<PAGE>   1
                                 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 SEPTEMBER 30, 1997

                                       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 NO. 1-13394


                             CHASE INDUSTRIES INC.
             (Exact name of Registrant as specified in its charter)

             DELAWARE                                       51-0328047
   (State or other jurisdiction of                       (I.R.S. Employer
   incorporation or organization)                       Identification Number)

                 14212 COUNTY ROAD M-50, MONTPELIER, OHIO 43543
                    (Address of principal executive offices,
                              including Zip Code)


       Registrant's telephone number, including area code: (419) 485-3193

                                 Not Applicable
            (Former name, former address and former fiscal year, if
                           changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

                               YES [X]        NO  [ ]

<TABLE>
<S>                                                                                                 <C>       
NUMBER OF SHARES OF COMMON STOCK OUTSTANDING AS OF OCTOBER 31, 1997..................................6,001,046

NUMBER OF SHARES OF NONVOTING COMMON STOCK OUTSTANDING AS OF OCTOBER 31, 1997........................4,100,079*
</TABLE>

---------

*  The Registrant's Nonvoting Common Stock is convertible, on a share-for-share
   basis, into Common Stock.


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

<PAGE>   2
                             CHASE INDUSTRIES INC.

                               TABLE OF CONTENTS


                         PART I. FINANCIAL INFORMATION

<TABLE>
<CAPTION>
Item 1.          Financial Statements                                                         Page
-------          --------------------                                                         ----
<S>                                                                                            <C>
                 Consolidated Balance Sheet as of September 30, 1997
                           and December 31, 1996.............................................  3

                 Consolidated Statement of Income for the three and nine months ended
                           September 30, 1997 and 1996.......................................  4

                 Consolidated Statement of Cash Flows for the nine months ended
                           September 30, 1997 and 1996.......................................  5

                 Notes to Consolidated Financial Statements..................................  6

Item 2.          Management's Discussion and Analysis of Financial Condition
                   and Results of Operations................................................. 12

                                          PART II. OTHER INFORMATION


Item 6.          Exhibits and Reports on Form 8-K............................................ 20

                 Signature................................................................... 22
</TABLE>







                                       2
<PAGE>   3

                             CHASE INDUSTRIES INC.
                           CONSOLIDATED BALANCE SHEET
              (UNAUDITED; IN THOUSANDS, EXCEPT SHARE INFORMATION)

<TABLE>
<CAPTION>
                                                                              September 30,  December 31,
                                                                                  1997           1996
                                                                              ------------   ------------
<S>                                                                           <C>            <C>         
                                     ASSETS
Current assets:
  Cash and cash equivalents                                                   $      1,607   $      9,763
  Receivables, net of allowance for doubtful accounts and
    claims of $1,372 and $1,236 in 1997 and 1996, respectively                      47,042
                                                                                                   34,514
  Inventories                                                                       53,047
                                                                                                   52,050
  Prepaid expenses                                                                     690          1,131
  Deferred income taxes                                                              4,672          2,897
                                                                              ------------   ------------
    Total current assets                                                           107,058        100,355
Property, plant and equipment, net                                                 101,669
                                                                                                   97,628
Other assets                                                                         4,904          6,768
                                                                              ------------   ------------
      Total assets                                                            $    213,631   $    204,751
                                                                              ============   ============


                                       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                                            $     33,690   $     36,134
  Accrued compensation and benefits                                                  5,524          5,598
  Accrued income taxes                                                               3,206          3,685
  Other accrued liabilities                                                          6,740          6,158
  Current portion of long-term debt                                                    139            131
                                                                              ------------   ------------
   Total current liabilities                                                        49,299         51,706
Long-term debt                                                                      60,660         70,631
Deferred income taxes                                                               10,520          8,081
                                                                              ------------   ------------
    Total liabilities                                                              120,479        130,418
                                                                              ------------   ------------
Commitments and contingencies                                                           --             --
                                                                              ------------   ------------
Stockholders' equity:
  Common stock, $.01 par value, 25,000,000 shares authorized; 6,000,696 and
    5,965,621 shares issued and outstanding
    in 1997 and 1996, respectively                                                      60             60
  Nonvoting common stock, $.01 par value, 5,000,000 shares
    authorized; 4,100,079 shares issued and outstanding
    in 1997 and 1996                                                                    41             41
  Additional paid-in capital                                                        30,584
                                                                                                   30,039
  Retained earnings                                                                 62,467         44,193
                                                                              ------------   ------------
    Total stockholders' equity                                                      93,152         74,333
                                                                              ------------   ------------
      Total liabilities and stockholders' equity                              $    213,631   $    204,751
                                                                              ============   ============
</TABLE>



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

                                       3
<PAGE>   4

                             CHASE INDUSTRIES INC.
                        CONSOLIDATED STATEMENT OF INCOME
              (UNAUDITED; IN THOUSANDS, EXCEPT SHARE INFORMATION)



<TABLE>
<CAPTION>
                                                   Three Months Ended          Nine Months Ended
                                                      September 30,              September 30,
                                                   1997          1996          1997          1996
                                                -----------   -----------   -----------   -----------
<S>                                             <C>           <C>           <C>           <C>        
Net sales                                       $   116,215   $    88,253   $   371,369   $   260,265
Cost of goods sold (exclusive of depreciation
  and amortization shown separately below)          100,173        73,904       319,220       221,485
                                                -----------   -----------   -----------   -----------

    Gross profit                                     16,042        14,349        52,149        38,780

Selling, general and administrative expenses          3,752         3,639        11,639         8,012

Depreciation and amortization                         2,455         1,758         7,324         4,216
                                                -----------   -----------   -----------   -----------

    Operating income                                  9,835         8,952        33,186        26,552

