================================================================================

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

[X]      QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
         ACT OF 1934

         For Quarterly Period Ended July 4, 1998

                                       or

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

         For the transition period from _________ to _________


                        Commission file number 333-26943


                              MOLL INDUSTRIES, INC.
             (Exact Name of Registrant as Specified in its Charter)


          Delaware                                               04-3084238
(State or Other Jurisdiction of                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


                              ANCHOR HOLDINGS, INC.
             (Exact Name of Registrant as Specified in its Charter)


          Delaware                                               62-1427775
(State or Other Jurisdiction of                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


                        1111 Northshore Drive, Suite 600
                            Knoxville, TN 37919-4048
                    (Address of Principal Executive Offices)
                                   (Zip Code)


Registrant's Telephone Number, Including Area Code      (423) 450-5300


                         ANCHOR ADVANCED PRODUCTS, INC.
         (Former Name, Former Address and Former 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
filing requirements for the past 90 days. Yes  X    No 
                                             -----    -----

         Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.

      Date                       Class                       Outstanding Shares
      ----                       -----                       ------------------
August 19, 1998         Anchor Holdings, Inc.
                        Common Stock, $.01 par value             1,551,218


Moll Industries, Inc. is a wholly-owned subsidiary of Anchor Holdings, Inc.

================================================================================


<PAGE>


                 MOLL INDUSTRIES, INC. AND ANCHOR HOLDINGS, INC.

                                TABLE OF CONTENTS

                                                                          Page
                                                                          ----

Introduction                                                                 1

PART I.      FINANCIAL INFORMATION

Item 1.      Financial Statements                                            2

             Consolidated Balance Sheets at July 4, 1998                     2
             and December 31, 1997

             Consolidated Statements of Income for
             the Thirteen and Twenty-six Weeks Ended July 4, 1998
             and June 30, 1997                                             3-4

             Consolidated Statements of Cash Flows
             for the Thirteen and Twenty-six Weeks Ended
             July 4, 1998 and June 30 1997                                 5-6

             Notes to Consolidated Financial Statements                    7-10


Item 2.      Management's Discussion and Analysis of Financial
             Condition and Results of Operations                             11


PART II.     OTHER INFORMATION

Item 1.      Legal Proceedings                                               15
Item 2.      Changes in Securities                                           15
Item 3.      Defaults Upon Senior Securities                                 15
Item 4.      Submission of Matters to a Vote of Security Holders             15
Item 5.      Other Information                                               15
Item 6.      Exhibits and Reports on Form 8-K                                15
 
Signatures                                                                   16



                                       ii

<PAGE>


Introduction

     Moll Industries, Inc., (the "Company"), is a leading full service
manufacturer and designer of custom molded and assembled plastic components for
a broad variety of customers and end markets throughout North America and
Europe. Anchor Holdings, Inc. ("Holdings") does not have any material operations
or assets other than ownership of all the capital stock of the Company. The
Company was formed through the merger (the "Merger") of two leading plastic
injection molders, Moll PlastiCrafters Limited Partnership ("Moll") and Anchor
Advanced Products, Inc. ("Anchor"). The Merger was structured with the owners of
Moll contributing their interests in Moll to AMM Holdings, Inc. ("AMM Holdings")
in exchange for common shares of AMM Holdings. AMM Holdings contributed these
interests in Moll to Holdings, and ultimately to Anchor. Moll was then merged
with Anchor, with Anchor surviving the Merger and changing its name to "Moll
Industries, Inc." As part of the Merger, the Company assumed all the assets of
Moll. Such assets included all the equity interests in Moll's foreign
subsidiaries, which operate in France, Germany, the United Kingdom and Portugal.
As a result of the Merger, all the U.S. operating assets of Moll and Anchor are
held by the Company. As the successor corporation in the Merger, the Company
also assumed the debt and other obligations of Anchor and Moll. See note 1 to
the Notes to Consolidated Financial Statements for a description of the Merger
and the accounting treatment thereof.

     Concurrently with the Merger, the Company also issued $130,000,000
aggregate principal amount of its 10 1/2% Senior Subordinated Notes due 2008
pursuant to an offering which was exempt from the registration requirements of
the Securities Act of 1933, as amended and applicable state securities laws.
Holdings is also the guarantor of the Company's 11 3/4% Series B Senior Notes
due 2004 (the "Senior Notes") originally issued by Anchor.

