
under the fair value method prescribed by SFAS No. 123. For purposes of pro
forma disclosure, the estimated fair value of the stock options is amortized
over the options' vesting period. The pro forma information is as follows:

<TABLE>
<CAPTION>
                                                            THREE MONTHS ENDED                     SIX MONTHS ENDED
                                                                  MARCH 31,                            MARCH 31,
                                                       -----------------------------          --------------------------
                                                            2003            2002                  2003          2002
                                                       -------------    ------------          -----------    -----------

<S>                                                    <C>              <C>                   <C>            <C>
  Net loss as reported                                 $      (3,014)   $     (1,333)         $    (5,840)   $    (5,023)

  Add:  Stock-based compensation expense
        included in reported net loss, net of
        related tax effects                                      ---             ---                  ---            ---
  Less: Stock-based compensation expense
        determined under fair value based method
        for all awards, net of related tax effects                34              25                   69             50
                                                       -------------    ------------          -----------    -----------
  Pro forma net loss as if the fair value based
        method had been applied to all awards          $      (3,048)   $     (1,358)              (5,909)   $    (5,073)
                                                       =============    ============          ===========    ===========

  Net loss per share:

         Basic - as reported                           $       (0.57)   $      (0.26)         $     (1.11)   $     (0.96)
         Basic - pro forma                             $       (0.58)   $      (0.26)         $     (1.12)   $     (0.97)
         Diluted - as reported                         $       (0.57)   $      (0.26)         $     (1.11)   $     (0.96)
         Diluted - pro forma                           $       (0.58)   $      (0.26)         $     (1.12)   $     (0.97)
</TABLE>


2. INVENTORIES

Inventories consist of:

<TABLE>
<CAPTION>

                                                                          MARCH 31,            SEPTEMBER 30,
                                                                            2003                   2002
                                                                       ---------------       ----------------
<S>                                                                    <C>                   <C>

                   Raw materials and supplies                          $         3,279       $          3,411
                   Work-in-process                                               3,745                  3,525
                   Finished goods                                                4,066                  3,765
                                                                       ---------------       ----------------

                         Total inventories                             $        11,090       $         10,701
                                                                       ===============       ================
</TABLE>


Inventories are stated at the lower of cost or market. Cost is determined using
the last-in, first-out ("LIFO") method for 36% and 35% of the Company's
inventories, at March 31, 2003 and September 30, 2002, respectively. The
first-in, first-out ("FIFO") method is used for the majority of the remainder of
the inventories. If the FIFO method had been used for the inventories for which
cost is determined using the LIFO method, inventories would have been $3,141 and
$3,114 higher than reported at March 31, 2003 and September 30, 2002,
respectively.

3. LONG-TERM DEBT

In February 2003, the Company entered into an agreement with its lending bank to
amend certain provisions of its credit agreements. The amendment waives the
interest coverage ratio covenant through the period ended December 31, 2003. The
amendment modifies certain other financial covenants and the corresponding
interest rate. As a consequence, the term note's three-month LIBOR based
effective borrowing rate increased to 9.49%, the revolving credit agreement's
borrowing rate increased to the bank's base rate plus 0.5% and the commitment
fee on the standby letter of credit backing up the industrial development bond
increased to 2.75% effective February 13, 2003. Also, the revolving credit
agreement was reduced to $6.0 million, subject to sufficiency of collateral.

                                       7

<PAGE>


In May 2003, the Company entered into an agreement with its lending bank to
amend certain provisions of its credit agreements. The amendment waives the
interest coverage ratio covenant through the period ended December 31, 2004 and
extends the maturity date of the Company's $6.0 million revolving credit
agreement to June 30, 2004. This amendment also provides for the reduction of
borrowing availability subject to the passage of time or the occurrence of a
certain event.


4. COMPREHENSIVE LOSS AND ACCUMULATED OTHER COMPREHENSIVE LOSS

Total comprehensive loss is as follows:

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                MARCH 31,                      MARCH 31,
                                                      --------------------------      ----------------------------
                                                           2003          2002             2003            2002
                                                      -===========   ===========      ============    ============

<S>                                                   <C>            <C>              <C>             <C>
Net loss                                              $     (3,014)  $    (1,333)     $     (5,840)   $     (5,023)
Foreign currency translation adjustment                          3           (20)               67             (54)
Unrealized loss on interest rate swap agreement,
     net of income tax provision of $12 and $22 in
     2003 and $29 and $50 in 2002, respectively
                                                                24            58                43              98
Currency exchange contract adjustment                         (500)           (8)             (340)           (423)
Minimum pension liability adjustment                           ---           ---               ---             (74)
                                                      ------------   -----------      ------------    ------------

           Total comprehensive loss                   $     (3,487)  $    (1,303)     $     (6,070)   $     (5,476)
                                                      -===========   ===========      ============    ============
</TABLE>

The components of accumulated other comprehensive loss are as follows:

<TABLE>
<CAPTION>

                                                                           MARCH 31,         SEPTEMBER 30,
                                                                             2003                2002
                                                                         ------------       --------------

<S>                                                                      <C>                <C>
Foreign currency translation adjustment                                  $     (6,940)      $       (7,007)
Interest rate swap agreement adjustment                                          (515)                (558)
Currency exchange contract adjustment                                             695                1,035
Minimum pension liability adjustment                                             (504)                (504)
                                                                         ------------       --------------
           Total accumulated other comprehensive loss                    $     (7,264)      $       (7,034)
                                                                         ------------       --------------
</TABLE>

5. BUSINESS SEGMENTS

The Company identifies reportable segments based upon distinct products
manufactured and services provided. The Turbine Component Services and Repair
Group ("Repair Group") consists primarily of the repair and remanufacture of jet
engine (aerospace) and heavy industrial turbine engine components. The Repair
Group is also involved in precision component machining for aerospace
applications. The Aerospace Component Manufacturing Group consists of the
production, heat treatment and some machining of forgings in various alloys
utilizing a variety of processes for application in the aerospace industry. The
Metal Finishing Group is a provider of specialized selective electrochemical
metal finishing processes and services used to apply metal coatings to a
selective area of a component. The Company's reportable segments are separately
managed.

                                       8


<PAGE>
Segment information is as follows:

<TABLE>
<CAPTION>


                                                                        THREE MONTHS ENDED              SIX MONTHS ENDED
                                                                             MARCH 31,                      MARCH 31,
                                                                   ---------------------------    ------------------------------
                                                                       2003            2002           2003             2002
                                                                   ============    ===========    ============     =============
<S>                                                                <C>             <C>            <C>              <C>
    Net sales:
       Turbine Component Services and Repair Group                 $      9,511    $     9,539          17,960            19,151
       Aerospace Component Manufacturing Group                            6,174          8,704          13,179            16,840
       Metal Finishing Group                                              2,745          2,504           4,715             5,094
                                                                   ------------    -----------    ------------     -------------

           Consolidated net sales                                  $     18,430    $    20,747          35,854            41,085
                                                                   ============    ===========    ============     =============

    Operating loss:
        Turbine Component Services and Repair Group                $     (2,497)   $      (883)         (4,358)           (6,167)
        Aerospace Component Manufacturing Group                            (288)          (691)           (389)             (398)
        Metal Finishing Group                                               417            307             285               672
        Corporate unallocated expenses                                     (425)          (470)           (816)             (875)
                                                                   ------------    -----------    ------------     -------------

           Consolidated operating loss                                   (2,793)        (1,737)         (5,278)           (6,768)

    Interest expense, net                                                   204            130             369               264
    Foreign currency exchange loss, net                                      40             47             227               152
    Other income, net                                                       (39)           (37)            (64)             (147)
                                                                   ------------    -----------    ------------     -------------

           Consolidated loss before income tax
             provision (benefit)                                   $     (2,998)   $    (1,877)         (5,810)           (7,037)
                                                                   ============    ===========    ============     =============
</TABLE>


All of the Company's net goodwill of $2,574 at March 31, 2003 and September 30,
2002 is attributable to the Company's Metal Finishing Group.