Interest expense, net                                 1,195           618         3,708         1,228
                                                -----------   -----------   -----------   -----------

    Income before income taxes                        8,640         8,334        29,478        25,324

Provision for income taxes                            3,286         3,300        11,204        10,010
                                                -----------   -----------   -----------   -----------

    Net income                                  $     5,354   $     5,034   $    18,274   $    15,314
                                                ===========   ===========   ===========   ===========

Average shares outstanding                       10,098,849    10,063,783    10,091,227    10,062,501
                                                ===========   ===========   ===========   ===========

Earnings per share                              $       .53   $       .50   $      1.81   $      1.52
                                                ===========   ===========   ===========   ===========
</TABLE>






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

                                       4
<PAGE>   5

                             CHASE INDUSTRIES INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           (UNAUDITED; IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                  Nine Months Ended September 30,
                                                                      1997          1996
                                                                    ----------    ----------
<S>                                                                 <C>           <C>       
Operating activities:
   Net income                                                       $   18,274    $   15,314
   Adjustments to reconcile net income to net cash
     provided by operating activities:
       Depreciation and amortization                                     7,324         4,216
       Accretion of discount on BP Note                                     --         1,216
       Deferred income tax expense (benefit)                               664           (44)
       Changes in assets and liabilities:
         (Increase) in receivables                                     (12,528)       (3,022)
         (Increase) decrease in inventories                               (997)        1,056
         (Decrease) in accounts payable                                 (2,444)       (5,414)
         Increase in accrued liabilities                                    29         1,436
         Other, net                                                      1,829          (120)
                                                                    ----------    ----------
              Net cash provided by operating activities                 12,151        14,638
                                                                    ----------    ----------
Investing activities:
   Purchase of Leavitt Tube Company, Inc.                                   --       (92,719)
   Deferred acquisition costs                                               --        (1,005)
   Additions to property, plant and equipment                          (10,889)       (1,766)
                                                                    ----------    ----------
              Net cash (used in) investing activities                  (10,889)      (95,490)
                                                                    ----------    ----------
Financing activities:
   Revolving credit facility borrowings, net                            15,137         5,359
   Proceeds from issuance of long-term debt                                 --        60,000
   Principal payments on long-term debt                                (25,100)           --
   Issuance of common stock - options exercised                            545            36
                                                                    ----------    ----------
              Net cash (used in) provided by financing activities       (9,418)       65,395
                                                                    ----------    ----------


Net (decrease) in cash and cash equivalents                             (8,156)      (15,457)

Cash and cash equivalents, beginning of period                           9,763        16,973
                                                                    ----------    ----------

Cash and cash equivalents, end of period                            $    1,607    $    1,516
                                                                    ==========    ==========

Supplemental disclosures:
   Interest and bank fees paid                                      $    4,213    $      124
                                                                    ==========    ==========
   Income taxes paid                                                $   10,865    $   10,251
                                                                    ==========    ==========
</TABLE>





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



                                       5
<PAGE>   6

1.       SIGNIFICANT ACCOUNTING POLICIES:

         PRINCIPLES OF CONSOLIDATION AND INTERIM FINANCIAL INFORMATION

         The consolidated balance sheet as of September 30, 1997, and December
31, 1996, the consolidated statement of income for the three and nine months
ended September 30, 1997 and 1996, and the consolidated statement of cash flows
for the nine months ended September 30, 1997 and 1996, include the accounts of
Chase Industries Inc. (the "Company"), a Delaware corporation, and its
wholly-owned subsidiaries, Chase Brass & Copper Company, Inc. ("CBCC"), a
Delaware corporation, Leavitt Tube Company, Inc. ("Leavitt"), a Delaware
corporation, and Holco Corporation ("Holco"), an Illinois corporation and
wholly-owned subsidiary of Leavitt.

         The accompanying financial statements have been prepared in accordance
with instructions to Form 10-Q and do not include all the information and
footnote disclosures required by generally accepted accounting principles. The
financial information for September 30, 1997 and 1996, included herein is
unaudited and, in the opinion of management, reflects all adjustments
necessary, consisting only of normal recurring adjustments, for a fair
presentation of such financial information.

         The results of operations for the three and nine months ended
September 30, 1997, are not necessarily indicative of the results of operations
that may be expected for the year ended December 31, 1997. This quarterly
report on Form 10-Q should be read in conjunction with the annual financial
statements included in the Company's Annual Report on Form 10-K dated March 18,
1997.

         On August 30, 1996, the Company acquired, through Leavitt, the assets
and operations of the steel tube division of UNR Industries, Inc., including
all the outstanding stock of Holco (the "Leavitt Acquisition"). Upon
consummation of the Leavitt Acquisition, Leavitt continued operations in the
manufacture and sale of structural and mechanical steel tubing. The net
purchase price was approximately $91.7 million after post-closing adjustments,
of which $62 million was financed with the Bank Credit Facility (as hereinafter
defined) and the remainder with cash. The Leavitt Acquisition was accounted for
as a purchase.

         On August 24, 1990, the Company acquired, through CBCC, the assets and
operations of a Delaware corporation formerly named Chase Brass & Copper
Company, Incorporated ("Old Chase"), pursuant to the Asset Purchase Agreement
("CBCC Purchase Agreement") dated May 10, 1990, by and between the Company,
CBCC, Old Chase, BP Exploration (Alaska) Inc. ("BPE") and The Standard Oil
Company (the "CBCC Acquisition"). BPE and The Standard Oil Company
(collectively referred to as "BP") own all of the stock of Old Chase. The CBCC
Acquisition was accounted for as a purchase.