     The structure of the Company following the Merger is as indicated in the
table below:

                           ---------------------------
                               AMM Holdings, Inc.
                           ---------------------------
                                       |
                                       |
                                       |
                                       |
                           ---------------------------
                             Anchor Holdings, Inc.
                           ---------------------------
                                       |
                                       |
                                       |
                                       |
                           ---------------------------
                             Moll Industries, Inc.
                           ---------------------------
                                       |
                                       |
                                       |
                                       |
    ------------------------------------------------------------------
    |                |                 |               |              |
    |                |                 |               |              |
    |                |                 |               |              |
    |                |                 |               |           Anchor
Cepillos De       Hanning-            Moll            Moll        Advanced 
 Matamoros      Kunststoffe       Industries UK,    Plastics   Products Foreign
S.A. de C.V.    GmbH & Co.          Limited           SARL          Sales
                                                                 Corporation
--------------------------------------------------------------------------------


     Note: Certain subsidiaries of the Company are held through one or more
intermediate holding companies for certain corporate and tax considerations.
However, such holding companies have not been reflected on this chart.

<PAGE>


PART I.           FINANCIAL INFORMATION

Item 1.           Financial Statements


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                           Consolidated Balance Sheets
                          (in thousands and unaudited)

<TABLE>
<CAPTION>

                                                                              July 4,        December 31,
                                                                               1998             1997
                                                                               ----             ----
<S>                                                                          <C>               <C>
                                     ASSETS

Current Assets:
   Cash                                                                      $ 29,668          $ 1,729
   Accounts receivable, net of reserves for doubtful accounts                                  
     of $2,037 and $579, respectively                                          75,117           22,484
   Inventories, net                                                            53,922           15,580
   Deposits on tooling                                                          4,551            6,877
   Equipment held for sale                                                         --              417
   Other current assets                                                         4,257              392
                                                                             --------          -------
     Total current assets                                                     167,515           47,479
Property, Plant and Equipment, net                                            118,933           35,418
Receivable from Affiliates                                                        390              465
Goodwill, net                                                                  36,411               --
Other Intangible and Non-current Assets, net                                   16,206            3,563
                                                                             --------          -------
       Total assets                                                          $339,455          $86,925
                                                                             ========          =======

                             LIABILITIES AND EQUITY                                            

Current Liabilities:                                                                           
   Checks drawn in excess of cash on deposit                                 $  1,005          $   143
   Customer deposits on tooling                                                 4,669            7,412
   Current portion of other long-term obligations                               7,575            5,059
   Accounts payable                                                            36,762           16,588
   Accrued liabilities                                                         27,774            5,506
                                                                             --------          -------
     Total current liabilities                                                 77,785           34,708
                                                                             --------          -------
Notes Payable                                                                 230,000               --
Other Long-term Obligations, net of current portion                            15,025           42,873
                                                                             --------          -------
Deferred Income Taxes                                                           6,972               10
                                                                             --------          -------
Other Non-current Liabilities                                                   7,741            1,157
                                                                             --------          -------
Commitments and Contingencies                                                      --               --
                                                                             --------          -------
Minority Interest                                                                  --            2,213
                                                                             --------          -------
Equity:                                                                                        
   Partners' Capital                                                               --            5,962
   Common stock ($.01 par value, 2,000 shares authorized,                                      
     1,551 shares issued and outstanding)                                          15               --
   Additional contributed capital                                               2,000               --
   Treasury stock at cost                                                         (10)              --
   Retained earnings                                                              372               --
   Accumulated other comprehensive income                                        (445)               2
                                                                             --------          -------
     Total equity                                                               1,932            5,964
                                                                             --------          -------
       Total liabilities and equity                                          $339,455          $86,925
                                                                             ========          =======
</TABLE>


     See accompanying notes to consolidated financial statements (unaudited)


                                       2
<PAGE>


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                        Consolidated Statements of Income
                          (in thousands and unaudited)

<TABLE>
<CAPTION>

                                                 Thirteen Weeks Ended           Twenty-six Weeks Ended
                                              --------------------------      --------------------------
                                               July 4,         June 30,         July 4,        June 30,
                                                1998             1997            1998            1997
                                                ----             ----            ----            ----
<S>                                           <C>              <C>             <C>             <C>
Net sales                                     $63,063          $28,122         $123,169        $53,755

Cost of goods sold                             51,358           21,791          102,096         41,867
                                              -------          -------         --------        -------

Gross profit                                   11,705            6,331           21,073         11,888

Selling, general and administrative
  expense                                       5,159            2,076            9,587          4,177
                                                
Management and consulting fee to related
  parties                                         427              439            1,198            842
                                              -------          -------         --------        -------

Operating income                                6,119            3,816           10,288          6,869

Other expense:
   Interest expense, net                        2,643              748            4,979          1,423
   Minority interest in subsidiary
     income                                         2               79              239            399
   Other, net                                     392              202              538             91
                                              -------          -------         --------        -------
                                                3,037            1,029            5,756          1,913

Income before income taxes and
extraordinary item                              3,082            2,787            4,532          4,956

Provision for income taxes                        651               --              744             --
                                              -------          -------         --------        -------

Income before extraordinary item                2,431            2,787            3,788          4,956

Extraordinary item - loss on early
extinguishment of debt                          1,235               --            1,971             --
                                              -------          -------         --------        -------

