<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 MARCH 31, 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 BRASS 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 APRIL 30, 1997 . . . . . . . . . . . . . . . . 5,997,796
NUMBER OF SHARES OF NONVOTING COMMON STOCK OUTSTANDING AS OF APRIL 30, 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 BRASS INDUSTRIES, INC.

                               TABLE OF CONTENTS


                         PART I.  FINANCIAL INFORMATION

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

                Consolidated Statement of Income for the three months ended
                          March 31, 1997 and 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . .   4

                Consolidated Statement of Cash Flows for the three months ended
                          March 31, 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  . . . . . . . . . . . . . . . . . . . . . . . . . . .    18

                Signature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    19
</TABLE>
<PAGE>   3
                          CHASE BRASS INDUSTRIES, INC.
                           CONSOLIDATED BALANCE SHEET
              (UNAUDITED; IN THOUSANDS, EXCEPT SHARE INFORMATION)

<TABLE>
<CAPTION>
                                                                               March 31,        December 31,
                                                                                 1997               1996       
                                                                             -----------        ------------
<S>                                                                          <C>                <C>
                                                          ASSETS
Current assets:
  Cash and cash equivalents                                                  $     3,552        $     9,763
  Receivables, net of allowance for doubtful accounts and
    claims of $1,281 and $1,236 in 1997 and 1996, respectively                    47,960             34,514
  Inventories                                                                     51,937             52,050
  Prepaid expenses                                                                 1,052              1,131
  Deferred income taxes                                                            4,672              2,897
                                                                             -----------        -----------
    Total current assets                                                         109,173            100,355
Property, plant and equipment, net                                                96,659             97,628
Other assets                                                                       6,152              6,768
                                                                             -----------        -----------
      Total assets                                                           $   211,984        $   204,751
                                                                             ===========        ===========
                                                                                                           

                                           LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                                           $    38,784        $    36,134
  Accrued compensation and benefits                                                4,917              5,598
  Accrued income taxes                                                             5,924              3,685
  Other accrued liabilities                                                        6,517              6,158
  Current portion of long-term debt                                                  136                131
                                                                             -----------        -----------
   Total current liabilities                                                      56,278             51,706
Long-term debt                                                                    64,398             70,631
Deferred income taxes                                                             10,078              8,081
                                                                             -----------        -----------
    Total liabilities                                                            130,754            130,418
                                                                             -----------        -----------
Commitments and contingencies                                                         --                 --
                                                                             -----------        -----------
Stockholders' equity:
  Common stock, $.01 par value, 25,000,000 shares authorized;
    5,997,396 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                                                      30,382             30,039
  Retained earnings                                                               50,747             44,193
                                                                             -----------        -----------
    Total stockholders' equity                                                    81,230             74,333
                                                                             -----------        -----------
      Total liabilities and stockholders' equity                             $   211,984        $   204,751
                                                                             ===========        ===========
</TABLE>



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





                                       3
<PAGE>   4
                          CHASE BRASS INDUSTRIES, INC.
                        CONSOLIDATED STATEMENT OF INCOME
              (UNAUDITED; IN THOUSANDS, EXCEPT SHARE INFORMATION)


<TABLE>
<CAPTION>
                                                                                     Three Months Ended
                                                                                            March 31,
                                                                                      1997             1996
                                                                               ---------------     ------------
<S>                                                                            <C>                 <C>
Net sales                                                                      $       126,074     $     89,917

Cost of goods sold (exclusive of depreciation
  and amortization shown separately below)                                             107,922           77,283
                                                                               ---------------     ------------

   Gross profit                                                                         18,152           12,634

Selling, general and administrative expenses                                             3,861            2,407

Depreciation and amortization                                                            2,438            1,215
                                                                               ---------------     ------------
   Operating income                                                                     11,853            9,012

Interest expense, net                                                                    1,282              350
                                                                               ---------------     ------------

   Income before income taxes                                                           10,571            8,662

Provision for income taxes                                                               4,017            3,422
                                                                               ---------------     ------------

   Net income                                                                  $         6,554     $      5,240
                                                                               ===============     ============
Average shares outstanding                                                          10,076,758       10,061,047
                                                                               ===============     ============
                                                                                                    
Earnings per share                                                             $           .65     $        .52
                                                                               ===============     ============
</TABLE>





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





                                       4
<PAGE>   5
                          CHASE BRASS INDUSTRIES, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                           (UNAUDITED; IN THOUSANDS)