6. RETIREMENT BENEFIT PLAN

The Company and certain of its subsidiaries sponsor defined benefit pension
plans covering most of its employees. In January 2003, the Company's Board of
Directors adopted a resolution effective February 28, 2003, to cease the accrual
of future benefits under the SIFCO Industries, Inc. Salaried Retirement Plan
("Plan"), which covers substantially all non-union employees of the Company's
U.S. operations. The Plan will otherwise continue. Because the unrecognized
actuarial losses exceeded the curtailment gain, there was no income or expense
recognized during the first six months ended March 31, 2003 related to these
changes.


7. ASSET IMPAIRMENT AND OTHER CHARGES

During fiscal 2002, the Company's Repair Group incurred charges related to
severance and other employee benefits to be paid to approximately 76 personnel
associated with the reduction of certain of its capacity for the repairing of
jet engine turbine components. As of September 30, 2002, the Company had a
severance accrual of $752. During the first six months of fiscal 2003, severance
and other employee benefit payments totaling approximately $543 were made in
connection with this reduction.


During the second quarter of fiscal 2003, as a result of the current downturn in
the commercial aviation industry and the resulting reduction in demand for third
party jet engine turbine component repair services, such as those provided by
the Company, the Repair Group decided to cease operations at one of its
component repair facilities and to optimize its remaining component repair
capacity through consolidation of operations. The Company anticipates completing
these actions by September 2003. As a result of this decision, the Repair Group
anticipates incurring $657 of severance and other employee benefit charges to be
paid to 60 personnel, of which the Repair Group incurred $171 during the second
quarter of fiscal 2003, and which is recorded in selling, general and
administrative expenses in the Consolidated Condensed Statements of Operations.
As of March 31, 2003, no payments have been made for these expenses and none of
the personnel have been terminated. In connection with these decisions, asset
impairment charges totaling $1,175 related to machinery and equipment were
recorded in selling, general and administrative expenses in the Consolidated
Condensed Statements of Operations during the second quarter of fiscal 2003. The
machinery and equipment write-downs relate to items that are expected to be
disposed as a consequence of the Repair Group's decision to cease operations at
one facility and to consolidate other operations. Fair value of these assets was
determined based on estimated cash flows.

                                       9

<PAGE>

The following table summarizes the remaining liabilities for qualified exit
costs at March 31, 2003 and activity for the six month period then ended:

<TABLE>
<CAPTION>
                                           BALANCE AT            TOTAL          2003             2003         BALANCE AT
                                          SEPTEMBER 30,           2003          CASH           NON-CASH        MARCH 31,
                                              2002              CHARGES       PAYMENTS          CHARGES          2003
                                          ------------        -----------    -----------      ------------    ------------
<S>                                       <C>                 <C>            <C>              <C>             <C>
Severance and other employee benefits     $        752        $       171    $       543      $        ---    $        380

Asset impairments                                  ---              1,175            ---             1,175             ---
                                          ------------        -----------    -----------      ------------    ------------

Total                                     $        752        $     1,346    $       543      $      1,175    $        380
                                          ------------        -----------    -----------      ------------    ------------
</TABLE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS


Management's Discussion and Analysis of Financial Condition and Results of
Operations may contain various forward-looking statements and includes
assumptions concerning the Company's operations, future results and prospects.
These forward-looking statements are based on current expectations and are
subject to risk and uncertainties. In connection with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, the Company
provides this cautionary statement identifying important economic, political and
technological factors, among others, the absence or effect of which could cause
the actual results or events to differ materially from those set forth in or
implied by the forward-looking statements and related assumptions. Such factors
include the following: (1) future business environment, including capital and
consumer spending; (2) competitive factors, including the ability to replace
business which may be lost due to increased direct involvement by the jet engine
manufacturers in turbine component services and repair markets; (3) successful
procurement of certain repair materials and new repair process licenses from jet
engine manufacturers and/or the Federal Aviation Administration; (4) fluctuating
foreign currency (primarily Euro) exchange rates; (5) successful development and
market introductions of new products, including an advanced coating technology
and the continued development of heavy industrial turbine repair processes; (6)
regressive pricing pressures on the Company's products and services, with
productivity improvements as the primary means to maintain margins; (7) success
with the further development of strategic alliances with certain turbine engine
manufacturers for turbine component repair services; (8) the long-term impact on
the aerospace industry of the September 11, 2001 terrorist attacks on the United
States, including collection risks due to the failure of airlines,engine
overhaul companies and other aerospace related industries; reduced number of
aircraft in service; and the accelerated declining use of older model jet
engines such as the JT8D; (9) successful replacement of declining demand for
repair services for turboprop engine components with component repair services
for small turbojet engines utilized in the business and regional aircraft
markets; (10) continued reliance on several major customers for revenues; (11)
the Company's ability to continue to have access to its revolving credit
facility, including the Company's ability to (i) continue to comply with the
terms of its credit agreements, including financial covenants, (ii) continue to
enter into amendments to its credit agreement containing financial covenants,
which it and its bank lender find mutually acceptable, or (iii) continue to
obtain waivers from its bank lender with respect to its compliance with the
covenants contained in its credit agreement; (12) the difficulty in predicting
the timing and outcome of legal proceedings; and (13) stable governments,
business conditions, laws, regulations and taxes in economies where business is
conducted.


SIFCO Industries, Inc. and its subsidiaries engage in the production and sale of
a variety of metalworking processes, services and products produced primarily to
the specific design requirements of its customers. The processes and services
include forging, heat-treating, coating, welding, machining and selective
electrochemical metal finishing. The products include forgings, machined forged
parts and other machined metal parts, remanufactured component parts for turbine
engines, and selective electrochemical metal finishing solutions and equipment.

A.  RESULTS OF OPERATIONS

SIX MONTHS ENDED MARCH 31, 2003 COMPARED WITH SIX MONTHS ENDED MARCH 31, 2002

Net sales in the first six months of fiscal 2003 decreased 12.7% to $35.9
million, compared with $41.1 million for the comparable period in fiscal 2002.
Loss before income tax provision in the first six months of fiscal 2003 was $5.8
million, compared with loss before income tax benefit of $7.0 million for the
comparable period in fiscal 2002. For the first six months of fiscal 2003 the
Company incurred a net loss of $5.8 million, or $1.11 per share (diluted),
compared with a net loss of $5.0 million, or $0.96 per share (diluted) for the
comparable period in fiscal 2002.

                                       10

<PAGE>

TURBINE COMPONENT SERVICES AND REPAIR GROUP ("REPAIR GROUP")


The Repair Group had net sales of $18.0 million in the first six months of
fiscal 2003, down $1.2 million, or 6.2%, from $19.2 million in the comparable
fiscal 2002 period. Component manufacturing and repair sales were down $1.6
million in the first six months of fiscal 2003, compared with the same period in
fiscal 2002. Demand for precision component machining and for component repairs
for large jet engines was down in the first six months of fiscal 2003, compared
with the same period in fiscal 2002, which reflects a reduction in component
repairs for older model large jet engines partially offset by increased demand
for component repairs for newer model large jet engines. The reduced utilization
of older generation aircraft that negatively impacted the Company in fiscal 2002
continued during the first six months of fiscal 2003. Despite the increase in
component repairs for newer model large jet engines, the commercial airline
industry in general continues to experience reduced commercial flight demand,
which determines the need for component repairs to newer model jet engines.
Higher demand for component repairs for small jet engines and heavy industrial
turbine engines partially offset the decline in demand for component repairs for
large jet engines. Revenues associated with the demand for replacement parts,
which often complement component repair services provided to customers, were up
$0.4 million in the first six months of fiscal 2003, compared with the same
period in fiscal 2002.

