<PAGE>   1
                                    FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                  Quarterly Report Under Section 13 or 15(d) of
                       The Securities Exchange Act of 1934


(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
    ACT OF 1934 
    For the quarterly period ended December 31, 1997

[ ] TRANSITION REPORT PURSUANT OR SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 
    For the transition period from _____________to ______________


                           Commission File No. 0-7770

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

Michigan                                                             38-1867649
  State of Incorporation                                I.R.S. Employer I.D. No.

                               6200 Elmridge Road
                        Sterling Heights, Michigan 48310
                                 (810) 264-3611
          (Address of principal executive offices and telephone number)


         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
filing requirements for the past 90 days. Yes X . No .
                                             --- --- 
         Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of February 5, 1998.

Common Stock, No Par Value                          4,762,952
--------------------------                       ----------------
          Class                                  Number of Shares



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<PAGE>   2

                         PART I. FINANCIAL INFORMATION
Item 1.  Financial Statements
 
                           MCCLAIN INDUSTRIES, INC.
                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                       DECEMBER 31,    SEPTEMBER 30,
                                           1997            1997
                                       (unaudited)
                                      -------------    -------------
                                   ASSETS
<S>                                   <C>             <C>
CURRENT ASSETS
Cash and Cash Equivalents               $1,940,703      $2,402,421
Accounts Receivable (Net)               15,706,350      16,589,263
Inventories                             31,281,949      31,011,766
Net Investment in Sales Type          
   Leases - Current Portion              2,775,000       2,900,000
Prepaid Expenses                           301,095         362,029
Refundable Federal & State                 384,867         837,638
                                      ------------    ------------
   Total Current Assets                 52,389,964      54,103,117
                                      ------------    ------------
                                      
Property and Equipment                  41,789,816      41,470,473
   Accumulated Depreciation            (16,966,389)    (16,229,849)
                                      ------------    ------------
                                      
Net Property and Equipment              24,823,427      25,240,624
                                      ------------    ------------
Net Investment in Sales Type          
   Leases - Less Current Portion         5,387,442       5,348,773
                                      ------------    ------------
                                      
Other Assets                             2,294,986       2,493,053
                                      ------------    ------------
                                      
Total Assets                           $84,895,819     $87,185,567
                                      ============    ============

                     LIABILITIES AND STOCKHOLDERS' EQUITY

<CAPTION>
CURRENT LIABILITIES
Current Portion of Long-Term Debt      $ 2,800,000      $2,800,000
Accounts Payable                        13,565,299      14,132,646
Accrued Liabilities                      3,483,803       3,650,468
                                      ------------    ------------
                                      
Total Current Liabilities               19,849,102      20,583,114
                                      ------------    ------------
                                      
Deferred Income Taxes                    2,100,000       2,100,000
                                      ------------    ------------
                                      
Long Term Debt - Less                 
   Current Portion                      36,347,508      38,513,490
                                      ------------    ------------
                                      
Other Liabilities                        2,403,212       2,151,872
                                      ------------    ------------
                                      
Stockholders' Equity                    24,195,997      23,837,091
                                      ------------    ------------
Total Liabilities and                 
   Stockholders' equity                $84,895,819     $87,185,567
                                      ============    ============

</TABLE>

See notes to condensed consolidated financial statements.
                                     2 of 11
<PAGE>   3

                            MCCLAIN INDUSTRIES, INC.