                                       6
<PAGE>   7

2.       INVENTORIES:

         Inventories are stated at the lower of cost-or-market, with cost
determined on the last-in, first-out (LIFO) basis. Inventories have been
written down to lower of cost- or-market and such amounts are considered cost
for subsequent periods. If the first-in, first-out (FIFO) method for
determining cost had been used, inventories would have been approximately $3.9
million and $2.0 million higher at September 30, 1997, and December 31, 1996,
respectively. Inventories consisted of the following (in thousands):

<TABLE>
<CAPTION>
                                                   September 30,   December 31,
                                                       1997            1996
                                                    -----------     -----------
<S>                                                 <C>             <C>        
Raw materials                                       $    18,934     $    14,547
Work in process                                          12,983          21,124
Finished goods                                           22,325          18,613
                                                    -----------     -----------
                                                         54,242          54,284
Tolling metal due customers                              (1,195)         (2,234)
                                                    -----------     -----------
                                                    $    53,047     $    52,050
                                                    ===========     ===========
</TABLE>

3.       EARNINGS PER SHARE

         In March 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings per Share"
("SFAS 128"). This Statement establishes standards for computing and presenting
earnings per share and amends the standards for computing earnings per share
previously found in Accounting Principles Board Opinion No. 15, "Earnings per
Share" ("APB 15").

         SFAS 128 is required to be adopted by the Company for the year ended
December 31, 1997, and earlier adoption is not permitted. Accordingly, earnings
per share as of September 30, 1997 and 1996, presented on the face of the
Consolidated Statement of Income included herein are computed in accordance
with APB 15.

         Pro forma presentation of the effects of adopting SFAS 128 are
presented below:

<TABLE>
<CAPTION>
                                             Three Months Ended September 30,
                                             -------------------------------- 
                                              1997                       1996
                                              ----                       ----
                                       Shares        EPS          Shares         EPS
                                     ----------   ----------    ----------   ----------
<S>                                  <C>          <C>           <C>          <C>       
Basic                                10,098,849   $      .53    10,063,786   $      .50
Dilution - stock options                275,996         (.01)      143,653         (.01)
                                     ----------   ----------    ----------   ----------
Fully diluted                        10,374,845   $      .52    10,178,436   $      .49
                                     ==========   ==========    ==========   ==========
</TABLE>




                                       7
<PAGE>   8
                             CHASE INDUSTRIES INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


<TABLE>
<CAPTION>
                                      Nine Months Ended September 30,
                                      -------------------------------
                                     1997                      1996
                                     ----                      ----
                             Shares        EPS          Shares        EPS
                           ----------   ----------    ----------   ----------
<S>                        <C>          <C>           <C>          <C>       
Basic                      10,091,227   $     1.81    10,062,501   $     1.52
Dilution - stock options      218,461         (.04)      119,512         (.02)
                           ----------   ----------    ----------   ----------
Fully diluted              10,309,688   $     1.77    10,182,013   $     1.50
                           ==========   ==========    ==========   ==========
</TABLE>

4.       COMMITMENTS AND CONTINGENCIES:

         CBCC. In connection with the CBCC Acquisition, the Company and BP
entered into a remediation agreement (the "Remediation Agreement"). Under the
terms of the Remediation Agreement, BP is responsible for certain remediation
activities attributable to environmental releases which occurred prior to the
CBCC Acquisition at CBCC's manufacturing facility and the construction of a
waste water treatment plant to enable CBCC to comply with its waste water
discharge permit (the "Permit"). BP also is obligated under the CBCC Purchase
Agreement to indemnify the Company for liabilities arising out of certain
environmental conditions that existed as of the CBCC Acquisition date. BP has
performed certain activities in this regard and has acknowledged liability for
certain releases of regulated substances into the environment which occurred
prior to the CBCC Acquisition.

         While CBCC's waste water treatment plant has been in operation since
May 1993, CBCC is still experiencing occasional exceedances to certain
limitations contained in the Permit, resulting in violations of the Clean Water
Act. The Ohio Environmental Protection Agency ("Ohio EPA") is kept apprised as
to the status of activities concerning the elimination of exceedances and has
not initiated any enforcement action against CBCC for prior exceedances, but
has indicated that it may do so if violations of the Permit limits continue. In
early 1997 CBCC identified certain conditions it believed to be contributing to
the Permit limit exceedances and undertook corrective measures that have
reduced significantly the Permit exceedances. Although certain Permit
exceedances are still being experienced on occasion, precluding CBCC's routine
compliance with the Permit, CBCC has identified certain additional conditions
that may be contributing to the exceedances and is actively working to correct
these conditions.

         CBCC and/or other entities named "Chase Brass & Copper Co." (which may
include Old Chase or divisions of Old Chase) have been named by governmental
agencies and/or private parties as a potentially responsible party ("PRP")
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 ("CERCLA") and/or state laws with respect to two sites, and may have
been identified as a PRP at one additional site.



                                       8
<PAGE>   9
                             CHASE INDUSTRIES INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         In connection with one of the two sites, located in Cleveland, Ohio,
CBCC has been named as one of over 130 defendants in a CERCLA Section 107
action which seeks recovery of response costs previously spent and proposed to
be spent by the plaintiff. The plaintiff has alleged that between 1990 and 1993
it and the other ordered parties have incurred response costs in excess of $10
million. The Company believes that CBCC has had no contact with the site and
has no knowledge as to what, if any, share of response costs has been allocated
to CBCC. BP has been notified of this suit and has assumed the defense thereof
because alleged events giving rise to the CERCLA liability occurred prior to
the CBCC Acquisition.

         With respect to the second site, located in Tifton, Georgia, CBCC has
been notified by a group of private parties of its potential identification as
a PRP. The notice alleges that CBCC may be liable for contribution with respect
to prior cleanup costs incurred by third parties at this site and may be
required to participate in funding future cleanup costs at this site. The
Company believes that CBCC has had no contact with the site and has no
knowledge as to what, if any, share of response costs would be allocated to
CBCC if it is determined that CBCC or Old Chase had any contact with this site.
BP has been notified and has assumed the defense of this matter.

