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

# FORM 10-Q

| | [X] |  | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934  FOR THE QUARTERLY PERIOD ENDED  April 4, 2004
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------

| | [   ] |  | 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   1-2451

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

|WISCONSIN                                            |  | 39-0494170          | 
|---------------------------------------------------- |  | ------------------- | 
|(State or other jurisdiction of                      |  | (I.R.S. Employer    | 
|incorporation or organization)                       |  | Identification No.) | 
|3925 NORTH HASTINGS WAY                              | 
|EAU CLAIRE, WISCONSIN                                |  | 54703-3703          | 
|(Address of principal executive offices)             |  | (Zip Code)          | 
|(Registrants telephone number, including area code) |  | 715-839-2121        | 

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 by check mark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes  X  No

There were 6,820,747 shares of the
Issuers Common Stock outstanding as of the close of the period covered by this
report.



---

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 4, 2004 and December 31, 2003
(Unaudited)
(Dollars in thousands)

|                                | 2004 |  | 2003
|------------------------------- | ---- |  | ----
|ASSETS                          |      |  |     
|CURRENT ASSETS:                 |      | 
|Cash and cash equivalents       |      |  |     
|Marketable securities           |      |  |     
|Accounts receivable, net        |      |  |     
|Inventories:                    |      | 
|Finished goods                  |      |  | $   
|Work in process                 |      |  |     
|Raw materials                   |      |  |     
|                                |      |  |     
|Other current assets            |      |  |     
|                                |      |  |     
|Total current assets            |      |  |     
|PROPERTY,  PLANT AND EQUIPMENT  |      |  |     
|Less allowance for depreciation |      |  |     
|                                |      |  |     
|OTHER ASSETS                    |      |  |     
|                                |      |  |     
|                                |      |  |     
|                                |      |  |     

The accompanying notes are an integral part of the financial statements.



---

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 4, 2004 and December 31, 2003
(Unaudited)
(Dollars in thousands)

|                                              | 2004 |  | 2003
|--------------------------------------------- | ---- |  | ----
|LIABILITIES                                   |      |  |     
|CURRENT LIABILITIES:                          |      | 
|Accounts payable                              |      |  |     
|Federal and state income taxes                |      |  |     
|Accrued liabilities                           |      |  |     
|                                              |      |  |     
|Total current liabilities                     |      |  |     
|COMMITMENTS AND CONTINGENCIES                 |      |  |     
|STOCKHOLDERS EQUITY                          |      | 
|Common stock, $1 par value:                   |      | 
|Authorized: 12,000,000 shares                
|Issued: 7,440,518 shares                      |      |  | $   
|Paid-in capital                               |      |  |     
|Retained earnings                             |      |  |     
|Accumulated other comprehensive income (loss) |      |  |     
|                                              |      |  |     
|                                              |      |  |     
|Treasury stock, at cost                       |      |  |     
|                                              |      |  |     
|Total stockholders equity                    |      |  |     
|                                              |      |  |     
|                                              |      |  |     
|                                              |      |  |     

The accompanying notes are an integral part of the financial statements.



---

NATIONAL PRESTO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months ended April 4, 2004 and March 30, 2003
(Unaudited)
(In thousands except per share data)

|                                                  | Three Months Ended
|------------------------------------------------- | ------------------
|
|Net sales                                         |                   
|Cost of sales                                     |                   
|                                                  |                   
|Gross profit                                      |                   
|Selling and general expenses                      |                   
|                                                  |                   
|Operating profit                                  |                   
|Other income, principally interest                |                   
|                                                  |                   
|Earnings before provision for income taxes        |                   
|Income tax provision                              |                   
|                                                  |                   
|Net earnings                                      |                   
|                                                  |                   
|Weighted average shares outstanding:              |                   
|Basic                                             |                   
|                                                  |                   
|Diluted                                           |                   
|                                                  |                   
|Net earnings per share:                           |                   
|Basic                                             |                   
|                                                  |                   
|Diluted                                           |                   
|                                                  |                   
|Cash dividends declared and paid per common share |                   
|                                                  |                   

The accompanying notes are an integral part of the financial statements.



