UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C.   20549

FORM 10-Q

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

For the quarterly period ended                March 28, 1998

                                     OR

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

For the transition period from



Commission file number                         1-367



                         THE L. S. STARRETT COMPANY
           (Exact name of registrant as specified in its charter)

         MASSACHUSETTS                                        04-1866480
 (State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                          Identification No.)
 

     121 CRESCENT STREET, ATHOL, MASSACHUSETTS               01331-1915
     (Address of principal executive offices)                 (Zip Code)


Registrant's telephone number, including area code       978-249-3551



      Former name, address and fiscal year, if changed since last report.


Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filings requirements for the past 90 days.

                             YES  X  NO


Common Shares outstanding as of      March 28, 1998    :

     Class A Common Shares      5,154,824

     Class B Common Shares      1,734,723




                                 Page 1 of 8
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                         THE L. S. STARRETT COMPANY

                                  CONTENTS

                                                                    Page No.

Part I.  Financial Information:

      Item 1.  Financial Statements

                  Consolidated Statements of Earnings and
                  Cash Flows - thirteen and thirty-nine
                  weeks ended  March 28, 1998 and
                  March 29, 1997 (unaudited)                            3

                  Consolidated Balance Sheets - March 28,
                  1998 (unaudited) and June 28, 1997                    4

                  Consolidated Statements of Stockholders'
                  Equity - thirty-nine weeks ended
                  March 28, 1998 and  March 29, 1997
                  (unaudited)                                           5

                  Notes to Consolidated Financial Statements            6


      Item 2.  Management's Discussion and Analysis of Financial
               Condition and Results of Operations                      7



Part II.  Other information:

      Item 6.  Exhibits and reports on Form 8-K                         8



























                                 Page 2 of 8
<PAGE>
                         THE L. S. STARRETT COMPANY
             Consolidated Statements of Earnings and Cash Flows
         (in thousands of dollars except per share data)(unaudited)

                                        13 Weeks Ended     39 Weeks Ended  
EARNINGS                               3/28/98  3/29/97   3/28/98  3/29/97

Net sales                               61,195   60,489   195,046  183,712 

Cost of goods sold                     (41,317) (42,050) (131,168)(126,518)
Selling and general                    (12,761) (12,426)  (39,771) (37,275)
Other income and expense                   319      316     1,161    1,081  

Earnings before income taxes             7,436    6,329    25,268   21,000 
Provision for federal, foreign and
      state income taxes                 2,441    2,077     8,469    7,029 

Net earnings                             4,995    4,252    16,799   13,971 
Basic earnings per share                   .72      .61      2.43     1.99 
Dividends per share                        .19      .18       .57      .54 

CASH FLOWS

Cash flows from operating activities:
   Net earnings                          4,995    4,252    16,799   13,971 
   Noncash expenses:
      Depreciation and amortization      2,802    2,592     8,197    7,637 
      Deferred taxes                       232       90        24      348 
      Unrealized translation losses(gains)           (4)      154       39 
   Working capital changes:
      Receivables                        2,265    1,763    (3,762)  (1,454)
      Inventories                          336      980     3,725   (1,590)
      Other assets and liabilities         169   (3,982)    3,220   (3,758)
   Prepaid pension cost and other       (1,043)    (324)   (2,575)    (471)

         Net cash from operations        9,756    5,367    25,782   14,722 

Cash flows from investing activities:
   Additions to plant and equipment     (4,242)  (3,335)  (12,048)  (9,108)
   (Increase)decrease in short-term
      investments                       (2,070)     (43)   (6,591)   1,288 

         Net cash used in investing     (6,312)  (3,378)  (18,639)  (7,820)

Cash flows from financing activities:
   Short-term borrowings, net           (1,382)   1,835    (1,281)     411
   Long-term debt repayments            (2,000)  (1,000)   (2,300)  (1,300)
   Common stock issued                     820      838     2,640    2,731 
   Treasury shares purchased              (505)  (2,675)   (4,524)  (5,871)
   Dividends                            (1,304)  (1,247)   (3,923)  (3,766)

