<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, 1998

[ ]      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, 1999.

Common Stock, No Par Value                                    4,668,911
--------------------------                                 ----------------
          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,
                                            1998                 1998
                                         (unaudited) 
                                         ------------        -------------

                                     ASSETS
                                     ------
<S>                                      <C>                 <C>            
CURRENT ASSETS

Cash and Cash Equivalents                $   724,482         $  1,924,006
Accounts Receivable (Net)                 18,899,386           24,235,761
Inventories                               42,290,752           38,873,477
Net Investment in Sales Type
   Leases - Current Portion                3,250,000            3,100,000
Prepaid Expenses                             565,483              543,095
                                         -----------          -----------

   Total Current Assets                   65,730,103           68,676,339
                                         -----------          -----------

Property and Equipment                    42,464,708           42,100,575
   Accumulated Depreciation              (19,559,704)         (18,834,030)

Net Property and Equipment                22,905,004           23,266,545
                                         -----------          -----------

Net Investment in Sales Type
   Leases - Less Current Portion           6,256,909            6,013,959
                                         -----------          -----------

Other Assets                               2,239,163            2,290,124
                                         -----------          -----------


Total Assets                             $97,131,179         $100,246,967
                                         ===========         ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES

Current Portion of Long-Term Debt          3,300,000            3,300,000
Accounts Payable                          15,847,909           18,405,224
Accrued Liabilities                        4,780,838            4,537,434
Federal and State Income Taxes                     0              513,994
                                         -----------          -----------

Total Current Liabilities                 23,928,747           26,756,652
                                         -----------          -----------

Deferred Income Taxes                      2,215,000            2,215,000
                                         -----------          -----------

Long Term Debt - Less
   Current Portion                        40,959,327           42,530,105
                                         -----------          -----------

Product Liability                          2,631,313            1,909,904
                                         -----------          -----------

Stockholders' Equity                      27,396,792           26,835,306
                                         -----------          -----------

Total Liabilities and
   Stockholders' equity                  $97,131,179         $100,246,967
                                         ===========         ============

</TABLE>
See notes to condensed consolidated financial statements.

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<PAGE>   3
                            MCCLAIN INDUSTRIES, INC.
                            ------------------------
                 CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
                 -----------------------------------------------
                                    UNAUDITED
                                    ---------
<TABLE>
<CAPTION>

                                         Three Months Ended
                                            December 31,

                                        1998           1997   
                                  --------------------------
<S>                               <C>            <C>              

Net Sales                         $27,156,906    $23,625,324
Cost of Sales                      22,314,809     19,252,930
                                  -----------    -----------
Gross Profit                        4,842,097      4,372,394

Selling General
and Administrative
Expenses                            3,446,543      3,278,925
                                  -----------    -----------

Operating Income                    1,395,554      1,093,469
                                  -----------    -----------

Other Income (Expense)
   Interest Expense                  (863,076)      (831,574)
   Interest Income                    363,639        308,819
   Other Income (Expense)            ( 45,631)      ( 59,177)
                                  -----------    -----------

   Net Other Expense                 (545,068)      (581,932)
                                  -----------    -----------

Income Before Income Taxes            850,486        511,537
  Income Taxes                        289,000        174,000
                                  -----------    -----------

Net Income                        $   561,486    $   337,537
                                  ===========    ===========

Net income per common
share (basic and diluted)         $       .12    $       .07
                                  ===========    ===========

Weighted average number of
common shares (basic and
diluted)                            4,682,160      4,762,953
                                  ===========    ===========

</TABLE>
See notes to condensed consolidated financial statements


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<PAGE>   4
                            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,    
                                    --------------------------
                                      1998                1997
                                      ----                ----
<S>                                  <C>                <C>       
Net Sales                            100.00%            100.00%
Cost of Sales                         82.17              81.49
                                    -------            -------
Gross Profit                          17.83              18.51

Selling, General &
Administrative Expenses               12.69              13.88
                                    -------            -------

Operating Income                       5.14               4.63

Other Expenses                       ( 2.01)             (2.46)
                                    -------            -------

Income Before Income Taxes             3.13               2.17

Provision for Income Taxes             1.06                .74
                                    -------            -------

Net Income                             2.07%              1.43%
                                    =======            =======
</TABLE>



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<PAGE>   5
                            MCCLAIN INDUSTRIES, INC.
                            ------------------------


                 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                 ----------------------------------------------



Net sales increased 14.95% to $27.2 million for the quarter ended December 31,
1998 (Quarter 1998) from $23.6 million for the quarter ended December 31, 1997
(Quarter 1997). The increase in sales is attributable primarily to strong sales
in the McClain E-Z Pack product line and the company's truck program.
Cost of sales as a percentage of net sales increased to 82.17% for the Quarter
1998 from 81.49% for the Quarter 1997. Selling, General and Administrative
expenses decreased to 12.69% of net sales for the Quarter 1998 as a result of
the increased sales volume and the restructing of certain administrative
processes.




          The Company had working capital of $41.8 million at December 31, 1998
compared to $41.9 million at September 30, 1998. The ratio of current assets to
current liabilities was 2.75 to 1 at December 31, 1998 compared to 2.57 to 1 at
September 30, 1998. The Company's cash and cash equivalents totaled $.72 million
at December 31, 1998. Cash flows from operations were $.7 million for the
quarter ended December 31, 1998, primarily as a result of increased receivable
collections.




          The Company uses computer hardware and financial and manufacturing 
software that it purchased from third party suppliers.  Such suppliers have 
confirmed to the Company that such products are Year 2000 compliant.  
Consequently, the Company does not expect to incur any significant costs to 
become Year 2000 compliant.  The Company has no information concerning the Year 
2000 compliance status of its suppliers or customers.  If any of the Company's 
significant suppliers or customers does not successfully and timely become Year 
2000 compliant, the Company's business or operations could be adversely
affected.  The Company has not yet generated any disaster contingency plans 
related to the Year 2000 compliance issue.



























<PAGE>   6
                                   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 8, 1999          By:   /s/ Kenneth D. McClain 
      -----------------------           ------------------------
                                   Kenneth D. McClain, President




Date:    FEBRUARY 8, 1999           By:  /s/ Mark S. Mikelait     
      ------------------------          --------------------------
                                    Mark S. Mikelait, Treasurer








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<PAGE>   7
                                 Exhibit Index
                                 -------------


Exhibit No.                    Description
-----------                    -----------
   27                          Financial Data Schedule