Net income                                    $ 1,196          $ 2,787         $  1,817        $ 4,956
                                              =======          =======         ========        =======

Earnings per share                            $  1.57          $  1.80         $   2.44        $  3.20
                                              =======          =======         ========        =======

Weighted average common shares
outstanding                                     1,551            1,551            1,551          1,551
                                              =======          =======         ========        =======
</TABLE>


     See accompanying notes to consolidated financial statements (unaudited)


                                       3
<PAGE>


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                 Consolidated Statements of Comprehensive Income
                          (in thousands and unaudited)

<TABLE>
<CAPTION>

                                                 Thirteen Weeks Ended           Twenty-six Weeks Ended
                                              --------------------------      --------------------------
                                               July 4,         June 30,        July 4,         June 30,
                                                1998             1997           1998             1997
                                                ----             ----           ----             ----
<S>                                           <C>              <C>             <C>             <C>
Net Income                                    $1,196           $2,787          $1,817          $4,956
                                                                                               
Other Comprehensive Income:                                                                    
   Foreign currency translation                                                                
     adjustment                                  460               11            (120)            (68)
                                              ------           ------          ------          ------

Comprehensive Income                          $1,656           $2,798          $1,697          $4,888
                                              ======           ======          ======          ======
</TABLE>


     See accompanying notes to consolidated financial statements (unaudited)


                                       4
<PAGE>


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                      Consolidated Statements of Cash Flows
                          (in thousands and unaudited)

<TABLE>
<CAPTION>

                                                        Thirteen Weeks Ended              Twenty-six Weeks Ended
                                                    ----------------------------       ----------------------------
                                                      July 4,           June 30,        July 4,           June 30,
                                                       1998               1997           1998               1997
                                                       ----               ----           ----               ----
<S>                                                  <C>                <C>            <C>                <C>
Cash Flows from Operating Activities:
   Net income                                        $  1,196           $ 2,787        $  1,817           $ 4,956
   Adjustments to reconcile net                                         
     income to net cash provided by                                     
     operating activities:                                              
       Depreciation and amortization                    2,947             1,123           5,086             2,357
       Loss on early extinguishment of debt             1,235                --           1,971                --
       Gain on disposal of fixed assets                  (139)              (69)           (134)              (69)
       Deferred income taxes                              108                --             199                --
       Minority interest in subsidiary income               2                79             239               399
       Changes in assets and liabilities, net                           
        of assets purchased and liabilities                            
        assumed:                                                       
         Accounts receivable                           (7,942)           (5,149)         (5,073)           (8,475)
         Receivable from affiliates                        74                --              74                --
         Inventories                                      941               346            (591)             (579)
         Other current assets                            (405)               98            (964)             (299)
         Deposits on tooling                            3,694               921           2,773               367
         Other assets                                  (1,353)              186          (1,300)              249
         Accounts payable                                 458               687          (1,507)            1,552
         Accrued liabilities                            4,876             1,202           1,842               978
         Customer deposits on tooling                  (3,536)             (832)         (2,856)              (83)
         Checks drawn in excess of cash on                              
           deposit                                       (215)              122           1,149               119
                                                     --------           -------        --------           -------
             Total adjustments                            745            (1,286)            908            (3,484)
                                                     --------           -------        --------           -------
         Net cash provided by operating                                 
           activities                                   1,941             1,501           2,725             1,472
                                                     --------           -------        --------           -------
                                                                        
Cash Flows from Investing Activities:                                   
   Capital expenditures                                (3,778)           (1,112)         (6,983)           (1,447)
   Proceeds on disposal of fixed assets                   136                --             553               100
   Purchase of Somomeca                                    --                --         (11,737)               --
   Purchase of Anchor                                  (6,453)               --          (6,453)               --
   Purchase of Gemini                                  (9,954)               --          (9,954)               --
                                                     --------           -------        --------           -------
       Net cash used in investing activities          (20,049)           (1,112)        (34,574)           (1,347)
                                                     --------           -------        --------           -------
</TABLE>


                                   (continued)



                                       5
<PAGE>


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                      Consolidated Statements of Cash Flows
                          (in thousands and unaudited)

<TABLE>
<CAPTION>

                                                         Thirteen Weeks Ended                  Twenty-six Weeks Ended
                                                    ------------------------------           --------------------------
                                                     July 4,              June 30,            July 4,         June 30,
                                                      1998                  1997               1998             1997
                                                      ----                  ----               ----             ----
<S>                                                 <C>                   <C>                <C>              <C>
Cash Flows from Financing Activities:
   Net proceeds from (payments on)
     revolving loan facility                       $    (792)             $ 3,224            $ (10,594)       $ 3,954
   Proceeds from issuance of long-term                                                                       
     obligations                                     130,910                  502              187,218          1,232
   Principal payments on long-term                                                                           
     obligations                                     (82,419)              (1,281)            (106,157)        (2,579)
   Financing costs                                    (5,813)                  --               (7,517)            --
   Capital contribution from parent                    2,000                   --                2,000             --
   Distributions                                      (2,936)              (1,793)              (4,795)        (1,831)
   Distributions to minority partners of                                                                     
     Reliance                                           (643)                  (4)                (643)            (4)
                                                   ---------              -------            ---------        -------
       Net cash provided by financing                                                                        
         activities                                   40,307                  648               59,512            772
                                                   ---------              -------            ---------        -------
                                                                                                             