         The additional site, located in Mifflin County, Pennsylvania, was
placed on the United States Environmental Protection Agency's (the "EPA")
National Priorities List in 1989. While CBCC has not received any formal
notification from the EPA or any third party, the Company believes that Old
Chase has been identified by the EPA as a PRP. To the Company's knowledge,
however, neither CBCC nor the brass rod division of Old Chase directly disposed
of hazardous wastes at this site. Nevertheless, BP has been notified by the
Company of CBCC's (or Old Chase's) apparent identification as a PRP and BP's
responsibility for any liability associated with this site as it relates to
periods prior to the date of the CBCC Acquisition. Based on information
available to the Company, it appears that if CBCC or Old Chase were determined
to be liable, liability would be allocated on the basis of 0.5828% of cleanup
costs (or approximately $376,000).

         The Company believes that CBCC has no liability for the cleanup costs
related to these sites because (a) such liability is attributable to an entity
that had the same or similar name to that of CBCC, such as a division or
subsidiary of BP (other than the brass rod division of Old Chase), or (b) such
liability arose from acts that occurred prior to the CBCC Acquisition and,
therefore, BP retained such liability under the CBCC Purchase Agreement and is
contractually obligated to indemnify the Company for such liabilities. To the
extent CBCC incurs any cleanup costs with respect to these sites, it intends to
enforce its rights under the CBCC Purchase Agreement to recover such amounts
from BP.

         Preliminary studies conducted immediately prior to the CBCC
Acquisition indicated that the site upon which CBCC's manufacturing facility is
located has been contaminated with certain volatile organic compounds,
including trichlorethylene, as well as total petroleum hydrocarbons and certain
metals from historical operating practices. BP conducted initial site
investigation 




                                       9
<PAGE>   10
                             CHASE INDUSTRIES INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


activities in an effort to determine the extent of contamination and
appropriate cleanup methods. After reviewing the results of that investigation,
CBCC determined that additional sampling is necessary to more fully delineate
the extent and magnitude of contamination and to identify appropriate cleanup
standards. In October 1997, CBCC initiated additional sampling that it believes
is necessary to establish appropriate cleanup standards and to identify
available remedial methods and potential regulatory constraints related to
specific remedial methodologies. The results of the initial sampling, the
additional sampling to be conducted, and input from the Ohio EPA will be used
to develop a comprehensive remediation plan for the site. The investigation is
being conducted on a voluntary basis with the concurrence of the Ohio EPA.

         Because the site investigatory activities related to CBCC's facility
are not yet complete, the Company presently is unable to estimate with any
degree of certainty the extent of contamination or the amount of site cleanup
costs associated therewith, although such costs may be material. Therefore, to
the extent CBCC is required to fund cleanup costs related to the remediation of
contamination at its manufacturing facility as a result of BP's refusal to
implement remediation activities acceptable to CBCC, such costs could have a
material adverse effect on the Company's financial condition and results of
operations pending the recovery of such amounts from BP. However, because BP
has acknowledged its contractual obligation to fund certain investigatory and
cleanup activities related to site contamination attributable to Old Chase's
operations, the probability that CBCC would be required to make material
expenditures related to site cleanup appears to be remote. Accordingly, no
reserves have been established regarding the aforementioned matters.
Additionally, the Company expects no material impact on its financial position,
results of operations or liquidity as a result of the existence of any other
environmental conditions related to CBCC.

         To the extent CBCC incurs cleanup costs with respect to CBCC's site,
it intends to enforce its rights under the CBCC Purchase Agreement and/or the
Remediation Agreement to recover such amounts from BP. In the event the Company
is entitled to recovery from BP pursuant to the Remediation Agreement, the CBCC
Purchase Agreement, or otherwise, but is unable to collect such amounts from
BP, the Company may elect to offset the amounts of such recoveries against
amounts payable under the $20 million promissory note issued to BP as part of
the CBCC Acquisition (the "BP Note").

         Leavitt. Prior to the closing of the Leavitt Acquisition, five
underground storage tanks ("USTs") were removed from Leavitt's facility in
Hammond, Indiana. Prior to removal, one or more of the USTs released petroleum
and other chemical constituents into the environment. Some contamination of
groundwater and soil at the Hammond facility remains in place. Prior to the
Leavitt Acquisition, Old Leavitt had conducted sampling and had requested the
Indiana Department of Environmental Management ("IDEM") to "close" the UST
removal project. The IDEM has not yet issued a "closed" letter and, in February
1997, notified Leavitt that additional groundwater sampling would be required
prior to the IDEM considering closure. Additional groundwater sampling is
scheduled to occur in November 1997, and the results will be submitted 




                                      10
<PAGE>   11
                             CHASE INDUSTRIES INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)



to the IDEM for review. The Hammond operations were relocated to Chicago in
September 1997, and no manufacturing activities currently are conducted at the
Hammond location.

         Pending the completion of additional sampling and further direction
from the IDEM, the Company currently is unable to determine the extent of
contamination or what, if any, remedial activities may be required. Because, as
noted above, there exists evidence of contamination at the Hammond facility,
the cleanup costs associated with the environmental conditions at the Hammond
facility could be material. However, the probability that Leavitt would be
required to make material expenditures relating to site cleanup at the Hammond
facility appears to be remote. Therefore, the Company has not made any specific
accrual for costs related to investigation or cleanup at the Hammond facility.
To the extent the Company or Leavitt incurs a liability with respect to site
cleanup at the Hammond facility, UNR Industries, Inc., is obligated under the
Leavitt Acquisition Agreement to indemnify Leavitt for 90% of losses related to
certain environmental conditions, including costs incurred with respect to
contaminants released at Leavitt's properties (including the Hammond facility)
prior to the Leavitt Acquisition, to the extent such losses exceed $400,000 in
the aggregate. In addition, to the extent the contamination at the Hammond
facility is attributed to actions of prior owners, the Company may be entitled
to recover from prior owners costs incurred by the Company at the Hammond site.