---

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months ended April 4, 2004 and March 30, 2003
(Unaudited)
(Dollars in thousands)

|                                                     | 2004 |  | 2003
|---------------------------------------------------- | ---- |  | ----
|Cash flows from operating activities:                |      |  |     
|Net earnings                                         |      |  | $   
|Adjustments to reconcile net earnings to net         |      | 
|cash provided by operating activities:               |      | 
|Provision for depreciation                           |      |  |     
|Deferred Tax                                         |      |  |     
|Other                                                |      |  |     
|Changes in:                                          |      | 
|Accounts receivable                                  |      |  |     
|Inventories                                          |      |  |     
|Other current assets                                 |      |  |     
|Accounts payable and accrued liabilities             |      |  |     
|Federal and state income taxes                       |      |  |     
|                                                     |      |  |     
|Net cash provided by operating activities            |      |  |     
|                                                     |      |  |     
|Cash flows from investing activities:                |      | 
|Marketable securities purchased                      |      |  |     
|Marketable securities  maturities and sales         |      |  |     
|Acquisition of property, plant and equipment         |      |  |     
|                                                     |      |  |     
|Net cash provided by (used in) investing activities  |      |  |     
|                                                     |      |  |     
|Cash flows from financing activities:                |      | 
|Dividends paid                                       |      |  |     
|Purchase of treasury stock                           |      |  |     
|Sale of treasury stock                               |      |  |     
|                                                     |      |  |     
|Net cash used in financing activities                |      |  |     
|                                                     |      |  |     
|Net increase (decrease) in cash and cash equivalents |      |  |     
|Cash and cash equivalents at beginning of period     |      |  |     
|                                                     |      |  |     
|Cash and cash equivalents at end of period           |      |  | $   
|                                                     |      |  |     

The accompanying notes are an integral part of the financial statements.



---

# NATIONAL PRESTO INDUSTRIES, INC., AND SUBSIDIARIES

# NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE A  EARNINGS PER SHARE

The Companys basic net earnings
per share amounts have been computed by dividing net earnings by the weighted average
number of outstanding common shares. The Companys diluted net earnings per share is
computed by dividing net earnings by the weighted average number of outstanding common
shares and common share equivalents relating to stock options, when dilutive.

NOTE B  BUSINESS SEGMENTS

In the following summary,
operating profit (loss) represents earnings (loss) before other income,
principally interest income and income taxes.

The Companys segments operate
discretely from each other with no shared manufacturing facilities. Costs associated with
corporate activities (such as cash and marketable securities management) are included
within housewares/small appliances for all periods presented.

|                              | (in thousands)
|----------------------------- | --------------
|
|Quarter ended April 4, 2004   |               
|External net sales            |               
|Gross profit                  |               
|Operating profit (loss)       |               
|Total assets                  |               
|Depreciation and amortization |               
|Capital expenditures          |               
|Quarter ended March 30, 2003  |               
|External net sales            |               
|Gross profit                  |               
|Operating profit              |               
|Total assets                  |               
|Depreciation and amortization |               
|Capital expenditures          |               



---

NOTE C  PRODUCT WARRANTY

Housewares/small appliance products
are generally warranted to the original owner to be free from defects in material and
workmanship for a period of 2 to 12 years from date of purchase. The Company allows a
60-day over-the-counter initial return privilege through cooperating dealers. The Company
services its products through independent service providers throughout the United States
and a corporate service repair operation. The Companys service and warranty programs
are competitive with those offered by other manufacturers in the industry. The Company
determines its product warranty liability based on historical percentages.

The following table shows the changes
in product warranty liability for the period:

|                            | 2004 |  | 2003
|--------------------------- | ---- |  | ----
|Beginning balance January 1 |      |  | $   
|Accruals during the period  |      |  |     
|Charges / payments made     |      | 
|under the warranties        |      |  |     
|                            |      |  |     
|Balance end of period       |      |  | $   
|                            |      |  |     

NOTE D  PENSION PLAN

During the third quarter of 2003, the Company
announced its decision to terminate its defined benefit pension plan and provide
enhancements to its 401(k) plan. As a result, the plan was amended effective December 31,
2003, to freeze benefit accruals. The amendment eliminated the accrual of future defined
benefits for all employees resulting in a curtailment charge, which was recorded in 2003.
An additional estimated $3,500,000 settlement charge is expected in the third quarter of
2004 when final distributions from the plan are made or annuities are purchased in
exchange for participants rights to receive benefits under the plan. Employer
contributions to the plan are expected to total $1,500,000 in 2004.

