SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                    FOR THE QUARTER ENDED SEPTEMBER 30, 1997


                          COMMISSION FILE NUMBER 1-9875


                                [GRAPHIC OMITTED]

                         STANDARD COMMERCIAL CORPORATION


Incorporated under the laws of                        I.R.S. Employer
        North Carolina                         Identification No. 13-1337610


                 2201 MILLER ROAD, WILSON, NORTH CAROLINA 27893

                          Telephone Number 919-291-5507






Former name, former address and former fiscal year, if changed since last report
Not applicable


On November 10, 1997 the registrant had outstanding  12,687,700 shares of Common
Stock ($.20 par value).


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) had been subject to such filing requirements for
the past 90 days.



                                                   YES    X             NO
<PAGE>

PART I FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
STANDARD COMMERCIAL CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands, except share information)
<TABLE>
<CAPTION>
                                                                    September 30   March 31
                                                                1997        1996       1997
                                                                ----        ----       ----
ASSETS                                                          (unaudited)
<S>                                                         <C>        <C>         <C>
Cash.....................................................   $ 51,278   $  48,241   $ 41,117
Receivables..............................................    214,907     198,303    266,560
Inventories..............................................    421,027     346,020    256,519
Prepaid expenses.........................................      8,335       7,288      6,285
Marketable securities....................................        961       1,510        837
                                                            --------    --------   --------

    Current assets.......................................    696,508     601,362    571,318

Property, plant and equipment............................    115,767     133,734    122,013
Investment in affiliates.................................     12,720      11,791     12,533
Other assets.............................................     38,376      34,887     29,821
                                                            --------    --------   --------

    Total assets.........................................   $863,371   $ 781,774   $735,685
                                                             =======    ========    =======

LIABILITIES
Short-term borrowings....................................   $291,725   $ 385,025   $272,325
Current portion of long-term debt........................      4,212       8,469      8,985
Accounts payable.........................................    149,283     120,432    141,145
Taxes accrued............................................     24,404      26,217     28,758
                                                            --------    --------   --------

    Current liabilities..................................    469,624     540,143    451,213

Long-term debt...........................................    128,066      28,923     70,252
Convertible subordinated debentures......................     69,000      69,000     69,000
Retirement and other benefits............................     19,284      19,173     19,127
Deferred taxes...........................................      4,974       8,808      5,819
                                                            --------    --------   --------

    Total liabilities....................................    690,948     666,047    615,411
                                                            --------    --------   --------

MINORITY INTERESTS.......................................     31,019      29,605     30,312
                                                            --------    --------   --------

ESOP redeemable preferred stock..........................          -       8,748          -
Unearned ESOP compensation...............................          -      (6,320)         -
                                                            --------    --------   --------

SHAREHOLDERS' EQUITY
Preferred stock, $1.65 par value; authorized shares
1,000,000
  Issued none (1996 - 87,477 to ESOP)
Common stock, $0.20 par value; authorized shares
100,000,000
  Issued 15,304,115; (Sept 96 - 11,867,465; Mar 97 -           3,061       2,373      2,425
12,126,270)..............................................
Additional paid-in capital...............................    100,163      46,157     50,324
Unearned restricted stock plan compensation..............       (271)       (385)      (321)
Treasury shares, 2,617,707 (Sept 96 - 2,540,722; Mar 97 -     (4,250)     (2,997)    (3,799)
2,591,790)
Retained earnings........................................     63,150      48,787     58,089
Cumulative translations adjustments......................    (20,449)    (10,241)   (16,756)
                                                            --------    --------   --------

    Total shareholders' equity...........................    141,404      83,694     89,962
                                                            --------    --------   --------

    Total liabilities and equity.........................   $863,371   $ 781,774   $735,685
                                                             =======    ========    =======
</TABLE>

The accompanying notes are an integral part of these financial statements.


<PAGE>


STANDARD COMMERCIAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(In thousands, except share information; unaudited)
<TABLE>
<CAPTION>

                                                   Second quarter ended     Six months ended
                                                                                September 30
                                                           September 30
                                                        1997       1996      1997       1996
                                                        ----       ----      ----       ----

<S>                                                 <C>        <C>       <C>        <C>
Sales - tobacco...................................  $207,686   $169,629  $420,533   $384,892
      - nontobacco................................    79,567     79,376   167,035    174,504
                                                     -------    -------   -------    -------

    Total sales...................................   287,253    249,005   587,568    559,396

Cost of sales
    - materials, services and supplies............   254,128    218,881   527,317    499,775
    - interest....................................     5,414      8,152    12,680     15,763
                                                     -------    -------   -------    -------

    Gross profit..................................    27,711     21,972    47,571     43,858
Selling, general and administrative expenses......    17,520     18,272    35,179     36,268
Other interest expense............................     3,955      2,450     6,171      4,837
Other income (expense) - net......................     2,082      2,729     4,472      5,564
                                                     -------    -------   -------    -------

    Income before taxes...........................     8,318      3,979    10,693      8,317
Income taxes......................................    (2,243)      (944)   (2,602)    (2,056)
                                                     -------    -------   -------    -------

    Income after taxes............................     6,075      3,035     8,091      6,261
Minority interests................................    (1,218)      (268)   (1,509)    (2,204)
Equity in earnings of affiliates..................       424        144       550        362
                                                     -------    -------   -------    -------

    Net income....................................     5,281      2,911     7,132      4,419
ESOP preferred stock dividends net of tax.........         -       (116)        -       (231)
                                                     -------    -------   -------    -------

    Net income applicable to common stock.........     5,281      2,795     7,132      4,188

Retained earnings at beginning of period..........    57,869     47,051    58,089     46,450
Common stock dividends............................         -     (1,059)   (2,071)    (1,851)
                                                     -------    -------   -------    -------

Retained earnings at end of period................  $ 63,150   $ 48,787  $ 63,150   $ 48,787
                                                     =======    =======   =======    =======

Earnings per common share
Primary - net.....................................     $0.41      $0.29#   $0.60       $0.44#
        - average shares outstanding..............    12,798      9,497#  11,950       9,495#

Fully diluted.....................................     $0.40         *         *          *
        - average shares outstanding..............    15,146

</TABLE>

*Not applicable because fully diluted calculations include adjustments which are
antidilutive.

