<PAGE>   1


                                   FORM 10-Q

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


For Quarter Ended   December 31, 1995  Commission File Number     1-5978
                    -----------------                             ------

                     SIFCO Industries, Inc., and Subsidiaries   
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


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

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


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


                                     None
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Former name, former address and former fiscal year, if changed since last 
report.

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Indicated by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirement for the past 90 days.  Yes  X    No
                                              ---
     Class                    Outstanding at January 31, 1996 
------------------           ---------------------------------
Common Stock, $1 Par Value             5,108,411

<PAGE>   2

                    SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                    ---------------------------------------

                                     INDEX 

                                                        Page No. 
                                                       ----------
Financial Statements:

  Consolidated Condensed Balance Sheets --
    December 31, 1995, and September 30, 1995               2

  Consolidated Condensed Statements of Income --
    Three Months Ended
    December 31, 1995 and 1994                              3

  Consolidated Condensed Statements of Cash Flows --
    Three Months Ended
    December 31, 1995 and 1994                              4

  Notes to Consolidated Condensed
    Financial Statements                                  5,6,7

  Management's Discussion and Analysis of the
    Consolidated Condensed Statements of Income           8,9,10

  Other Information and Signatures                          11

<PAGE>   3
                    SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                    ---------------------------------------

                     CONSOLIDATED CONDENSED BALANCE SHEETS
                     -------------------------------------
                                 ($000 Omitted)
<TABLE>
<CAPTION>
                                                        Dec. 31     Sept. 30  
                                                          1995        1995    
                                                        -------     -------   
                                    ASSETS                                    
                                    ------                                    
<S>                                                      <C>          <C>     
Current Assets                                                                
  Cash & Cash Equivalents                               $ 1,158      $ 1,469  
  Accounts Receivable, Net                               15,076       15,121  
  Inventories                                                                 
    Raw Materials & Supplies                              2,857        2,390  
    Work-in-Process & Finished Goods                     11,376       10,895  
                                                        -------      -------  
                                                         14,233       13,285  
                                                                              
Prepaid Expenses and Other Current Assets                 1,197          711  
                                                        -------      -------  
     TOTAL CURRENT ASSETS                                31,664       30,586  
                                                                              
                                                                              
Property, Plant & Equipment, Net                         22,920       23,460  
Goodwill, Net of Amortization                             4,067        4,097  
Funds Held by Trustee For Capital Project                   328          472  
Other Non-Current Assets                                  1,925        2,067  
                                                        -------      -------  
     TOTAL ASSETS                                       $60,904      $60,682  
                                                        =======      =======
</TABLE>


                     LIABILITIES AND SHAREHOLDERS' EQUITY 
                     ------------------------------------

<TABLE>
<CAPTION>
<S>                                                      <C>          <C>
Current Liabilities
  Notes Payable                                         $ 5,200      $ 4,204
  Current Portion of Long-Term Debt                       2,300        2,300
  Accounts Payable                                        6,048        6,664
  Accrued Expenses                                        4,658        4,758
  Accrued Income Taxes                                       85           27
                                                        -------      -------  
     TOTAL CURRENT LIABILITIES                           18,291       17,949
                                              

  Long-Term Debt - Less Current Portion                   6,450        6,675
                                                        

Deferred Federal Income Taxes and Other                   5,144        5,253
                                                          

Shareholders' Equity
   Serial Preferred Shares - No Par Value                   ---          ---
   Common Shares, Par Value $1 Per Share                  5,108        5,092
   Paid-in-Surplus                                        5,901        5,873
   Retained Earnings                                     20,010       19,840
                                                        -------      -------  
     TOTAL SHAREHOLDERS' EQUITY                          31,019       30,805
                                            

     TOTAL LIABILITIES & SHAREHOLDERS' EQUITY           $60,904      $60,682
                                                        =======      =======
</TABLE>


See accompanying notes to consolidated condensed financial statements.