Components of net periodic pension
cost for the three months ended April 4, 2004 and March 30, 2003 are as follows:

|                                | 2004 |  | 2003
|------------------------------- | ---- |  | ----
|Service cost                    |      |  | $   
|Interest cost                   |      |  |     
|Expected return on assets       |      |  |     
|Prior service cost amortization |      |  |     
|Net loss amortization           |      |  |     
|                                |      |  |     
|                                |      |  | $   
|                                |      |  |     

Weighted-average assumptions used to
determine benefit obligation for the years ended December 31:

|                               | 2004 |  | 2003
|------------------------------ | ---- |  | ----
|Discount rate                  |      |  |     
|Expected return on plan assets |      |  |     
|Rate of compensation increase  |      |  |     



---

NOTE E  PLANT CLOSING

In November 2001, the Company announced
that continued erosion of product pricing resulted in its decision to cease manufacturing
housewares/small appliances in its U.S. plants, close those facilities, and purchase
products from the Orient. This transition from U.S. plant production to the Orient was
completed during late 2002. The Company closed its manufacturing facilities in Alamogordo,
New Mexico, during the third quarter of 2002 and is continuing its efforts to sell the
facility. The Company closed its Jackson, Mississippi, plant during the fourth quarter of
2002 and has decided to modify this plant to serve as a warehousing and shipping facility.
Modification to the Jackson plant should be completed during 2004.

The following table summarizes the
plant closing accrual activities for the periods presented:

|                        | EmployeeTerminationBenefits |  | OtherExitCosts |           | Total
|----------------------- | --------------------------- |  | -------------- | --------- | -----
|Balance January 1, 2004 |                             |  | $              | 836,000   |      
|Additions in 2004       |                             |  |                |          |      
|Charges in 2004         |                             |  |                | (182,000  | )    
|                        |                             |  |                |           |      
|Balance April 4, 2004   |                             |  | $              | 654,000   |      
|                        |                             |  |                |           |      
|Balance January 1, 2003 |                             |  | $              | 2,148,000 |      
|Additions in 2003       |                             |  |                |          |      
|Charges in 2003         |                             |  |                | (296,000  | )    
|                        |                             |  |                |           |      
|Balance March 31, 2003  |                             |  | $              | 1,852,000 |      
|                        |                             |  |                |           |      

The total outsourcing of all Company
housewares/small appliance product manufacturing results in the creation of a new LIFO
inventory category for the outsourced products. During the first quarter of 2004 the
Company recognized a $348,000 (or $.03 per share, net of tax) partial liquidation of the
Manufactured LIFO Reserve. This compares with the first quarter of 2003 liquidation of
$1,247,000 or $.11 per share, net of tax. At April 4, 2004, $350,000 of Manufacturing LIFO
Reserve remains which is expected to be recognized in 2004 as the remaining manufactured
inventory is sold.



---

NOTE F  COMMITMENTS AND CONTINGENCIES

On July 16, 2002, the Securities and
Exchange Commission filed a lawsuit against National Presto Industries, Inc. alleging the
company operated as an unregistered investment company. The case does not involve fraud,
deceptive practices or accounting methods, and the Company plans to vigorously defend
itself. If unsuccessful the Company may have to reallocate invested assets which will
result in reduced yields or it might be required to register as an investment company. In
the latter situation, it would be prohibited from engaging in business in interstate
commerce until registration occurred. The obligations upon registration are many and could
include: 1) possible imposition of significant additional reporting requirements (a burden
which would not be imposed upon its competitors); 2) potential regard in the market as a
closed end mutual fund which could result in a trading price sharply discounted from net
asset value; 3) possible limitations on the use of capital and earnings which could
inhibit or terminate commercial business growth. Management is unable to make a meaningful
estimate of the overall impact on the Companys operations, if any, that would result
from an unfavorable final determination of this matter.