Effect of Exchange Rate Changes in Cash                  328                   (3)                 276            (13)
                                                   ---------              -------            ---------        -------
                                                                                                             
Net Change in Cash                                    22,527                1,034               27,939            884
                                                                                                             
Balance at Beginning of Period                         7,141                  728                1,729            878
                                                   ---------              -------            ---------        -------
                                                                                                             
Balance at End of Period                           $  29,668              $ 1,762            $  29,668        $ 1,762
                                                   =========              =======            =========        =======
                                                                                                             
Supplemental Cash Flow Information:
   Cash paid for interest                          $   2,104              $   834            $   4,574        $ 1,595
                                                   =========              =======            =========        =======
   Cash paid for taxes                             $     167              $    --            $     167        $    --
                                                   =========              =======            =========        =======
</TABLE>


Non-cash Transactions:

In June 1997, the Company terminated a capital lease that resulted in a
reduction of debt by $2,503 and a reduction in fixed assets by $1,205.

In June 1998, the Company distributed its investment in Reliance L.P. of $3,135
to its partners. Reliance had a cash balance of $543 at the time of the
distribution.


     See accompanying notes to consolidated financial statements (unaudited)


                                       6
<PAGE>


           Anchor Holdings, Inc. and Subsidiary, Moll Industries, Inc.
                   Notes to Consolidated Financial Statements
                          (in thousands and unaudited)

Anchor Holdings, Inc. ("Holdings") was incorporated March 9, 1990, under the
laws of the State of Delaware. Holdings is the wholly-owned subsidiary of AMM
Holdings, Inc. ("AMM Holdings", formerly known as Anchor Acquisition Co.), which
is not consolidated herein. Holdings owns Moll Industries, Inc. (the "Company",
formerly known as Anchor Advanced Products, Inc.) through which, including its
subsidiaries, it designs and manufactures custom molded products and assembled
plastic components for a broad variety of customers and end markets throughout
North America and Europe. The Company's products are sold to a wide range of
end-markets, including end markets for consumer products,
telecommunication/business equipment, household appliances, automobile and
medical devices. The Company's manufacturing facilities are located primarily in
the United States, France, Germany, Mexico and the United Kingdom.

1.   Merger with Moll PlastiCrafters Limited Partnership

Effective June 26, 1998, the owners of Moll PlastiCrafters Limited Partnership
("Moll") contributed their interest in Moll to AMM Holdings in exchange for
common shares of AMM Holdings. AMM Holdings contributed these interests in Moll
to Holdings and ultimately to Anchor Advanced Products, Inc. ("Anchor"). Moll
was merged into Anchor (the "Merger") at which time the name of Anchor was
changed to Moll Industries, Inc. As the owners of Moll own a majority of the
outstanding shares of AMM Holdings subsequent to the Merger, Moll is considered
the accounting acquiror in the Merger; therefore, the consolidated financial
statements presented for all periods herein are those of Moll, and exclude those
of Anchor prior to June 26, 1998. Moll utilized purchase accounting to account
for the merger; accordingly, the assets and liabilities acquired in the Merger,
which primarily relate to Anchor, were adjusted to their estimated fair values
which are as follows:

         Current assets                                  $  42,966
         Property, plant and equipment                      56,122
         Goodwill                                           19,566
         Other assets                                        9,563
         Current liabilities                               (12,914)
         Notes payable                                    (100,000)
         Other non-current liabilities                     (15,303)

An evaluation of the assets acquired and liabilities assumed is in process. Upon
completion of the evaluation, net additions or reductions, if any, in the fair
values currently assigned will result in a corresponding change in goodwill.

2.   Basis of Presentation

The quarterly consolidated financial statements include the accounts of Moll, as
it is the accounting acquiror in the Merger discussed in Note 1, and its
subsidiaries. All significant results of operations of companies acquired
utilizing the purchase method of accounting have been included in the
consolidated financial statements since the effective date of the acquisition
(the Hanning Companies - August 8, 1997, Somomeca Industries, Inc. - January 8,
1998, Anchor - June 26, 1998 and Gemini Plastic Services, Inc. - June 26, 1998).
The results of Reliance Products have been excluded from these consolidated
financial statements since June 26, 1998 (see Note 4). All significant
intercompany balances have been eliminated in consolidation. The quarterly
consolidated financial statements have been prepared, without audit, in
accordance with generally accepted accounting principles, pursuant to the rules
and regulations of the Securities and Exchange Commission. In the opinion of
management, the quarterly consolidated financial statements include all
adjustments which are necessary for a fair presentation of the financial
position and results of operations for the interim periods presented, such
adjustments being of a normal, recurring nature. Certain information and
footnote disclosures have been condensed or omitted pursuant to such rules and
regulations. It is suggested that these quarterly consolidated financial


                                       7
<PAGE>


statements and notes thereto are read in conjunction with the consolidated
financial statements and notes thereto for the year ended December 31, 1997.
Results of operations in interim periods are not necessarily indicative of
results to be expected for a full year.

