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 June 30, 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 33-67546

                       HARRIS CHEMICAL NORTH AMERICA, INC.
             (Exact name of registrant as specified in its charter)

            Delaware                                           48-1135402
  (State or other jurisdiction of                          (I.R.S. Employer
   incorporation or organization)                       Identification Number)

                                2100 Sanders Road
                         Northbrook, Illinois 60062-6142
               (Address of principal executive offices)(Zip Code)

                                 (847) 272-9200
              (Registrant's telephone number, including area code)

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 ( )

The number of shares outstanding of the registrant's  common stock at August 14,
1998 was 1,000 shares.  All of such shares are owned by IMC Inorganic  Chemicals
Inc.



                                                       1


<PAGE>


<TABLE>
<CAPTION>

                       HARRIS CHEMICAL NORTH AMERICA, INC.

                  FORM 10-Q For the Quarter ended June 30, 1998

                                      Index

                                                                                                 Page #
<S>               <C>                                                                            <C>

Part I            Financial Information
Item 1.           Financial Statements........................................................       3


Item 2.           Management's Discussion and Analysis of Financial Condition
                  and Results of Operations...................................................      13

Part II           Other Information

Item 1.           Legal Proceedings...........................................................      16

Item 6.           Exhibits and Reports on Form 8-K............................................      16

Signature Page................................................................................      16


</TABLE>

                                                       2


<PAGE>


<TABLE>
<CAPTION>

PART I.           FINANCIAL INFORMATION
Item 1.           Financial Statements

                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                                            CONSOLIDATED BALANCE SHEETS
                                                   (in thousands)
                                                    (Unaudited)

                                                                        June 28,           March 28,          June 30,
                                                                          1997                1998             1998
                                                                  ------------------- ---------------- ------------------
<S>                                                               <C>                 <C>              <C>
                                          ASSETS
Current assets:
  Cash and cash equivalents ....................................  $            9,736  $        18,088  $          20,236
  Trade accounts receivable, less allowance for doubtful
    accounts of $2,439 at June 28, 1997, $1,772 at
    March 28, 1998 and $2,269 at June 30, 1998..................              75,402          101,440             75,760
  Other receivables ............................................               6,557           14,986             12,405
  Inventories ..................................................             104,624           97,017            122,052
  Deferred income taxes ........................................               6,019            4,092              4,092
  Other ........................................................               4,146            5,367              4,130
                                                                            ---------        ---------          ---------

       Total current assets ....................................             206,484          240,990            238,675
Property, plant and equipment, net .............................             381,164          374,916            365,957
Deferred financing costs, net ..................................              24,380           21,125             20,002
Other ..........................................................               7,088            6,436              6,227
                                                                            ---------        ---------          ---------
      Total assets .............................................  $          619,116  $       643,467  $         630,861
                                                                            =========        =========          =========

     LIABILITIES AND STOCKHOLDER'S DEFICIT
Current liabilities:
  Current portion of long-term debt ............................  $           15,415  $        10,674  $          10,243
  Accounts payable .............................................              45,643           70,069             57,633
  Accrued expenses .............................................              19,768           21,702             17,380
  Accrued interest .............................................              22,971           23,700             23,497
  Accrued salaries and wages ...................................              11,590           16,963             11,411
  Income taxes payable .........................................               2,127            2,855                -
                                                                            ---------      -----------          ---------

     Total current liabilities .................................             117,514          145,963            120,164
Long-term debt, net of current portion .........................             768,264          766,661            759,548
Due to IMC .....................................................                 -                -               55,318
Deferred income taxes ..........................................              25,674           24,393             23,860
Other noncurrent liabilities ...................................              34,825           27,183             25,833
Common stockholder's deficit:
  Common stock, at par .........................................                 -                -                  -
  Additional paid-in capital ...................................              99,941           97,341            115,775
  Accumulated comprehensive income .............................              (3,523)          (3,700)            (4,333)
  Common stockholder's receivable ..............................              (3,956)          (3,679)           (37,802)
  Accumulated deficit ..........................................            (419,623)        (410,695)          (427,502)
                                                                            ---------        ---------          ---------
      Total common stockholder's deficit .......................            (327,161)        (320,733)          (353,862)
                                                                            ---------        ---------          ---------
      Total liabilities and stockholder's deficit ..............  $          619,116  $       643,467  $         630,861
                                                                            =========        =========          =========
</TABLE>


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

                                                        3


<PAGE>



<TABLE>
<CAPTION>
                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF OPERATIONS
                                                   (in thousands)
                                                    (Unaudited)


                                                                     Quarter ended
                                                               June 28,         June 30,
                                                                 1997            1998
                                                           --------------   -------------

<S>                                                        <C>              <C>

Net sales.............................................     $      93,199     $    93,368
Cost of sales.........................................            76,007          75,080
                                                                 --------        --------

Gross profit..........................................            17,192          18,288

Selling, general and administrative expenses..                    15,507          10,305
                                                                 --------        --------

Operating income......................................             1,685           7,983