         Net cash used in financing     (4,371)  (2,249)   (9,388)  (7,795)

Effect of translation rate changes
      on cash                               (2)     (38)       24       (7)

Net decrease in cash                      (929)    (298)   (2,221)    (900)
Cash, beginning of period                1,761      815     3,053    1,417 
Cash, end of period                        832      517       832      517 

               See notes to consolidated financial statements
                                 Page 3 of 8
<PAGE>
                         THE L. S. STARRETT COMPANY
                         Consolidated Balance Sheets
                          (in thousands of dollars)
                                                       Mar. 28     June 28 
                                                         1998        1997   
ASSETS                                               (unaudited)   _______ 
Current assets:
   Cash                                                    832       3,053 
   Investments                                          34,026      27,389 
   Accounts receivable (less allowance for doubtful
         accounts of $2,269,000 and $1,877,000)         40,178      36,625 
   Inventories:
      Finished goods                                    29,687      32,374 
      Goods in process and finished parts               26,283      26,698 
      Raw materials and supplies                        15,933      16,774 
                                                        71,903      75,846 
   Prepaid expenses and other current assets             1,926       4,682 
                  Total current assets                 148,865     147,595 

Property, plant and equipment, at cost (less
      accumulated depreciation of $68,424,000
      and $60,816,000)                                  67,842      64,101 
Cost in excess of net assets acquired (less
      accumulated amortization of $3,790,000
      and $3,514,000)                                    7,599       7,772 
Prepaid pension cost                                    21,091      18,928 
Other assets                                             1,244         350 
                                                       246,641     238,746 

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
   Notes payable and current maturities                  2,329       3,610 
   Accounts payable and accrued expenses                15,528      13,205 
   Accrued salaries and wages                            6,059       6,628 
   Taxes payable                                         2,034       3,927 
   Employee deposits for stock purchase plan               587         434 
                  Total current liabilities             26,537      27,804 

Deferred income taxes                                    8,603       8,247 
Long-term debt                                           4,200       6,500 
Accumulated postretirement medical benefit obligation   16,216      15,730 
Stockholders' equity:
      Class A Common $1 par (20,000,000 shrs. auth.;
        5,154,824 outstanding in 1998, excluding 
        1,048,448 held in treasury; 5,038,013 outstanding
        in 1997, excluding 995,943 held in treasury)     5,155       5,038
      Class B Common $1 par (10,000,000 shrs. auth.;
        1,734,723 outstanding in 1998, excluding
        271,867 held in treasury; 1,905,606 outstanding
        in 1997, excluding 260,283 held in treasury)     1,735       1,906 
      Additional paid-in capital                        40,466      38,730 
      Retained earnings reinvested and employed in
            the business                               147,098     137,788 
      Foreign currency translation adjustment           (3,653)     (3,155)
      Other equity adjustments                             284         158 
                  Total stockholders' equity           191,085     180,465 
                                                       246,641     238,746 



               See Notes to Consolidated Financial Statements
                                 Page 4 of 8
<PAGE>
                         THE L. S. STARRETT COMPANY
               Consolidated Statements of Stockholders' equity
      For the Thirty-nine Weeks Ended March 28, 1998 and March 29, 1997
                          (in thousands of dollars)
                                 (unaudited)


                           Common      Addi-                                
                          Stock Out-  tional               Equity           
                          standing   Paid-in   Retained    Adjust-          
                          ($1 Par)   Capital   Earnings    ments     Total  

