<PAGE>


                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

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

                                    FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 1999

                                       OR

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

For the transition period from ___________ to _______________

                         Commission file number: 0-27860

                              IIC Industries, Inc.

             (Exact Name of Registrant as Specified in Its Charter)

                  Delaware                                13-567594
--------------------------------------------        ------------------------
      (State of Other Jurisdiction of                (IRS Identification
       Incorporation or Organization)                      Number)

     171 Madison Avenue; New York, N.Y.                     10016
--------------------------------------------        ------------------------
  (Address of Principal Executive Offices)                (Zip Code)


Registrant's Telephone Number, Including Area Code: (212) 889-7201


               Former Name, Former Address and Former Fiscal Year,
                          if Changed Since Last Report.

Indicate by check 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
                                     ---   ---

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 5,693,472 shares of common
stock outstanding at October 31, 1999.

<PAGE>

                              FINANCIAL INFORMATION


  Item 1. FINANCIAL STATEMENTS

                                                                    Page
                                                                    ----
      Consolidated Balance Sheets
      at September 30, 1999
      and December 31, 1998                                          3

      Consolidated Statements of Income and Comprehensive Income
      for the Nine Months Ended
      September 30, 1999 and September 30, 1998                      5

      Consolidated Statements of Income and Comprehensive Income
      for the Three Months Ended
      September 30, 1999 and September 30, 1998                      6

      Consolidated Statement of Cash Flows
      for the Nine Months Ended
      September 30, 1999 and September 30, 1998                      7

      Notes to Consolidated Financial
      Statements                                                     8




                                       2

<PAGE>



                      IIC Industries, Inc. and Subsidiaries

                           CONSOLIDATED BALANCE SHEETS
                                   (unaudited)
                (dollar amounts in thousands, except share data)

<TABLE>
<CAPTION>


                                          September 30,      December 31,
            ASSETS                             1999              1998
                                               ----              ----
<S>                                          <C>                <C>
CURRENT ASSETS
    Cash and cash equivalents                 $10,524           $10,957
    Accounts receivable, net                   38,101            34,797
    Inventories, net (Note C)                  37,245            32,603
    Deposit                                     2,000             2,000
    Other current assets                        4,857             8,143
                                             --------           -------
         Total current assets                  92,727            88,500

RESTRICTED CASH                                                     367

PROPERTY AND EQUIPMENT, NET                    24,268            34,738

INVESTMENTS                                    51,583            40,585

OTHER ASSETS                                    3,493             2,648
                                             --------           -------
                                             $172,071          $166,838
                                             ========          ========

</TABLE>









The accompanying notes are an integral part of these statements.



                                       3
<PAGE>




                      IIC Industries, Inc. and Subsidiaries

                     CONSOLIDATED BALANCE SHEETS (continued)
                                   (unaudited)
                (dollar amounts in thousands, except share data)


<TABLE>
<CAPTION>


                                                     September  30,     December 31,
      LIABILITIES AND STOCKHOLDERS' EQUITY                 1999             1998
                                                     --------------     ------------
<S>                                                  <C>                <C>
CURRENT LIABILITIES
    Accounts payable                                      $23,459          $18,492
    Bank loans                                             18,378           11,609
    Current maturities of long-term debt                                       355
    Accrued expenses and other payables                     6,607           13,813
    Due to related parties                                                   3,247
    Advances from customers                                 3,480            4,655
                                                         --------          -------

         Total current liabilities                         51,924           52,171

LONG-TERM DEBT, less current portion                        3,736            3,281

DUE TO AFFILIATES                                           2,887            1,738

OTHER LIABILITIES AND DEFERRED
    CREDITS                                                 9,190            6,477

MINORITY INTERESTS                                         15,648           14,738
                                                         --------          -------
                                                           83,385           78,405

CONTINGENCIES (Note D)

STOCKHOLDERS' EQUITY
    Common stock, $0.25 par value per share;
       Authorized 7,200,000 shares; issued
       6,343,224 shares                                     1,586            1,586
    Additional paid-in capital                             22,941           22,941
    Retained earnings                                     105,287          101,055
    Accumulated other comprehensive loss                  (38,403)         (34,424)
    Less treasury stock - at cost (649,752 shares)         (2,725)          (2,725)
                                                         --------          -------
                                                           88,686           88,433
                                                         --------          -------

                                                         $172,071         $166,838
                                                         ========         ========
</TABLE>


The accompanying notes are an integral part of these statements.