During the first six months of fiscal 2003, the Repair Group's selling, general
and administrative expenses decreased $0.3 million to $3.7 million, or 20.5% of
net sales, from $4.0 million, or 21.0% of net sales, in the same period in
fiscal 2002. Included in the $4.0 million of selling, general and administrative
expenses for the first six months of fiscal 2002 were $1.4 million of charges
related to goodwill and the impairment of equipment, and $0.2 million of
severance charges associated with the reduction of the Repair Group's capacity
for the repairing of components related to older generation jet engines.
Included in the $3.7 million of selling, general and administrative expenses for
the first six months of fiscal 2003 were $1.2 million of charges related to
impairment of equipment and $0.2 million of severance charges related to the
further consolidation of the Repair Group's operation during fiscal 2003. The
remaining selling, general and administrative expenses of $2.3 million, or 13.0%
of net sales, for the first six months of fiscal 2003 were $0.2 million less
than the remaining $2.5 million, or 12.9% of net sales, of such expenses in the
same period in fiscal 2002.


The Repair Group's operating loss in the first six months of fiscal 2003
decreased $1.8 million to $4.4 million from a $6.2 million loss in the same
period in fiscal 2002. Included in the operating loss for the first six months
of fiscal 2002 were charges aggregating $4.1 million related to inventory
write-downs ($2.7 million), the impairment of goodwill ($0.7 million) the
impairment of equipment ($0.7 million), and the $0.2 million of severance
charges. During the first quarter of fiscal 2002, the Repair Group performed an
evaluation of its existing operations in light of the anticipated impacts on its
business of the September 11, 2001 terrorist attacks. The principal result of
this evaluation process was the decision to optimize the Repair Group's multiple
operations by reducing certain of its capacity for the repairing of components
related to older generation jet engines, principally the JT8D. As a result of
this decision, the Repair Group recognized, during the first six months of
fiscal 2002, the aforementioned charges. Included in the operating loss for the
first six months of fiscal 2003 were charges aggregating $1.2 million related to
the impairment of equipment and $0.2 million of severance charges. The Repair
Group's $3.0 million operating loss, before the $1.4 million of aforementioned
impairment and severance charges, during the first six months of fiscal 2003 is
an increase of $1.1 million, when compared to the $1.9 million operating loss,
before the $4.3 million of aforementioned impairment and severance charges,
during the first six months of fiscal 2002. The increased operating loss was
primarily due to the negative impact on margins of the reduced sales volumes for
component manufacturing and repair services, which was partially offset by
improved margins on increased volumes of replacement parts.

During the first six months of fiscal 2003, the euro had strengthened against
the U.S. dollar when compared to the same period in fiscal 2002. The Repair
Group's non-U.S. operations have a significant portion of its operating costs
denominated in euros and, therefore, as the euro strengthens, such costs are
negatively impacted. During the first six months of fiscal 2003, the Repair
Group was able to hedge much of its exposure to the strengthening euro thereby
mitigating the negative impact on its operating results. Such exposure is
currently hedged through the end of the third quarter of fiscal 2003. Had the
Repair Group not hedged such exposure, its operating loss would have been
greater by approximately $1.0 million during the first six months of fiscal
2003.


In an effort to curtail the Repair Group's operating losses, which stem
primarily from its current excess capacity for component repairs, the Company
announced in March of 2003 its plans to cease operations at its Tampa, Florida
component repair facility and to continue to optimize its remaining component
repair capacity through consolidation of operations and other productivity
improvement efforts.

                                       11

<PAGE>

AEROSPACE COMPONENT MANUFACTURING GROUP ("ACM GROUP")


Net sales in the first six months of fiscal 2003 decreased 21.7% to $13.2
million, compared with $16.8 million in the same fiscal 2002 period.
Approximately $1.5 million of this decrease in net sales is attributable to a
decline in the net sales of commercial aircraft airframe components, as a direct
consequence of reduced flight schedules, cancellation of aircraft orders,
workforce reductions, and continued declining financial performance of the
airline industry. Net sales of military airframe and engine components in the
first six months of fiscal 2003 declined $1.8 million, compared with the same
period of fiscal 2002. Net sales of components for large commercial jet engines
declined $0.3 million in the first six months of fiscal 2003, compared with the
same period in fiscal 2002. Net sales of engine components for small jet
engines, consisting primarily of the AE series latest generation jet engines
built by Rolls-Royce Corporation for business and regional jets, as well as
military transport and surveillance aircraft, increased $0.3 million in the
first six months of fiscal 2003, compared with the same period in fiscal 2002.
Net sales of non-aerospace related products declined $0.3 million in the first
six months of fiscal 2003, compared with the same period in fiscal 2002.

Selling, general, and administrative expenses in the first six months of fiscal
2003 were $1.1 million, or 8.4% of net sales, compared with $2.0 million, or
11.9% of net sales, in the comparable period in fiscal 2002. The primary factor
impacting the ACM Group's selling, general and administrative expenses in the
first six months of fiscal 2002 was a $0.9 million charge incurred in connection
with the settlement, during the second quarter of fiscal 2002, of an employment
action and a related claim that the Company had filed against its insurance
carrier for its failure to provide coverage. Selling, general and administrative
expenses in the first six months of fiscal 2002 before this legal contingency
accrual were $1.1 million. Selling, general and administrative expenses were
favorably impacted in the first six months of fiscal 2003 by a reduction in the
ACM Group's variable selling expense due to product mix.


The ACM Group's operating loss was $0.4 million in both the first six months of
fiscal 2003 and 2002. Operating results in the first six months of fiscal 2002
were negatively impacted by the $0.9 million legal contingency accrual discussed
above. The interplay between overall lower net sales in relation to fixed
manufacturing, selling, general and administrative expenses resulted in a $1.1
million negative impact on operating results in the first six months of fiscal
2003. Operating results were favorably impacted in the first six months of
fiscal 2003 by a $0.3 million decrease in variable tooling expense and by a $0.1
million decrease in variable selling expense due to product mix.

The ACM Group's backlog as of March 31, 2003, was $24.4 million, compared with
$24.9 million as of September 30, 2002. At March 31, 2003, $21.5 million of the
total backlog is scheduled for delivery over the next twelve months and $0.1
million is on hold. All orders are subject to modification or cancellation by
the customer with limited charges. The ACM Group believes that the backlog may
not be indicative of actual sales for any succeeding period.

METAL FINISHING GROUP

Net sales in the first six months of fiscal 2003 decreased 7.4% to $4.7 million,
compared with $5.1 million in the comparable fiscal 2002 period. In the first
six months of fiscal 2003, product net sales, consisting of selective
electrochemical metal finishing equipment and solutions, declined 4.7% to $2.7
million, compared with $2.8 million in the comparable period in fiscal 2002.
Declines in net sales in the first six months of fiscal 2003 of selective
electrochemical finishing equipment and solutions to aerospace and medical
customers were partially offset by increased net sales to military customers. In
the first six months of fiscal 2003, contract service net sales decreased 12.5%
to $1.9 million, compared with $2.2 million in the comparable period in fiscal
2002. Contract service net sales benefited in the first six months of fiscal
2002 from several large one-time contracts. Contract service net sales in the
first six months of fiscal 2003 were negatively impacted by declines in net
sales to customers in the power generation and petroleum industries, offset in
part by increases in net sales to a customer in the automotive industry.

Selling, general and administrative expenses were $1.5 million in both the first
six months of fiscal 2003 and 2002, or 32.8% and 29.0% of net sales,
respectively. In the first six months of fiscal 2003, selling, general and
administrative expenses were negatively impacted by higher employee compensation
and marketing related expenses, offset in part by lower employee incentive
expense.