#Adjusted for subsequent stock dividends.

The accompanying notes are an integral part of these financial statements.


<PAGE>


STANDARD COMMERCIAL CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands; unaudited)
<TABLE>
<CAPTION>
                                                                        Six months ended
                                                                            September 30
                                                                            ------------
                                                                             1997         1996
                                                                             ----         ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                       <C>          <C>
Net income .............................................................  $ 7,132      $ 4,419
  Depreciation and amortization.........................................   10,511        9,130
  Minority interests....................................................    1,509        2,204
  Deferred income taxes.................................................     (614)           -
  Undistributed earnings of affiliates net of dividends received........     (550)        (362)
  Gain on disposition of property, plant and equipment..................   (3,410)        (184)
  Other.................................................................      911          913
                                                                          -------      -------
                                                                           15,489       16,120
Net changes in working capital other than cash
    Receivables.........................................................   42,853       50,950
    Inventories......................................................... (170,743)     (87,701)
    Current payables....................................................   18,283      (10,441)
                                                                        ---------    ---------

CASH USED FOR OPERATING ACTIVITIES......................................  (94,118)     (31,072)
                                                                          -------      -------

CASH FLOWS FROM INVESTING ACTIVITIES

Property, plant and                                                        (8,928)      (7,673)
equipment...........................................- additions
                          - dispositions................................    5,519          334
Business (acquisitions) dispositions....................................   (3,353)       2,993
                                                                          -------      -------

CASH USED FOR INVESTING ACTIVITIES......................................   (6,762)      (4,346)
                                                                          -------      -------

CASH FLOWS FROM FINANCING ACTIVITIES

Net change in short-term borrowings.....................................  (27,642)      11,400
Proceeds from long-term borrowings......................................  110,028       10,012
Repayment of long-term borrowings.......................................  (15,498)     (16,210)
Net proceeds of equity offering.........................................   47,043            -
Dividends paid, net of tax..............................................        -         (231)
Other...................................................................   (2,890)           -
                                                                          -------      -------

CASH PROVIDED BY FINANCING ACTIVITIES...................................  111,041        4,971
                                                                          -------      -------

Increase (decrease) in cash for period..................................   10,161      (30,447)
Cash at beginning of period.............................................   41,117       78,688
                                                                          -------      -------

CASH AT END OF PERIOD...................................................  $51,278      $48,241
                                                                           ======       ======
</TABLE>

The accompanying notes are an integral part of these financial statements.
<PAGE>

STANDARD COMMERCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

o The interim statements presented herein should be read in conjunction with the
financial  statements and notes thereto  included in the Company's latest Annual
Report on Form 10-K.

o The interim  period  financial  statements  have been  prepared by the Company
without  audit and contain all of the  adjustments  which are, in the opinion of
management,  necessary for a fair  statement of the results of  operations.  All
such adjustments are of a normal,  recurring nature.  Because of the seasonality
of the Company's businesses, fluctuations in results for interim periods are not
necessarily  indicative  of business  trends or results to be expected for other
interim periods or the full year.

o Prior period earnings per share and weighted  average shares  outstanding have
been  restated to give effect to the  increase in shares  outstanding  resulting
from subsequent stock dividends.

o       Inventories for the periods shown were as follows:

                                             September 30    March 31
               (In thousands)              1997       1996       1997
                                           ----       ----       ----
               Tobacco                 $345,081   $274,997   $181,349
               Nontobacco                75,946     71,023     75,170
                                       --------   --------  ---------

                 Total                 $421,027   $346,020   $256,519
                                        =======    =======    =======

o There were no changes in accounting policies during the period ended September
30, 1997.

o On August 1, 1997, the Company completed a $115.0 million private placement of
8-7/8%  Senior  Notes due 2005,  the net  proceeds  of which  were used to repay
indebtedness  under existing bank credit  facilities and certain other long-term
debt.  The notes were issued by  Standard  Commercial  Tobacco  Co.,  Inc.  (the
"Issuer"),  a wholly-owned  subsidiary of the Company.  The Company and Standard
Wool, Inc., a wholly-owned subsidiary of the Company (the "Guarantors"), jointly
and severally,  guarantee on a senior basis, the full and prompt  performance of
the  Issuer's  obligations  under the  terms of the  indenture.  Management  has
determined  that  full  financial  statements  of the  Guarantors  would  not be
material to  investors  and such  financial  statements  are not  provided.  The
following   supplemental  combining  financial  statements  present  information
regarding the Guarantors and the Issuer.