                                       4
<PAGE>


                      IIC Industries, Inc. and Subsidiaries

           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                   (unaudited)
                (dollar amounts in thousands, except share data)


<TABLE>
<CAPTION>

                                                        Nine  months ended September 30,
                                                        --------------------------------
                                                              1999             1998
                                                              ----             ----
<S>                                                         <C>              <C>
Net sales                                                   $131,952         $154,814
Cost of sales                                                 95,973          120,489
                                                           ---------        ---------

         Gross profit                                         35,979           34,325

Selling, general and administrative expenses                  32,888           31,507
                                                           ---------        ---------

         Operating income                                      3,091            2,818
                                                           ---------        ---------

Other income (expenses)
    Interest income                                              988            1,165
    Equity in earnings of affiliates                           4,313            4,964
    Foreign currency loss (Note B)                            (2,642)            (600)
    (Loss) Gain on sale of noncurrent assets, net                (45)             245
    Interest expense                                          (1,195)          (2,136)
    Other, net                                                   880              566
                                                           ---------        ---------

         Income before income taxes and
             Minority interest                                 5,390            7,022

Income taxes                                                    (965)          (1,941)
                                                           ---------        ---------

         Income before minority interest                       4,425            5,081

Minority Interests                                              (195)            (248)
                                                           ---------        ---------

         NET INCOME                                           $4,230           $4,833

Other comprehensive income:
           Foreign currency translation adjustments           (3,979)          (2,265)
                                                           ---------        ---------

           COMPREHENSIVE  INCOME                                $251           $2,568
                                                           =========        =========
Basic net income per common share                              $0.74            $0.85
                                                           =========        =========
Basic average number of common shares outstanding          5,693,472        5,693,472
                                                           =========        =========
</TABLE>



The accompanying notes are an integral part of these statements



                                       5
<PAGE>



                      IIC Industries, Inc. and Subsidiaries

           CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                   (unaudited)
                (dollar amounts in thousands, except share data)


<TABLE>
<CAPTION>

                                                        Three months ended September 30,
                                                        --------------------------------
                                                              1999             1998
                                                              ----             ----
<S>                                                         <C>              <C>
Net sales                                                  $40,922            $42,311
Cost of sales                                               29,785             31,338
                                                         ---------          ---------

         Gross profit                                       11,137             10,973

Selling, general and administrative expenses                11,176             10,011
                                                         ---------          ---------

         Operating (loss) income                               (39)               962
                                                         ---------          ---------

Other income (expenses)
    Interest income                                            423                186
    Equity in earnings of affiliates                         2,970              3,312
    Foreign currency loss (Note B)                          (1,272)              (310)
    (Loss) Gain on sale of noncurrent assets, net             (359)               319
    Interest expense                                          (379)              (376)
    Other, net                                                 160                118
                                                         ---------          ---------

         Income before income taxes and
             Minority interest                               1,504              4,211

Income taxes                                                  (356)              (453)
                                                         ---------          ---------

         Income before minority interest                     1,148              3,758

Minority Interests                                             758               (182)
                                                         ---------          ---------

         NET INCOME                                         $1,906             $3,576

Other comprehensive income:
           Foreign currency translation adjustments           (929)                47
                                                         ---------          ---------
           COMPREHENSIVE INCOME                               $977             $3,623
                                                         =========          =========