                                      11
<PAGE>   12


                             CHASE INDUSTRIES INC.



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

GENERAL

         The Company, through its wholly owned subsidiaries CBCC and Leavitt, 
is a leading manufacturer of free-machining and forging brass rod and
structural and mechanical steel tubing. Chase Industries Inc. is traded on the
New York Stock Exchange under the symbol CSI. Visit home pages on the world
wide web at www.chasebrass.com. and www.Leavitt-Tube.com.

CBCC

         CBCC is an ISO 9002 certified manufacturer and supplier of
free-machining and forging brass rod in the United States and Canada. CBCC's
net sales represent gross sales of brass rod less sales discounts and freight
charges. The gross sales price of brass rod consists of a metal price charged
to customers and a fabrication price as separate components. Cost of goods sold
includes the cost of brass scrap, which is the principal raw material used in
the manufacturing process and the primary component of cost of goods sold, as
well as the costs of labor, energy and other materials and supplies used in
fabricating the brass scrap into finished rod. Therefore, CBCC's profit levels
depend primarily on the amount of finished rod shipped, fabrication prices, and
the difference between the metal price charged to customers and CBCC's cost of
brass scrap.

         The principal raw material used in CBCC's manufacturing process is
brass scrap, approximately 80% of which is obtained from customers and 20% of
which is purchased from scrap dealers at prevailing free-market prices.
Free-market prices of brass scrap fluctuate based on the supply of and demand
for brass scrap and the price for copper and zinc (the major components of
brass), and generally are less than the price at which brass scrap is purchased
from customers ("Metal Buying Price").

         CBCC's pricing structure consists of a metal selling price and a
fabrication price as separate components. The metal price charged to customers
("Metal Selling Price") is determined at the time of shipment based on the
then-current Metal Buying Price and is not directly affected by fluctuations in
free-market brass scrap prices. As a result of this pricing structure,
increases and decreases in the Metal Selling Price will affect net sales levels
and gross profit as a percentage of sales, even in the absence of an increase
or decrease in shipments or the fabrication prices charged to customers, but
will have little impact on the Company's gross profit levels. However, the
quantity of free-market brass scrap purchased by CBCC and changes in the
difference between the free-market prices paid for brass scrap and the Metal
Buying Price will affect the Company's gross profit, even in the absence of an
increase or a decrease in shipments or net sales levels.






                                      12
<PAGE>   13

                             CHASE INDUSTRIES INC.


         In addition to sales made under the pricing structure described above,
some sales are made on a tolling basis. In a tolling arrangement, the customer
consigns brass scrap to CBCC and is charged a fabrication price for processing
the brass scrap into finished rod. Tolling transactions reduce the Company's
net sales by the Metal Selling Price that otherwise would be charged to the
customer in a sale of finished brass rod and cost of goods sold by the Metal
Buying Price that otherwise would be paid to the customer. To a lesser extent,
tolling transactions also affect the Company's gross profit to the extent CBCC
is unable to take advantage of the pricing differential on brass scrap
purchased and sold. To partially offset the effect of tolling transactions on
the Company's gross profit, CBCC requires tolling customers to deliver 1.04
pounds of brass scrap in exchange for each pound of finished rod shipped.

LEAVITT

         Leavitt is a leading producer of structural and mechanical electric
resistance welded steel tubing in round, square and rectangular shapes in sizes
ranging from 3/8 inch to 12 3/4 inches in outer diameter for round sizes and
1/2 inch to 10 inch squares and equivalent rectangles. Leavitt's financial
performance may be impacted by changes in the price it pays for flat-rolled
steel, the primary cost component of Leavitt's finished product, based on the
market conditions in the flat-rolled steel industry. Based on the then-current
market conditions in the steel tubing industry, Leavitt may or may not pass the
economic impact of steel price changes on to its customers through changes in
the selling price.

RESULTS OF OPERATIONS

Three Months Ended September 30, 1997, Compared with Three Months Ended
September 30, 1996

         Results for the three months ended September 30, 1997, include the
results of Leavitt, which is a predominant factor contributing to the increases
discussed below. Results for the three months ended September 30, 1996, include
the results of Leavitt since August 30, 1996, the Leavitt Acquisition date.

         Net sales increased $28 million, or 32%, to $116.2 million in 1997
primarily due to the addition of Leavitt as well as record brass rod shipments.
Leavitt increased shipments 5% in third quarter and nearly 7% for the nine
months ended September 30, 1997, compared with the prior year including amounts
prior to the Leavitt Acquisition. CBCC continues to experience strong demand
from its customers, particularly those in plumbing and plumbing-related
industries. CBCC's shipments increased 5% in third quarter 1997 and 4% year to
date compared with 1996. The brass rod industry as a whole continues to
experience good to high demand from the industry's largest end-use market,
construction and remodeling, which includes customers in the plumbing and
plumbing-related industries.

         Profit growth was impacted because of less favorable free-market metal
buying opportunities at CBCC in third quarter 1997 compared with 1996. This
trend began in mid-1997 and is expected to continue through the remainder of
the year.



                                      13
<PAGE>   14


                             CHASE INDUSTRIES INC.


         As a result of the above factors, the Company's gross profit increased
$1.7 million, or 12%, to $16 million in third quarter 1997.

         Selling, general and administrative expenses increased $113,000 to
$3.8 million in third quarter 1997 compared with 1996.