In connection with the Merger, Moll changed its financial reporting period from
one based on calendar month ends to four thirteen week periods. As a result,
Moll changed its second quarter period end from June 30 to July 4.

Earnings per share for all periods presented have been computed on a basis
assuming the number of common shares outstanding subsequent to the Merger were
outstanding for all periods presented. There are no potentially dilutive
securities currently outstanding.

3.   Acquisitions

Effective June 26, 1998, the Company acquired the stock of Gemini Plastic
Services, Inc. ("Gemini") for cash of $10,186. The acquisition has been
accounted for using the purchase method with the purchase price allocated based
on the estimated fair values of the assets purchased and liabilities assumed, as
follows:

          Current assets                             $ 4,534
          Property, plant and equipment                4,571
          Goodwill                                     6,527
          Other assets                                    23
          Current liabilities                         (2,818)
          Non-current liabilities                     (2,651)
                                                     --------
                                                     $10,186
                                                     ========

Effective January 8, 1998, the Company acquired Somomeca Industries, Inc.
("Somomeca"). In April 1998, the Company entered into an agreement with the
former owners of Somomeca under which the former owners will receive additional
consideration of 9,000 French Francs ($1,488 at July 4, 1998 exchange rates) in
lieu of consideration for the operating results of Somomeca for the twelve
months ended August 31, 1998 as required per the purchase agreement. The
additional consideration will be paid in three equal installments on August 31,
1998 and January 31, 1999 and 2000. The additional consideration has been
reflected as goodwill in the accompanying July 4, 1998 consolidated balance
sheet. Total cash consideration, including the additional consideration and
expenses was $15,988.

Effective August 8, 1997, the Company acquired the Hanning Companies, a group of
companies which had previously been under common control for total cash
consideration, including expenses, of $10,482.

An evaluation of the assets acquired and liabilities assumed is in process. Upon
completion of the evaluation, net additions or reductions, if any, in the fair
values currently assigned will result in a corresponding change in goodwill.

4.   Distribution of Interest in Reliance Products, L.P.

Effective immediately prior to the Merger discussed in Note 1, Moll distributed
its interest in Reliance Products, L.P. to its owners. The total amount of such
distribution was $3,135.


                                       8
<PAGE>


5.   Notes Payable

On June 26, 1998, the Company issued $130,000 of 10 1/2% Senior Subordinated
Notes due in 2008. These notes are unsecured and subordinate to substantially
all of the Company's indebtedness. The proceeds of these notes were used
primarily to repay existing indebtedness, acquire Gemini and other corporate
purposes.

In conjunction with the Merger, the Company assumed $100,000 of 11 3/4% Senior
Notes due 2004 originally issued by Anchor. These notes are unsecured but are
guaranteed by Holdings and the foreign subsidiaries of the Company.

6.   Taxes

Effective June 26, 1998, the Company became a taxable entity. Prior to June 26,
1998, the Company was a partnership; accordingly, the earnings of the Company,
including the earnings of foreign subsidiaries attributable to the Company for
United States tax purposes, were included in the tax returns of the partners.
Therefore, the consolidated financial statements contain no provision for
federal or state income taxes related to these earnings.

Certain of the Company's foreign subsidiaries and, subsequent to June 26, 1998,
the Company are taxable entities. The Company has accounted for income taxes for
taxable entities using the liability method which requires recognition of
deferred tax assets and liabilities for the expected future consequences of
events that have been included in the financial statements or income tax
returns.