The Metal Finishing operating income in the first six months of fiscal 2003 was
$0.3 million, compared with operating income of $0.7 million in the comparable
period of fiscal 2002. Operating income in the first six months of fiscal 2003
was negatively impacted by a $0.1 million increase in employee compensation,
compared with the comparable period of fiscal 2002. This was offset by a
decrease in employee incentive expense of $0.2 million in the first six months
of fiscal 2003, compared with the comparable period of fiscal 2002. The
remaining $0.5 million decrease in operating income in the first six months of
fiscal 2003, compared with the same period in fiscal 2002, is attributable
primarily to the negative impact on


                                       12

<PAGE>

operating income of the interplay between overall lower net sales volume in
relation to fixed manufacturing, selling, general and administrative expenses.

CORPORATE UNALLOCATED EXPENSES

Corporate unallocated expenses, consisting of corporate salaries and benefits,
legal and professional and other corporate expenses, were $0.8 million in the
first six months of fiscal 2003, compared with $0.9 million in the comparable
period in fiscal 2002. In the first six months of fiscal 2003, corporate
unallocated expenses benefited from lower consulting and legal and professional
expense.

OTHER/GENERAL

Interest income was $0.05 million in the first six months of fiscal 2003,
compared with $0.2 million in the comparable period in fiscal 2002. The
reduction in interest income is attributable to lower average cash and cash
equivalent balances outstanding and to lower interest rates available from
short-term investments during the first six months of fiscal 2003, compared with
the comparable period in fiscal 2002. Interest expense was $0.4 million in both
the first six months of fiscal 2003 and 2002. The decline in the weighted
average term note outstanding balance in the first six months of fiscal 2003,
compared with the comparable period in fiscal 2002, was offset by an increase in
the weighted average interest rates payable under the term note. The decrease in
interest rates payable under the Company's revolving credit agreement was offset
by the increase in the weighted average outstanding balance during the first six
months of fiscal 2003, compared with the comparable period in fiscal 2002.

Foreign currency exchange loss was $0.2 million in the first six months of
fiscal 2003 and fiscal 2002. The effect of foreign currency exchange rate
fluctuations on the Company's unamortized portion of deferred grant revenue
included in accrued liabilities, which is payable in a foreign currency,
accounts for a substantial portion of the foreign currency exchange loss in the
first six months of fiscal 2003.

In the first six months of fiscal 2003, the income tax benefit related to the
Company's U.S. and non-U.S. losses was offset by a valuation allowance based
upon an assessment of the Company's ability to realize such benefits. In
assessing the Company's ability to realize its net deferred tax assets,
management considered whether it is more likely than not that some portion or
all of its net deferred tax assets may not be realized. Management considered
the scheduled reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. Future reversal of
the valuation allowance will be achieved either when the tax benefit is realized
or when it has been determined that it is more likely than not that the benefit
will be realized through future taxable income.

THREE MONTHS ENDED MARCH 31, 2003 COMPARED WITH THREE MONTHS ENDED
MARCH 31, 2002

Net sales in the second quarter of fiscal 2003 decreased 11.2% to $18.4 million,
compared with $20.7 million in the comparable period in fiscal 2002. Loss before
income tax provision was $3.0 million in the second quarter of fiscal 2003,
compared with a loss before income tax benefit of $1.9 million in the comparable
period in fiscal 2002. In the second quarter of fiscal 2003, the Company
incurred a net loss of $3.0 million, or $0.57 per share (diluted), compared with
a net loss of $1.3 million, or $0.26 per share (diluted) in the comparable
period in fiscal 2002.

TURBINE COMPONENT SERVICES AND REPAIR GROUP ("REPAIR GROUP")

The Repair Group had net sales of $9.5 million in the second quarter of both
fiscal 2003 and 2002. Component manufacturing and repair sales were down $0.4
million in the second quarter of fiscal 2003 compared with the same period in
fiscal 2002. Demand for precision component machining was down in the second
quarter of fiscal 2003 compared with the same period in fiscal 2002. Demand for
component repairs for large jet engines was up slightly in the second quarter of
fiscal 2003 compared with the same period in fiscal 2002, which reflects an
increase in component repairs for newer model jet engines partially offset by a
reduced demand for component repairs for the older model jet engines. Despite
this modest increase in component repair sales for large jet engines, there
continues to be a reduced utilization of older generation aircraft that
negatively impacted the Company in fiscal 2002. In addition, the commercial
airline industry in general continues to experience reduced commercial flight
demand, which determines the need for component repairs for newer model jet
engines. Demand for component repairs to small jet engines and heavy industrial
turbine engines was comparable in the second quarter of fiscal 2003 compared to
the same period in fiscal 2002. Revenues associated with the demand for
replacement parts, which often complement repair services provided to customers,
were up $0.3 million in the second quarter of fiscal 2003 compared with the same
period in fiscal 2002.

                                       13

<PAGE>

During the second quarter of fiscal 2003, the Repair Group's selling, general
and administrative expenses increased $1.1 million to $2.5 million, or 26.3% of
net sales, from $1.4 million, or 15.0% of net sales, in the same period in
fiscal 2002. In the second quarter of fiscal 2003, the Company incurred charges
aggregating $1.2 million related to the impairment of equipment, and $0.2
million of severance charges related to the further consolidation of the Repair
Group's operations during fiscal 2003. In the second quarter of fiscal 2002, the
Company incurred $0.1 million of severance charges associated with the reduction
of the Repair Group's capacity for the repairing of components related to older
generation jet engines. The remaining selling, general and administrative
expenses of $1.2 million, or 12.1% of net sales, for the second quarter of
fiscal 2003 were $0.1 million less than the remaining $1.3 million, or 13.6% of
net sales, of such expenses in the same period in fiscal 2002.

The Repair Group's operating loss in the second quarter of fiscal 2003 increased
$1.6 million to a $2.5 million loss from a $0.9 million loss in the same period
in fiscal 2002. Included in operating loss for the second quarter of fiscal 2003
were the charges aggregating $1.2 million related to the impairment of
equipment, and $0.2 million of severance charges, compared with $0.1 million of
severance charges in the comparable period of fiscal 2002. The Repair Group's
operating loss before the aforementioned severance and impairment charges was
$1.1 million in the second quarter of fiscal 2003, compared with $0.7 million in
the comparable period of fiscal 2002. The increase in operating loss during the
second quarter of fiscal 2003 compared to the same period in fiscal 2002 was
primarily due to the negative impact on margins of the reduced sales volumes for
component manufacturing and repair services, which was partially offset by
improved margins on increased volumes of replacement parts.

During the second quarter of fiscal 2003, the euro had strengthened against the
U.S. dollar when compared to the same period in fiscal 2002. The Repair Group's
non-U.S. operations have a significant portion of its operating costs
denominated in euros and, therefore, as the euro strengthens, such costs are
negatively impacted. During the second quarter of fiscal 2003, the Repair Group
was able to hedge much of its exposure to the strengthening euro thereby
mitigating the negative impact on its operating results. Such exposure is
currently hedged through the end of the third quarter of fiscal 2003. Had the
Repair Group not hedged such exposure, its operating loss would have been
greater by approximately $0.4 million during the second quarter of fiscal 2003.

In an effort to curtail the Repair Group's operating losses, which stem
primarily from its current excess capacity for component repairs, the Company
announced in March of 2003 its plans to cease operations at its Tampa, Florida
component repair facility and to continue to optimize its remaining component
repair capacity through consolidation of operations and other productivity
improvement efforts.


AEROSPACE COMPONENT MANUFACTURING GROUP ("ACM GROUP")

Net sales in the second quarter of fiscal 2003 decreased 29.1% to $6.2 million,
compared with $8.7 million in the same fiscal 2002 period. Approximately $1.6
million of this decrease in net sales is attributable to a decline in the net
sales of military airframe and engine components due to the timing of military
related procurement. Net sales of commercial aircraft airframe components
declined $0.6 million as a direct consequence of reduced flight schedules,
cancellation of aircraft orders, workforce reductions, and continued declining
financial performance of the airline industry. Net sales of engine components
for small jet engines, consisting primarily of the AE series latest generation
jet engines built by Rolls Royce Corporation for business and regional jets, as
well as military transport and surveillance aircraft, increased $0.1 million in
the second quarter of fiscal 2003, compared with the same period in fiscal 2002.
Net sales of non-aerospace related products decreased $0.2 million in the second
quarter of fiscal 2003, compared with the same period in fiscal 2002.