In addition, the Company is involved
in other routine litigation incidental to its business. Management believes the ultimate
outcome of these matters will not have a material affect on the Companys
consolidated financial position.

NOTE G  ACCUMULATED OTHER COMPREHENSIVE INCOME

The $1,567,000 of accumulated
comprehensive loss at April 4, 2004, reflects the fair value gain adjustment, net of the
tax effect of $436,000, of available-for-sale marketable security investments offset by
the additional net periodic pension liability related to the Companys defined
benefit pension plan in the amount of $2,003,000, net of tax. Total comprehensive income
was $1,367,000 and $1,901,000 for the three month periods ended April 4, 2004 and March
30, 2003.

NOTE H  BUSINESS ACQUISITION

In October, 2003, the Company
acquired the assets and operations of an absorbent products manufacturer. During the three
months ended April 4, 2004, this operation had net sales of $4,600,000.



---

NOTE I  ADOPTION OF NEW ACCOUNTING STANDARDS

In December 2003, the FASB revised
and reissued Statement 132, Employers Disclosures about Pensions and Other
Postretirement Benefits (SFAS 132 (R)). This statement retains all of the
disclosures that are required by the original FASB Statement 132, Employers
Disclosures about Pensions and Other Postretirement Benefits, and includes several
additional disclosures. It also requires certain disclosures about pension and other
postretirement benefit plans in interim financial statements. The annual disclosures in
SFAS 132 (R) were adopted in fiscal year ended December 31, 2003. The interim disclosure
provisions of SFAS 132 (R) have been adopted in the first quarter of fiscal 2004.

---

The foregoing information for the
periods ended April 4, 2004, and March 30, 2003, is unaudited; however, in the opinion of
management of the Registrant, it reflects all the adjustments, which were of a normal
recurring nature, necessary for a fair statement of the results for the interim periods.
The condensed consolidated balance sheet as of December 31, 2003, is summarized from
audited consolidated financial statements, but does not include all the disclosures
contained therein and should be read in conjunction with the 2003 Annual Report. Interim
results for the period are not indicative of those for the year.



---

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

Forward-looking
statements in this Managements Discussion and Analysis of Financial Condition and
Results of Operations, elsewhere is this Form 10-Q, in the Companys 2003 Annual
Report to Shareholders, and in the Companys press releases and oral statements made
with the approval of an authorized executive officer are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. There are certain
important factors that could cause results to differ materially from those anticipated by
some of the statements made herein. Investors are cautioned that all forward-looking
statements involve risks and uncertainty. In addition to the factors discussed herein and
in the notes to consolidated financial statements, among the other factors that could
cause actual results to differ materially are the following: consumer spending and debt
levels; interest rates; continuity of relationships with and purchases by major customers;
product mix; the benefit and risk of business acquisitions; competitive pressure on sales
and pricing; increases in material, freight/shipping, or production cost which cannot be
recouped in product pricing; delays or interruptions in shipping, and the impact of
closing certain U.S. production facilities. Additional information concerning those and
other factors is contained in the Companys Securities and Exchange Commission
filings, including but not limited to the Form 10-K, copies of which are available from
the Company without charge.

COMPARISON FIRST QUARTER 2004 AND 2003

        Readers are directed to Note
B, Business Segments for data on the financial results of the
Companys three business segments for the quarters ended April 4, 2004 and
March 30, 2003.

Housewares/small
appliance net sales increased $697,000 from $17,477,000 to $18,174,000, or 4%, reflecting
primarily increased unit volume. Defense net sales increased by $62,000 from $1,860,000 to
$1,922,000, or 3% reflecting a change in the mix of products shipped. Absorbent products
net sales increased by $3,975,000 from $2,717,000 to $6,692,000, or 146%, primarily
reflecting the addition of revenues stemming from the October 2003 acquisition of the
assets of NCN Hygienic Products, Inc.