7.   Summarized Financial Information of Subsidiaries

The Company's foreign subsidiaries, Moll PlastiCrafters GmbH, Moll Industries
UK, Limited and Moll Plastics SARL, are each wholly-owned subsidiaries of the
Company. Each of these entities has guaranteed the $100,000 of 11 3/4% Senior
Notes due 2004 issued by Anchor and assumed by the Company in the Merger. As
such, these entities are subject to the reporting requirements under Section 13
or 15 (d) of the Securities Exchange Act of 1934. Combined financial information
relating to these entities since the date of their acquisition is presented
herein in accordance with Staff Accounting Bulletin No. 53 as an addition to the
notes of the consolidated financial statements of the Company. Summarized
combined financial information for the Company's foreign subsidiaries is as
follows:

                                                Thirteen         Twenty-six
                                               Weeks Ended       Weeks Ended
                                              July 4, 1998       July 4, 1998
                                              ------------       ------------
Statement of Income Data:
Net sales                                       $32,673           $62,486
Gross margin                                      5,322             8,370
Income from operations                            2,983             4,279
Net income (loss)                                   210              (418)

                                                 July 4,         December 31,
                                                  1998               1997
                                                  ----               ----
Balance Sheet Data:
Current Assets                                  $ 63,531           $ 9,528
Total assets                                     103,961            17,591
Current liabilities                               42,886            19,054
Total liabilities                                104,762            19,089
Deficit                                             (801)           (1,498)

The financial information of Anchor Holdings is identical to that of the
Company. Therefore, summarized financial information of the Company is not
required.


                                       9
<PAGE>


8.   Other Comprehensive Income

The Company has adopted Statement of Financial Accounting Standards No. 130,
Reporting Comprehensive Income, which requires the reporting of comprehensive
income in addition to net income. Comprehensive income is a more inclusive
financial reporting methodology that includes disclosure of certain financial
information that historically has not been recognized in the calculation of net
income.

Information with respect to the accumulated other comprehensive income balance
is as follows:

<TABLE>
<CAPTION>

                                                 Thirteen Weeks Ended             Twenty-six Weeks Ended
                                              --------------------------        --------------------------
                                              July 4,           June 30,        July 4,           June 30,
                                               1998               1997           1998               1997
                                               ----               ----           ----               ----
<S>                                           <C>               <C>             <C>               <C>
Beginning balance                             $(578)            $(79)           $   2             $ --
                                                                                                  
Current period change in foreign                                                                  
  currency translation                          460               11             (120)             (68)
                                                                                                  
Accumulated foreign currency                                                                      
  translation associated with                                                                     
  distributed interest                          194               --              194               --
                                                                                                  
Deferred compensation assumed in Merger        (521)              --             (521)              --
                                              -----             ----            -----             ----
                                              $(445)            $(68)           $(445)            $(68)
                                              =====             ====            =====             ====
</TABLE>


9.  Pro Forma Financial Information

The historical statement of operations data for Anchor for the periods prior to
the Merger is as follows:

<TABLE>
<CAPTION>

                                           Thirteen         Thirteen         Twenty-six        Twenty-six
                                          Weeks Ended      Weeks Ended       Weeks Ended       Weeks Ended
                                         July 4, 1998     June 28, 1997     July 4, 1998      June 28, 1997
                                         ------------     -------------     ------------      -------------
<S>                                        <C>               <C>               <C>               <C>
Net sales                                  $36,507           $43,199           $75,810           $84,745
Gross margin                                 4,533             6,531            11,141            13,424
Income from operations                       1,298             3,334             4,466             7,269
Net income (loss)                           (1,269)             (868)           (1,188)              190
</TABLE>


The following unaudited pro forma statement of operations data gives effect to
the Merger and the acquisition of Gemini as if they had occurred at the
beginning of the respective periods.

<TABLE>
<CAPTION>

                                                            Thirteen         Twenty-six
                                                           Weeks Ended       Weeks Ended
                                                          July 4, 1998       July 4, 1998
                                                          ------------       ------------
<S>                                                         <C>                <C>
Net sales                                                   $98,446            $199,185
Operating income                                              7,604              16,248
Income (loss) before taxes and extraordinary item               (77)              1,494
</TABLE>



                                       10
<PAGE>



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

         This Report may contain forward-looking statements concerning the
Company's operations, economic performance and financial condition. All such
statements are based upon a number of assumptions and estimates that are
inherently subject to significant uncertainties and contingencies, many of which
are beyond the control of the Company, and reflect future business decisions
that are subject to change. Some of these assumptions inevitably will not
materialize, and unanticipated events will occur that will affect the Company's
results.

         The Company is a leading full service manufacturer and designer of
custom molded and assembled plastic components for a broad variety of customers
and end markets throughout North America and Europe. The Company serves over 450
customers, including leading multinational companies such as Abbott
Laboratories, Colgate-Palmolive, Kimberly-Clark, L'Oreal, Maybelline, Motorola,
Procter & Gamble, Renault, Revlon, Siemens, Whirlpool and Xerox. Products using
the Company's plastic components are sold in a wide range of end markets,
including end markets for consumer products, telecommunications/ business
equipment, household appliances, automobiles and medical devices. The Company
believes that the diversity of its customers, markets and geographic regions
creates a stable revenue base and reduces the Company's exposure to particular
market or regional economic cycles.