                                       2

<PAGE>   4



                     SIFCO INDUSTRIES,INC. AND SUBSIDIARIES
                     --------------------------------------

                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                  -------------------------------------------
                                 ($000 Omitted)


<TABLE>
<CAPTION>
                                                Three Months Ended
                                                    December 31
                                                1995            1994
                                                ----            ----
<S>                                            <C>             <C>
Net Sales of SIFCO
  Industries, Inc.                            $18,271         $15,997
                                      

Cost & Expenses
   Cost of Goods Sold                          14,986          12,627
   Selling, General &
    Administrative Expense                      2,594           2,845
   Interest Income                                (15)            (30)
   Interest Expense                               280             244
   Other (Income) Expense, Net                      6             (92)
                                                 

     Total Costs & Expenses                    17,851          15,594
                                             

   Income (Loss) Before Income Taxes              420             403
                                                  

Provision (Benefit) for Federal, Foreign
  & State Income Taxes                             58              90
                                              -------         -------

Net Income (Loss)                             $   362         $   313
                                              =======         =======


Net Income (Loss) Per Share                   $   .07         $   .06
                                              =======         =======


Average Shares Outstanding                     5,104            5,077
                                           

Cash Dividends per Common Share               $  ---          $   --- 
                                             
</TABLE>


See accompanying notes to consolidated condensed financial statements.


                                       3

<PAGE>   5
                                        
                    SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                    ---------------------------------------
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                -----------------------------------------------
                                 ($000 Omitted)

<TABLE>
<CAPTION>
                                                  Three Months Ended    
                                                       December 31      
                                                   1995           1994  
                                                   ----           ----  
<S>                                               <C>            <C>    
Net cash provided by (used for)
  operating activities:
Net income (loss)                               $   362         $  313
Adjustments to reconcile net income to net cash
  provided by (used for) operating activities:
  Depreciation and amortization                     851            838
  Deferred income taxes and other                  (109)           (74)
                                                 ------         ------

  Subtotal                                        1,104          1,077
                               

Net cash provided by (used for) changes
  in operating assets and liabilities:
  Receivables                                        45          1,240
  Inventories                                      (948)        (1,063)
  Accrued or refundable income taxes                 58             79
  Prepaid expenses and other current assets        (486)          (512)
  Accounts payable                                 (616)        (1,355)
  Accrued expenses                                 (100)          (157)
  Accrued restructuring                             ---            (39)
                                                 ------         ------
  Net cash provided by (used for) changes
  in operating assets and liabilities            (2,047)        (1,807)
                                                 ------         ------
  Net cash provided by operating activities        (943)          (730)
                                                            

Net cash provided by (used for) investing 
activities:
  Purchase of property, plant & equipment          (341)        (1,149)
  (Increase) decrease in funds held by trustee 
  for capital project                               144            117
  Other                                              54            231 
                                                 ------         ------
  Net cash provided by (used for) investing 
  activities                                       (143)          (801)
                                                                  

Net cash provided by (used for) financing 
activities:
  Proceeds from additional borrowings             1,000          1,400
  Repayment of borrowings                          (225)          (225)
  Cash dividends declared                           ---             --- 
                                                 ------         ------
  Net cash provided by (used for) financing 
  activities                                        775          1,175 
                                                 ------         ------

Increase (decrease) in cash and cash 
equivalents                                        (311)          (356)
Cash and cash equivalents, beginning of year      1,469          2,256 
                                                 ------         ------
Cash and cash equivalents, end of period         $1,158         $1,900 
                                                 ------         ------

</TABLE>


See accompanying notes to consolidated condensed financial statements.