Housewares/small
appliance gross profit for 2004 decreased $934,000 from $5,289,000 to $4,355,000, or 24%
verses 30% as a percentage of sales. This gross profit percentage decrease is largely due
to comparatively smaller liquidation of the Manufactured Product LIFO reserve stemming
from the sourcing of products overseas (see Note E) Defense gross profit decreased
$248,000 from $556,000 to $308,000, or 16% versus 30% as a percentage of sales primarily
due to the mix of products shipped. Absorbent products gross profit increased $290,000
from $382,000 to $672,000 primarily because of the addition of the acquisition noted in
the previous paragraph.



---

The
Company accrues for unexpended advertising cost, primarily for housewares/small
appliances, budgeted for the year against each quarters sales. Major advertising
commitments are incurred in advance of the expenditures, and the timing of sales through
dealers and distributors to the ultimate customer does not permit specific identification
of the customers purchase to the actual time an advertisement appears. Advertising
charges included in selling expense in each quarter represent that percentage of the
annual advertising budget associated with that quarters shipments. Revisions to this
budget result in periodic changes to the accrued liability for committed advertising
expenditures. Housewares/small appliance selling and general expenses decreased $193,000,
largely attributable to decreases in the aforementioned accrual. Defense selling and
general expenses increased $172,000 largely reflecting costs associated with the
operations of Spectra Technologies LLC, a startup company acquired in August 2003.

Earnings
before provision for income taxes decreased $788,000 from $2,756,000 to $1,968,000. The
provision for income taxes decreased from $703,000 to $473,000, which resulted in an
effective income tax rate decrease from 26% to 24% as a result of decreased earnings
subject to tax. Net earnings decreased $558,000 from $2,053,000 to $1,495,000, or 27%.

LIQUIDITY AND CAPITAL RESOURCES

Cash
and cash equivalents declined by $9,947,000 during the quarter to $133,818,000. The
various changes that make up the decrease can be found in the Consolidated Statement of
Cash Flows.

Working
capital decreased by $10,235,000 to $202,501,000 at April 4, 2004. The Companys
current ration was 5.9 to 1.0 at April 4, 2004, compared to 4.9 to 1.0 at December 31,
2003.

In
January 2004, the Company entered into an agreement to purchase approximately $12,000,000
in equipment to expand the product line in its absorbent products segment. There has been
a $3,600,000 deposit made on this purchase leaving approximately $8,400,000 capital
commitment outstanding as of April 4, 2004. The Company expects to continue to evaluate
acquisition opportunities that align with its business segments and will make further
acquisitions or capital investments in these segments if the appropriate return on
investment is projected.

The
Company has substantial liquidity in the form of cash and marketable securities to meet
all of its anticipated capital requirements, to make dividend payments, and to fund growth
through acquisitions and other means. The interest rate declines over the past several
years coupled with the extremely low interest rate environment currently has resulted in
reduced levels of interest income for the Company. There can be no assurance when interest
rates will begin to move towards more historically normal levels. The Company intends to
continue its investment strategy of safety and short-term liquidity throughout its
investment holdings. The interest rate environment is a function of national and
international monetary policies as well as the growth and inflation rates of the U.S. and
foreign economies, and is not controllable by the Company.



---

In
connection with the Companys plant closing activity during 2004, the Company could
incur additional losses upon the disposition of property associated with the operations
being closed. In addition, the Company may have additional plant closing costs. The
Company is not aware of any such costs; however, plant closing activities of this nature
are unique and infrequent for the Company, therefore, these activities possess inherent
risk that errors in the estimation process could occur. Subject to the foregoing
estimation risk, no major plant closing related expenses are expected in 2004.

CRITICAL ACCOUNTING POLICIES

        The preparation of the
consolidated financial statements in accordance with accounting principles
generally accepted in the United States requires management to make certain
estimates and assumptions that affect the amount of reported assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the consolidated financial statements and revenues and expenses during the
periods reported. Actual results may differ from those estimates. The Company
reviewed the development and selection of the critical accounting policies and
believes the following are the most critical accounting policies that could have
an effect on the Companys reported results. These critical accounting
policies and estimates have been reviewed with the Audit Committee of the Board
of Directors.