Selling, general and administrative expenses were $0.5 million in the second
quarter of fiscal 2003, compared with $1.4 million in the comparable period in
fiscal 2002. The primary factor impacting the ACM Group's selling, general and
administrative expenses in the second quarter of fiscal 2002 was a $0.9 million
charge incurred in connection with the settlement, during the second quarter of
fiscal 2002, of an employment action and a related claim that the Company had
filed against its insurance carrier for failure to provide coverage. Selling,
general and administrative expenses in the second quarter of fiscal 2002 before
this legal contingency accrual were $0.6 million. Selling, general and
administrative expenses were favorably impacted in the second quarter of fiscal
2003 by a decrease in the ACM Group's bad debt expense, compared with the
comparable period in fiscal 2002.


The ACM Group's operating loss in the second quarter of fiscal 2003 was $0.3
million, compared with an operating loss of $0.7 million in the same period in
fiscal 2002. Operating results in the second quarter of fiscal 2002 were
negatively impacted by the $0.9 million legal contingency accrual discussed
above. The interplay between overall lower net sales in relation to fixed
manufacturing, selling, general and administrative expenses resulted in a $0.8
million negative impact on operating results in the second quarter of fiscal
2003. Operating results were favorably impacted in the second quarter of

                                       14

<PAGE>

fiscal 2003 by $0.1 million due to lower material cost as a result of product
mix consisting of a greater percentage of products made from lower cost
materials than in the comparable period in fiscal 2002. Operating results were
also favorably impacted in the second quarter of fiscal 2003 by a $0.2 decrease
in variable tooling expense and by a $0.1 decrease in bad debt expense.

METAL FINISHING GROUP

Net sales in the second quarter of fiscal 2003 increased 9.6% to $2.7 million,
compared with $2.5 million in the comparable fiscal 2002 period. In the second
quarter of fiscal 2003, product net sales, consisting of selective
electrochemical metal finishing equipment and solutions, increased 9.2% to $1.6
million, compared with $1.4 million in the comparable period in fiscal 2002.
Product net sales were impacted favorably in the second quarter of fiscal 2003
by net sales to customers in the military and medical markets. In the second
quarter of fiscal 2003, contract service net sales increased 8.4% to $1.1
million, compared with $1.0 million in the comparable fiscal 2002 period.
Contract services net sales benefited in the second quarter of fiscal 2003 from
net sales to customers in the automotive and military markets, offset in part by
continued weakness in many of the other industries served by the Metal Finishing
Group, including the power generation and petroleum industries.


Selling, general and administrative expenses were $0.8 million, or 28.3% of net
sales, in the second quarter of fiscal 2003, compared with $0.7 million, or
29.5% of net sales, in the comparable period of fiscal 2002. In the second
quarter of fiscal 2003, selling, general and administrative expenses were
negatively impacted primarily by higher compensation and marketing related
expenses, offset in part by lower employee incentive expenses.

The Metal Finishing Group's operating income in the second quarter of fiscal
2003 was $0.4 million, compared with operating income of $0.3 million in the
comparable period of fiscal 2002. This is attributable primarily to a decrease
in employee incentive expense of $0.1 million in the second quarter of fiscal
2003, compared with the comparable period of fiscal 2002.

CORPORATE UNALLOCATED EXPENSES

Corporate unallocated expenses, consisting of corporate salaries and benefits,
legal and professional and other corporate expenses, were $0.4 million in the
second quarter of fiscal 2003, compared with $0.5 million in the comparable
period of fiscal 2002. In the second quarter of fiscal 2003, corporate
unallocated expenses benefited from lower consulting and public company
expenses.

OTHER GENERAL

Interest income was $0.01 million in the second quarter of fiscal 2003, compared
with $0.07 million in the comparable period of fiscal 2002. The reduction in
interest income is attributable to lower average cash and cash equivalent
balances outstanding and to lower interest rates available from short-term
investments during the second quarter of fiscal 2003, compared with the
comparable period in fiscal 2002. Interest expense was $0.2 million in both the
second quarter of fiscal 2003 and 2002. The overall decrease in the weighted
average outstanding balances under the Company's indebtedness was offset by an
increase the weighted average interest rate payable under the term note during
the second quarter of fiscal 2003, compared with the comparable period in fiscal
2002.

In the second quarter of fiscal 2003, the income tax benefit related to the
Company's U.S. and non-U.S. losses was offset by a valuation allowance based
upon an assessment of the Company's ability to realize such benefits. In
assessing the Company's ability to realize its net deferred tax assets,
management considered whether it is more likely than not that some portion or
all of its net deferred tax assets may not be realized. Management considered
the scheduled reversal of deferred tax liabilities, projected future taxable
income and tax planning strategies in making this assessment. Future reversal of
the valuation allowance will be achieved either when the tax benefit is realized
or when it has been determined that it is more likely than not that the benefit
will be realized through future taxable income.


B. LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents decreased to $4.6 million at March 31, 2003 from $7.6
million at September 30, 2002. At present, essentially all of the Company's cash
and cash equivalents are in the possession of its non-U.S. subsidiaries and
relate to undistributed earnings. During the first six months of fiscal 2003,
the Company received a distribution of $1.5 million from its non-U.S.
subsidiaries. This distribution was utilized to repay a portion of the
outstanding balance under the Company's revolving credit agreement. Effective
October 1, 2000, the Company began to provide U.S. income taxes on the
undistributed earnings of its non-U.S. subsidiaries, in anticipation that
distributions from such earnings, to the extent they


                                       15


<PAGE>

may occur in the future, would result in an additional income tax liability.
Distributions from the Company's non-U.S. subsidiaries to the Company may be
subject to statutory restrictions, adverse tax consequences or other
limitations.

Cash flow activity for the first six months of fiscal 2003 is presented in the
Consolidated Condensed Statement of Cash Flows. During the first six months of
fiscal 2003, cash was provided by a $1.0 million decrease in the ACM Group's
accounts receivable due to lower sales. This was offset in part by a $0.4
million and $0.1 million increase in the Repair Group's and Metal Finishing
Group's accounts receivables, respectively. Both ACM Group and Repair Group
inventories increased $0.2 million in the first six months of fiscal 2003. The
$1.2 million net increase in consolidated accounts payable and accrued
liabilities is attributable to (i) a $0.5 million increase in the ACM Group's
accounts payable and accrued liabilities due primarily to the impact of extended
payment terms from vendors and the timing of related increases in compensation
and property tax accruals; (ii) a $0.9 million increase in the Repair Group's
accounts payable and accrued liabilities attributable primarily to the effect of
foreign currency exchange rate fluctuations on the company's unamortized current
portion of deferred grant revenues, which are payable in a foreign currency, and
an increase in purchases of inventory to support the sale ofreplacement parts;
and (iii) a $0.2 million decrease in Corporate accrued liabilities attributable
to the payment of legal and professional fees. Working capital was $16.0 million
at March 31, 2003, compared with $20.5 million at September 30, 2002. The
current ratio was 2.0 and 2.4 at March 31, 2003 and September 30, 2002,
respectively.

Capital expenditures were $1.1 million in the first six months of fiscal 2003,
compared with $3.1 million in the comparable period in fiscal 2002. Capital
expenditures in the first six months of fiscal 2003 consisted primarily of
equipment to expand and diversify the Repair Group's repair capabilities,
including heavy industrial turbine engine component repair. The Company
anticipates that total fiscal 2003 capital expenditures will not exceed $2.3
million and will be concentrated in the Repair Group. At March 31, 2003, the
Company had outstanding commitments for capital expenditures totaling $0.7
million.