     The Company was formed through the merger of two leading plastic injection
molders, Moll and Anchor, which were each controlled by Mr. George Votis.
Immediately prior to the Merger, Moll and Anchor were independently operated
entities. Mr. Votis acquired Moll's predecessor in 1989 and has since completed
seven acquisitions, increasing Moll's revenues from approximately $8 million in
1989 to approximately $232.4 million in 1997 on a pro forma basis, excluding the
acquisition of Anchor. Such acquisitions included the acquisition in August 1997
of the Hanning Companies ("Hanning"), a leading supplier of injection molded
plastic components for use in digital photocopiers with manufacturing facilities
located in the United States, the United Kingdom and Germany, which had 1997
revenues of $49.6 million, and the acquisition in January 1998 of Somomeca
Industries S.A.R.L. and its subsidiaries ("Somomeca"), a French injection molder
which had 1997 revenues of $88.5 million. In March 1998, Mr. Votis acquired
Anchor, which had 1997 revenues of $161.2 million. See Note 1 to the interim
consolidated Financial Statements included in Item 1 as to the accounting
treatment of the Merger.

     Certain of the Company's operating data for the Thirteen and Twenty-six
weeks ended July 4, 1998 and June 30, 1997 are set forth below as percentages of
net sales:

<TABLE>
<CAPTION>

                                    13 Weeks Ended           26 Weeks Ended
                                 July 4,      June 30,     July 4,    June 30,
                                  1998         1997         1998       1997
                                  ----         ----         ----       ----
<S>                              <C>          <C>          <C>        <C>
Net Sales                        100.0%       100.0%       100.0%     100.0%

Gross Profit                      18.6%        22.5%        17.1%      22.1%
 
Selling, G&A                       8.9%         8.9%         8.8%       9.3%

Operating Income                   9.7%        13.6%         8.4%      12.8%

Other (Income)/Expense             0.6%         1.0%         0.6%       0.9%

Net Interest (Income)/Expense      4.2%         2.7%         4.0%       9.2%

Income Taxes                       1.0%         0.0%         0.6%       0.0%

Extraordinary Item                 2.0%         0.0%         1.6%       0.0%

Net Income                         1.9%         9.9%         1.5%       2.6%
</TABLE>



                                       11

<PAGE>



Results of Operations

Twenty-six weeks ended July 4, 1998 compared to
Twenty-six weeks ended June 30, 1997

Net Sales. Net sales for the twenty-six weeks ended July 4, 1998 increased $69.4
million, or 129.1%, to $123.2 million from $53.8 million for the twenty-six week
period ended June 30, 1997, due primarily to the Somomeca acquisition ($43.4
million) and the Hanning acquisition ($23.8 million). The closure of the El
Paso, Texas facility in September 1997 decreased sales in the first half of 1998
by $3.2 million.

Gross Profit. Gross profit increased $9.2 million, or 77.3%, in the first half
of 1998 to $21.1 million from $11.9 million in the first half of 1997, due
primarily to the Somomeca ($6.5 million) and Hanning ($1.9 million) acquisitions
in January 1998 and August 1997, respectively. Increased utilization of plant
capacity caused a combined increase from remaining facilities of $0.8 million.
Gross profit as percentage of net sales decreased 5.0% from 22.1% for the
twenty-six week period ended June 30, 1997 to 17.1% for the twenty-six weeks
ended July 4, 1998, primarily as a result of lower margins realized at the
acquired companies than the Company had historically realized.

S G & A Expenses. S G & A expenses increased $5.4 million, or 128.6%, in the
first half of 1998 to $9.6 million from $4.2 million for the first half of 1997,
primarily due to the Somomeca ($2.4 million) and Hanning ($2.2 million)
acquisitions mentioned previously. Increases totaling $0.2 million were incurred
for personnel, travel and computer system support in the period ended July 4,
1998 over the period ended June 30, 1997.

Management Fees. Management fees increased $0.4 million, or 42.3%, to $1.2
million in the first half of 1998 from $0.8 million in the first half of 1997,
primarily due to the increase in net sales.

Operating Income. Operating income increased $3.4 million, or 49.8%, in the
first half of 1998 to $10.3 million from $6.9 million in corresponding period of
1997, due primarily to the acquisitions mentioned above.

Interest Expense. Interest expense increased $3.6 million, or 249.9%, in the
first half of 1998 to $5.0 million from $1.4 million in the same period for
1997, primarily due to the increase in debt acquired in connection with the
Hanning and Somomeca acquisitions mentioned above.

Provision for Income Taxes. Provision for income taxes in 1998 represents
foreign income taxes recorded in connection with the new corporate subsidiaries
in France, Portugal, Germany and the United Kingdom. Prior to the acquisition of
foreign subsidiaries no provision for income taxes was made on the Consolidated
Financial Statements as the Company's partnership tax status allowed for the
earnings of the Company to be taxed on the tax returns of the partners.

Extraordinary Loss. The extraordinary loss represents the write-off of
unamortized fees incurred in connection with debt which was repaid during the
period.