Basic net income  per common share                           $0.33              $0.63
                                                         =========          =========

Basic average number of common shares outstanding        5,693,472          5,693,472
                                                         =========          =========
</TABLE>



The accompanying notes are an integral part of these statements


                                       6
<PAGE>



                      IIC Industries, Inc. and Subsidiaries

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)

                          (dollar amounts in thousands)




<TABLE>
<CAPTION>

                                                                           Nine  months ended September 30,
                                                                           --------------------------------
                                                                                1999          1998
                                                                                ----          ----
<S>                                                                          <C>            <C>

Net cash (used in) provided by operating activities                           $(1,839)       $3,639
                                                                              -------       -------
Cash flows from investing activities
    Purchase of subsidiary shares, net of cash acquired                          (380)       (1,738)
    Purchase of property and equipment                                         (2,006)       (3,502)
    Purchase of investments                                                    (1,593)      (13,041)
    Advances to affiliates                                                       (379)       (2,000)
    Proceeds on disposal of property and equipment                                655         1,365
    Proceeds on disposal of investments                                         1,261           108
    Restricted cash                                                               367           211
                                                                              -------       -------
         Net cash (used in) investing activities                               (2,075)      (18,597)
                                                                              -------       -------
Cash flows from financing activities
    Payments to acquire treasury shares by subsidiary                          (1,140)
    Issuance of long-term debt                                                    563           844
    Principal payments of long term debt                                         (331)         (211)
    Net receipts (payments) of short-term bank loans                            4,527         1,242
                                                                              -------       -------
         Net cash provided by (used in) financing activities                    3,619         1,875
Effect of exchange rate on cash                                                  (138)         (176)
                                                                              -------       -------
         Net  (decrease) in cash and cash equivalents during the period          (433)      (13,259)

Cash and cash equivalents at beginning of period                               10,957        22,781
                                                                              -------       -------
Cash and cash equivalents at end of period                                    $10,524        $9,522
                                                                              =======       =======
Supplemental disclosure of cash flow information:
    Cash paid during the period for
       Interest                                                                $1,051        $1,824
       Income taxes                                                             1,121         1,743


</TABLE>



The accompanying notes are an integral part of these statements.


                                       7
<PAGE>




                      IIC Industries, Inc. and Subsidiaries

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)



NOTE A - BASIS OF PRESENTATION

     The consolidated financial statements included herein which have been
     prepared by the Company, without audit, pursuant to the rules and
     regulations of the Securities and Exchange Commission, include the accounts
     of IIC Industries, Inc. and all material majority-owned subsidiaries
     (collectively the "Company"). All material intercompany transactions and
     balances have been eliminated. Certain information and footnote disclosures
     normally included in financial statements prepared in accordance with
     generally accepted accounting principles have been condensed or omitted
     pursuant to such rules and regulations.

     In the opinion of management, the consolidated financial statements contain
     all adjustments which are those of a normal recurring accrual nature and
     disclosures necessary to present fairly the financial position of the
     Company as of September 30, 1999 and December 31, 1998 and the results of
     operations and cash flows for the nine months ended September 30, 1999 and
     September 30, 1998.


NOTE B - FOREIGN CURRENCY TRANSLATION

     Investor Rt ("Investor"), a majority-owned subsidiary, uses the local
     currency, the Hungarian forint, as its functional currency and translates
     all assets and liabilities at year-end exchange rates, all income and
     expense accounts at average rates and records adjustments resulting from
     the translation in a separate component of shareholders' equity.

     The Israel Tractors and Equipment Company Limited ("Israel Tractor") and
     Balton C.P. Limited ("Balton"), a wholly-owned and a majority owned
     subsidiary, respectively, use the US dollar as the functional currency,
     since the dollar is the currency in which most of the significant business
     of Israel Tractor and Balton is conducted, or to which it is linked. These
     subsidiaries translate monetary assets and liabilities at historical rates.
     Income and expense accounts are translated at the rate of exchange
     prevailing at the date of transaction, except that depreciation is
     translated at historical rates. Adjustments resulting from the translation
     of these entities are included in results of operations.