                                       4

<PAGE>   6
                    SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                    ---------------------------------------

             NOTES TO CONSOLIDATED CONDENSED FINANCIAL INFORMATION
             -----------------------------------------------------

                               DECEMBER 31, 1995
                               -----------------

NOTES
-----

(1)  Summary of Significant Accounting Policies:
     -------------------------------------------
  Principles of Consolidation

  The accompanying consolidated financial statements include the accounts of
  the Company and its wholly-owned subsidiaries.  All significant inter-company
  accounts and transactions have been eliminated.

  (2)  Debt:
       ----
       Long-term debt as of December 31, 1995 and September 30, 1995 consisted
       of:

                                                      Dec. 31    Sept. 30 
                                                        1995        1995  
                                                      --------    --------
                                                         ($000 Omitted)   

  Variable Rate Industrial Development
  Demand Revenue Improvement
  and Refunding Bonds                                  $2,550       $2,625
                                    

  Note payable to bank, due in quarterly
    installments, plus interest, at the base rate
    plus 1/2%                                           3,200        3,350

  Note payable to bank, due October 31, 1996,
    interest payable quarterly, at rates based
    upon LIBOR and DIBOR (adjusted quarterly)           1,000        1,000

  Note payable to seller of acquired business
    at the base rate plus 1/2%                          2,000        2,000
                                                       ------       ------
                                                        8,750        8,975

  Less - current maturities                             2,300        2,300
                                                       ------       ------

                                                       $6,450       $6,675
                                                       ======       ======


                                       5

<PAGE>   7
  The Company has a $7 million revolving credit agreement subject to eligible
  working capital as defined, which expires January 1, 1998.  As of December
  31, 1995, the Company had $5.2 million outstanding under this agreement.  In
  addition, the Company has a $1.15 million credit facility which is used for
  an irrevocable letter of credit which secures the $1 million loan from an
  Irish bank due October 31, 1996.  A commitment fee of 3/8% is incurred on the
  remaining unused balance.  Interest is at the base rate plus 1/4% and is
  payable quarterly.  The average balance outstanding against the remaining
  capacity was $4.2 million and $3.0 million during the three month period of
  fiscal 1996 and 1995, respectively.

  The Company also has a term loan agreement.  Interest is at the base rate
  plus 1/2%.  Repayment terms are twenty quarterly installments of $275,000,
  plus interest.

  The Industrial Development bond interest rate is reset weekly, based on
  prevailing tax-exempt money market rates, and is payable quarterly.
  Principal is payable in quarterly installments of $75,000 through May 1,
  1996, becoming $100,000 quarterly thereafter, with the final balance due on
  May 1, 2002.  The bonds are secured by the property and equipment of the
  facility, and backed by an irrevocable bank letter of credit which expires on
  May 1, 1998.

  The revolving credit, term loan and Industrial Development bonds are secured
  by the Company's domestic accounts receivable, inventory and equipment.

  Among other covenants, the Company is required to maintain a minimum tangible
  net worth (as defined) of $19.8 million, increasing by 50% of net income
  subsequent to September 30, 1993.  At December 31, 1995, tangible net worth
  exceeded the required minimum by $2.7 million.

  As part of a previous acquisition, the seller provided financing in the form
  of unsecured installment notes.  These notes bear interest at the base rate
  plus 1/2%, payable quarterly.  Principal is payable in annual installments of
  approximately $1 million, commencing July 1, 1993.

  The $1 million note payable revolving to the bank has a variable interest
  rate based on a combination of both LIBOR and DIBOR (Dublin Interbank Rates)
  rates.

(3)  Income Taxes:
     -------------
  The provision for taxes on income, which is based on the anticipated
  effective rate for the year, does not bear the customary relationship to
  pre-tax income due primarily to foreign source income.  Income tax expense
  differs from amounts currently payable due to certain items reported for
  financial statement purposes in periods which differ from those in which they
  are reported for tax purposes, principally accelerated depreciation.


(4)  Deferred Federal Income Taxes:
     ------------------------------
  The Company has deferred to future periods the income taxes relating to
  timing differences between financial statement pre-tax income and taxable
  income.