Other income (expense):
  Interest expense....................................           (23,660)        (24,285)
  Foreign currency transaction gain (loss)............               281            (997)
  Other, net .........................................             1,508           1,910
                                                                 --------        --------


Loss before taxes ....................................           (20,186)        (15,389)

Provision for income taxes ...........................                59           1,418
                                                                 --------        --------

Net loss .............................................     $     (20,245)   $    (16,807)
                                                                 ========        ========
</TABLE>



















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

                                                        4


<PAGE>




<TABLE>
<CAPTION>
                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                   (in thousands)
                                                    (Unaudited)

                                                                                             Quarter ended
                                                                                       June 28,         June 30,
                                                                                         1997             1998
                                                                                      ------------     ------------
<S>                                                                                   <C>              <C>
Cash flows from operating activities:
  Net loss ........................................................................   $   (20,245)     $   (16,807)
  Adjustments to reconcile net loss to net cash flows from operating activities:
     Depreciation .................................................................        13,666           14,453
     Finance fee amortization .....................................................         1,203            1,302
     Operating amortization .......................................................           168              151
     Accreted interest ............................................................           500              -
     Deferred income taxes ........................................................        (2,433)            (533)
     Unrealized foreign currency transaction loss (gain) ..........................          (177)           1,660
     Loss (gain) on disposal of property, plant and equipment .....................           (37)               7
     Changes in operating assets and liabilities:
        Receivables ...............................................................        45,683           28,259
        Inventories ...............................................................       (17,806)         (25,034)
        Other assets ..............................................................         2,872            1,089
        Accounts payable ..........................................................       (13,883)         (12,436)
        Accrued expenses and other noncurrent liabilities .........................        (9,110)         (14,322)
            Net cash provided by (used in) operating activities ...................           401          (22,211)
                                                                                         ---------        ---------
Cash flows from investing activities:
  Capital expenditures ............................................................        (5,313)          (7,281)
  Capitalized interest ............................................................           (60)             (33)
  Proceeds from sales of property, plant and equipment ............................             6              -
            Net cash used in investing activities .................................        (5,367)          (7,314)
Cash flows from financing activities:
  Revolver borrowings .............................................................           -             59,601
  Revolver payments ...............................................................           -             (7,284)
  Principal payments on other long-term debt, including capital leases ............        (1,909)          (4,909)
  Capitalized finance costs .......................................................            (3)             -
  Capital contributions from IMC ..................................................           -             18,434
  IMC merger costs paid on behalf of common stockholder ...........................           -            (35,419)
  Other ...........................................................................          (494)           1,296
            Net cash provided by (used in) financing activities ...................        (2,406)          31,719
                                                                                         ---------        ---------
  Effect of exchange rate changes on cash and cash equivalents ....................            32              (46)
                                                                                         ---------        ---------

             Net increase (decrease) in cash and cash equivalents  ................        (7,340)           2,148
Cash and cash equivalents, beginning of period ....................................        17,076           18,088
                                                                                         ---------        ---------
Cash and cash equivalents, end of period ..........................................   $     9,736      $    20,236
                                                                                         =========        =========
Supplemental disclosure of noncash activities:
  Assets acquired under capital leases ............................................   $     1,522      $       804
                                                                                         =========        =========  
</TABLE>



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

                                                        5


<PAGE>






              HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

1.      Basis of Presentation:

    The accompanying  financial statements have not been audited but reflect all
normal recurring adjustments which, in the opinion of management,  are necessary
for a fair  presentation  of the  Company's  financial  position  and results of
operations for the interim periods presented. These interim financial statements
should be read in conjunction with the consolidated financial statements and the
notes  thereto for the fiscal year ("FY")  ended March 28, 1998  included in the
Company's FY 1998 Form 10-K filed with the Securities and Exchange Commission on
June 26, 1998.  The balance  sheet as of June 28, 1997 is presented to assist in
understanding the impact of seasonal  fluctuations on the financial condition of
the Company.

    The accompanying financial statements reflect the historical basis of Harris
in the assets and liabilities. Also, in connection with the Merger (see Note 2),
Harris  changed  its fiscal  year end to  December  31 and  changed  the related
quarter ends to the last day of the respective months.

2.      Organization and Merger:

     The consolidated  financial statements include the consolidated accounts of
Harris Chemical North America,  Inc.  ("Harris" or "HCNA") and its  wholly-owned
subsidiaries,  consisting  principally  of IMC Chemicals  Inc.  (formerly  North
American Chemical Company, "NACC"), NAMSCO Inc., ("NAMSCO") and its wholly-owned
subsidiaries  IMC Salt Inc.  (formerly North American Salt Company,  "NASC") and
Sifto Canada Inc.  ("Sifto"),  and GSL Corporation  ("GSL") and its wholly-owned
subsidiary   IMC  Kalium  Ogden  Corp.   (formerly   Great  Salt  Lake  Minerals
Corporation,  "GSLMC").  Harris  and its direct and  indirect  subsidiaries  are
collectively  referred to as the "Company." Harris is a wholly-owned  subsidiary
of IMC Inorganic Chemicals Inc. (formerly Harris Chemical Group, Inc., "HCG").