                 CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
                                    UNAUDITED



<TABLE>
<CAPTION>
                                                    Three Months Ended
                                                         December 31,

                                                    1997               1996
                                                -------------------------------
<S>                                            <C>                <C>
Net Sales                                      $ 23,625,324        $ 20,312,230
Cost of Sales                                    19,252,930          16,506,633
                                               ------------        ------------
Gross Profit                                      4,372,394           3,805,597

Selling General
and Administrative
Expenses                                          3,278,925           3,170,269
                                               ------------        ------------

Operating Income                                  1,093,469             635,328
                                               ------------        ------------

Other Income (Expense)
   Interest Expense                                (831,574)           (724,161)
   Interest Income                                  308,819             251,164
   Other Income (Expense)                           (59,177)           (106,263)
                                               ------------        ------------

   Total Other Income (Expense)                    (581,932)           (579,260)

Income Before Income Taxes                          511,537              56,068
  Income Taxes                                      174,000              19,000
                                               ------------        ------------
Net Income                                     $    337,537        $     37,068
                                               ============        ============

Net income per common
and common equivalent shares                   $        .07        $        .01
                                               ============        ============

Weighted average number of
common and common equivalent
shares outstanding                                4,762,953           4,753,836
                                               ============        ============
</TABLE>





See notes to condensed consolidated financial statements.

                                     3 of 11


<PAGE>   4

                            MCCLAIN INDUSTRIES, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    UNAUDITED




<TABLE>
<CAPTION>

                                                          THREE MONTHS ENDED
                                                              DECEMBER 31,
                                                           1 9 9 7    1 9 9 6
                                                          --------   ---------
<S>                                                     <C>         <C>
Net income                                               $ 337,537   $  37,068
Adjustments to reconcile net income to net
  cash provided by operating activities
   Depreciation and amortization                           857,339     843,596
   Changes in assets and liabilities which
    provided (used) cash
     Current assets excluding cash & equivalents           798,664     912,159
     Other assets                                           46,287  (2,438,750)
     Accounts payable                                     (567,347)  2,037,087
     Accrued expenses                                     (166,665)   (445,530)
     Federal income taxes                                  452,771      37,293
     Other liabilities                                     251,340      35,224
                                                         ---------   ---------

  NET CASH (USED IN)PROVIDED BY FINANCING ACTIVITIES     2,009,926   1,018,147
                                                         ---------   ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property and equipment                     (327,031) (1,244,856)
                                                         ---------   ---------

   NET CASH USED IN INVESTING ACTIVITIES                  (327,031) (1,244,856)
                                                         ---------   ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Principal additions of long term debt                       0        953,954
  Principal reductions of long term debt                (2,165,982)   (545,000)
  Sale of common stock                                      61,369        0
  Redemption of common stock                               (40,000)       0
                                                        ----------   ---------

  NET CASH PROVIDED BY FINANCING ACTIVITIES             (2,144,613)    408,954
                                                        ----------   ---------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS      (461,718)    182,245

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD           2,402,421   1,065,039
                                                        ----------   ---------

CASH AND CASH EQUIVALENTS, END OF PERIOD                $1,940,703  $1,100,007
                                                        ==========  ==========

</TABLE>


See notes to condensed consolidated financial statements.
                                     4 of 11
<PAGE>   5

                            MCCLAIN INDUSTRIES, INC.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                      THREE MONTHS ENDED DECEMBER 31, 1997

1.  Basis of Presentation

     The accompanying unaudited Consolidated Financial Statements of McClain
Industries, Inc. and subsidiaries (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of Regulation
S-X. Accordingly, such statements do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included. Operating results for the
three month period ended December 31, 1997, are not necessarily indicative of
the results that may be expected for any other period of for the year ending
September 30, 1998. For further information, refer to the Consolidated Financial
Statements and footnotes thereto included in the Company's annual report on Form
10-K for the year ended September 30, 1997.

    Certain amounts reported in 1996 have been reclassified to conform to the
1997 presentation. 

2.  Inventories

     Inventories at December 31, 1997 and September 30, 1997 are summarized as
follows:

<TABLE>
<CAPTION>
                                                (Unaudited)
                                            December 31, 1997    September 30, 1997
                                            -----------------    ------------------
<S>                                          <C>                  <C>
Material and Supplies                         $17,481,949          $17,221,766
Work in Process                                 6,600,000            6,664,000
Finished Goods                                  7,200,000            7,126,000
                                              -----------          -----------
                                              $31,281,949          $31,011,766
                                              ===========          ===========

</TABLE>

3. Earnings per Common Share and Common Equivalent Share:

     Earnings per common share and common equivalent share were calculated using
the weighted average number of common shares and common stock equivalents
outstanding during the year. The weighted average number of common shares
actually outstanding was increased by the number of shares issuable on the
exercise of the dilutive stock options when the market price of the common
shares exceeds the option price granted. This increase in the number of common
shares was reduced by the number of common shares that are assumed to have been
purchased with the proceeds from the exercise of the stock options; those
purchases were assumed to have been made at the average price of the common
stock during the period.