<TABLE>
<CAPTION>
                                                                               Three Months Ended March 31,
                                                                                  1997              1996      
                                                                             -------------     -------------
<S>                                                                          <C>             <C>
Operating activities:
  Net income                                                                 $       6,554      $      5,240
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Depreciation and amortization                                                  2,438             1,215
      Accretion of discount on BP Note                                                 --                469
      Deferred income tax expense (benefit)                                            222                (8)
      Changes in assets and liabilities:
         (Increase) in receivables                                                 (13,446)          (12,106)
         Decrease in inventories                                                       113             4,482
         Increase in accounts payable                                                2,650             4,372
         Increase in accrued liabilities                                             1,917             1,281
         Other, net                                                                    536                20 
                                                                             -------------     -------------
             Net cash provided by operating activities                                 984             4,965
                                                                             -------------     -------------
Investing activities:
  Additions to property, plant and equipment                                        (1,310)             (486)
                                                                             -------------     -------------
             Net cash (used in) investing activities                                (1,310)             (486)
                                                                             -------------     -------------
Financing activities:
  Revolving credit facility borrowings, net                                          8,843                --
  Principal payments on long-term debt                                             (15,071)               --
  Issuance of common stock - options exercised                                         343                 9
                                                                             -------------     -------------
             Net cash (used in) provided by financing activities                    (5,885)                9
                                                                             -------------     -------------

Net (decrease) increase in cash and cash equivalents                                (6,211)            4,488

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

Cash and cash equivalents, end of period                                     $       3,552     $      21,461
                                                                             =============     =============
Supplemental disclosures:
  Interest and bank fees paid                                                $         935     $          28
                                                                             =============     =============
  Income taxes paid                                                          $       1,555     $       1,780
                                                                             =============     =============
</TABLE>





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





                                       5
<PAGE>   6
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


1.       SIGNIFICANT ACCOUNTING POLICIES:

         PRINCIPLES OF CONSOLIDATION AND INTERIM FINANCIAL INFORMATION

         The consolidated balance sheet as of March 31, 1997, and December 31,
1996, the consolidated statement of income for the three months ended March 31,
1997 and 1996, and the consolidated statement of cash flows for the three
months ended March 31, 1997 and 1996, include the accounts of Chase Brass
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 March 31, 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 months ended March 31, 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
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)



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 $4.1
million and $2.0 million higher at March 31, 1997, and December 31, 1996,
respectively.  Inventories consisted of the following (in thousands):
<TABLE>
<CAPTION>
                                                                       March 31,        December 31,
                                                                         1997               1996      
                                                                    -------------      -------------
         <S>                                                        <C>                <C>
         Raw materials                                              $      17,301      $      14,547
         Work in process                                                   17,539             21,124
         Finished goods                                                    18,478             18,613
                                                                           53,318             54,284
         Tolling metal due customers                                       (1,381)            (2,234)
                                                                    -------------      -------------
                                                                    $      51,937      $      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 March 31, 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>
                                                                        March 31,
                                                                        ---------
                                                             1997                          1996
                                                             ----                          ----
                                                      Shares        EPS               Shares       EPS
                                                      ------        ---               ------       ---
         <S>                                        <C>          <C>               <C>           <C> 
         Basic                                      10,076,758   $   .65           10,061,047    $    .52
         Dilution - stock options                      196,629      (.01)              70,494          --
                                                   -----------   -------           ----------    --------
         Fully diluted                              10,273,387   $   .64           10,131,541    $    .52
                                                   ===========   =======           ==========    ========
</TABLE>





                                       7
<PAGE>   8
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         
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 exceedances to certain limitations
contained in the Permit, resulting in violations of the Clean Water Act.  BP
and CBCC have identified several conditions contributing to the exceedances and
are actively working to correct the problems that have precluded CBCC's routine
compliance with the Permit.  The Ohio Environmental Protection Agency ("Ohio
EPA") is kept apprised as to the status of the parties' 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 February 1997, CBCC completed a
control project designed to eliminate exceedances to the Permit limits and
currently is monitoring its waste water discharge to determine if the
exceedances have been eliminated.

         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.

         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.





                                       8
<PAGE>   9
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         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 has conducted initial site
investigation activities to determine the extent of contamination and
appropriate cleanup methods.  CBCC has determined that additional sampling is
necessary to fully delineate the extent and magnitude of contamination and to
identify appropriate cleanup standards.  CBCC and BP are working together, with
their respective consultants, to identify additional sampling that is required.
Upon completion of a plan for such additional sampling, CBCC intends to meet
with BP and the Ohio EPA 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.