    On  April  1,  1998,  HCG  was  acquired  by IMC  Global  Inc.,  a  Delaware
corporation  ("IMC"),  pursuant to an Agreement and Plan of Merger,  dated as of
December  11,  1997,  by and among HCG,  IMC and IMC Merger Sub Inc., a Delaware
corporation  and a  wholly-owned  subsidiary  of IMC. On April 1, IMC Merger Sub
Inc.  was merged with and into HCG ("the  Merger")  and as a result,  all of the
subsidiaries of HCG, including Harris, became indirect wholly-owned subsidiaries
of IMC.

    The Company is a producer and marketer of inorganic  chemical and extractive
mineral  products  with  manufacturing  sites in North  America.  Its  principal
products  are  salt,  sodium-based  chemicals  including  soda  ash  and  sodium
bicarbonate,  sulfate of potash, and boron chemicals. Together, these businesses
serve a variety of markets, including agriculture, food processing, the chemical
process industry, glass manufacturing and highway de-icing.










                                                        6


<PAGE>



3.      Details of Inventories and Property, Plant and Equipment:

Inventories  are  stated  at the  lower-of-cost-or-market,  and  consist  of the
following (in thousands):

<TABLE>
<CAPTION>
                                              June 28,            March 28,           June 30,
                                                1997                1998                1998
                                          ---------------    -----------------   ---------------
<S>                                       <C>                <C>                 <C>             
Finished goods .........................  $        74,666    $          63,336   $        91,895
Raw materials and supplies .............           29,958               33,681            30,157
                                                ---------            ---------        ----------
     Total inventories .................  $       104,624    $          97,017   $       122,052
                                                =========            =========        ==========
</TABLE>


Property, Plant and Equipment (in thousands):

<TABLE>
<CAPTION>
                                               June 28,            March 28,           June 30,
                                                 1997                 1998               1998
                                          ---------------    -----------------    ---------------
<S>                                       <C>                <C>                  <C>            
At cost................................   $       709,672    $         745,608    $      748,552
Less accumulated depreciation
and amortization ......................           328,508              370,692           382,595
                                                ---------           ----------         ---------
  Net property, plant and equipment ...   $       381,164    $         374,916    $      365,957
                                                =========           ==========         =========
</TABLE>

4.      Income Taxes:

    In connection with the Merger (see Note 2), effective April 1, 1998,  Harris
and HCG are  included in the  consolidated  income tax return  filed by IMC. The
income tax provision in the accompanying financial statements of Harris has been
calculated on a Harris  stand-alone  basis and primarily  reflects Harris' state
income taxes, Sifto's Canadian income tax and Ontario mining tax.

5.      Long-Term Debt:

    The  Company  has a $130  million  revolving  line  of  credit  ("US  Credit
Facility"). Simultaneously with the consummation of the Merger (see Note 2), the
former  lenders  under the US Credit  Facility  assigned all of their rights and
interest  under the US Credit  Facility to IMC. At June 30, 1998, the amount due
to IMC under the US Credit Facility is $55.3 million.

    In FY 1994,  Harris  issued $250 million of 10.25% Senior  Secured  Discount
Notes due July 15, 2001 (the  "Discount  Notes"),  $335 million of 10.75% Senior
Subordinated  Notes due October 15, 2003 (the "Senior  Subordinated  Notes") and
Sifto  issued $100 million of 8.5% Senior  Secured  Notes due July 15, 2000 (the
"Sifto Notes").  The Discount Notes, the Senior Subordinated Notes and the Sifto
Notes are collectively referred to herein as the "Notes."

     The Notes require that Harris or Sifto,  as  applicable,  offer to purchase
all of the  outstanding  Notes for 101% of their  principal  amount plus accrued
interest ( "Offer to Purchase")  within 60 days following a change of control of
Harris or HCG.  The  consummation  of the Merger  (see Note 2) on April 1, 1998,
resulted  in a change of control  transaction,  as  defined  by the  Indentures,
pursuant  to which the Notes were  issued.  Each of Harris  and Sifto  issued an
Offer to Purchase that expired on June 29, 1998 and  approximately  $3.2 million
of the Notes were repurchased.






                                                        7


<PAGE>



6.       Comprehensive Income:

     Beginning in the June 1998 quarter,  the Company adopted FASB Statement No.
130,  Reporting  Comprehensive  Income,  ("FASB 130").  FASB 130 establishes new
rules for the reporting and display of comprehensive  income and its components;
however,  the  adoption of this  Statement  had no impact on the  Company's  net
income or shareholders'  equity. FASB 130 requires unrealized gains or losses on
the  Company's  foreign  currency  translation  adjustments,  which are reported
separately in shareholders'  equity, to also be reported as a component of other
comprehensive  income.  During the  quarters  ending  June 30, 1998 and June 28,
1997,  total  comprehensive  income (loss)  amounted to ($17,440) and ($20,236),
respectively.