<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING BALANCE SHEET
September 30, 1997
(In thousands; unaudited)
<TABLE>
<CAPTION>
                                                    Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>      <C>         <C>        <C>       <C>        <C>       <C>
Cash........................    $    -   $20,167     $23,197    $  300    $7,614     $    -    $51,278
Receivables.................     3,303    24,284     134,069       867    52,384          -    214,907
Intercompany receivables....    18,380   142,937      37,491         8    23,459   (222,275)         -
Inventories.................         -    71,618     288,367     1,178    57,036      2,828    421,027
Prepaids and other..........       208        53       7,143        13       918          -      8,335
Marketable securities.......         1         -         947         -        13          -        961
                              --------------------------------------------------------------------------

    Current assets..........    21,892   259,059     491,214     2,366   141,424   (219,447)   696,508

Property, plant and equipment        -    21,890      79,997        59    13,821          -    115,767
Investment in subsidiaries..   211,199    81,460      62,648    34,620    35,451   (425,378)         -
Investment in affiliates....         -         -      11,519         -     1,201          -     12,720
Other noncurrent assets.....    13,252     7,732      10,138         -     2,635      4,619     38,376
                              --------------------------------------------------------------------------

    Total assets............  $246,343  $370,141    $655,516   $37,045  $194,532   $(640,206) $863,371
                              ==========================================================================

Liabilities
Short-term borrowings.......    $    -    $5,740     $233,179   $    -    $52,806    $    -    $291,725
Current portion of long-term         -       328       3,312         -       572          -      4,212
debt........................
Accounts payable............       308    25,133     109,902        48    21,790     (7,898)   149,283
Intercompany accounts payable   34,811    28,063     129,956     4,713    17,664   (215,207)        -
Taxes accrued...............         -     3,776      14,892         -     5,736          -     24,404
                              --------------------------------------------------------------------------

    Current liabilities.....    35,119    63,040     491,241     4,761    98,568   (223,105)   469,624

Long-term debt..............         -   120,742       5,182         -     2,142          -    128,066
Convertible subordinated        69,000         -           -         -         -          -     69,000
debentures..................
Retirement and other benefits      559     7,990       6,786         -     3,949          -     19,284
Deferred taxes..............         -        82       3,852         -     1,040          -      4,974
                              --------------------------------------------------------------------------

    Total liabilities.......   104,678   191,854     507,061     4,761   105,699   (223,105)   690,948

Minority interests..........         -         -      30,986         -        33          -     31,019

Shareholders' equity
Common stock................     3,061       993      30,856    22,604    35,893    (90,346)     3,061
Additional paid-in capital..   100,163   132,513      13,780         -    55,710   (202,003)   100,163
Unearned restricted stock
    plan compensation.......       (10)      (80)       (169)        -       (12)         -       (271)
Treasury stock at cost......    (4,250)        -           -         -         -          -     (4,250)
Retained earnings...........    63,150    44,861      93,707     8,040    (4,391)  (142,217)    63,150
Cumulative translation         (20,449)        -     (20,705)    1,640     1,600     17,465    (20,449)
adjustments.................
                              --------------------------------------------------------------------------

    Total shareholders'        141,665   178,287     117,469    32,284    88,800   (417,101)   141,404
equity......................
                              --------------------------------------------------------------------------

    Total liabilities and     $246,343  $370,141    $655,516   $37,045  $194,532   $(640,206) $863,371
equity......................
                              ==========================================================================
</TABLE>


<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF INCOME AND RETAINED EARNINGS
Quarter ended September 30, 1997
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                    Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>      <C>       <C>           <C>    <C>      <C>       <C>
Sales.......................    $     -  $ 61,046  $179,938      $883   $74,386  $(29,000) $287,253
Cost of sales:
  Materials services and              -    54,809   157,545       835    69,939   (29,000)  254,128
supplies....................
  Interest..................          -     1,009     3,221         -     1,184         -     5,414
                              -----------------------------------------------------------------------

  Gross profit..............          -     5,228    19,172        48     3,263         -    27,711
Selling, general &
   administrative expenses..        545     2,415    10,819        69     3,548       124    17,520
Other interest expense......      1,378     2,204       345         -        28         -     3,955
Other income (expense) net..        962     1,093      (742)      (78)      723       124     2,082
                              -----------------------------------------------------------------------

  Income (loss) before taxes       (961)    1,702     7,266       (99)      410         -     8,318
Income taxes................       (184)      579     2,815         -        98    (1,065)    2,243
                              -----------------------------------------------------------------------

  Income (loss) after taxes.       (777)    1,123     4,451       (99)      312     1,065     6,075
Minority interests..........          -         -    (1,218)        -         -         -    (1,218)
  Equity in earnings of               -         -       342         -        82         -       424
affiliates..................
  Equity in earnings of           6,058         -         -       412         -    (6,470)        -
subsidiaries................
                              -----------------------------------------------------------------------

  Net income................      5,281     1,123     3,575       313       394    (5,405)    5,281
Retained earnings at
beginning
    of period...............     57,869    43,738    90,132     7,727    (4,785) (136,812)   57,869
Common stock dividends......          -         -         -         -         -         -         -
                              -----------------------------------------------------------------------

  Retained earnings at end      $63,150   $44,861   $93,707   $ 8,040   $(4,391)$(142,217) $ 63,150
of period...................
                              =======================================================================
</TABLE>


<PAGE>

STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF INCOME AND RETAINED EARNINGS
Six Months Ended September 30, 1997
(In thousands; unaudited)
<TABLE>
<CAPTION>
                                                   Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>      <C>       <C>        <C>      <C>       <C>       <C>
Sales.......................    $     -  $128,830  $376,298   $ 2,188  $156,969  $(76,717) $587,568
Cost of sales
    Materials services and            -   119,472   334,948     2,047   147,567   (76,717)  527,317
supplies....................
    Interest................          -     2,124     8,072         -     2,484         -    12,680
                              -----------------------------------------------------------------------