                                       9
<PAGE>   10
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


         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") to the extent it legally is
entitled to do so.

         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 will be
required prior to the IDEM considering closure.  Leavitt intends to begin
additional groundwater sampling in second quarter 1997.  Until such sampling is
conducted, and the results thereof provided to Leavitt, the Company is unable
to determine the current extent of contamination or what, if any, remedial
activities may be required.

         The cleanup costs associated with the environmental conditions at the
Hammond facility may be material and, in the event Leavitt 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.  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
does not believe that costs that may be incurred by Leavitt in connection with
investigation and cleanup associated with the groundwater and soil
contamination at the Hammond facility will have a material adverse effect on
the Company's financial position, results of operations or liquidity





                                       10
<PAGE>   11
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


and the Company has not made any accrual of all or any part of such costs.  To
the extent the Company or Leavitt incurs an 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 BRASS 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.

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.

         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





                                       12
<PAGE>   13
                          CHASE BRASS INDUSTRIES, INC.



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 March 31, 1997, Compared with Three Months Ended March 31,
1996

         Results for the three months ended March 31, 1997, include the results
of Leavitt, which is a predominant factor contributing to the increases
discussed below.

         Net sales increased $36.2 million, or 40%, to $126.1 million in 1997
primarily due to the addition of Leavitt as well as record brass rod shipments.
CBCC continues to experience strong demand from its customers, particularly
those in plumbing and plumbing-related industries.  The brass rod industry as a
whole had a strong first quarter due to continued high demand from the
industry's largest end-use market, construction and remodeling.

         As a result of the above factors, the Company's gross profit increased
$5.5 million, or 44%, to $18.2 million in first quarter 1997.

         Selling, general and administrative expenses increased $1.4 million to
$3.9 million in first quarter 1997 compared with 1996.  The increase was
attributed primarily to the Leavitt Acquisition.

         Depreciation and amortization increased $1.2 million, or 101%, to $2.4
million in first quarter 1997, principally due to increased depreciation on
capital assets acquired in the Leavitt Acquisition.

         As a result of the above factors, operating income increased $2.8
million, or 32%, to $11.9 million in first quarter 1997.





                                       13
<PAGE>   14
                          CHASE BRASS INDUSTRIES, INC.



         Net interest expense increased $932,000, or 266%, to $1.3 million in
first quarter 1997, primarily as a result of interest expenses 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 $595,000, or 17%, to $4.0 million in
first quarter 1997 as a result of an increase of $1.9 million, or 22%, in
income before income taxes.

         Based on the above factors, net income increased $1.3 million, or 25%,
to $6.6 million.  Earnings per share increased to $.65 in first quarter 1997
compared with $.52 in first quarter 1996.

LIQUIDITY AND CAPITAL RESOURCES

General

         At March 31, 1997, cash and cash equivalents totaled $3.6 compared to
$9.8 million at year end 1996.  This decline is predominantly attributed to
prepayments of Leavitt Acquisition long-term debt totaling $6.2 million in
first quarter 1997.  Since the Leavitt Acquisition in August 1996, the Company
has prepaid a total of $18.4 million of the associated long-term debt.

         Free cash flow (net income plus depreciation and amortization less
capital expenditures) increased 29% to $7.7 million for the three months ended
March 31, 1997, compared with $6.0 million for the same period in 1996.  Free
cash flow will be applied to reduce bank debt and will be available to fund
future acquisitions.  The Company is currently meeting its operational and
liquidity needs with cash on hand, internally generated funds and amounts
available under the Bank Credit Facility (as hereinafter defined).

Working Capital

         At March 31, 1997, working capital was $52.9 million, a $4.3 million,
or 9%, increase from $48.6 million at December 31, 1996.

         At March 31, 1997, the increase in working capital predominantly
resulted from a $13.4 million, or 39%, increase in accounts receivable and a
$1.8 million increase in deferred taxes, partially offset by a $6.2 million, or
64%, decrease in cash and cash equivalents, a $2.7 million increase in accounts
payable and a $1.9 million increase in accrued liabilities.

         The decrease in cash and cash equivalents was the result of prepaying
$6.2 million of Leavitt Acquisition debt.  The increase in accounts receivable
was due principally to an increase of $19.5 million, or 71%, in net sales in
March 1997 compared with December 1996.