                                     5 of 11

<PAGE>   6

                            MCCLAIN INDUSTRIES, INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                      THREE MONTHS ENDED DECEMBER 31, 1997


4.  Depreciation

    For the three months ended December 31, 1997 and 1996, depreciation charges
were $774,228 and $691,040, respectively.

5.  Contingencies

    Legal Proceedings

    The Company is from time to time subject to various claims from existing or
former employees alleging gender, age or racial discrimination and anti-union
activity, none of which are expected to have a material adverse affect on the
Company. In addition, as a manufacturer of industrial products, the Company is,
from time to time, subjected to various product liability claims. Such claims
typically involve personal injury or wrongful death associated with the use or
misuse of the Company's products. While such claims have not been material to
the Company in any year and the Company believes that it maintains adequate
product liability insurance, there can be no assurance that such insurance will
continue to be available on terms acceptable to the Company. Any product
liability claim not fully covered by insurance, as well as any adverse publicity
from a product liability claim, could have a material adverse effect on the
Company. The Company is currently defending a few legal proceedings involving
product liability claims relating to McClain, Galion Dump and E-Z Pack brand
products. Galion Holding, pursuant to an indemnification it provided Peabody
Galion Division of Peabody International Corporation ("Peabody") in connection
with the Galion Acquisition, is currently defending a number of legal
proceedings involving product liability claims arising out of products
manufactured by Peabody prior to the date of the Galion Acquisition. These
claims are also covered by insurance. Although the Company has already settled
many of these cases and the Company believes that it can continue to
successfully resolve these product liability claims, there can be no assurance
that the Company can continue to do so. The Company is not presently a party to
any material legal proceedings except as described above.


                                   (continued)



                                     6 of 11


<PAGE>   7



                            MCCLAIN INDUSTRIES, INC.

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
                      THREE MONTHS ENDED DECEMBER 31, 1997


5.  Contingencies - (continued)

    Environmental Matters

    The Company's operations are subject to extensive federal,
state and local regulation under environmental laws and regulations concerning,
among other things, emissions into the air, discharges into the waters and the
generation, handling, storage, transportation, treatment and disposal of waste
and other materials. Inherent in manufacturing operations and in owning real
estate is the risk of environmental liabilities as a result of both current and
past operations, which cannot be predicted with certainty. The Company has
incurred and will continue to incur costs, on an ongoing basis, associated with
environmental regulatory compliance in its business.

    State and local agencies have become increasingly active in
the environmental area. The increased regulation by multiple agencies can be
expected to increase the Comapany's future environmental costs. In particular,
properties under federal and state scrutiny frequently result in significant
clean-up costs and litigation expenses related to a party's clean-up obligation.
However, the Company believes that the ever-increasing waste stream and the
continuing initiatives of government authorities relating to environmental and
waste disposal problems, including restrictions on landfill locations and
operations and extensive regulation relating to the disposal of waste, create
significant opportunities for companies in the solid waste handling equipment
industry. In addition, the trend towards classifying more materials as
"semi-hazardous" or "hazardous" waste may be expected to continue to make
handling such materials more complex, thereby further facilitating the market
for solid waste handling products.







                                     7 of 11


<PAGE>   8

                            MCCLAIN INDUSTRIES, INC.


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

Overview

   The following discussion should be read in conjunction with the condensed 
consolidated financial statements, including the notes thereto, appearing 
elsewhere in this report.