Net Income. Net income decreased $3.1 million, or 66.6%, to $1.8 million for the
first half of 1998 from $4.9 million for the first half of 1997 as a result of
the items listed above.


                                       12

<PAGE>



Thirteen Weeks ended July 4, 1998 compared to the
Thirteen Weeks ended June 30, 1997

Net Sales. Net sales increased $34.9 million, or 124.2%, to $63.1 million in the
1998 second quarter from $28.2 million in the 1997 second quarter, due to the
Somomeca ($22.2 million) and Hanning ($12.7 million) acquisitions.

Gross Profit. Gross profit increased $5.4 million, or 84.9%, to $11.7 million in
the 1998 period from $6.3 million in the corresponding period in 1997, primarily
due to the Somomeca ($4.0 million) and Hanning ($1.2 million) acquisitions
mentioned above. Productivity increases at the Company's other facilities
contributed an additional increase of $0.2 million. Gross profit as a percentage
of net sales decreased 4.0% from 22.5% to 18.5% primarily as a result of margins
realized at the acquired companies being lower than the margins the Company has
historically realized.

S G & A Expenses. S G & A expenses increased $3.1 million, or 148.5%, to $5.2
million in the 1998 period from $2.1 million in the 1997 period, primarily due
to the Somomeca ($1.4 million) and Hanning ($1.2 million) acquisitions.

Management Fees.  Management fees remained stable at $0.4 million for the
second quarter of 1998 and 1997.

Operating Income. Operating income increased $2.3 million, or 60.3%, to $6.1
million in the 1998 period from $3.8 million in the 1997 period, due primarily
to the acquisitions mentioned above.

Interest Expense. Interest expense increased $1.9 million, or 253.3%, to $2.6
million in the second quarter of 1998 from $0.8 million in the 1997 second
quarter primarily due to the increase in debt acquired in connection with the
Hanning and Somomeca acquisitions mentioned above.

Provision for Income Taxes. Provision for income taxes in 1998 represents
foreign income taxes recorded in connection with the new corporate subsidiaries
in France, Portugal, Germany and the United Kingdom. Prior to the acquisition of
foreign subsidiaries no provision for income taxes was made on the Consolidated
Financial Statements as the Company's partnership tax status allowed for the
earnings of the company to be taxed on the tax returns of the Partners.

Extraordinary Loss. The extraordinary loss represents the write-off of
unamortized fees incurred in connection with debt which was repaid with the
proceeds of the Senior Subordinated Debt.

Net Income. Net income decreased $1.6 million, or 57.1%, to $1.2 million in the
1998 second quarter from $2.8 million in the second quarter of 1997, as a result
of the items listed above.

Liquidity and Capital Resources

         The Company's liquidity requirements consist primarily of working
capital needs and capital expenditures, required payments of principal and
interest on any borrowings under its credit facility and required payments of
interest on its 11 3/4 Senior Notes due 2004 and its 10 1/2 Senior Subordinated
Notes due 2008.

         Proceeds from the issuance of long term debt of $188.7 million were
used to extinguish existing bank debt of $106.2 million, purchase Somomeca
($11.8 million), purchase Anchor ($6.5 million) and to purchase Gemini Plastic
Services, Inc. ($10.0 million). Capital expenditures for the period ended July
4, 1998 increased $5.5 million from the same period in 1997, primarily due to
the funding of construction of the Company's facility in Rochester, New York.
Cash provided form operating activities increased by $1.3 million in 1998
primarily as a result of the Hanning and Somomeca acquisitions.


                                       13

<PAGE>



Inflation and Changing Prices

     The Company's sales and costs are subject to inflation and price
fluctuations. However, because changes in the cost of plastic resins and nylon,
the Company's principal raw materials, are generally passed through to
customers, such changes historically have not, and in the future are not
expected to have a material effect on the Company's gross profit.



                                       14

<PAGE>


PART II.          OTHER INFORMATION

Item 1.           Legal Proceedings

                  None.

Item 2.           Change in Securities

                  None.

Item 3.           Defaults Upon Senior Securities

                  None.

Item 4.           Submission of Matters to a Vote of Securities Holders

                  None.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a) Exhibits.

                  None.

                  (b) Reports on Form 8-K.

                  Form 8-K filed on April 2, 1998, reporting under Item 1; no
                  financial statements were filed.

                  Form 8-K filed on June 12, 1998, reporting under Item 5; no
                  financial statements were filed.



                                       15

<PAGE>


                                   SIGNATURES

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


Date:  August 21, 1998                         MOLL INDUSTRIES, INC.


                                               By: /s/ Phyllis C. Best
                                                   ----------------------------
                                                   Phyllis C. Best
                                                        Chief Financial Officer


                                               ANCHOR HOLDINGS, INC.


                                               By: /s/ Phyllis C. Best
                                                   ----------------------------
                                                   Phyllis C. Best
                                                        Chief Financial Officer




                                       16