The Company and certain of its subsidiaries sponsor defined benefit pension
plans covering most of its employees. In January 2003, the Company's Board of
Directors adopted a resolution effective February 28, 2003, to cease the accrual
of future benefits under the SIFCO Industries, Inc. Salaried Retirement Plan
("Plan"), which covers substantially all non-union employees of the Company's
U.S. operations. The Plan will otherwise continue. Because the unrecognized
actuarial losses exceeded the curtailment gain, there was no income or expense
recognized during the six months ended March 31, 2003 related to these changes.
In conjunction with the changes to the Plan, the Company made certain
enhancements to its defined contribution plan that is available to substantially
all non-union U.S. employees of the Company and its U.S. subsidiaries.

At March 31, 2003, the Company has a 15-year industrial development bond, which
was issued with an original face amount of $4.1 million and was used to expand
the Repair Group's Tampa, Florida facility. The interest rate is reset weekly,
based on prevailing tax-exempt money market rates. The interest rate at March
31, 2003 was 1.29%. The outstanding balance of the industrial development bond
at March 31, 2003 was $3.2 million. The bank's commitment fee on the standby
letter of credit backing up the industrial development bond was 2.75% at March
31, 2003.

At March 31, 2003, the Company has a term note payable in quarterly installments
of $0.3 million through February 2005, with the remaining balance of $3.9
million due May 1, 2005. The term note has a variable interest rate, which after
giving effect to an interest rate swap agreement with the same bank, becomes an
effective fixed rate note, subject to adjustment based upon the level of certain
financial ratios. At March 31, 2003, the term note's three-month LIBOR based
effective borrowing rate was 9.49%. The outstanding balance of the term note at
March 31, 2003 was $6.3 million.

At March 31, 2003, the Company has a $6.0 million revolving credit agreement,
subject to sufficiency of collateral, that expires on March 31, 2004 and bears
interest at the bank's base rate plus 0.5%. The interest rate was 4.75% at March
31, 2003. A 0.375% commitment fee is incurred on the unused balance of the
revolving credit agreement. At March 31, 2003, the outstanding balance under the
revolving credit agreement was $3.0 million.

Under its credit agreements, the Company is subject to certain customary
covenants. These include, without limitation, covenants (as defined) that limit
the amount of annual capital expenditures and require the maintenance of certain
specified financial ratios, including minimum tangible net worth level, a
maximum liability to tangible net worth ratio and an interest coverage ratio.
During the first six months of fiscal 2003, the Company entered into agreements
with its bank to waive (i) the interest coverage ratio covenant for the period
ended September 30, 2002 through the period ended December 31, 2003 (ii) the
minimum tangible net worth covenant for the period ending September30, 2002; and
(iii) the capital expenditure limitation for the period ended September 30,
2002. These agreements also modified certain financial covenants and the
corresponding interest rates. The Company was in compliance with all applicable
covenants at March 31, 2003.

                                       16

<PAGE>
In May 2003, the Company entered into an agreement with its bank to amend
certain provisions of its credit agreements. The amendment waives the interest
coverage ratio covenant through the period ended December 31, 2004 and extends
the maturity date of the Company's $6.0 million revolving credit agreement to
June 30, 2004. The amendment also provides for the reduction of borrowing
availability subject to the passage of time or the occurrence of a certain
event.

The Company's long-term debt as a percentage of equity at March 31, 2003 and
September 30, 2002 was 35.1% and 29.4%, respectively. At March 31, 2003, taking
into consideration the outstanding balance under the revolving credit agreement
and outstanding letters of credit, the Company had $2.0 million available
against its $6.0 million revolving credit agreement.

The Company believes that cash flow from its operations together with existing
cash reserves and the funds available under its revolving credit agreement will
be sufficient to meet its working capital requirements through the end of fiscal
year 2003. However, no assurances can be given as to the sufficiency of the
Company's working capital to support the Company's operations. If the existing
cash reserves, cash flow from operations and funds available under the revolving
credit agreement are insufficient; if working capital requirements are greater
than currently estimated; and/or if the Company is unable to satisfy the
covenants set forth in its credit agreements, the Company may be required to
adopt one or more alternatives, such as reducing or delaying capital
expenditures, restructuring indebtedness, selling assets or operations, or
issuing additional shares of capital stock in the Company. There can be no
assurance that any of these actions could be effected, or if so, on terms
favorable to the Company, or that they would enable the Company to continue to
satisfy its working capital requirements.

C. RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other
Intangible Assets". This standard is effective for fiscal years beginning after
December 15, 2001. The Company adopted this standard on October 1, 2002, the
beginning of the first quarter of the Company's fiscal year 2003. The standard
changes financial accounting and reporting for acquired goodwill and indefinite
life intangible assets. SFAS No. 142 provides that intangible assets with finite
useful lives will continue to be amortized and goodwill and intangible assets
with indefinite lives will not be amortized, but rather will be tested for
impairment upon adoption and on an annual basis thereafter. The Company
completed the initial impairment test and concluded that goodwill was not
impaired as of October 1, 2002. Other than the cessation of goodwill
amortization, the adoption of SFAS No. 142 did not have an impact on the
Company's financial position or results of operations.

In August 2001, the FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations". This standard addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated asset retirement cost. The standard applies to legal obligations
associated with the retirement of long-lived assets that result from
acquisition, construction, development and/or the normal operation of a
long-lived asset, except for certain obligations of lessees. This standard
requires entities to record the fair value of a liability for an asset
retirement obligation in the period incurred. SFAS No. 143 is effective for
fiscal years beginning after June 15, 2002 and was adopted by the Company
effective October 1, 2002. The adoption of this standard did not have a material
impact on the Company's financial position or results of operations.

In September 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets". This statement superceded SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets to be Disposed of" and the
accounting and reporting provisions of Accounting Principals Board Opinion No.
30, "Reporting Results of Operations-Reporting the Effects of Disposal of a
Segment of a Business, and Extraordinary, Unusual and Infrequently Occurring
events and Transactions", related to the disposal of a segment of a business.
This statement amends certain provisions of Accounting Research bulletin No. 51,
"Consolidated Financial Statements". SFAS No. 144 is effective for fiscal years
beginning after December 15, 2001 and was adopted by the company effective
October 1, 2002. The adoption of this standard did not have a material impact on
the Company's financial position or results of operations.

In July 2002, the FASB issued SFAS No. 146, "Accounting for Costs Associated
with Exit or Disposal Activities". This standard addresses financial and
accounting and reporting for costs associated with exit or disposal activities
and replaces Emerging Issues Task Force No. 94-3, "Liability Recognition for
Certain Employee Termination Benefits and Other Costs to Exit an Activity
(including Certain Costs Incurred in a Restructuring)" ("EITF No. 94-3"). SFAS
No. 146 requires that a liability for costs associated with an exit or disposal
activity to be recognized when the liability is incurred. Under EITF No. 94-3, a
liability for exit costs as defined in EITF No. 94-3 is recognized at the date
of an entity's commitment to an exit plan. Beginning January 1, 2003, the
Company recognizes liabilities associated with exit or disposal activities as
incurred in accordance with SFAS No. 146.

                                       17

<PAGE>

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure an Amendment of FASB Statement No. 123".
SFAS No. 148 provides alternative methods of transition for an entity that
voluntarily changes to the fair value based method of accounting for stock-based
employee compensation. It also requires prominent disclosure in the significant
accounting policy note of both annual and interim financial statements of the
method of accounting for stock-based compensation and the related pro forma
disclosures when the intrinsic value method continues to be used. The statement
is effective for fiscal years beginning after December 15, 2002, and disclosure
provisions are effective for the first fiscal quarter beginning after December
15, 2002. Early application of the disclosure provisions is encouraged. The
Company adopted the disclosure provisions of SFAS 148 in the quarter ended
December 31, 2002. The adoption of this standard did not have a material impact
on the Company's financial position and results of operations.