7.       Condensed Consolidating Financial Statements:

     Separate   condensed   consolidating   financial   statements   of  certain
subsidiaries  of the Company are  presented  below.  Except for Sifto,  which is
domiciled  in Canada,  all  subsidiaries  of Harris are  domiciled in the United
States. In order to present the financial  statements of Sifto  separately,  the
financial  statements of NAMSCO  present the  investment in Sifto using the cost
method.

     Separate  financial  statements  of the  subsidiaries  of Harris which have
guaranteed  Harris' and  Sifto's  outstanding  public  debt (the  "Guarantors"),
including  NACC,  North  American  Terminals,  Inc.,  NAMSCO,  NASC,  Carey Salt
Company, The Hutchinson & Northern Railway Company,  GSL, GSLMC, and White River
Nahcolite Limited Liability Co., are not included for the following reasons: (i)
pursuant  to  their  respective  guarantees,  the  Guarantors  are  jointly  and
severally  liable with respect to Harris' and Sifto's  outstanding  public debt,
(ii) the aggregate  assets,  liabilities,  earnings and equity of the Guarantors
and Sifto are  substantially  equal to the  assets,  liabilities,  earnings  and
equity of Harris on a consolidated basis and (iii) accordingly,  Harris does not
believe that separate full  financial  statements  concerning the Guarantors and
Sifto are material to investors.  Financial  statements of the  subsidiaries  of
Harris which are not Guarantors are not presented  separately as these companies
are immaterial.


























                                                        8


<PAGE>



<TABLE>
<CAPTION>
                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
                                                     (Unaudited)


                                       CONDENSED CONSOLIDATING BALANCE SHEETS
                                                   June 28, 1997
                                                   (in thousands)


                                        NACC        GSL        NAMSCO        Sifto        HCNA      Eliminations  Consolidated
                                     -------------------------------------------------------------------------------------------
<S>                                  <C>         <C>          <C>          <C>         <C>           <C>           <C>         
Cash and cash equivalents .........  $     -     $     -      $     -      $     -     $    9,736    $      -      $     9,736
Receivables, net ..................     45,752       9,792       16,741        9,361          313           -           81,959
Inventories .......................     39,507      18,475       34,352       14,194          -          (1,904)       104,624
Other current assets ..............      6,820         157       (2,772)       5,604          356           -           10,165
Property, plant and
  equipment, net ..................    210,534      43,105       63,938       63,587          -             -          381,164
Investment in Sifto ...............        -           -          2,513          -            -          (2,513)           -
Other .............................      9,808          46        1,765        2,233      408,638      (391,022)        31,468
                                     -------------------------------------------------------------------------------------------
Total assets ......................  $ 312,421   $  71,575    $ 116,537    $  94,979   $  419,043    $ (395,439)   $   619,116
                                     ===========================================================================================
Total current liabilities .........  $  56,051   $   7,529    $  16,730    $  16,053   $   21,151    $      -      $   117,514
Long-term debt, net of
  current portion .................     77,130       1,329        2,698      102,107      585,000           -          768,264
Other noncurrent liabilities ......     33,273     (12,782)     (28,417)     (34,341)     140,053       (37,287)        60,499
Total common stockholder's
  equity (deficit) ................    145,967      75,499      125,526       11,160     (327,161)     (358,152)      (327,161)
                                     -------------------------------------------------------------------------------------------
Total liabilities and
  common stockholder's
  equity (deficit) ................  $ 312,421   $  71,575    $ 116,537    $  94,979   $  419,043    $ (395,439)   $   619,116
                                     ===========================================================================================


                                       CONDENSED CONSOLIDATING BALANCE SHEETS
                                                   June 30, 1998
                                                   (in thousands)

                                       NACC         GSL        NAMSCO       Sifto        HCNA     Eliminations   Consolidated
                                     -------------------------------------------------------------------------------------------
Cash and cash equivalents .........  $     -     $     -      $     -      $    -      $   20,236    $      -      $    20,236
Receivables, net ..................     50,780      10,576       19,086       7,406           217           100         88,165
Inventories .......................     41,525      20,133       44,774      16,290           -            (670)       122,052
Other current assets ..............      6,983          96       (2,750)      5,566           254        (1,927)         8,222
Property, plant and
  equipment, net ..................    191,056      45,272       65,591      64,038           -             -          365,957
Investment in Sifto ...............        -           -          2,513         -             -          (2,513)           -
Other .............................      9,333         -          1,835       1,336       458,879      (445,154)        26,229
                                     -------------------------------------------------------------------------------------------
Total assets ......................  $ 299,677   $  76,077    $ 131,049    $ 94,636    $  479,586    $ (450,164)   $   630,861
                                     ===========================================================================================
Total current liabilities .........  $  46,438   $  20,274    $  18,608    $ 12,291    $   21,970    $      583    $   120,164
Long-term debt, net of
  current portion .................     91,822      15,554       24,313      98,401       584,776           -          814,866
Other noncurrent liabilities ......      5,120     (45,192)     (57,206)    (33,846)      226,702       (45,885)        49,693
Total common stockholder's
  equity (deficit) ................    156,297      85,441      145,334      17,790      (353,862)     (404,862)      (353,862)
                                     -------------------------------------------------------------------------------------------
Total liabilities and
  common stockholder's
  equity (deficit) ................  $ 299,677   $  76,077    $ 131,049    $ 94,636    $  479,586    $ (450,164)   $   630,861
                                     ===========================================================================================
</TABLE>