                                       6

<PAGE>   8
(5)  Depreciation:
     -------------
  For financial reporting purposes, the Company provides for depreciation of
  plant and equipment, principally by the straight-line method, at annual rates
  sufficient to amortize the cost over its estimated useful life.  For tax
  purposes, the Company uses various accelerated methods and, accordingly,
  provides for the related deferred taxes.  The principal rates of depreciation
  for financial reporting purposes are: buildings 2% to 5%, and machinery and
  equipment 5% to 33 1/3%.


(6)  Inventories:
     ------------
  The Company follows the LIFO method of accounting for certain of its Forge
  Group inventories. Since the LIFO inventory determination for fiscal 1996
  will be based upon year-end inventory levels and costs, the Company has
  provided for its anticipated "LIFO Adjustment" based on its estimated
  year-end inventory levels and costs.  Under the Average Cost Method,
  inventories would have been $3,463,000 and $3,463,000 higher than reported at
  December 31, 1995 and September 30, 1995, respectively.


(7)  Postretirement Health Care Benefits:
     ------------------------------------
  The Company and its domestic subsidiaries provide certain health care
  benefits for non-union retired employees which are subject to the provisions
  of SFAS 106.  The Company amended its current plan to freeze the Company's
  contribution to insurance premiums and exclude any active employees who
  retire after December 31, 1993 from eligibility for benefits.  As a result of
  the amendments to the plan, the adoption of SFAS 106 did not have a material
  impact on the results of operations or financial position of the Company.


(8)  Other Income
     ------------
  Other income is comprised primarily of grant income from Irish government
  agencies, foreign exchange gains and losses, and royalty and fee income.

(9)  Basis of Presentation:
     ----------------------
  The accompanying financial information for the three months ended December
  31, 1995 has not been examined by independent public accountants.  In the
  opinion of management, all adjustments (which include only normal recurring
  adjustments) necessary for a fair presentation have been included.


                                       7

<PAGE>   9

                    SIFCO INDUSTRIES, INC. AND SUBSIDIARIES
                    ---------------------------------------

                      MANAGEMENT'S DISCUSSION AND ANALYSIS
                      ------------------------------------

               OF THE CONSOLIDATED CONDENSED STATEMENTS OF INCOME
               --------------------------------------------------


The following is management's discussion and analysis of certain significant
factors which have affected the Company's earnings during the periods included
in the accompanying consolidated condensed statements of income.

A summary of the period-to-period changes in the principal items included in
the consolidated condensed statements of income is shown below:


                                                  Three Months Ended
                                                      December 31   
                                                     1995 and 1994  
                                                  -------------------
Net Sales of SIFCO
  Industries, Inc.                                 $2,274        14%

Cost of Sales                                       2,359        19%

Selling, General &
  Administrative                                     (251)       (9%)
                              

Interest Income                                       (15)      (50%)
                            

Interest Expense                                       36        15%

Other Income, Net                                     (98)      ---

Income Before Income Taxes                             17         4%

Provision for Federal,
  Foreign & State Income Taxes                        (32)      (36%)
                                         

Net Income                                             49        16%
                        


                                       8

<PAGE>   10
MANAGEMENT'S DISCUSSION
-----------------------

We are pleased to report a profit before tax of $420,000 on sales of
$18,271,000 for the first quarter ended December 31, 1995.  This compares to
earnings of $402,000 on sales of $15,997,000 for the same period last year.
Net earnings were $362,000 or $.07 per share compared to $313,000 or $.06 per
share in 1994.

Forge sales and earnings achieved a modest improvement over last year.  Sales
increased to $5.2 million compared to $4.8 million in 1994, and operating
profit increased to $236,000 from $112,000.  The success of Forge's marketing
focus on complex, higher margin products was apparent throughout the quarter.
Margins steadily improved and performance exceeded bookings and financial
forecasts for each month of the period.