Inventories:   New
housewares/small appliance product introductions are an important part of the
Companys sales to offset the morbidity rate of other housewares/small appliance
products and/or the effect of lowered acceptance of seasonal products due to weather
conditions. New products entail unusual risks and have occasionally in the past resulted
in losses related to obsolete inventory as a result of low or diminishing demand for a
product. The Company did not have any major new product introductions or morbidity issues
in the current period and, accordingly, did not record a reserve for obsolete product. In
the future should product demand issues arise, the Company may incur losses related to the
obsolescence of the related inventory.

Insurance:   The Company is
subject to product liability claims in the normal course of business and is self-insured
for health care costs. The Company insures for product liability claims and health care
costs, and retains a self-insured retention insurance accrual in the Companys
financial statements. The Company utilizes historical trends and other analysis to assist
in determining the appropriate accrual. An increase in the number or magnitude of claims
could have a material impact on the Companys financial condition.

Environmental:   In May 1986,
the Companys Eau Claire, Wisconsin, site was place on the United States
Environmental Protection Agencys National Priorities List under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 because of hazardous waste
deposited on the property. By December 31, 1998, all remediation projects had been
installed, were fully operational, and restoration activities had been completed and
accrued liabilities established for the expected cost of the activity. The Company
believes its accrued liability reserve will be adequate to satisfy ongoing remediation
operations and monitoring activities; however, should environmental agencies require
additional studies or remediation projects, it is possible the existing accrual could be
inadequate. The Companys current environmental liability is based upon estimates of
the future costs to maintain and operate remediation projects and monitor their results
based upon historical costs incurred for such activities.



---

Plant Closing Costs:   In
November 2001, the Company announced that continued erosion of product pricing resulted in
its decision to cease manufacturing housewares/small appliances in its U.S. plants, close
those facilities, and purchase products from the Orient. This transition from U.S. plant
production to the Orient was completed during late 2002. The Company closed its
manufacturing facilities in Alamogordo, New Mexico, during the third quarter of 2002 and
is continuing its efforts to sell the facility. The Company closed its Jackson,
Mississippi, plant during the fourth quarter of 2002 and has begun to modify this plant to
serve as a warehousing and shipping facility. Modification to the Jackson plant should be
completed during 2004. (See Note E for a description of plant closing activity.) The
estimated accruals for plant closing costs may be subject to adjustment in the future.
Potential cost items include the Companys success and the length of time required to
sell the Alamogordo building, larger than expected health care claims for separated
employees, and changes in other estimated costs to complete the plant closings.

NEW ACCOUNTING PRONOUNCEMENTS

Please refer to Note I for
information related to the effect of adopting new accounting pronouncements on the
Companys consolidated financial statements.

# ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The
Companys interest income on cash equivalents and marketable securities is affected
by changes in interest rates in the United States. Cash equivalents include money market
funds and 7-day variable rate demand notes which are highly liquid instruments with
interest rates set every 7 days that can be tendered to the remarketer upon 7 days notice
for payment of principal and accrued interest. The 7 day tender feature of these variable
rate demand notes are further supported by an irrevocable letter of credit from highly
rated U.S. banks. To the extent a bond is not remarketed at par plus accrued interest, the
difference is drawn from the banks letter of credit. The Companys investments
are held primarily in fixed and variable rate municipal bonds with an average life of less
than one year. Accordingly, changes in interest rates have not had a material affect on
the Company, and the Company does not anticipate that future exposure to interest rate
market risk will be material. The Company uses sensitivity analysis to determine its
exposure to changes in interest rates.

The
Company has no history of, and does not anticipate in the future, investing in derivative
financial instruments. Most transactions with international customers are entered into in
U.S. dollars, precluding the need for foreign currency cash flow hedges. Any transactions
that are currently entered into for settlement in foreign currency are not deemed material
to the financial statements.



---

# ITEM 4.   CONTROLS AND PROCEDURES

The
Companys management, including the Chief Executive Officer and Chief Financial
Officer, have conducted an evaluation of the effectiveness of the design and operation of
the Companys disclosure controls and procedures pursuant to Rule 13a-15 under the
Securities Exchange Act of 1934 (the 1934 Act) as of the end of the period covered by this
report. Based on that evaluation, the Companys Chief Executive Officer and Chief
Financial Officer concluded that the Companys disclosure controls and procedures are
effective in ensuring that information required to be disclosed by the Company in the
reports it files or submits under the 1934 Act is recorded, processed, summarized, and
reported within the time periods specified in the SECs rules and forms.