     Transactions arising in a foreign currency are translated into the
     functional currency at the rate of exchange effective at the date of the
     transaction and gains or losses are included in results of operations.



                                       8
<PAGE>


                      IIC Industries, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)



NOTE C - INVENTORIES

     Inventories are as follows:

                                       September 30,            December 31,
                                            1999                    1998
                                            ----                    -----

        Raw materials                      $7,526                  $ 5,380
        Work-in-progress                      597                      536
        Finished goods                     29,122                   26,687
                                          -------                  -------
                                          $37,245                  $32,603


NOTE D - CONTINGENCIES

     The Company has given a guarantee to the bankers of Balton amounting to
     $2.1 million. The guarantee is in respect of various outstanding letters of
     credit given by the bankers of certain of Balton's creditors. The Company
     has also agreed to indemnify a co-guarantor for any losses accumulating to
     $735,000.

     Balton has given guarantees to third parties in the amount of approximately
     $615,000.

     Investor and certain subsidiaries are potentially liable with respect to
     certain guarantees of debt and other financial instruments of other related
     and nonrelated companies to the extent of approximately
     $7.4 million.


NOTE E - INVESTMENT IN AFFILIATE

     At September 30, 1999, the Company's effective ownership percentage of
     Danubius, Rt. ("Danubius"), a publicly traded company, was approximately
     37% at a cumulative cost of approximately $37 million.
     Danubius owns a number of hotels in Hungary and specializes in spa
     facilities.


                                       9
<PAGE>



                      IIC Industries, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)





NOTE E (CONTINUED)

     Accordingly, the Company accounted for this investment under the equity
     method at September 30, 1999. Under this method, the investment is carried
     at cost plus the Company's share of earnings or losses less distributions.
     Since the Company's share of the underlying net assets of Danubius exceeded
     the cost at the various purchase dates, the excess of the fair value of the
     net assets acquired over the cost is amortized over a period of forty
     years.


     The following is summarized financial information of Danubius (in
     thousands), which was prepared in accordance with international accounting
     standards. (See the Investor section of Management's Discussion and
     Analysis) There were no significant differences between international
     accounting standards and generally accepted accounting standards in the
     United States:

                                    September 30, 1999      September 30, 1998
                                    ------------------      ------------------

         Current assets                        $41,411                 $45,215
         Noncurrent assets                     134,426                 144,344
         Current liabilities                    16,193                  16,126
         Noncurrent liabilities                 31,855                  50,356
         Stockholders' equity                  127,789                 123,077


                                    Nine Months ended        Nine Months ended
                                    September 30, 1999      September 30, 1998
                                    ------------------      ------------------

         Sales                                 $81,489                 $86,534
         Operating income                       15,362                  22,594
         Net income                             13,297                  15,246


                                       10
<PAGE>






                      IIC Industries, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)





NOTE F- NEW ACCOUNTING PRONOUNCEMENT

     In June 1998, the Financial Accounting Standards Board issued Statement of
     Financial Accounting Standards No. 133 ("SFAS No. 133"), "Accounting for
     Derivative Instruments and Hedging Activities". SFAS No. 133 establishes
     accounting and reporting standards for derivative instruments and for
     hedging activities and is effective for all fiscal quarters of fiscal years
     beginning after June 15, 2000. The adoption of SFAS No. 133 will not or is
     not expected to have a significant impact on the Company's results of
     operations.


                                       11




<PAGE>



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

GENERAL

     The Company is presently operated as a holding company with subsidiaries in
three principal operating geographic areas: (1) Investor RT, a Hungarian holding
company ("Investor" or "Investor Group"), which through its subsidiaries,
engages in a variety of commercial activities in Hungary; (2) The Israel
Tractors and Equipment Company Limited ("Israel Tractor"), an Israeli
corporation, which distributes tractors and related heavy machinery in Israel
and (3) Balton C.P. Limited, an English holding company with African
subsidiaries ("Balton CP") engaged in trading activities in several African
countries.