The Forge segment continues to stimulate positive customer response through its
commitment to service and quality.  As an example, McDonnell-Douglas formally
designated Forge as a "High Performance Supplier" during the quarter.  This
designation recognizes the Forge's consistent quality performance.  As a
result, McDonnell-Douglas has determined that the usual source inspection
procedures they employ are unnecessary in our forging operation.

Our Specialty Products segment also expanded their market activity during the
quarter as sales increased to $13.2 million form $11.4 million a year ago.
Operating income for the quarter was $842,000, down from $1,033,000 last year.
The majority of the increased sales volume resulted from the sale of OEM
products which traditionally produce lower margins.  Margins were also affected
by the cost of bringing new turbine component repair processes on stream.  We
are confident that our continuing product and market development programs will
enhance profits while assuring us of meeting the competitive demands of the
aerospace markets we serve.

We take pride in the reputation for technology and quality that SIFCO has
earned through the years.  Our expertise allows us to qualify for the most
demanding state-of-the-art programs.  A few examples of these include the
experimental F-22 fighter and Boeing's ultra modern 777 commercial jetliner for
which we produce complex forgings.  Another, and possibly the most interesting
example is the international space station named Freedom now under
construction.  Our plating operation has a series of projects on the station,
including nickel plating connector devices between modules to provide corrosion
protection.

In the application of any of our technologies we are most proud of the skill
and commitment to quality that characterize SIFCO employees.

FINANCIAL ANALYSIS
------------------

Net sales for the first quarter ended December 31, 1995 increased to $18.3
million from $16.0 million a year ago or 14%.  Defense-related sales were $2.1
million compared to $2.4 million a year ago.  The Company reported a net profit
of $.362 million compared to  $.313 million a year ago.

Net interest expense increased to $.265 million from $.214 million a year ago
reflecting additional borrowing for increased working capital needed to support
the additional sales.

New orders received increased to $19.3 million from $15.8 million last year.


                                       9

<PAGE>   11
Specialty Products net sales increased to $13.2 million from $11.4 million last
year.  Specialty Products income from operations before corporate and interest
expense declined to $.8 million compared to $1.0 million last year.  Specialty
Products margins were negatively impacted by a higher mix of OEM products which
traditionally have lower margins and the cost of bringing new turbine component
repair processes on stream.

Forging segment sales increased to $5.2 million from $4.8 million last year.
Defense-related sales were $1.8 million (35%), compared to $1.9 million (40%)
last year.  Forging income from operations before corporate and interest
expense was $.2 million compared to $.1 million last year.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Working capital was $13.4 million at December 31, 1995 and $12.6 million at
September 30, 1995.  The current ratio for the same period was 1.7 and 1.7
respectively.  Total debt as a percentage of tangible shareholders' equity was
56.1% at December 31, 1995 compared to 53.9% at September 30, 1995.  The
Company has borrowed $5.2 million against its revolving credit line of $7.0
million.  The Company considers it has adequate financing to meet its needs
through the current year.


                         PROVISION FOR TAXES ON INCOME
                         -----------------------------
 
  The provision for taxes on income, which is based on the anticipated
effective rate for the year, does not bear the customary relationship to
pre-tax income, due primarily to foreign source income.


                                       10

<PAGE>   12
Item 6.  Exhibits and Reports on Form 8-K

   (a)   The following Exhibits are included herein:

         Exhibit 27 Financial Data Schedule

   (b)   No report on Form 8-K was filed during the quarter ended December 31,
         1995.


                                   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   January 27, 1996                  /S/ Jeffrey P. Gotschall
       ----------------                      -----------------------
                                             Jeffrey P. Gotschall
                                            Chief Executive Officer
                


Date   January 27, 1996                  /S/  Richard A. Demetter       
       ----------------                       ----------------------
                                              Richard A. Demetter       
                                             Vice President - Finance     
                                           (Principal Accounting Officer) 


                                       11