On April 30, 2003, the FASB issued SFAS No. 149, "Amendment of Statements 133 on
Derivative Instruments and Hedging Activities". SFAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under SFAS
No. 133. SFAS No. 149 is generally effective for contracts entered into or
modified after June 30, 2003. The Company has not yet determined the impact, if
any, of adopting this standard.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the ordinary course of business, the Company is subject to foreign currency
and interest risk. The risks primarily relate to the sale of the Company's
products and services in transactions denominated in non-U.S. dollar currencies
(primarily the Euro); the payment in local currency of wages and other costs
related to the Company's non-U.S. operations (primarily the Euro); and changes
in interest rates on the Company's long-term debt obligations. The Company does
not hold or issue financial instruments for trading purposes.

The Company believes that inflation has not materially affected its results of
operations during the first six months of fiscal 2003, and does not expect
inflation to be a significant factor in the balance of fiscal 2003.

FOREIGN CURRENCY RISK

The U.S. dollar is the functional currency for all of the Company's U.S.
operations. Effective October 1, 2001, the Company changed the functional
currency of its Irish subsidiary from the local currency to the U.S. dollar. The
functional currency was changed because a substantial majority of the
subsidiary's transactions are now denominated in U.S. dollars. For these
operations, all gains and losses from completed currency transactions are
included in income currently. For the Company's other non-U.S. subsidiaries, the
functional currency is the local currency. Assets and liabilities are translated
into U.S. dollars at the rate of exchange at the end of the period and revenues
and expenses are translated using average rates of exchange. Foreign currency
translation adjustments are reported as a component of accumulated other
comprehensive loss. Foreign currency transaction gains and losses are included
in earnings.

Historically, the Company has been able to mitigate the impact of foreign
currency risk by means of hedging such risk through the use of foreign currency
exchange contracts. However, such risk is mitigated only for the periods for
which the Company has foreign currency exchange contracts in effect, and only to
the extent of the U.S. dollar amounts of such contracts. At March 31, 2003, the
Company had several forward exchange contracts outstanding for durations of up
to three months to purchase Euros aggregating U.S. $3.5 million. A ten percent
appreciation or depreciation of the value of the U.S. dollar relative to the
currencies, in which the forward exchange contracts outstanding at March 31,
2003 are denominated, would result in a $0.4 million decline or increase,
respectively, in the value of the forward exchange contracts. The Company will
continue to evaluate its foreign currency risk, if any, and the effectiveness of
using similar hedges in the future to mitigate such risk.

INTEREST RATE RISK

The Company's primary interest rate risk exposure results from the variable
interest rate mechanisms associated with the Company's long-term debt consisting
of a term note payable to the Company's bank, a revolving credit agreement and
industrial development variable rate demand revenue bonds. These interest rate
exposures are managed in part by an interest rate swap agreement to fix the
interest rate of the term note payable to the Company's bank. If interest rates
were to increase 100 basis points (1%) from March 31, 2003 rates, and assuming
no changes in the amounts outstanding under the revolving credit agreement and
industrial development variable rate demand revenue bonds, the additional annual
interest expense to the Company would be approximately $0.1 million.

                                       18

<PAGE>

ITEM 4. CONTROLS AND PROCEDURES

Within 90 days of the filing of this report, the Company performed an
evaluation, under the supervision and with the participation of the Company's
Chief Executive and Chief Financial Officers, of the design and operation of the
Company's disclosure controls and procedures. Based on that evaluation, the
Chief Executive and Chief Financial Officers have concluded that the Company's
disclosure controls and procedures are effective. No significant changes were
noted in the Company's internal controls or in other factors that could
significantly affect these controls subsequent to the date of the Company's
evaluation.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS
    No change.

ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS
    No change.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
    None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Shareholders held on January 28, 2003, there were a
total of 4,675,502 shareholders voting either in person or by proxy. The
shareholders:

A. Elected six directors to the Company's Board of Directors, Jeffrey P.
   Gotschall,  Michael S. Lipscomb, P. Charles  Miller,  Jr.,  Alayne L.
   Reitman,  Hudson D. Smith and J. Douglas  Whelan,  to serve on the Board of
   Directors until the Company's Annual Meeting in 2004.

          The results of the voting for directors were as follows:

<TABLE>
<CAPTION>
               Name                       Votes For            Votes Withheld
               ----                       ---------            --------------
<S>                                       <C>                      <C>
        Jeffrey P. Gotschall              4,594,430                81,072
        Michael S. Lipscomb               4,609,002                66,500
        P. Charles Miller, Jr.            4,610,263                65,239
        Alayne L. Reitman                 4,609,163                66,339
        Hudson D. Smith                   4,611,370                64,132
        J. Douglas Whelan                 4,611,498                64,014

</TABLE>

B. Ratified Grant Thornton LLP as the independent auditors of the Company
   to audit the books and accounts of the Company for the fiscal year
   ending September 30, 2003. There were 4,625,954 votes cast for the
   appointment, 22,040 votes cast against the appointment and 27,508
   abstentions.

ITEM 5. OTHER INFORMATION
    None.




                                       19

<PAGE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
    (a) Exhibits


The following exhibits are filed with this report or are incorporated herein by
reference to a prior filing in accordance with Rule 12b-32 under the Securities
and Exchange Act of 1934 (Asterisk denotes exhibits filed with this report.).

<TABLE>
<CAPTION>

  Exhibit No.                               Description
  -----------                               ------------
<S>               <C>
       3.1        Third Amended Articles of Incorporation of SIFCO  Industries,
                  Inc., filed as Exhibit 3(a) of the Company's Form 10-Q dated
                  March 31, 2002, and incorporated herein by reference

       3.2        SIFCO Industries, Inc. Amended and Restated Code of
                  Regulations dated January 29, 2002, filed as Exhibit 3(b) of
                  the Company's Form 10-Q dated March 31, 2002, and incorporated
                  herein by reference

       4.1        Amended and Restated  Reimbursement  Agreement  dated
                  April 30, 2002 Between SIFCO Industries, Inc. and National
                  City Bank, filed as Exhibit 4(a) of the Company's Form 10-Q
                  dated March 31, 2002, and incorporated herein by reference

       4.2        Amended and Restated Credit  Agreement  Between SIFCO
                  Industries, Inc. and National City Bank dated April 30, 2002,
                  filed as Exhibit 4(b) of the Company's Form 10-Q dated March
                  31, 2002, and incorporated herein by reference

       4.3        Promissory  Note (Term Note) dated April 14, 1998 Between
                  SIFCO Industries, Inc. and National City Bank, filed as
                  Exhibit 4(c) of the Company's Form 10-Q dated March 31, 2002,
                  and incorporated herein by reference

       4.4        Loan Agreement Between  Hillsborough County Industrial
                  Development Authority and SIFCO Industries, Inc., dated as of
                  May 1, 1998, filed as Exhibit 4(d) of the Company's Form 10-Q
                  dated March 31, 2002, and incorporated herein by reference

       4.5        Consolidated Amendment No. 1 to Amended and Restated Credit
                  Agreement, Amended and Restated Reimbursement Agreement and
                  Promissory Note dated November 26, 2002 Between SIFCO
                  Industries, Inc. and National City Bank, filed as Exhibit 4.5
                  of the Company's Form 10-K dated September 30, 2002, and
                  incorporated herein by reference

       4.6        Consolidated Amendment No. 2 to Amended and Restated Credit
                  Agreement, Amended and Restated Reimbursement Agreement and
                  Promissory Note dated February 13, 2003 Between SIFCO
                  Industries, Inc. and National City Bank, filed as Exhibit 4.6
                  of the Company's Form 10-Q dated December 31, 2002, and
                  incorporated herein by reference


      *4.7        Consolidated Amendment No. 3 to Amended and Restated Credit
                  Agreement, Amended and Restated Reimbursement Agreement and
                  Promissory Note dated May 13, 2003 Between SIFCO Industries,
                  Inc. and National City Bank