     The Company has three primary areas of operation with respect to its
     subsidiaries:
     (a) Investor and its subsidiaries in Hungary
     (b) Israel Tractor in Israel
     (c) Balton CP and its subsidiaries in Nigeria, Ghana, Zambia, Tanzania,
Kenya, Uganda and the Cote D'Ivoire.

     The Company has five principal business segments:
     (a) vehicle sales and service
     (b) processing/storage of agricultural products
     (c) the distribution of tractors and other heavy equipment
     (d) the sale of agricultural, communications and electrical equipment
     (e) other industries including, warehousing, retail and wholesale consumer
products and Hungarian corporate.



                                       12
<PAGE>




RESULTS OF OPERATIONS

     The table below sets forth for fiscal quarters ended September 30, 1999 and
1998 certain information with respect to the results of operations of the
Company and its principal subsidiaries.

<TABLE>
<CAPTION>

Nine Months Ended                Net Sales            Gross Profit        Income (loss) before      Net Income (Loss)
September 30, 1999               ---------            ------------           Income Taxes and       -----------------
------------------                                                          Minority Interests
                                                                            ------------------
                               Amount      %         Amount        %          Amount      %        Amount       %
                               ------      -         ------        -          ------      -        ------       -
                           (In thousands)       (In thousands)           (In thousands)        (In thousands)
<S>                        <C>             <C>   <C>             <C>     <C>            <C>      <C>          <C>

IIC Industries Inc.              --          --          --        --       $(411)      (7.6)      $(465)     (11.0)
(parent company)

Israel Tractors &           $39,325        29.8     $11,256      31.3       1,707       31.7         922       21.8
Equipment Co. (Israel)

Balton CP Group (Africa)     50,237        38.1      14,445      40.1         644       11.9         328        7.8

Investor RT Group            42,390        32.1      10,278      28.6       3,450       64.0       3,445       81.4
(Hungary)                  --------       -----     -------     -----      ------      -----      ------      -----

                           $131,952       100.0     $35,979     100.0      $5,390      100.0      $4,230      100.0
                           ========       =====     =======     =====      ======      =====      ======      =====
</TABLE>

<TABLE>
<CAPTION>

Nine Months Ended                Net Sales            Gross Profit        Income (loss) before      Net Income (Loss)
September 30, 1998               ---------            ------------           Income Taxes and       -----------------
------------------                                                          Minority Interests
                                                                            ------------------
                               Amount      %         Amount        %          Amount      %        Amount       %
                               ------      -         ------        -          ------      -        ------       -
                           (In thousands)       (In thousands)           (In thousands)        (In thousands)
<S>                        <C>             <C>   <C>             <C>     <C>            <C>      <C>          <C>

IIC Industries Inc.              --          --          --        --       $(117)      (1.7)      $(144)      (3.0)
(parent company)

Israel Tractors &           $41,254        26.6     $11,571      33.8          42        0.6        (525)     (10.8)
Equipment Co. (Israel)

Balton CP Group (Africa)     49,934        32.3      13,541      39.4       2,480       35.3         827       17.1

Investor RT Group            63,626        41.1       9,213      26.8       4,617       65.8       4,675       96.7
(Hungary)                  --------       -----     -------     -----      ------      -----      ------      -----

                           $154,814       100.0     $34,325     100.0      $7,022      100.0      $4,833      100.0
                           ========       =====     =======     =====      ======      =====      ======      =====
</TABLE>




                                       13
<PAGE>


CONSOLIDATED RESULTS OF OPERATIONS

     Net Sales. Net Sales on a consolidated basis for the nine months ended
September 30, 1999 decreased by approximately $23 million as compared to the
comparable period in 1998. The decrease is primarily due to the rationalization
of Investor's agricultural commodity business.