    Gross profit............          -     7,234    33,278       141     6,918         -    47,571
Selling, general &
administrative
  expenses..................      1,283     5,302    20,942       136     7,242       274    35,179
Other interest expense......      2,745     2,503       812         -       111         -     6,171
Other income (expense) net..      1,445     1,076      (402)     (153)    2,232       274     4,472
                              -----------------------------------------------------------------------

Income (loss) before taxes..     (2,583)      505    11,122      (148)    1,797         -    10,693
Income taxes................       (878)      171     2,815         -       494         -     2,602
                              -----------------------------------------------------------------------

Income (loss) after taxes...     (1,705)      334     8,307      (148)    1,303         -     8,091
Minority interests..........          -         -    (1,509)        -         -         -    (1,509)
Equity in earnings of                 -         -       468         -        82         -       550
affiliates..................
Equity in earnings of             8,837         -         -     1,385         -   (10,222)        -
subsidiaries................
                              -----------------------------------------------------------------------

Net income..................      7,132       334     7,266     1,237     1,385   (10,222)    7,132

Retained earnings beginning     58,089    44,527    86,441      6,803    (5,776) (131,995)   58,089
of period

Common stock dividends......     (2,071)        -         -         -         -         -    (2,071)
                              -----------------------------------------------------------------------

Retained earnings end of        $63,150   $44,861   $93,707   $ 8,040   $(4,391)$(142,217)  $63,150
period......................
                              =======================================================================
</TABLE>


<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF CASH FLOWS
Six Months Ended September 30, 1997
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                   Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----
Cash provided by (used for)
<S>                             <C>      <C>       <C>       <C>       <C>       <C>       <C>
Cash provided by (used for)
  operating activities......    $(46,686)$ 79,999  $(173,145)$    214  $  3,486  $ 42,014  $(94,118)
                              -----------------------------------------------------------------------

Cash flows from investing
activities
Property, plant and equipment
  - additions...............          -    (2,073)   (5,009)      (33)   (1,813)        -    (8,928)
  - disposals...............          -        15       224         -     1,870     3,410     5,519
Minority interests..........          -         -      (708)        -        (1)      709         -
Net advances from (to)
  group companies...........          -  (128,548)  128,548         -         -         -         -
Collections of note                   -         -         -         -         -         -         -
receivable..................
Business (acquisitions)               -         -    (3,353)        -         -         -    (3,353)
dispositions................
                              -----------------------------------------------------------------------
Cash provided by (used for)
  investing activities......          -  (130,606)  119,702       (33)       56     4,119    (6,762)
                              -----------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from long-term               -   109,028       106         -       894         -   110,028
borrowings..................
Repayment of long-term                -    (8,819)   (4,279)        -    (2,400)        -   (15,498)
borrowings..................
Net change in short-term              -   (30,537)   54,862         -    (4,925)  (47,042)  (27,642)
borrowings..................
Net proceeds of equity           47,043         -         -         -         -         -    47,043
offering....................
Other.......................       (684)        -    (3,005)        -      (110)      909    (2,890)
                              -----------------------------------------------------------------------
Cash provided by (used for)
  financing activities......     46,359    69,672    47,684         -    (6,541)  (46,133)  111,041
                              -----------------------------------------------------------------------

Net increase (decrease) in         (327)   19,065    (5,759)      181    (2,999)        -    10,161
cash........................
Cash at beginning of period.        327     1,102    28,956       119    10,613         -    41,117
                              -----------------------------------------------------------------------

Cash at end of period.......     $    -   $20,167   $23,197      $300   $ 7,614  $      -   $51,278
                              =======================================================================
</TABLE>



<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING BALANCE SHEETS
March 31, 1997
(In thousands)
<TABLE>
<CAPTION>

                                                   Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

Assets
<S>                             <C>       <C>         <C>       <C>       <C>         <C>       <C>
Cash........................    $  327    $ 1,102     $28,956   $  119    $10,613     $    -    $41,117
Receivables.................     1,648     35,737     174,535    1,258     53,382          -    266,560
Intercompany receivables....    16,606     15,083      26,040        -     36,545    (94,274)         -
Inventories.................         -     74,309     139,386    1,256     52,675    (11,107)   256,519
Prepaid expenses............       155      4,190       4,790        5      1,173     (4,028)     6,285
Marketable securities.......         -          -         823        -         14          -        837
                              ---------------------------------------------------------------------------

    Current assets..........    18,736    130,421     374,530    2,638    154,402   (109,409)   571,318

Property, plant and equipment        -     22,513      83,255       35     16,210          -    122,013
Investment in subsidiaries..   159,014          -      63,714   36,946     34,261   (293,935)        -
Investment in affiliates....         -          -      11,321        -      1,212          -     12,533
Other assets................    12,897      1,878      12,373        -      2,673          -     29,821
                              ---------------------------------------------------------------------------

Total assets................  $190,647   $154,812    $545,193  $39,619   $208,758   $(403,344) $735,685
                              ===========================================================================

Liabilities
Short-term borrowings.......    $    -    $36,277    $178,317   $    -    $57,731     $    -   $272,325
Current portion of long-term         -      2,312       5,633        -      1,040          -      8,985
debt........................
Accounts payable............       982     14,123     110,675      127     15,238          -    141,145
Intercompany accounts payable   29,895     28,757      15,393    4,734     31,740   (110,519)        -
Taxes accrued...............         -      2,470      19,723        -      6,565          -     28,758
                              ---------------------------------------------------------------------------