                                       14
<PAGE>   15
                          CHASE BRASS INDUSTRIES, INC.



         The Company's current ratio follows:
<TABLE>
<CAPTION>
                                                               March 31, 1997           December 31, 1996
                                                               --------------           -----------------
                 <S>                                                <C>                        <C>
                 Current ratio                                      1.94                       1.94
                 Current ratio excluding cash                       1.88                       1.75
</TABLE>

Cash Flow Provided by Operating Activities

         For the three months ended March 31, 1997, net cash provided by
operating activities was $984,000, which included net income of $6.6 million
and depreciation and amortization of $2.4 million, partially offset by an
increase in working capital, excluding cash, debt and deferred taxes, of $8.8
million.

         For the three months ended March 31, 1996, net cash provided by
operating activities was $5.0 million, which included net income of $5.2
million, depreciation and amortization of $1.2 million and accretion of
discount on the BP Note of $469,000, partially offset by an increase in working
capital, excluding cash and debt, of $2.1 million.

Cash Flow Used in Investing Activities

         Capital additions were $1.3 million for the three months ended March
31, 1997, and $486,000 for the three months ended March 31, 1996.

Cash Flow Used in Financing Activities

         Cash used in financing activities of $6.9 million for the three months
ended March 31, 1997, consisted of net repayments of long-term debt of $5.5
million partially offset by $343,000 from the issuance of common stock for
stock options exercised.  Financing activities during the three months ended
March 31, 1996, were not significant.

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
is expected to be completed near the end of 1997, 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.





                                       15
<PAGE>   16
                          CHASE BRASS INDUSTRIES, INC.



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 $15 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 $1,675,000 in January 2000 to $3,025,000 due January 2003.
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.

         Advances under the Bank Credit Facility will bear interest, at the
Company's option, at a rate per annum equal to (i) the higher of (a) PNC Bank's
prime rate or (b) the Federal funds rate plus  1/2%, or (ii) LIBOR for the
applicable borrowing period plus  1/2%, 5/8%, 3/4%, 7/8%, 1 1/8%, or 1 3/8%
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 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 March 31, 1997, $35 million was outstanding under the Term Loan.
Borrowings outstanding under the Revolving Credit Facility at March 31, 1997,
totaled $8.8 million with total availability under the Revolving Credit
Facility at $31.2 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, totalling $254,000 and due August 1996,
was offset against the receivable from BP.





                                       16
<PAGE>   17
                          CHASE BRASS 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.





                                       17
<PAGE>   18
                          CHASE BRASS INDUSTRIES, INC.



                          PART II.  OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         (a)         EXHIBITS
                    
         3.1    --   Restated Certificate of Incorporation of Chase Brass
                     Industries, Inc., a Delaware corporation (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).
                    
         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).
                    
         +10.1  --   Employment Agreement dated March 3, 1997, between
                     Leavitt Tube Company, Inc., a wholly owned subsidiary of
                     the Company, and Lawrence R. Lansford.
                    
         +27.1  --   Financial Data Schedule.
                    
______________      
+ -- Filed herewith.
                    
                    
         (b)         REPORTS ON FORM 8-K
                    
                     During the quarter ended March 31, 1997, the Company did
                     not file any Current Reports on Form 8-K.





                                       18
<PAGE>   19
                          CHASE BRASS 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 thereto duly authorized.

                                        CHASE BRASS INDUSTRIES INC.


Date:  April 30, 1997                   By:   /s/ MICHAEL T. SEGRAVES
                                              -----------------------
                                              Michael T. Segraves
                                              Vice President
                                              Chief Financial Officer
                                              (duly authorized officer and
                                               Principal Financial Officer)









                                       19
<PAGE>   20
                          CHASE BRASS INDUSTRIES, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)


                                      
                              INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit                                                                                                                Sequentially 
   No.                                   Description of Exhibits                                                      Numbered Page 
--------                                 -----------------------                                                      ------------- 
    <S>    <C>   <C>
    3.1    --    Restated Certificate of Incorporation of Chase Brass Industries, Inc., a Delaware corporation
                 (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).
               
    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).
               
  +10.1    --    Employment Agreement dated March 3, 1997, between Leavitt Tube Company, Inc., a wholly owned
                 subsidiary of the Company, and Lawrence R. Lansford.
               
  +27.1    --    Financial Data Schedule.
</TABLE>