Balance June 29, 1996
  (895,516 Class A
  and 220,572 Class B
  shares in treasury)        7,055    36,650   128,272    (4,692)  167,285 
Net earnings                                    13,971              13,971 
Dividends ($.54)                                (3,766)             (3,766)
Treasury shares:
  Purchased                   (217)   (1,245)   (4,409)             (5,871)
  Issued                        90     2,289                         2,379 
Options exercised               20       332                           352 
Translation gain, net                                      1,358     1,358 
Investment valuation                                          81        81 

Balance March 29, 1997
  (991,156 Class A
  and 251,731 Class B
  shares in treasury)        6,948    38,026   134,068    (3,253)  175,789 



Balance June 28, 1997
  (995,943 Class A
  and 260,283 Class B
  shares in treasury)        6,944    38,730   137,788    (2,997)  180,465 
Net earnings                                    16,799              16,799 
Dividends ($.57)                                (3,923)             (3,923)
Treasury shares:
  Purchased                   (132)     (826)   (3,566)             (4,524)
  Issued                        68     2,377                         2,445 
Options exercised               10       185                           195 
Translation loss, net                                       (498)     (498)
Investment valuation                                         126       126 

Balance March 28, 1998
  (1,048,448 Class A
  and 271,867 Class B
  shares in treasury)        6,890    40,466   147,098    (3,369)  191,085 











               See Notes to Consolidated Financial Statements
                                 Page 5 of 8
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                         THE L. S. STARRETT COMPANY

                 Notes to Consolidated Financial Statements


In the opinion of management, the accompanying financial statements contain
all adjustments, consisting only of normal recurring adjustments, necessary
to present fairly the financial position of the Company as of March 28,
1998 and June 28, 1997; the results of operations and cash flows for the
thirteen weeks and thirty-nine weeks ended  March 28, 1998 and March 29,
1997; and changes in stockholders' equity for the thirty-nine weeks ended March 
28, 1998 and March 29, 1997.

The Company follows the same accounting policies in the preparation of interim
statements as described in the Company's annual report filed on form 10-K for
the year ended June 28, 1997, and these financial statements should be read
in conjunction with said annual report. In the third quarter of fiscal 1998, 
the Company's operations in Brazil ceased to be considered highly inflationary 
and, accordingly, the Company now accounts for any resulting translation 
adjustments as a component of equity. 

Other income (expense) is comprised of the following (in thousands):

                                      Thirteen Weeks    Thirty-nine Weeks   
                                       Ended March        Ended March       
                                       1998     1997      1998     1997    

      Interest income                  711      528     2,099    1,464    
      Interest expense and com-
        mitment fees                  (171)    (176)     (628)    (540)    
      Realized and unrealized ex-
        change losses                 (237)     (21)     (469)    (105)    
      Other                             16      (15)      159      262
                                       319      316     1,161    1,081      


Approximately 70% of all inventories are valued on the LIFO method.  At
March 28, 1998, and June 28, 1997, total inventories are $25,444,000 and
$24,790,000 less, respectively, than if determined on a FIFO basis.


Long-term debt is comprised of the following (in thousands):

                                                March       June          
                                                1998        1997    

            Industrial revenue bond             1,800       2,100         
            Revolving credit agreement          3,000       5,000         
                                                4,800       7,100         
            Less current portion                  600         600         
                                                4,200       6,500         


In March 1997, the Financial Accounting Standards Board issued Statement of 
Financial Accounting Standards (FASB) No.128, Earnings per Share, which was 
effective during the second quarter of fiscal 1998. The adoption of this 
standard has had no effect on reported earnings per share. The Company will 
also be required to adopt FASB No. 130, Other Comprehensive Income, and FASB 
No. 131, Disclosures about Segments of an Enterprise and Related Information, 
in fiscal 1998.

                                 Page 6 of 8
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                         THE L. S. STARRETT COMPANY
                   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                FINANCIAL CONDITION AND RESULTS OF OPERATIONS

                            RESULTS OF OPERATIONS
Sales
Sales are up 1% for the quarter and 6% year to date. The increase in the
quarterly comparison is coming from domestic operations, and reflects continued 
good business conditions. The year to date increase is in both domestic and 
foreign operations. Volume at our foreign locations is being adversely affected 
by 1) the strong British pound, which makes our Scottish products less 
competitive in foreign markets and 2) general economic conditions in Brazil.
 