    Current liabilities.....    30,877     83,939     329,741    4,861    112,314   (110,519)   451,213

Long-term debt..............         -     12,576      57,195        -      3,451     (2,970)    70,252
Convertible subordinated        69,000          -          -         -          -          -     69,000
debentures
Retirement and other benefits      499      7,797       6,734        -      4,097          -     19,127
Deferred taxes..............         -      1,064       7,136        -        783     (3,164)     5,819
                              ---------------------------------------------------------------------------

    Total liabilities.......   100,376    105,376     400,806    4,861    120,645   (116,653)   615,411

Minority interests..........         -          -      30,278        -         34          -     30,312

Shareholders' equity
Common stock................     2,425        993      29,681   22,604     35,893    (89,171)     2,425
Additional paid-in capital..    50,324      4,010      15,414        -     55,710    (75,134)    50,324
Unearned restricted stock
    plan compensation.......       (12)       (94)       (198)       -        (14)        (3)      (321)
Treasury stock..............    (3,799)         -          -         -          -          -     (3,799)
Retained earnings...........    58,089     44,527      86,441    6,803     (5,776)  (131,995)    58,089
Cumulative translation         (16,756)         -     (17,229)   5,351      2,266      9,612    (16,756)
adjustments.................
                              ---------------------------------------------------------------------------

    Total shareholders'         90,271     49,436     114,109   34,758     88,079   (286,691)    89,962
equity......................
                              ---------------------------------------------------------------------------

    Total liabilities and     $190,647   $154,812    $545,193  $39,619   $208,758   $(403,344) $735,685
equity......................
                              ===========================================================================
</TABLE>


<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING BALANCE SHEETS
September 30, 1996
(In thousands; unaudited)

<TABLE>
<CAPTION>
                                                    Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

Assets
<S>                            <C>      <C>         <C>        <C>       <C>         <C>       <C>
Cash........................   $  199   $ 7,384     $22,946    $   99    $17,613     $    -    $48,241
Receivables.................    5,806    18,149     119,192     1,679     53,477          -    198,303
Intercompany receivables....   16,991    20,224      47,963        84      5,863    (91,125)         -
Inventories.................        -    84,795     208,632     1,515     51,078          -    346,020
Prepaid expenses............      648       298       4,964        16      1,362          -      7,288
Marketable securities.......        -         -       1,497         -         13          -      1,510
                             ----------------------------------------------------------------------------

    Current assets..........   23,644   130,850     405,194     3,393    129,406    (91,125)   601,362

Property, plant and equipment       -    22,556      92,739        38     18,401          -    133,734
Investment in subsidiaries..  156,242         -      62,208    38,193     45,075   (307,718)        -
Investment in affiliates....        -         -      10,590         -      1,201          -     11,791
Other assets................    9,849     2,408      19,544         -      3,086          -     34,887
                             ----------------------------------------------------------------------------

    Total assets............ $189,735  $155,814    $590,275   $41,624   $197,169   $(392,843) $781,774
                             ============================================================================

Liabilities
Short-term borrowings.......        -    47,865     289,977         -     47,183          -    385,025
Current portion of long-term        -     2,298       5,339         -        832          -      8,469
debt........................
Accounts payable............      605    12,833      84,912       154     21,928          -    120,432
Intercompany accounts payable  32,886    20,289       8,894     5,220     18,434    (85,723)         -
Taxes accrued...............        -     4,009      15,433         -      6,775          -     26,217
                             ----------------------------------------------------------------------------

    Current liabilities.....   33,491    87,294     404,555     5,374     95,152    (85,723)   540,143

Long-term debt..............        -    13,736      11,281         -      3,906          -     28,923

Convertible subordinated       69,000         -          -          -          -          -     69,000
debentures
Retirement and other benefits     751     7,548       6,444         -      4,430          -     19,173
Deferred taxes..............        -       411       7,432         -        965          -      8,808
                             ----------------------------------------------------------------------------

    Total liabilities.......  103,242   108,989     429,712     5,374    104,453    (85,723)   666,047

Minority interests..........        -         -      29,569         -         36          -     29,605

ESOP redeemable preferred       8,748         -          -          -          -          -      8,748
stock.......................
Unearned ESOP compensation..   (6,320)        -          -          -          -          -     (6,320)

Shareholders' equity
Common stock................    2,373       993      47,848    22,604     27,492    (98,937)     2,373
Additional paid-in capital..   46,157     4,010      16,606         -     66,716    (87,332)    46,157
Unearned restricted stock
    plan compensation.......      (14)     (109)       (241)        -        (21)         -       (385)
Treasury stock at cost......   (2,997)        -           -         -          -          -     (2,997)
Retained earnings...........   48,787    41,931      81,314     6,157     (7,579)  (121,823)    48,787
Cumulative translation        (10,241)        -     (14,533)    7,489      6,072        972    (10,241)
adjustments.................
                             ----------------------------------------------------------------------------

    Total shareholders'        84,065    46,825     130,994    36,250     92,680   (307,120)    83,694
equity......................