         Depreciation and amortization increased $697,000, or 40%, to $2.6
million in third quarter 1997, principally due to depreciation on capital
assets acquired in the Leavitt Acquisition and capital additions at CBCC.

         As a result of the above factors, operating income increased $883,000,
or 10%, to $9.8 million in third quarter 1997.

         Net interest expense increased $577,000, or 93%, to $1.2 million in
third quarter 1997, primarily as a result of interest expense associated with
Leavitt Acquisition debt and reduced interest income due to the use of cash on
hand in the Leavitt Acquisition and to paydown debt.

         Based on the above factors, net income increased $320,000, or 6%, to
$5.4 million. Earnings per share increased to $.53 in third quarter 1997
compared with $.50 in third quarter 1996.

Nine Months Ended September 30, 1997, Compared with Nine Months Ended
September 30, 1996

         Results for the nine months ended September 30, 1997, include the
results of Leavitt, which is a predominant factor contributing to the increases
discussed below. Results for the nine months ended September 30, 1996, include
the results of Leavitt since August 30, 1996, the Leavitt Acquisition date.

         Net sales increased $111.1 million, or 43%, to $371.4 million for the
nine months ended September 30, 1997, primarily due to the addition of Leavitt
and record brass rod shipments. Leavitt increased steel tubing shipments for
the nine months ended nearly 7% over 1996 predominately due to high demand for
Leavitt's products. CBCC's record shipments, as well as the strong demand
throughout the brass rod industry, are primarily attributed to strong demand
from customers in plumbing and plumbing- related industries.

         Profit growth was impacted because of less favorable free-market metal
buying opportunities at CBCC in 1997 compared with 1996. Additionally, the
Company's profit growth will continue to be constrained by brass rod
manufacturing capacity limitations. Such capacity constraints encouraged the
Company to launch a capital expansion project earlier this year, as discussed
below under "Liquidity and Capital Resources - Capital Resources."

         As a result of the above factors, the Company's gross profit increased
$13.4 million, or 34%, to $52.1 million for the nine months ended September 30,
1997.



                                      14
<PAGE>   15


                             CHASE INDUSTRIES INC.


         Selling, general and administrative expenses increased $3.6 million to
$11.6 million for the nine months ended September 30, 1997, compared with 1996.
The increase was attributed primarily to the Leavitt Acquisition.

         Depreciation and amortization increased $3.1 million, or 74%, to $7.3
million for the nine months ended September 30, 1997, principally due to
depreciation on capital assets acquired in the Leavitt Acquisition.

         As a result of the above factors, operating income increased $6.6
million, or 25%, to $33.2 million for the nine months ended September 30, 1997.

         Net interest expense increased $2.5 million, or 202%, to $3.7 million
for the nine months ended September 30, 1997, primarily as a result of interest
expense associated with Leavitt Acquisition debt and reduced interest income
due to the use of cash on hand in the Leavitt Acquisition and to paydown debt.

         Income tax expense increased $1.2 million, or 12%, to $11.2 million
for the nine months ended September 30, 1997, as a result of an increase of
$4.2 million, or 16%, in income before income taxes.

         Based on the above factors, net income increased $3.0 million, or 19%,
to $18.3 million. Earnings per share increased to $1.81 for the nine months
ended September 30, 1997, compared with $1.52 for the same period in 1996.

LIQUIDITY AND CAPITAL RESOURCES

General

         At September 30, 1997, cash and cash equivalents totaled $1.6 million
compared with $9.8 million at year end 1996. This decline is predominantly
attributed to prepayments of Leavitt Acquisition long-term debt. Since the
Leavitt Acquisition in August 1996, the Company has prepaid a total of $22
million of the associated long-term debt.

         Free cash flow (net income plus depreciation and amortization less
capital expenditures) totaled $14.7 million for the nine months ended September
30, 1997, compared with $17.8 million for the same period in 1996. The decrease
in 1997 was attributed to increased capital expenditures associated with the
capital expansion project discussed below under "Liquidity and Capital
Resources - Capital Resources." Free cash flow also will be applied to further
reduce bank debt and will be available to fund future acquisitions. The Company
currently is meeting its operational and liquidity needs with cash on hand,
internally generated funds and amounts available under the Bank Credit Facility
(as hereinafter defined).






                                      15
<PAGE>   16
                             CHASE INDUSTRIES INC.

Working Capital

         At September 30, 1997, working capital was $57.8 million, a $9.1
million, or 19%, increase from $48.6 million at December 31, 1996.

         At September 30, 1997, the increase in working capital predominantly
resulted from a $12.5 million, or 36%, increase in accounts receivable, a
$997,000 increase in inventories, a $1.8 million increase in deferred taxes and
a $2.4 million, or 7%, decrease in accounts payable, partially offset by an
$8.2 million, or 84%, decrease in cash and cash equivalents, and a $441,000, or
39%, decrease in prepaid expenses.

         The decrease in cash and cash equivalents was the result of prepaying
Leavitt Acquisition debt and funding CBCC capital expenditures. The increase in
accounts receivable was due principally to an increase of $12.7 million, or
46%, in net sales in September 1997 compared with December 1996. The Company's
shipments typically are lower in December due to customer shutdowns.

         The Company's current ratio follows:

<TABLE>
<CAPTION>
                                                       September 30, 1997        December 31, 1996
                                                       ------------------        -----------------
<S>                                                           <C>                       <C> 
          Current ratio                                       2.17                      1.94
          Current ratio excluding cash                        2.14                      1.75
</TABLE>

Cash Flow Provided by Operating Activities

         For the nine months ended September 30, 1997, net cash provided by
operating activities was $12.2 million, which included net income of $18.3
million and depreciation and amortization of $7.3 million, partially offset by
an increase in working capital, excluding cash, debt and deferred taxes, of
$15.5 million.