There
have been no changes in internal controls over financial reporting during the fiscal
quarter ended April 4, 2004, that have materially affected, or are reasonably likely to
materially affect, the Companys internal control over financial reporting.



---

# PART II  OTHER INFORMATION

Item 1.    Legal Proceedings

| | See
Note F in the Notes to Consolidated Financial Statements set forth under Part I
Item 1 above.
| | --------------------------------------------------------------------------------------------------

Item 2.    Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities

| | There were no
purchases or sales of securities during the quarter ended April 4, 2004.
| | --------------------------------------------------------------------------------------

Item 6.    Exhibits and Reports on Form 8-K

|(a)     Exhibits:                                                                                                                                                |  |                                                                                                                                                                                                           | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|Exhibit 3 (i)                                                                                                                                                   |  | Restated Articles of Incorporation  incorporated by reference from Exhibit 3 (i) of the Companys quarterly report on Form 10-Q for the quarter ended July 6, 1997                                       | 
|(ii)                                                                                                                                                            |  | By-Laws  incorporated by reference from Exhibit 3 (ii) of the Companys quarterly report on Form 10-Q for the quarter ended October 3, 1999                                                              | 
|Exhibit 9                                                                                                                                                       |  | Voting Trust Agreement  incorporated by reference from Exhibit 9 of the Companys quarterly report on Form 10-Q for the quarter ended July 6, 1997                                                       | 
|Exhibit 10.1                                                                                                                                                    |  | 1988 Stock Option Plan  incorporated by reference from Exhibit 10.1 of the Companys quarterly report on Form 10-Q for the quarter ended July 6, 1997                                                    | 
|Exhibit 10.2                                                                                                                                                    |  | Form of Incentive Stock Option Agreement under the 1988 Stock Option Plan  incorporated by reference from Exhibit 10.2 of the Companys quarterly report on Form 10-Q for the quarter ended July 6, 1997 | 
|Exhibit 11                                                                                                                                                      |  | Statement regarding computation of per share earnings                                                                                                                                                     | 
|Exhibit 31.1                                                                                                                                                    |  | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                   | 
|Exhibit 31.2                                                                                                                                                    |  | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                   | 
|Exhibit 32.1                                                                                                                                                    |  | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                   | 
|Exhibit 32.2                                                                                                                                                    |  | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                   | 
|(b)     Reports on Form 8-K:                                                                                                                                     | 
|On February 17, 2004, the registrant filed a current report under item 12 to furnish its earnings                     press release issued on February 13, 2004.

# SIGNATURES

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

|                     |  | NATIONAL PRESTO INDUSTRIES, INC.                                                                   | 
|-------------------- |  | -------------------------------------------------------------------------------------------------- | 
|                    
|Date:   May 11, 2004 |  | /s/   M.J. Cohen                                                                                   | 
|                     |  |                                                                                                   
|                     |  | M. J. Cohen, Chair of the Board, ChiefExecutive Officer and President(Principal executive officer) | 
|                    
|Date:   May 11, 2004 |  | /s/   R. F. Lieble                                                                                 | 
|                     |  |                                                                                                   
|                     |  | R. F. Lieble, Chief Financial Officer andTreasurer  (Principal accounting officer)                 | 



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# National Presto Industries, Inc.
Exhibit Index

| |  | ExhibitNumber |  | Exhibit Description
| |  | ------------- |  | -------------------

| |  | 11 |  | Computation
of Earnings per Share
| |  | -- |  | ---------------------------------

| |  | 31.1 |  | Chief Executive
Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
| |  | ---- |  | -----------------------------------------------------------------------------------------------

| |  | 31.2 |  | Chief Financial
Officer Certification pursuant to Section 302 of the Sarvanes-Oxley Act of 2002
| |  | ---- |  | -----------------------------------------------------------------------------------------------

| |  | 32.1 |  | Chief Executive
Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| |  | ---- |  | -----------------------------------------------------------------------------------------------

| |  | 32.2 |  | Chief Financial
Officer Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
| |  | ---- |  | -----------------------------------------------------------------------------------------------

---