    Total liabilities and    $189,735  $155,814    $590,275  $ 41,624   $197,169   $(392,843) $781,774
equity......................
                             ============================================================================
</TABLE>


<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF INCOME AND RETAINED EARNINGS
Quarter Ended September 30, 1996
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                   Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>       <C>      <C>         <C>      <C>      <C>       <C>
Sales......................     $     -   $54,378  $162,258    $2,395   $73,314  $(43,340) $249,005
Cost of sales
    Materials services and            -    48,217   141,667     2,269    69,873   (43,145)  218,881
supplies...................
    Interest...............           -     1,060     5,528       175     1,389         -     8,152
                              -----------------------------------------------------------------------

    Gross profit...........           -     5,101    15,063       (49)    2,052      (195)   21,972
Selling, general &
administrative
  expenses.................         752     2,780    10,584       307     3,556       293    18,272
Other interest expense.....       1,378       258       613         -       201         -     2,450
Other income (expense) net.          95        48     1,217        76     1,000       293     2,729
                              -----------------------------------------------------------------------

Income (loss) before taxes.      (2,035)    2,111     5,083      (280)     (705)     (195)    3,979
Income taxes...............        (573)      716     1,129         -      (328)        -       944
                              -----------------------------------------------------------------------

Income (loss) after taxes..      (1,462)    1,395     3,954      (280)     (377)     (195)    3,035
Minority interests.........           -         -      (268)        -         -         -      (268)
Equity in earnings of                 -         -       144         -         -         -       144
affiliates.................
Equity in earnings (losses)
  of subsidiaries..........       4,373         -         -      (381)        -    (3,992)        -
                              -----------------------------------------------------------------------
Net income.................       2,911     1,395     3,830      (661)     (377)   (4,187)    2,911
ESOP preferred stock
dividends
  net of tax...............        (116)        -         -         -         -         -      (116)
Net income (loss) applicable
  to common stock..........       2,795     1,395     3,830      (661)     (377)   (4,187)    2,795

Retained earnings beginning      47,051    40,536    77,484     6,818    (7,202) (117,636)   47,051
of period
Common stock dividends.....      (1,059)        -         -         -         -         -    (1,059)
                              -----------------------------------------------------------------------

Retained earnings end of        $48,787   $41,931   $81,314    $6,157   $(7,579)$(121,823)  $48,787
period.....................
                              =======================================================================
</TABLE>



<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF INCOME AND RETAINED EARNINGS
Six Months Ended September 30, 1996
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                    Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>       <C>       <C>       <C>      <C>       <C>       <C>
Sales.......................    $     -   $90,078   $376,084  $ 4,275  $163,104  $(74,145) $559,396
Cost of sales
    Materials services and            -    81,146   333,501     4,041   155,037   (73,950)  499,775
supplies....................
    Interest................          -     1,637    10,884       175     3,067         -    15,763
                              -----------------------------------------------------------------------

    Gross profit............          -     7,295    31,699        59     5,000      (195)   43,858
Selling, general &
administrative
  expenses..................      1,593     5,583    20,959       422     7,248       463    36,268
Other interest expense......      2,829       342     1,295         -       371         -     4,837
Other income (expense) net..        (66)       58     3,535         6     1,568       463     5,564
                              -----------------------------------------------------------------------

Income (loss) before taxes..     (4,488)    1,428    12,980      (357)   (1,051)     (195)    8,317
Income taxes................     (1,407)      485     3,475         -      (497)        -     2,056
                              -----------------------------------------------------------------------

Income (loss) after taxes...     (3,081)      943     9,505      (357)     (554)     (195)    6,261
Minority interests..........          -         -    (2,204)        -         -         -    (2,204)
Equity in earnings of                 -         -       362         -         -         -       362
affiliates..................
Equity in earnings of             7,500         -         -      (561)        -    (6,939)        -
subsidiaries................
                              -----------------------------------------------------------------------

Net income..................      4,419       943     7,663      (918)     (554)   (7,134)    4,419

ESOP preferred stock
dividends
  net of tax................       (231)        -         -         -         -         -      (231)
Net income (loss) applicable
to
  common stock..............      4,188       943     7,663      (918)     (554)   (7,134)    4,188
                              -----------------------------------------------------------------------

Retained earnings beginning      46,450    40,988    73,651     7,075    (7,025) (114,689)   46,450
of period
Common stock dividends......     (1,851)        -         -         -         -         -    (1,851)
                              -----------------------------------------------------------------------

Retained earnings end of        $48,787   $41,931   $81,314    $6,157   $(7,579)$(121,823)  $48,787
period......................
                              =======================================================================
</TABLE>



<PAGE>


STANDARD COMMERCIAL CORPORATION
SUPPLEMENTAL COMBINING STATEMENT OF CASH FLOWS
Six Months Ended September 30, 1996
(In thousands; unaudited)
<TABLE>
<CAPTION>

                                                    Other
                                        Standard   Tobacco
                            Standard   Commercial  Subsi-                 Other Wool
                           Commercial    Tobacco   diaries    Standard    Subsidiaries
                           Corporation   Co, Inc   (Non-      Wool, Inc   (Non-Guran- Elimin-
                           (Guarantor)  (Issuer)  Guarantors) (Guarantor)  tors)      ations    Total
                           -----------  --------  -----------------------  -----      ------    -----

<S>                             <C>       <C>      <C>       <C>       <C>       <C>       <C>
Cash provided by (used for)
  operating activities......    $ 7,751   $ 9,746  $(72,581) $     29  $ 26,301  $ (2,318) $(31,072)