                                                        9


<PAGE>



<TABLE>
<CAPTION>
                             HARRIS  CHEMICAL  NORTH  AMERICA,  INC.  AND  SUBSIDIARIES
                            NOTES  TO  CONSOLIDATED  FINANCIAL  STATEMENTS - (Continued)
                                                     (Unaudited)


                                  CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
                                        For the Quarter Ended June 28, 1997
                                                   (in thousands)


                                         NACC         GSL        NAMSCO       Sifto       HCNA     Eliminations  Consolidated
                                     -----------------------------------------------------------------------------------------
<S>                                  <C>          <C>          <C>          <C>        <C>           <C>          <C>         
Net sales .........................  $  50,427    $  13,507    $  21,668    $ 15,523   $      -      $ (7,926)    $   93,199
Cost of sales .....................     42,370       10,441       16,225      13,614          -        (6,643)        76,007
                                     -----------------------------------------------------------------------------------------
  Gross profit ....................      8,057        3,066        5,443       1,909          -        (1,283)        17,192
Selling, general and
  administrative expenses .........      4,471        1,744        5,804       3,361          127         -           15,507
                                     -----------------------------------------------------------------------------------------
  Operating income (loss) .........      3,586        1,322         (361)     (1,452)        (127)     (1,283)         1,685
Interest expense ..................     (4,609)         (68)        (160)     (2,414)     (16,409)        -          (23,660)
Other income (expense) ............      1,500        1,607       (1,669)        262       (3,553)      3,642          1,789
                                     -----------------------------------------------------------------------------------------
   Income (loss) before
   provision for income
   taxes ..........................        477        2,861      (2,190)      (3,604)     (20,089)      2,359        (20,186)
Provision (benefit) for
   income taxes ...................          9          481        (810)        (268)         156         491             59
                                     ----------------------------------------------------------------------------------------
   Net income (loss) ..............  $     468    $   2,380    $ (1,380)   $  (3,336)  $  (20,245)   $  1,868     $  (20,245)
                                     ========================================================================================


                                  CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
                                        For the Quarter Ended June 30, 1998
                                                   (in thousands)


                                         NACC         GSL        NAMSCO       Sifto        HCNA      Eliminations  Consolidated
                                     -------------------------------------------------------------------------------------------
Net sales .........................  $  44,235    $  20,450    $ 23,019     $ 16,758   $      -      $(11,094)    $   93,368
Cost of sales .....................     37,644       16,486      17,319       12,323          -        (8,692)        75,080
                                     ------------------------------------------------------------------------------------------
  Gross profit ....................      6,591        3,964       5,700        4,435          -        (2,402)        18,288
Selling, general and
   administrative expenses ........      3,041        1,162       3,307        3,068         (273)        -           10,305
                                     ------------------------------------------------------------------------------------------
   Operating income (loss) ........      3,550        2,802       2,393        1,367          273      (2,402)         7,983
Interest expense ..................     (3,429)         (94)       (452)      (2,374)     (17,936)        -          (24,285)
Other income (expense) ............      1,659        1,605      (1,390)      (1,232)      (6,093)      6,364            913
                                     ------------------------------------------------------------------------------------------
   Income (loss) before
   provision for income
   taxes ..........................      1,780        4,313         551       (2,239)     (23,756)      3,962        (15,389)
Provision (benefit) for
   income taxes ...................        600        1,841         190       (1,097)      (6,949)      6,833          1,418
                                     ------------------------------------------------------------------------------------------
   Net income (loss) ..............  $   1,180    $   2,472    $    361     $ (1,142)  $  (16,807)   $ (2,871)    $  (16,807)
                                     ==========================================================================================
</TABLE>


                                                        10


<PAGE>




<TABLE>
<CAPTION>
                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
                                                    (Unaudited)


                                  CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
                                        For the Quarter Ended June 28, 1997
                                                   (in thousands)


