<PAGE>    1
                                  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 EXCHANGE ACT OF 1934

                  FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

  FOR THE TRANSITION PERIOD FROM _____________________ TO _____________________

                        COMMISSION FILE NUMBER 333-16453

                              SHOP VAC CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

           NEW JERSEY                                            13-5609081
  (STATE OR OTHER JURISDICTION                                (I.R.S. EMPLOYER
OF INCORPORATION OR ORGANIZATION)                            IDENTIFICATION NO.)

                     2323 REACH ROAD, WILLIAMSPORT, PA 17701
                                 (717) 326-0502
          (ADDRESS AND TELEPHONE NUMBER OF PRINCIPAL EXECUTIVE OFFICES)


Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months,  and (2) has been subject to such filing  requirements
for the past 90 days. Yes [x] No [ ]

Common Shares, No Par Value,  Outstanding at September 30, 1997 -- 6,500 Class A
voting and 650,000 Class B non-voting.


<PAGE>    2
                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

SHOP VAC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheet

(dollars in thousands)

<TABLE>
<CAPTION>
=================================================================================================
Assets                                                    December 31, 1996   September 30, 1997
                                                                                  (Unaudited)
-------------------------------------------------------------------------------------------------
<S>                                                            <C>                 <C>
Current assets:
   Cash and cash equivalents ........................          $ 21,141            $ 22,925
   Receivables, less allowance for doubtful
      accounts of $1,853 in 1996 and $2,209
      in 1997 .......................................            29,154              28,940
    Inventories (note 2) ............................            25,314              29,645
    Prepaid expenses and other current assets .......             3,222               2,863
    Deferred income taxes............................             -----               2,154
    Net current assets of discontinued operations ...             5,556               -----
------------------------------------------------------------------------------------------------
Total current assets ................................            84,387              86,527

    Property, plant, and equipment, net .............            40,797              36,311
    Deferred income taxes............................             -----              19,954
    Other assets ....................................             6,452               5,808
------------------------------------------------------------------------------------------------
Total Assets ........................................          $131,636            $148,600
================================================================================================
</TABLE>























                                                                     (Continued)


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<PAGE>    3
SHOP VAC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheet

(dollars in thousands)

<TABLE>
<CAPTION>
====================================================================================================
Liabilities and Stockholders' Equity (Deficit)             December 31, 1996     September 30, 1997
                                                                                     (Unaudited)
----------------------------------------------------------------------------------------------------
<S>                                                            <C>                   <C>
Current liabilities:
   Current portion of long-term debt ................          $   4,297             $   2,908
   Accounts payable .................................             20,688                23,723
   Accrued expenses .................................             26,278                16,799
----------------------------------------------------------------------------------------------------
Total current liabilities ...........................             51,263                43,430

    Long-term debt ..................................            106,100               102,925
    Other liabilities ...............................             13,270                15,841

Stockholders' equity (deficit):
    Common stock, Class A voting, no par,
       20,000 shares authorized, 6,500 shares
       issued.  Class B non-voting, no par,
       1,000,000 shares authorized, 650,000
       shares issued ................................                 85                    85
    Paid in capital .................................                110                   110
    Accumulated deficit .............................            (43,986)              (16,678)
    Foreign currency translation adjustment .........              4,794                 2,887
---------------------------------------------------------------------------------------------------
Total stockholders' equity ..........................          $ (38,997)            $ (13,596)
---------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity ..........          $ 131,636             $ 148,600
===================================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.


















                                                                     (Continued)

                                        2

<PAGE>    4
SHOP VAC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(dollars in thousands)

<TABLE>
<CAPTION>
==================================================================================================
                                                   Three months ended          Nine months ended
                                                      September 30,              September 30,
--------------------------------------------------------------------------------------------------
                                                   1996         1997          1996         1997
--------------------------------------------------------------------------------------------------
<S>                                              <C>          <C>           <C>          <C>
Net sales .................................      $54,379      $52,217       $151,308     $151,882

Cost of sales .............................       42,118       38,274        113,980      110,466
--------------------------------------------------------------------------------------------------
Gross profit ..............................       12,261       13,943        37,328        41,416

Selling, general and administrative expense        8,644        9,835        24,044        27,506
Restructuring charge.......................        4,714        -----         4,714         -----
--------------------------------------------------------------------------------------------------
Income (loss) from operations .............       (1,097)       4,108         8,570        13,910

Interest expense, net .....................        2,406        2,782         7,175         8,600
Other expense (income), net ...............           63           35           396           (30)
--------------------------------------------------------------------------------------------------
Income (loss) before income taxes .........       (3,566)       1,291           999         5,340

Income tax expense (benefit)...............          411      (22,120)        1,172       (21,968)
--------------------------------------------------------------------------------------------------
Net income (loss) .........................      $(3,977)     $23,411       $  (173)     $ 27,308
==================================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.


