Cash flows from investing activities:
    - additions.............          -    (1,505)   (5,802)        -      (366)        -    (7,673)
    - disposals.............          -        27        54         -        69       184       334
Minority interests..........          -         -    (2,133)        -        (1)    2,134         -
Net advances from (to)
  group companies...........          -   (13,882)   13,882         -         -         -         -
Collections of note                   -         -         -         -         -         -         -
receivable..................
Business (acquisitions)               -         -     2,993         -         -         -     2,993
dispositions................
                              -----------------------------------------------------------------------
Cash provided by (used for)
  investing activities......          -   (15,360)    8,994         -      (298)    2,318    (4,346)
                              -----------------------------------------------------------------------

Cash flows from financing activities:
Proceeds from long-term               -    10,000         5         -         7         -    10,012
borrowings
Repayment of long-term          (11,172)     (472)   (3,755)        -      (811)        -   (16,210)
borrowings
Net change in short-term              -    (2,551)   39,842         -   (25,891)        -    11,400
borrowings
Dividends paid net of tax...       (231)        -         -         -         -         -      (231)
Purchase and retirement of            -         -         -         -         -         -         -
ESOP........................
Preferred stock.............          -
Other.......................          -         -         -         -         -         -         -
                              -----------------------------------------------------------------------
Cash provided by (used for)
  financing activities......    (11,403)    6,977    36,092         -   (26,695)        -     4,971
                              -----------------------------------------------------------------------

Net increase (decrease) in       (3,652)    1,363   (27,495)       29      (692)        -   (30,447)
cash........................

Cash at beginning of period.      3,851     6,021    50,441        70    18,305         -    78,688
                              -----------------------------------------------------------------------

Cash at end of  period.......     $ 199 $   7,384 $  22,946      $ 99   $17,613       $ -  $ 48,241
                              =======================================================================
</TABLE>



<PAGE>


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

 Results of Operations

     Sales for the quarter  ended  September  30, 1997 were $287.3  million,  an
increase  of 15.4% from a year  earlier.  Sales for the six months  were  $587.6
million,  up 5.0% from the same period last year. Sales for the tobacco division
of $207.7  million and $420.5  million for the second  quarter and year to date,
respectively,  were up 22.4% and 9.3% from the  corresponding  periods  in 1996.
Tobacco  sales for the quarter from Europe,  the Far East and South America were
significantly  higher than a year earlier. On a year to date basis, the U.S. and
South America provided most of the increase. Overall, tobacco volume was up 1.9%
for the quarter and down 2.1% year to date. The sales  increases were the result
of higher average prices due to improved market  conditions and a change in mix.
Nontobacco  sales were flat for the  quarter  and down 4.3% for the six  months,
primarily as the result of lower  volumes of wool sold.  These  volume  declines
were partly offset by improved mix as the wool  business  continues to stabilize
and the Company continues to focus on the more profitable processing elements of
the business.

     Gross  profit of $27.7  million  and $47.6  million for the quarter and six
months, respectively,  increased 26.1% and 8.5% from the 1996 comparable periods
due primarily to the increase in sales and reduced interest  expenses  resulting
from the  application  of $47.0 million of equity  proceeds in the first quarter
and the application of the proceeds of a $115.0 million senior notes offering in
the second quarter to reduce short-term borrowings.

     Selling, general and administrative expenses decreased by 4.1% and 3.0% for
the quarter and six months,  respectively,  as the Company continues to focus on
operating  efficiencies.  Higher  personnel-related  expenses  and travel  costs
related to the  expansion  of  business  in new  markets  were offset by tighter
control of other  costs and  expenses  and  favorable  foreign  exchange.  Other
interest  expense was higher for both the quarter and year to date and  reflects
the impact of the $115.0 million issue of long-term debt. Other income (expense)
- net was  lower  for both the  quarter  and year to date due to lower  interest
income on  short-term  deposits as the Company  continues  to focus on efficient
cash  management.  Gains on sales of  property  in  Australia  and  Greece  were
slightly higher than the prior year gain on sale of marketable securities.

     The  effective  tax rate for the  quarter was  slightly  higher than a year
earlier and basically level for both six-month  periods.  The income tax charges
or credits can vary as a percentage of pretax income due to  differences  in tax
rates and  relief  available  in areas  where  profits  are earned or losses are
incurred.

     Earnings  attributed to minority interests were $1.0 million higher for the
quarter  due  mostly  to the gain on sale of  property  in  Greece.  For the six
months, earnings attributed to minority interests were down $0.7 million because
the 1996 period  included the timing  effect of  carryover  sales from the prior
year.  Equity in  earnings  of  affiliates  was up for 1997 both  periods due to
improved trading conditions in the Far East.

     Net income was $5.3  million  for the  quarter,  or $0.41 per share on 12.8
million average shares  outstanding,  versus $2.9 million, or $0.29 per share on
9.5 million  shares  outstanding  for the  September  1996 quarter  adjusted for
subsequent stock dividends.  Net income for the six months was $7.1 million,  or
$0.60 per share on 12.0 million average shares outstanding, versus $4.4 million,
or $.044 per share on 9.5 million  average shares  outstanding.  The increase in
shares  outstanding  was  attributable to the Company's 3.0 million share public
offering during the June 1997 quarter.