      10.1        1989 Key Employee  Stock Option Plan, filed as Exhibit B of
                  the Company's Form S-8 dated January 9, 1990 and incorporated
                  herein by reference

      10.2        Deferred Compensation Program for Directors and Executive
                  Officers (as amended and restated April 26, 1984), filed as
                  Exhibit 10(b) of the Company's Form 10-Q dated March 31, 2002,
                  and incorporated herein by reference

      10.3        SIFCO Industries, Inc. 1998 Long-term  Incentive Plan, filed
                  as Appendix A of the Company's Schedule 14A dated December 21,
                  1998, and incorporated herein by reference

      10.4        SIFCO Industries, Inc. 1995 Stock Option Plan, filed as
                  Exhibit 10(d) of the Company's Form 10-Q dated March 31, 2002,
                  and incorporated herein by reference

      10.5        Change in Control  Severance  Agreement  between the Company
                  and Frank Cappello, dated September 28, 2000, filed as Exhibit
                  10 (g) of the Company's Form 10-Q dated December 31, 2000 and
                  incorporated herein by reference
</TABLE>

                                       20

<PAGE>
<TABLE>
<S>               <C>


    10.6          Change in Control Severance  Agreement  between the Company
                  and Hudson Smith, dated September 28, 2000, filed as Exhibit
                  10 (h) of the Company's Form 10-Q dated December 31, 2000 and
                  incorporated herein by reference

    10.7          Change in Control  Severance  Agreement between the Company
                  and Remigijus Belzinskas, dated September 28, 2000, filed as
                  Exhibit 10 (i) of the Company's Form 10-Q dated December 31,
                  2000 and incorporated herein by reference

    10.8          Change in Control Agreement between the Company and Frank
                  Cappello, dated November 9, 2000, filed as Exhibit 10 (j) of
                  the Company's Form 10-Q dated December 31, 2000 and
                  incorporated herein by reference

    10.9          Change in Control Severance Agreement between the Company and
                  Timothy V. Crean, dated July 30, 2002, filed as Exhibit 10.9
                  of the Company's Form 10-K dated September 30, 2002 and
                  incorporated herein by reference

   10.10          Change in Control Severance Agreement between the Company and
                  Jeffrey P. Gotschall, dated July 30, 2002, 10.10 filed as
                  Exhibit 10.10 of the Company's Form 10-K dated September 30,
                  2002 and incorporated herein by reference

   *99.1          Certification of Chief Financial Officer pursuant to Section
                  906 of Sarbanes-Oxley Act of 2002

   *99.2          Certification of Chief Executive Officer pursuant to Section
                  906 of Sarbanes-Oxley Act of 2002
</TABLE>

(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended March 31, 2003.

                                       21


<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, thereto duly authorized.



                                     SIFCO Industries, Inc.

                                     (Registrant)



Date:  May 20, 2003                  /s/ Jeffrey P. Gotschall
                                     ---------------------------------------
                                     Jeffrey P. Gotschall
                                     Chairman of the Board and
                                     Chief Executive Officer



Date:  May 20, 2003                  /s/ Frank A. Cappello
                                     ---------------------------------------
                                     Frank A. Cappello
                                     Vice President-Finance and
                                     Chief Financial Officer
                                     (Principal Financial Officer)


                                       22
<PAGE>

                                 CERTIFICATIONS

I, Jeffrey P. Gotschall, certify that:

     1. I have read this quarterly report on Form 10-Q of SIFCO Industries, Inc.

     2. Based on my knowledge, this quarterly report does not contain any
        untrue statement of a material fact or omit to state a material fact
        necessary to make the statements made, in light of the circumstances
        under which such statements were made, not misleading with respect to
        the period covered by this quarterly report;

     3. Based on my knowledge, the financial statements, and other financial
        information included in this quarterly report, fairly present in all
        material respects the financial condition, results of operations and
        cash flows of the registrant as of, and for, the periods presented in
        this quarterly report;

     4. The registrant's other certifying officers and I are responsible for
        establishing and maintaining disclosure controls and procedures (as
        defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
        have:

             a. Designed such disclosure controls and procedures to ensure
                that material information relating to the registrant,
                including its consolidated subsidiaries, is made known to us
                by others within those entities, particularly during the
                period in which this quarterly report is being prepared;

             b. Evaluated the effectiveness of the registrant's disclosure
                controls and procedures as of a date within 90 days prior to the
                filing date of this quarterly report (the "Evaluation Date");
                and

             c. Presented in this quarterly report our conclusions about the
                effectiveness of the disclosure controls and procedures based on
                our evaluation as of the Evaluation Date;

     5. The registrant's other certifying  officers and I have disclosed, based
        on our most recent evaluation, to the registrant's auditors and the
        audit committee of registrant's board of directors (or persons
        performing the equivalent functions);

             a. All significant deficiencies in the design or operation of
                internal controls which could adversely affect the
                registrant's ability to record, process, summarize and report
                financial data and have identified for the registrant's
                auditors any material weaknesses in internal controls; and

             b. Any fraud, whether or not material, that involves management or
                other  employees  who  have a significant role in the
                registrant's internal controls; and

     6. The registrant's other certifying officers and I have indicated in this
        quarterly report whether there were significant changes in internal
        controls or in other factors that could significantly affect internal
        controls subsequent to the date of our most recent evaluation, including
        any corrective actions with regard to significant deficiencies and
        material weaknesses.


Date:  May 20, 2003                             /s/ Jeffrey P. Gotschall
                                                ------------------------
                                                Jeffrey P. Gotschall
                                                Chairman of the Board and
                                                Chief Executive Officer


                                       23

<PAGE>


                                 CERTIFICATIONS

I, Frank A. Cappello, certify that:

     1. I have read this quarterly report on Form 10-Q of SIFCO Industries, Inc.

     2. Based on my knowledge, this quarterly report does not contain any
        untrue statement of a material fact or omit to state a material fact
        necessary to make the statements made, in light of the circumstances
        under which such statements were made, not misleading with respect to
        the period covered by this quarterly report;

     3. Based on my knowledge, the financial statements, and other financial
        information included in this quarterly report, fairly present in all
        material respects the financial condition, results of operations and
        cash flows of the registrant as of, and for, the periods presented in
        this quarterly report;

     4. The registrant's other certifying officers and I are responsible for
        establishing and maintaining disclosure controls and procedures (as
        defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
        have:

             a. Designed such disclosure controls and procedures to ensure that
                material information relating to the registrant, including its
                consolidated subsidiaries, is made known to us by others within
                those entities, particularly during the period in which this
                quarterly report is being prepared;

             b. Evaluated the effectiveness of the registrant's disclosure
                controls and procedures as of a date within 90 days prior to the
                filing date of this quarterly report (the "Evaluation Date");
                and

             c. Presented in this quarterly report our conclusions about the
                effectiveness of the disclosure controls and procedures based on
                our evaluation as of the Evaluation Date;

     5. The registrant's other certifying officers and I have disclosed, based
        on our most recent evaluation, to the registrant's auditors and the
        audit committee of registrant's board of directors (or persons
        performing the equivalent functions);

             a. All significant deficiencies in the design or operation of
                internal controls which could adversely affect the registrant's
                ability to record, process, summarize and report financial data
                and have identified for the registrant's auditors any material
                weaknesses in internal controls; and

             b. Any fraud, whether or not material, that involves management or
                other employees who have a significant role in the registrant's
                internal controls; and

     6. The registrant's other certifying officers and I have indicated in this
        quarterly report whether there were significant changes in internal
        controls or in other factors that could significantly affect internal
        controls subsequent to the date of our most recent evaluation, including
        any corrective actions with regard to significant deficiencies and
        material weaknesses.


Date:  May 20, 2003                            /s/ Frank A. Cappello
                                               ---------------------
                                               Frank A. Cappello
                                               Vice President - Finance and
                                               Chief Financial Officer

                                       24