                                     NACC        GSL        NAMSCO       Sifto        HCNA    Eliminations  Consolidated
                                  ----------------------------------------------------------------------------------------
<S>                               <C>         <C>         <C>          <C>        <C>          <C>           <C>
Net cash provided by (used
   in) operating activities ....  $   11,594  $   9,456   $   (426)    $   (582)  $   (23,283) $      3,642  $     401
                                  ----------------------------------------------------------------------------------------
Cash flows from investing:
   Capital expenditures ........      (1,678)    (1,430)      (553)      (1,652)          -             -       (5,313)
   Capitalized interest ........         (60)       -          -            -             -             -          (60)
   Proceeds from sales .........           4        -          -              2           -             -            6
   Other .......................         -          -          -            -           3,633        (3,633)       -
                                  ----------------------------------------------------------------------------------------
Net cash provided by (used
   in) investing activities ....      (1,734)    (1,430)      (553)      (1,650)        3,633        (3,633)    (5,367)
                                  ----------------------------------------------------------------------------------------
Cash flows from financing:
   Gross borrowings ............         -          -          -            -             -             -          -
   Gross repayments ............      (1,055)      (392)      (315)        (147)          -             -       (1,909)
   Other .......................      (8,805)    (7,634)     5,274       (3,214)       13,891            (9)      (497)
                                  ----------------------------------------------------------------------------------------
Net cash provided by (used
   in) financing activities ....      (9,860)    (8,026)     4,959       (3,361)       13,891            (9)    (2,406)
                                  ----------------------------------------------------------------------------------------
Effect of exchange rate
   changes on cash .............         -          -          -             32           -             -           32
                                  ----------------------------------------------------------------------------------------
Net increase (decrease) in
   cash and cash equivalents ...         -          -        3,980       (5,561)       (5,759)          -       (7,340)
Cash and cash equivalents:
   Beginning of period .........         -          -       (3,980)       5,561        15,495           -       17,076
                                  ----------------------------------------------------------------------------------------
   End of period ...............  $      -    $     -     $    -       $    -     $     9,736  $        -    $   9,736
                                  ========================================================================================
</TABLE>




















                                                        11


<PAGE>




<TABLE>
<CAPTION>
                                HARRIS CHEMICAL NORTH AMERICA, INC. AND SUBSIDIARIES
                              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
                                                    (Unaudited)


                                  CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
                                        For the Quarter Ended June 30, 1998
                                                   (in thousands)


                                        NACC        GSL        NAMSCO       Sifto       HCNA     Eliminations  Consolidated
                                    ----------------------------------------------------------------------------------------
<S>                                 <C>         <C>         <C>         <C>         <C>           <C>          <C>
Net cash provided by (used
   in) operating activities ......  $   (4,227) $    12,462 $    1,475  $  (13,004) $   (23,468)  $     4,551  $    (22,211)
                                    ----------------------------------------------------------------------------------------
Cash flows from investing:
   Capital expenditures ..........      (3,653)      (1,032)    (1,104)     (1,492)         -             -          (7,281)
   Capitalized interest ..........         (33)         -          -           -            -             -             (33)
   Proceeds from sales ...........         -            -          -           -            -             -             -
   Other .........................         -            -          -           -          6,997        (6,997)             -
                                    ----------------------------------------------------------------------------------------
Net cash provided by (used
   in) investing activities ......      (3,686)      (1,032)    (1,104)     (1,492)       6,997        (6,997)       (7,314)
                                    ----------------------------------------------------------------------------------------
Cash flows from financing:
   Gross borrowings ..............      21,401       14,011     24,189         -            -             -          59,601
   Gross repayments ..............      (2,398)         (14)    (6,129)     (3,428)        (224)          -         (12,193)
   Other .........................     (11,090)     (25,427)   (18,431)      1,795       35,018         2,446       (15,689)
                                    ----------------------------------------------------------------------------------------
Net cash provided by (used
   in) financing activities ......       7,913      (11,430)      (371)     (1,633)      34,794         2,446        31,719
                                    ----------------------------------------------------------------------------------------
Effect of exchange rate
   changes on cash ...............         -            -          -           (46)         -             -             (46)
                                    ----------------------------------------------------------------------------------------
Net increase (decrease in
   cash and cash equivalents .....         -            -          -       (16,175)      18,323           -           2,148
Cash and cash equivalents:
   Beginning of period ...........         -            -          -        16,175        1,913           -          18,088
                                    ----------------------------------------------------------------------------------------
   End of period .................  $      -    $       -   $      -    $      -    $    20,236   $       -    $     20,236
                                    ========================================================================================
</TABLE>


                                                        12


<PAGE>



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

     The following  table sets forth the Company's net sales by product line for
the  quarters  ended June 30, 1998 (the "June  Quarter  1998") and June 28, 1997
(the "June Quarter 1997").

                                           Net Sales by Product Line
                                                (in thousands)

                                                    Quarter Ended
                                          June 28, 1997         June 30, 1998
                                      ------------------      -----------------
Salt ...............................  $           31,021      $          31,311
Soda Products ......................              31,333                 26,553
Boron Chemicals ....................              16,109                 16,544
Specialty Potash Fertilizers .......              11,587                 16,956
Other ..............................               3,149                  2,004
                                      ------------------      -----------------
  Total ............................  $           93,199      $          93,368
                                      ==================      =================


Quarter Ended June 30, 1998 Compared With Quarter Ended June 28, 1997

     Net sales for the June  Quarter 1998 were $93.4  million  compared to $93.2
million for the June Quarter 1997.

     The $0.3  million  increase  in salt sales was the  result of $0.8  million
higher  general  trade segment net sales in the June Quarter 1998 as compared to
the June Quarter 1997  partially  offset by $0.5 million lower  highway/chemical
salt  segment net sales in the June Quarter 1998 as compared to the June Quarter
1997.  The general trade segment net sales  increase was the result of favorable
pricing.  The  highway/chemical  segment  net sales  decrease  was  related to a
decrease  in sales  volumes in the June  Quarter  1998 as  compared  to the June
Quarter 1997.