                                                                     (Continued)

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<PAGE>    5
SHOP VAC CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statement of Cash Flows (Unaudited)

(dollars in thousands)

<TABLE>
<CAPTION>
=========================================================================================
                                                                        Nine months ended
                                                                          September 30,
-----------------------------------------------------------------------------------------
                                                                       1996         1997
-----------------------------------------------------------------------------------------
<S>                                                                 <C>           <C>
Cash flows from operating activities:
    Net income (loss) ........................................      $  (173)      $27,308
    Adjustments to reconcile net income (loss) to net
       cash provided (used) by operating activities:
        Depreciation and amortization ........................        5,963         4,230
        Amortization included in interest expense ............        -----           437
        Restructuring charges ................................        4,714        (1,021)
        Changes in assets and liabilities:
           Accounts and notes receivable .....................       (3,909)         (986)
           Inventories .......................................       (1,109)       (5,733)
           Prepaid expenses and other current assets .........         (518)         (273)
           Deferred income taxes..............................        -----       (22,369)
           Other assets ......................................       (1,281)          (98)
           Accounts payable and accrued expenses .............        6,909         3,176
           Other liabilities .................................      (11,811)        1,625
------------------------------------------------------------------------------------------
Net cash provided (used) by continuing operations ............       (1,215)        6,296
Net cash provided (used) by discontinued operations ..........       (3,151)        1,310
------------------------------------------------------------------------------------------
Net cash provided (used) by operating activities .............       (4,366)        7,606
------------------------------------------------------------------------------------------
Cash flows from investing activities:
        Capital expenditures .................................         (155)       (3,156)
------------------------------------------------------------------------------------------
Net cash provided (used) by investing activities .............         (155)       (3,156)
------------------------------------------------------------------------------------------
Cash flows from financing activities:
    Proceeds from revolving line-of-credit, net ..............        8,193         -----
    Proceeds from issuance of other long-term debt ...........        1,207         -----
    Long-term debt and capital lease payments ................       (4,544)       (2,192)
------------------------------------------------------------------------------------------
Net cash provided (used) by financing activities .............        4,856        (2,192)
------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash ......................          125          (474)
------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents ....................          460         1,784
Cash and cash equivalents, beginning of year .................        2,682        21,141
------------------------------------------------------------------------------------------
Cash and cash equivalents, end of quarter ....................        3,142        22,925
------------------------------------------------------------------------------------------
Supplemental cash flow information:
    Cash paid for interest ...................................        7,435        10,106
    Cash paid for income taxes ...............................          584           694
------------------------------------------------------------------------------------------
                                                                    $ 8,019       $10,800
==========================================================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                        4

<PAGE>    6
SHOP VAC CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

(dollars in thousands)

(1)     The accompanying  interim unaudited  consolidated  financial  statements
        include  the  accounts  of Shop Vac  Corporation  and its  wholly  owned
        subsidiaries (the "Company"). All intercompany accounts and transactions
        are eliminated in consolidation.

        These  financial  statements  have  been  prepared  in  accordance  with
        generally   accepted   accounting   principles  for  interim   financial
        information  and with the  instructions  to Form 10-Q and  Article 10 of
        Regulation S-X. Accordingly,  they do not include all of the information
        and footnotes required by generally accepted  accounting  principles for
        complete  financial  statements.  In the  opinion  of  management,  such
        interim  statements  reflect  all  adjustments   (consisting  of  normal
        recurring  accruals)  necessary to present fairly the financial position
        and the results of  operations  and cash flows for the  interim  periods
        presented.  The results of  operations  for the interim  periods are not
        necessarily  indicative of the results to be expected for the full year.
        These  financial  statements  should  be read in  conjunction  with  the
        audited consolidated  financial statements and footnotes included in the
        Company's  Annual  Report on Form 10-K dated March 21, 1997 for the year
        ended December 31, 1996.