Liquidity and Capital Resources

     Working capital at September 30, 1997 was $226.9 million, compared to $61.2
million a year  earlier.  Most of the  increase  was due to  applying  the $47.0
million net proceeds of the 3.0 million share public  offering  completed in the
June 1997  quarter and $103.1  million of the net  proceeds of the senior  notes
offering  completed  on  August 1, 1997 to  reduce  short-term  borrowings.  The
remaining  increase was due to  contributions  from  operating  activities  that
further reduced short-term borrowings and the current portion of long-term debt.
Capital expenditures of $8.9 million consisted primarily of routine expenditures
in the

<PAGE>


MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION (continued)

tobacco and wool  divisions,  expansion  of warehouse  facilities  in Greece and
Turkey,  and new  machinery  for the  French  topmaking  facility.  The  Company
continues to closely monitor its inventory levels,  which fluctuate depending on
seasonal  factors  and  business   conditions.   Uncommitted  tobacco  inventory
decreased  to $22.6  million at  September  30,  1997 from $29.1  million a year
earlier,  while  total  tobacco  inventories  increased  as a result  of  recent
expansion of business in Africa and South America.

     As a result of the recent equity offering,  which appreciably broadened the
Company's  shareholder  base,  the Board of Directors  has voted to  discontinue
issuing quarterly stock dividends.  Certain debt agreements to which the Company
and its  subsidiaries  are  parties  contain  financial  covenants  which  could
restrict the payment of cash dividends. Under its most restrictive covenant, the
Company had  approximately  $12.1  million of retained  earnings  available  for
distribution  as dividends at September  30, 1997. At this time, it is uncertain
when or if the Board will resume the payment of cash dividends.

     On August 1, 1997, the Company completed a $115.0 million Rule 144A private
placement of 8-7/8%  Senior Notes due 2005.  Concurrently,  commitments  of $200
million were obtained for a three-year Global Bank Facility,  which replaced the
U.S. and certain European bank facilities.  These fundings,  in combination with
the recent equity offering,  have largely accomplished the Company's refinancing
plans.  The  Company  used  net  proceeds  of  the  funding  to  repay  existing
indebtedness  outstanding under certain bank credit facilities and certain other
long-term  debt.  The Global Bank  Facility,  in addition to local bank lines of
approximately  $265.0 million for tobacco operations in Africa,  Europe and Asia
will be  used  to  finance  tobacco  operations.  Separate  bank  facilities  of
approximately $127.0 million exist to finance wool operations.

     Based on the outlook for the  tobacco  and wool  divisions,  and the recent
refinancing activity, management anticipates that it will be able to service the
interest and principal on its  indebtedness,  maintain  adequate working capital
and provide for capital expenditures out of operating cash flow for at least the
next year.

Forward-Looking Statements

     Statements in this report that are not purely statements of historical fact
may be  deemed  to be  forward-looking.  Readers  are  cautioned  that  any such
forward-looking  statements are based upon  management's  current  knowledge and
assumptions,  and actual  results  could be affected  in a material  way by many
factors,  including  ones over which the Company has little or no control,  e.g.
unforeseen changes in shipping schedules; the balance between supply and demand;
and  market,  economic,  political  and  weather  conditions.  More  information
regarding  certain of these  factors is  contained  in the  Company's  other SEC
filings,  copies of which are  available  upon  request  from the  Company.  The
Company assumes no obligation to update any of these forward-looking statements.



<PAGE>


                           PART II - OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS  -  Not applicable

Item 2. CHANGES IN SECURITIES  -  Not applicable

Item 3. DEFAULTS UPON SENIOR SECURITIES  -  Not applicable

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

     a.   An annual  meeting of  shareholders  was held on August 12,  1997.

     b.   Three  persons  nominated by  management  were  elected as  directors,
          without opposition, for terms expiring in 2000 as follows:

                      Nominee               Votes For   Votes Withheld
                      -------               ---------   --------------
                  Henry R Grunzke          10,375,445      140,913
                  Ery W Kehaya             10,374,269      142,089
                  Daniel M Sullivan        10,401,775      114,583

     In   addition,  the following other directors  remained in office after the
          meeting: Williams S Barrack, Jr; Marvin W Coghill; Thomas M Evins, Jr;
          Robert E  Harrison;  Charles H Mullen;  J Alec G Murray and  William A
          Ziegler.

     c.   The appointment of Deloitte & Touche LLP as the Company's  independent
          auditors for fiscal 1998 was approved by a vote of  10,462,087  shares
          in favor, 3,079 shares against and 51,192 shares abstaining.

     d.   Not applicable.

Item 5. OTHER INFORMATION  -  Not applicable

Item 6. EXHIBITS AND REPORTS ON FORM 8-K

     a.   The following exhibits are filed as a part of this report:

          4    (i) Third Supplemental Agreement dated August 1, 1997 between the
               Company and certain subsidiaries and Deutsche Bank A.G. et al.

               11   Computation of Earnings per Common Share.

               27   Financial Data Schedule.

     b.   The Company filed the following current reports on Form 8-K during the
          quarter ended September 30, 1997:

     On   July 10,  1997,  pursuant  to Item 5 of Form 8-K and  Rule  135C,  the
          Company filed its press  release  regarding its intent to issue Senior
          Notes.

     On   August 4,  1997,  pursuant  to Item 5 of Form 8-K and Rule  135C,  the
          Company filed its press release  regarding  closing of its Senior Note
          offering and the Global Bank Facility.




<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 thereunto duly authorized.

Dated: November 13, 1997                    STANDARD COMMERCIAL CORPORATION
                                                     (Registrant)


                                            By     /s/    Robert E Harrison
                                            -------------------------------
                                            Robert E Harrison
                                               President, Chief Executive
                                                 Officer and Chief Financial
                                                 Officer


                                            By     /s/    Guy M Ross
                                            -------------------------------
                                            Guy M Ross
                                               Vice President and
                                                 Chief Accounting Officer