     The $4.8 million decrease in net sales from soda products (soda ash, sodium
sulfate and sodium  bicarbonate)  in the June Quarter 1998 when  compared to the
prior  year  period  was due to  decreases  in the sales of soda ash and  sodium
sulfate  while  sodium  bicarbonate  sales  increased  slightly.  Sales  volumes
decreased  by  approximately  12% and  49% for  soda  ash  and  sodium  sulfate,
respectively, as a result of lower ANSAC volumes and timing of export sales. The
average  net sales price for soda ash was flat;  however,  the average net sales
price for sodium  sulfate was  approximately  12% higher  than the June  Quarter
1997. Sodium  bicarbonate sales volumes increased by approximately 21% while the
average  net sales price was  approximately  9% lower than the average net sales
price in the June Quarter 1997.

     The $0.4 million increase in net sales from boron chemicals is due to a 12%
increase in sales  volumes  during the June  Quarter  1998 when  compared to the
prior year period.  This volume  increase was largely offset by a 9% decrease in
the average net sales price of boron chemicals.  A change in the product mix has
negatively impacted the average net sales price of boron chemicals.

     The $5.4  million,  or 46%,  increase  in net sales from  specialty  potash
fertilizers  in the June Quarter 1998 when compared to the prior year period was
primarily due to 55% higher domestic sales volumes.





                                                        13


<PAGE>




     Cost of sales in the June  Quarter 1998 and June Quarter 1997 was 80.4% and
81.6% of sales,  respectively.  The improvement in gross margin  percentage from
the prior year is primarily  attributable  to lower freight and operating  costs
for the salt businesses.

     Selling,  general and administrative  expenses  decreased $5.2 million,  or
34%, in the June Quarter 1998 as compared to the June Quarter 1997.  The decline
is the result of lower  corporate  expenses  due to the  closing of the New York
office as a result of the  merger  with IMC (see Note 2) and  reduced  personnel
costs.

     Interest  expense  was $0.6  million  higher  in the June  Quarter  1998 as
compared  to the prior  year  period.  The  increase  is the  result of a higher
revolver balance in the June Quarter 1998 partially offset by the elimination of
higher cost interest and accreted interest on the North American Terminals, Inc.
debt which was retired in January 1998.

     An exchange  loss of $1.0 million was  recorded in the June  Quarter  1998,
primarily relating to the translation of United States  dollar-denominated  debt
of Sifto into  Canadian  dollars,  compared to a $0.3  million  gain in the June
Quarter 1997. No other significant exchange gains or losses were recorded during
the period.

     Other income  principally  consists of ground lease and maintenance  income
and interest  income.  Other income was $0.4 million  higher in the June Quarter
1998 than in the June Quarter 1997 due to higher interest income  resulting from
higher cash and cash equivalent balances.

     A  provision  for income  taxes of $1.4  million  was  recorded in the June
Quarter  1998,  $1.3  million  more  than in the June  Quarter  1997,  primarily
relating to state  income  taxes,  and Sifto's  Canadian  income tax and Ontario
mining tax.

Liquidity, Capital Resources and Financial Condition

Seasonality and Cash Flows

     The Company's combined accounts receivable and inventory levels have varied
by as much as $60.0  million  during a year.  Generally,  during  the  September
quarter and the December  quarter highway deicing salt inventories are increased
in preparation  for the winter season.  The harvesting of the solar ponds at the
Ogden facility also takes place in the December  quarter adding to the specialty
potash  fertilizer  inventory  levels.  Inventories  then  decline  in the March
quarter.  Accounts receivable increase during the December quarter and the March
quarter as highway salt sales and specialty potash  fertilizer sales peak during
this period. Cash requirements rapidly decline near the end of the March quarter
and the early part of the June quarter as accounts receivable are converted into
cash.  Sales of soda products and boron  chemicals  are, by  comparison,  not as
cyclical.

     June Quarter 1998 operating  activities  utilized $22.2 million in net cash
compared to the June  Quarter  1997 which  provided  $0.4 million in net cash. A
heavier  buildup of inventories in the June Quarter 1998 versus the June Quarter
1997 used $7.2 million more cash.  Collections  from accounts  receivable in the
June Quarter 1998 versus the June Quarter 1997 were $17.4  million  lower due to
lower sales in the March 1998 quarter when  compared to the March 1997  quarter.
Accounts  payable and accrued  expenses  used $3.8 million more cash in the June
Quarter 1998 than in the June Quarter 1997 due to the timing of payments.

     June Quarter 1998 investing  activities  used $7.3 million of cash compared
to a use of $5.4 million in the June Quarter 1997. The increase is the result of
higher capital expenditures.