Earnings Before Taxes
Pretax earnings are up 17% for the quarter and 20% year to date. Again, these 
improvements are coming from domestic operations and follow the increase in 
sales volume mentioned above, the related efficiencies from the increased 
manufacturing activity, and the effects of various cost reduction initiatives. 

Income Taxes
The effective income tax rate is 33% for the quarter and 34% year to date. The 
rates were approximately the same in the corresponding periods in the prior 
year, and reflect the normal benefits of nontaxable investment income and lower 
foreign and Puerto Rican tax rates.
 
LIQUIDITY AND CAPITAL RESOURCES
                                            13 Weeks Ended     39 Weeks Ended   
                                           3/28/98  3/29/97   3/28/98  3/29/97
   Cash provided by operations              9,756    5,367    25,782   14,722
   Cash used in investing activities       (6,312)  (3,378)  (18,639)  (7,820)
   Cash used in financing activities       (4,371)  (2,249)   (9,388)  (7,795)
   Cash effect of translation rate changes     (2)     (38)       24       (7)
      Net increase (decrease) in cash        (929)    (298)   (2,221)    (900)

Increased cash flow provided by the increase in net earnings plus the net 
change in the components of working capital has been used primarily for 
increased additions to plant and short-term investments and repayment of bank 
debt.

The Company maintains sufficient liquidity and has adequate resources, 
including lines of credit, to fund its operations under current business 
conditions. The Company continues to maintain a strong financial position with 
a working capital ratio of 5.6 to 1 as of March 28, 1998 and 5.3 to 1 as of 
June 28, 1997.
SAFE HARBOR STATEMENT
UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF1995

This quarterly report includes forward-looking statements about the Company's 
business, sales, liquidity and capital resources, and other operating and 
capital requirements.  In addition, forward-looking statements concerning those 
and other issues may be included in future Company documents and in oral 
statements by Company representatives to security analysts and investors.  The 
Company is subject to risks that could cause actual events to vary materially 
from such forward-looking statements. Such risks relate to the unpredicta-
bility of foreign operations (particularly in Brazil), to the cyclical nature 
of the Company's industry (including the level of capital spending by 
industrial companies), and to competition, including pricing pressures from 
low-wage foreign sources and the effects of changes in foreign currency 
relationships. These risks are discussed in greater detail in Management's 
Discussion and Analysis of Financial Condition and Results of Operations in the 
Company's Report on Form 10K for the year ended June 28, 1997. 
                                 Page 7 of 8
<PAGE>
                         THE L. S. STARRETT COMPANY


                         PART II.  OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K.

6(a) Exhibit 11. Calculation of shares for computation of Consolidated
     Earnings per share
                                       13 Weeks Ended      39 Weeks Ended  
                                     3/28/98   3/29/97   3/28/98   3/29/97

Average number of shares out-
  standing during the period        6,879,588 6,977,310 6,889,267 7,011,779

Incremental shares computed on the
  assumption that dilutive stock
  options had been exercised with
  the proceeds used to purchase
  treasury stock                       14,819    14,034    14,919    11,289


Average common and common equiva-
  lent shares outstanding           6,894,407 6,991,344 6,904,186 7,023,068



                                 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.


                                        THE L. S. STARRETT COMPANY         
                                               (Registrant)                


Date      May 8, 1998                     S/R.U.WELLINGTON, JR.       
                                     R. U. Wellington, Jr. (Treasurer      
                                       and Chief Financial Officer)        


Date      May 8, 1998                        S/S.G.THOMSON                
                                 S. G. Thomson (Chief Accounting Officer)  















                                 Page 8 of 8
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