   Selected financial data for the Company for the periods indicated:



<TABLE>
<CAPTION>
                                                             (Unaudited)
                                                         Three Months Ended
                                                             DECEMBER 31,
                                                        ----------------------
                                                        1997             1996
                                                        ----             ----
<S>                                               <C>               <C>
Net Sales                                          $23,625,324       $20,312,230

Net Income                                             337,537            37,068

Net Earnings Per Common
and Common Equivalent Share                               $.07              $.01
</TABLE>



<TABLE>
<CAPTION>
                                                   (Unaudited)
                                                      As of            As of
                                                   December 31,    September 30,
                                                      1997             1997
                                                   -----------------------------
<S>                                                <C>               <C>
Working Capital                                    $32,540,862       $33,520,003

Total Assets                                        84,895,819        87,185,567

Long-Term Debt                                      36,347,508        38,513,490

Stockholders' Equity                                24,195,997        23,837,091

Weighted Average Number
of Common and Common Equivalent
Shares Outstanding                                   4,762,953         4,729,281

Current Ratio                                         2.64:1              2.63:1

Long-Term Debt to Equity                              1.50:1              1.62:1

</TABLE>


                                     8 of 11


<PAGE>   9

                            MCCLAIN INDUSTRIES, INC.

 The following table presents, as a percentage of net sales, certain selected
financial data for the Company for the periods indicated:



<TABLE>
<CAPTION>
                                                         (Unaudited)
                                                     Three Months Ended
                                                        December 31,
                                               ---------------------------------
                                                1997                     1996
                                               -----                     ----
<S>                                           <C>                     <C>
Net Sales                                      100.00%                 100.00%
Cost of Sales                                   81.49                   81.26
                                               ------                  ------
Gross Profit                                    18.51                   18.74


Selling, General &
Administrative Expenses                         13.88                   15.61
                                               ------                  ------
Operating Income                                 4.63                    3.13
Other Expenses                                  (2.46)                  (2.85)
                                               ------                  ------
Income Before Income Taxes                       2.17                     .28
Provision for Income Taxes                        .74                     .10
                                               ------                  ------
Net Income                                       1.43%                    .18%
                                               ======                  ======


</TABLE>






                                   9 of 11













<PAGE>   10
                            McCLAIN INDUSTRIES, INC.


                 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION



Net sales increased 16.31% to $23.6 million for the quarter ended December 31,
1997 (Quarter 1997) from $20.3 million for the quarter ended December 31, 1996
(Quarter 1996). The increase in sales is attributable primarily to strong sales
in the McClain E-Z Pack product line. Cost of sales as a percentage of net sales
increased to 81.49% for the Quarter 1997 from 81.26% for the Quarter 1996.
Selling, General and Administrative expenses decreased to 13.88% of net sales
for the Quarter 1997 as a result of the increased sales volume and the
restructing of certain administrative processes.




     The Company had working capital of $32.5 million at December 31, 1997
compared to $33.5 million at September 30, 1997. The ratio of current assets to
current liabilities was 2.64 to 1 at December 31, 1997 compared to 2.63 to 1 at
September 30, 1997. The Company's cash and cash equivalents totaled $1.94
million at December 31, 1997. Cash flows from operations were $2.0 million for
the quarter ended December 31, 1997, primarily as a result of increased
receivable collections. 












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<PAGE>   11


                                  SIGNATURES





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









                                      McCLAIN INDUSTRIES, INC.



Date:    FEBRUARY 5, 1998          By:  /s/ Kenneth D. McClain      
      -----------------------           --------------------------  
                                   Kenneth D. McClain, President    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
Date:    FEBRUARY 5, 1998           By:   /s/ Mark S. Mikelait      
        ------------------------          ------------------------- 
                                    Mark S. Mikelait, Treasurer     
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    
                                                                    



                                   11 of 11

<PAGE>   12





                              INDEX TO EXHIBITS

EXHIBIT NO.                                       DESCRIPTION
-----------                                       -----------
    27                                            Financial Data Schedule