                                                        14


<PAGE>



     June Quarter  1998  financing  activities  provided  cash of $31.7  million
compared to the June Quarter 1997 which used $2.4 million of cash.  Net revolver
borrowings  in the June  Quarter  1998 of $52.3  million  exceeded  no  revolver
borrowings in the June Quarter 1997. Additionally,  several financing activities
in the June Quarter 1998 are related to the Merger with IMC (see Note 2). First,
capital  contributions  from  IMC of $18.4  million  were  received  in the June
Quarter 1998. Additionally,  $35.4 million was paid during the June Quarter 1998
related to costs associated with the Merger.  Finally, $3.2 million of the Notes
were  redeemed in the June Quarter 1998  pursuant to the Offer to Purchase  (see
Note 5).

     In 1993, Harris issued $250 million of 10.25% Senior Secured Discount Notes
due July 15,  2001  (the  "Discount  Notes"),  $335  million  of  10.75%  Senior
Subordinated  Notes due October 15, 2003 (the "Senior  Subordinated  Notes") and
Sifto  issued $100 million of 8.5% Senior  Secured  Notes due July 15, 2000 (the
"Sifto Notes").  The Discount Notes, the Senior Subordinated Notes and the Sifto
Notes are collectively referred to herein as the "Notes." The Notes require that
Harris or Sifto, as applicable,  offer to purchase all of the outstanding  Notes
for 101% of their principal  amount plus accrued  interest ("Offer to Purchase")
within 60 days following a change of control of Harris or HCG. The  consummation
of the  Merger  (see Note 2) on April 1, 1998,  resulted  in a change of control
transaction,  as defined  by the  Indentures,  pursuant  to which the Notes were
issued.  Each of Harris and Sifto  issued an Offer to Purchase  that  expired on
June 29, 1998 and approximately $3.2 million of the Notes were repurchased.

     As of June 30, 1998, the majority of the current  portion of long-term debt
is comprised of the current portion of capital leases.  As of June 30, 1998, the
Company had $20.2 million of cash.  The Company's new parent,  IMC (see Note 2),
is currently  evaluating the debt structure of Harris and is considering various
options  available  to  it.  The  Company  believes  that  cash  generated  from
operations  along  with any  necessary  capital  contributions  from IMC will be
adequate to meet the Company's anticipated working capital needs during the next
twelve months.

Seasonality and Quarterly Financial Data (Unaudited)

     The Company experiences a substantial amount of seasonality in sales of its
various products. The result of this seasonality is that net sales and operating
income are generally  higher in the December quarter and March quarter and lower
in the June quarter and September quarter of each year.

     Sales of  highway  deicing  salt in  particular,  are  seasonal  in nature,
varying with the winter conditions in areas where the product is used. Following
industry practice, the Company and its customers stockpile sufficient quantities
of ice control salt from April through  December to meet estimated  requirements
for the winter season. Soda ash sales to the glass container industry tend to be
somewhat seasonal due to stronger summer demand for beverages  packaged in glass
bottles.  Most of the  Company's  specialty  potash  fertilizer  sales  are made
between  December  and  March  in  order  to meet  the  spring  planting  season
requirements.













                                                        15


<PAGE>


     The table below  reflects  the  seasonality  of the  Company's  business by
quarter.



<TABLE>
<CAPTION>

                                     June        September       December       March            June
                                     1997          1997            1997          1998            1998
                                  ---------      ---------       ---------    ---------       ---------
                                                               (in thousands)
<S>                               <C>            <C>             <C>          <C>             <C>
Operating Data:
   Net sales .................... $ 93,199       $ 94,907        $146,214     $159,833        $ 93,368
   Gross profit .................   17,192         22,923          50,254       53,638          18,288
   Operating income .............    1,685          9,672          36,238       40,742           7,983
   Interest expense .............   23,660         24,109          24,456       23,123          24,285
   Net income (loss) ............  (20,245)       (13,557)          8,230       14,255         (16,807)
Sales by Product:
   Salt .........................   31,021         33,965          73,737       77,720          31,311
   Soda products ................   31,333         30,200          34,430       30,378          26,553
   Boron chemicals ..............   16,109         17,505          17,313       17,362          16,544
   Specialty potash fertilizers .   11,587         10,053          16,086       31,046          16,956
   Other ........................    3,149          3,184           4,648        3,327           2,004
</TABLE>


PART II.              OTHER INFORMATION

Item 1.                        Legal  Proceedings

      None

Item 6.                        Exhibits and Reports on Form 8-K

(a) All exhibits  otherwise required in connection with this quarterly report on
Form 10-Q have heretofore been filed with the Securities and Exchange Commission
except as follows:

     None

(b)  Reports on Form 8-K

     A report on Form 8-K  dated  April 1,  1998 was  filed  reporting  on HCG's
Merger with IMC.

     A report on Form 8-K dated May 28, 1998 was filed  reporting on Harris' and
Sifto's Offer to Purchase the outstanding senior notes.

SIGNATURE

     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.

                                    Harris Chemical North America, Inc.
                                    (Registrant)

August 14, 1998                     /s/ J. Bradford James
                                    -----------------------------
                                        J. Bradford James
                                          Vice President
                                    (Principal Financial and Accounting Officer)


                                                        16


<PAGE>