         For the nine months ended September 30, 1996, net cash provided by
operating activities was $14.6 million, which included net income of $15.3
million, depreciation and amortization of $4.2 million and accretion of
discount on the BP Note of $1.2 million, partially offset by an increase in
working capital, excluding cash, debt and deferred income taxes, of $5.8
million.




                                      16
<PAGE>   17
                             CHASE INDUSTRIES INC.


Cash Flow Used in Investing Activities

         Capital additions were $10.9 million for the nine months ended
September 30, 1997, and $1.8 million for the nine months ended September 30,
1996.

Cash Flow Used in Financing Activities

         Cash used in financing activities of $9.4 million for the nine months
ended September 30, 1997, consisted of net repayments of long-term debt of $10
million partially offset by $545,000 from the issuance of common stock for
stock options exercised. Financing activities during the nine months ended
September 30, 1996, included net borrowings of $65.4 million in conjunction
with the Leavitt Acquisition.

Capital Resources

         The Company has launched a capital project referred to as "Project
400." The project includes potential expansion of CBCC's foundry, extrusion
system and finishing capability, with an ultimate goal of increasing finished
brass rod shipments to approximately 400 million pounds annually, a one-third
increase over current production levels. The first phase of the project, which
includes the installation of three new billet heaters, is expected to be
completed in first quarter 1998 and has a total cost of approximately $12
million. It is anticipated that capital projects will be paid for with cash
flow provided by operating activities or through alternative financing
arrangements.

Bank Credit Facility

         In connection with the Leavitt Acquisition, the Company entered into a
new credit facility (the "Bank Credit Facility") of $100 million agented by PNC
Bank, National Association. The Bank Credit Facility replaced the Company's
existing $33 million bank credit facility, which was terminated August 30,
1996. The Bank Credit Facility includes a $60 million term loan ("Term Loan")
and a $40 million revolving credit facility ("Revolving Credit Facility").
Since the Leavitt Acquisition, the Company has prepaid a total of $35 million
on the Term Loan, including all amounts originally due in 1997, 1998 and 1999.
The remaining balance on the Term Loan is payable in quarterly installments in
amounts ranging from $875,000 to $3 million. The next installment of $875,000
is due July 2000 and the final installment of $1,025,000 is due October 2002.
The total borrowing capacity under the Revolving Credit Facility is determined
monthly by a formula based on levels of inventory and accounts receivable, up
to a maximum of $40 million. The Revolving Credit Facility commitment expires
August 30, 2001, and the Company can request a one-year extension of the
expiration date at any time after December 31, 1997.



                                       17

<PAGE>   18


                             CHASE INDUSTRIES INC.


         Effective June 16, 1997, the Company and PNC Bank agreed to an
amendment to the Bank Credit facility which reduced the Company's LIBOR spread
and provided a Federal funds interest rate option for the Revolving Credit
Facility. Advances under the Revolving Credit Facility will bear interest, at
the Company's option, at a rate per annum equal to (i) PNC Bank's prime rate or
(ii) the Federal funds rate plus 3/4%, 7/8%, 1%, 1 1/8%, 1 3/8%, 1 5/8%, or
(iii) LIBOR for the applicable borrowing period plus 3/8%, 1/2%, 5/8%, 3/4%,
1%, or 1 1/4% depending on the Company's ratio of total debt to earnings before
interest, taxes, depreciation and amortization, with interest payable quarterly
or as of the end of each LIBOR borrowing period, whichever is shorter. The Term
Loan interest options are the same as the Revolving Credit Facility except that
there is no Federal funds option.

         The Bank Credit Facility contains certain covenants that, among other
things, limit the Company's ability to incur additional debt, make capital
expenditures or pay dividends. The covenants also require the Company to
maintain a minimum interest coverage ratio and level of net worth and restrict
the Company from exceeding a maximum ratio of debt to cash flow from
operations. The Bank Credit Facility also requires the Company to maintain CBCC
and Leavitt as wholly-owned subsidiaries.

         As of September 30, 1997, $25 million was outstanding under the Term
Loan. Borrowings outstanding under the Revolving Credit Facility at September
30, 1997, totaled $15.1 million with total additional availability under the
Revolving Credit Facility at $24.9 million.

BP Note

         In connection with the CBCC Acquisition, the Company issued a
promissory note to BP in the original principal amount of $20.0 million (the
"BP Note"). The BP Note was recorded at the CBCC Acquisition date at a discount
using a 10.4% effective interest rate. The BP Note initially matured in August
1996, and the Company, at its option, extended the maturity date for three
additional years to August 1999 with interest payable annually at 9.28%. The BP
Note contained a contingent interest payment based upon average Company
earnings (as defined in the BP Note) for the years ended December 31, 1990
through 1995. The contingent interest totaling $254,000 due August 1996 and the
annual interest payment totaling $1,856,000 due August 1997 were offset against
the amounts payable by BP to the Company pursuant to the CBCC Purchase
Agreement and the Remediation Agreement.



                                      18
<PAGE>   19
                             CHASE INDUSTRIES INC.



CONTINGENCIES - ENVIRONMENTAL MATTERS

         As discussed in Note 4 of Notes to Consolidated Financial Statements,
each of CBCC and Leavitt are subject to certain contingent liabilities relating
to environmental conditions at their respective facilities. Because
investigatory activities with respect to such environmental conditions have not
been completed, the Company currently is unable to estimate with any degree of
certainty the extent of contamination or the amount of cleanup costs associated
therewith. However, the cleanup costs associated with these environmental
conditions may be material and, in the event CBCC or Leavitt, as applicable,
were determined to be solely responsible or liable for site cleanup activities
(due to the inability or unwillingness of other responsible parties to perform
or pay for such activities), such expenditures could have a material adverse
effect on the Company's earnings and financial condition. Notwithstanding this
potential (although uncertain) material liability, because of the contractual
obligations of third parties with respect to such environmental conditions, the
Company does not believe that it will be required to make material expenditures
with respect to these environmental conditions or that the cleanup costs or
other liabilities associated with such conditions will have a material adverse
effect on the Company's financial position, results of operations or liquidity.
On the bases stated above, the Company has not made any related accrual of all
or any part of such costs.