(2)     Inventories are classified as follows:

<TABLE>
<CAPTION>
============================================================================
                                     December 31, 1996   September 30, 1997
                                                             (Unaudited)
----------------------------------------------------------------------------
<S>                                       <C>                  <C>
Raw materials ................            $11,778              $12,114
Work-in-process ..............              5,620                7,216
Finished goods ...............              7,916               10,315
----------------------------------------------------------------------------
                                          $25,314              $29,645
============================================================================
</TABLE>

(3)     In the third quarter of 1997 the Company reduced its valuation allowance
        for  deferred  income tax assets,  resulting  in net deferred tax assets
        totaling $22,108 as of September 30, 1997. Based on the Company's recent
        pre-tax  operating   results,   future  reversals  of  existing  taxable
        temporary differences, estimates of future taxable income, and available
        tax planning strategies, management believes that it is more likely than
        not  that  the  recorded  deferred  tax  assets,  net of  the  valuation
        allowance, will be realized.





















                                        5

<PAGE>    7
SHOP VAC CORPORATION AND SUBSIDIARIES

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

RESULTS OF OPERATIONS

Net sales in the quarter were $52.2 million,  a decrease of $2.2 million or 4.0%
compared to the third  quarter of 1996.  Net sales in the first nine months were
$151.9  million,  an  increase  of $600,000 or .4% over the first nine months of
1996.  The decline in sales for the quarter was due to reduced  sales in Europe,
primarily sales by the Company's Irish operation.

Gross profit in the quarter  totaled $13.9 million,  an increase of $1.7 million
or 13.7% over the third  quarter of 1996.  Gross profit in the first nine months
totaled $41.4 million,  an increase of $4.1 million or 11.0% over the first nine
months of 1996. The  improvements  in the quarter and the first nine months were
due to a more favorable product mix and continued cost improvements.

Selling, general and administrative ("SG&A") expense in the quarter totaled $9.8
million,  an increase of $1.2  million or 13.8% over the third  quarter of 1996.
SG&A  expenses in the first nine months  totaled $27.5  million,  an increase of
$3.5  million  or 14.4% over the first nine  months of 1996.  Increases  in SG&A
expenses  in the  quarter  and the  first  nine  months  were  primarily  due to
increased advertising,  upgrade of business systems and anticipated expenditures
for performance-based executive incentive programs.

Income from operations in the quarter was $4.1 million,  an increase of $500,000
or 13.6% over the third  quarter of 1996  (before 1996  restructuring  charges).
Income  from  operations  in the first nine months  totaled  $13.9  million,  an
increase of $600,000  or 4.7% over the first nine  months of 1996  (before  1996
restructuring charges).

Interest  expense was $2.8  million in the  quarter,  an increase of $400,000 or
15.6% over the third quarter of 1996.  Interest expense in the first nine months
was $8.6  million,  an  increase  of $1.4  million  or 19.9% over the first nine
months of 1996. These increases were due to increases in average  borrowings and
rates as a result of the  issuance  of the  Senior  Secured  Notes in the fourth
quarter of 1996.

The  Company  recognized  an income  tax  benefit  in the third  quarter of 1997
resulting from the reduction of a previously  recorded valuation allowance which
had reduced the value of the Company's  net deferred tax assets to zero.  Due to
the  operating  results  experienced  since  the  disposition  of the  Company's
discontinued  operations as well as other factors,  management believes that the
Company will,  more likely than not,  realize the benefit of these assets in the
future and has recognized these net deferred tax assets, resulting in a recorded
tax benefit of $22.1 million in the third quarter.

LIQUIDITY AND CAPITAL RESOURCES

During  the nine  months  ended  September  30,  1997 cash and cash  equivalents
increased  from $21.1  million to $22.9  million  due to cash flow  provided  by
operating activities of $7.6 million,  less capital expenditures of $3.2 million
and debt reductions of $2.2 million.













                                        6

<PAGE>    8
                           PART II - OTHER INFORMATION


ITEMS 1 - 5.  NOT APPLICABLE

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

A.  Exhibits

27.1    Financial Data Schedule

B.  Reports on Form 8-K

No reports on Form 8-K have been filed during the quarter  ended  September  30,
1997.

                                   SIGNATURES

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


                              SHOP VAC CORPORATION



                                By    / s / W. Earl Stogner
                                  -----------------------------
                                        W. EARL STOGNER
                                  EXECUTIVE VICE PRESIDENT AND
                                    CHIEF FINANCIAL OFFICER


Date:     November 12, 1997

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