SAFE HARBOR

Management uses estimates and assumptions in discussing future operations of
the Company and conditions in the industries in which it operates. Such
forecasts made by the Company are forward looking and are subject to risks and
uncertainties which could cause actual results to differ materially from
historical results or those anticipated. Actual results will be affected by
general economic and industry conditions in the end-use markets for the
Company's products as well as the impact of competitive products and pricing.
Foreign economic activity and the relationship of the U.S. dollar to other
currencies also affect import levels and exports of U.S. manufactured products
containing parts made from brass rod and steel tubing. The Company's shipments
also will be affected by its ability to maintain manufacturing operations at
its current levels without significant interruption.







                                       19

<PAGE>   20


                             CHASE INDUSTRIES INC.



                           PART II. OTHER INFORMATION


ITEM 6.           EXHIBITS AND REPORTS ON FORM 8-K

     (a)   EXHIBITS

     3.1       --          Restated Certificate of Incorporation of the
                           Company (incorporated by reference to Exhibit
                           4.1 to the Company's Registration Statement
                           on Form S-8 dated December 9, 1994,
                           Registration No. 33-87278) as amended by the
                           Certificate of First Amendment to the
                           Company's Restated Certificate of
                           Incorporation (incorporated by reference to
                           Exhibit 3.2 to the Company's Current Report
                           on Form 8-K dated May 14, 1997).

     3.2       --          By-Laws of the Company (incorporated by
                           reference to Exhibit 3.2 to the Company's
                           Registration Statement on Form S-1 as filed
                           with the Securities and Exchange Commission
                           on November 3, 1994, Registration No.
                           33-83178).

     4.1       --          Specimen Common Stock Certificate
                           (incorporated by reference to Exhibit 4.1 to the
                           Company's Registration Statement on Form
                           S-1 as filed with the Securities and Exchange
                           Commission on November 3, 1994, Registration
                           No. 33-83178).

     4.2       --          Exchange Agreement dated November 4, 1994,
                           between the Company and Citicorp Venture
                           Capital Ltd.  ("CVC") (incorporated by
                           reference to Exhibit 4.4 to the Company's
                           Registration Statement on Form S-8 dated
                           December 9, 1994, Registration No. 33-87278).

     4.3       --          Voting Agreement dated November 4, 1994,
                           between the Company, CVC and Martin V.
                           Alonzo ("Mr. Alonzo") (incorporated by
                           reference to Exhibit 4.5 to the Company's
                           Registration Statement on Form S-8 dated
                           December 9, 1994, Registration No. 33-87278).

     +27.1      --          Financial Data Schedule.

--------------

+ -- Filed herewith.

         (b)      REPORTS ON FORM 8-K

                  During the quarter ended September 30, 1997, the Company did
                  not file any Current Reports on Form 8-K.




                                      20
<PAGE>   21
                             CHASE INDUSTRIES INC.


                               S I G N A T U R E

         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 hereto duly authorized.


                                              CHASE INDUSTRIES INC.



Date:  November 12, 1997                      By:  /s/ MICHAEL T. SEGRAVES
                                                   ----------------------------
                                                   Michael T. Segraves
                                                   Vice President
                                                   Chief Financial Officer
                                                   (duly authorized officer and
                                                   Principal Financial Officer)








                                       21

<PAGE>   22


                             CHASE INDUSTRIES INC.


                               INDEX TO EXHIBITS

<TABLE>
<CAPTION>
 Exhibit                                                               
   No.                                 Description of Exhibits         
 -------                               -----------------------         
<S>                        <C>  
     3.1       --          Restated Certificate of Incorporation of the
                           Company (incorporated by reference to Exhibit
                           4.1 to the Company's Registration Statement
                           on Form S-8 dated December 9, 1994,
                           Registration No. 33-87278) as amended by the
                           Certificate of First Amendment to the
                           Company's Restated Certificate of
                           Incorporation (incorporated by reference to
                           Exhibit 3.2 to the Company's Current Report
                           on Form 8-K dated May 14, 1997).

     3.2       --          By-Laws of the Company (incorporated by
                           reference to Exhibit 3.2 to the Company's
                           Registration Statement on Form S-1 as filed
                           with the Securities and Exchange Commission
                           on November 3, 1994, Registration No.
                           33-83178).

     4.1       --          Specimen Common Stock Certificate
                           (incorporated by reference to Exhibit 4.1 to the
                           Company's Registration Statement on Form
                           S-1 as filed with the Securities and Exchange
                           Commission on November 3, 1994, Registration
                           No. 33-83178).

     4.2       --          Exchange Agreement dated November 4, 1994,
                           between the Company and Citicorp Venture
                           Capital Ltd.  ("CVC") (incorporated by
                           reference to Exhibit 4.4 to the Company's
                           Registration Statement on Form S-8 dated
                           December 9, 1994, Registration No. 33-87278).

     4.3       --          Voting Agreement dated November 4, 1994,
                           between the Company, CVC and Martin V.
                           Alonzo ("Mr. Alonzo") (incorporated by
                           reference to Exhibit 4.5 to the Company's
                           Registration Statement on Form S-8 dated
                           December 9, 1994, Registration No. 33-87278).

     +27.1      --          Financial Data Schedule.
</TABLE>

--------------
+ -- Filed herewith.