     Gross Profit. Gross Profit on a consolidated basis for the nine months
ended September 30, 1999 increased by approximately $1.65 million or
approximately 5%, to approximately $36 million, or approximately 27% of Net
Sales, from approximately $34 million, or approximately 22% of Net Sales, in the
corresponding period in 1998. This increase was mainly attributable to the
rationalization of Investor's agricultural commodity business.

     Operating income. Operating income on a consolidated basis for the nine
months ended September 30, 1999 increased by approximately $273 thousand, to
$3.1 million, or approximately 2.3% of net sales, from approximately $2.8
million, or approximately 1.8% of Net Sales for the corresponding period in
1998. This increase was principally due to the improved performance of Israel
Tractor.

     Interest income. Interest income decreased for the nine months ended
September 30, 1999 by $177,000, or approximately 15%, to $988,000. This decrease
was principally due to lower cash balances and lower rates of interest in the
various countries in which the Company's operations are located.

     Interest expense. Interest expense in the first nine months ended September
30, 1999 decreased by $941,000, or approximately 44%, to approximately $1.2
million due to the decrease in bank loans and lower rates of interest.

     Income before Income Taxes and Minority Interests. Income before Income
Taxes and Minority Interests in the first nine months ended September 30, 1999
was approximately $5,390,000, compared to Income before Income Taxes and
Minority Interest in the first nine months of 1998 of approximately $7,022,000.

     Minority Interests. The value of the Minority Interests for the first nine
months ended September 30, 1999 decreased by $53,000 as compared to the first
nine months of 1998.

     Net Income. Net Income for the first nine months ended September 30, 1999
was approximately $4,230,000, compared to Net Income in the first nine months of
1998 of approximately $4,833,000.




                                       14
<PAGE>



     The table below sets forth for the nine months ended September 30, 1999 and
1998 certain information with respect to the results of operations of the
Company and its five principal business segments.
<TABLE>
<CAPTION>

                                 Nine Months Ended September 30, 1999                  Nine Months Ended September 30, 1998
                                                     Income (Loss) before                              Income (Loss) before
                                                       Income Taxes and                                 Income Taxes and
                                        Net Sales      Minority Interest            Net Sales           Minority Interest
                                        ---------      -----------------            ---------           -----------------
                                  Amount        %      Amount           %      Amount           %      Amount            %
                              (In thousands)        (In thousands)         (In thousands)          (In thousands)
-----------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>          <C>       <C>           <C>     <C>             <C>       <C>             <C>
Vehicle sales and                 $10,513       8.0       $284        5.3       $10,057        6.5         $200        2.8
distribution (Investor)

Processing/storage of              22,969      17.4        178        3.3        52,238       33.8         (321)      (4.6)
agricultural products
(Investor)
Other Industries (Investor)         8,908       6.7      2,577       47.8         1,131        0.8        4,621       65.9

Tractors and heavy equipment       39,325      29.8      1,707       31.7        41,254       26.6           42        0.6
(Israel Tractor)

Agricultural, communications       50,237      38.1        644       11.9        49,934       32.3        2,480       35.3
and electrical equipment
(Balton CP)
                                 $131,952     100.0     $5,390      100.0      $154,814      100.0       $7,022      100.0
                                 ========     =====     ======      =====      ========      =====       ======      =====
</TABLE>


     INVESTOR

     The operations of three of the Company's segments are conducted in Hungary
through Investor. Investor's business is significantly affected by general
conditions in Hungary.

     Vehicle Sales and Distribution Segment

     o   Net Sales for the nine months ended September 30, 1999 increased by
         approximately $456,000, or approximately 4.5%, as compared to the
         corresponding period in 1998.

     o   There was Income before Minority Interests and Income Taxes for the
         nine months ended September 30, 1999 of $284,000 as compared to a gain
         of $200,000 in the corresponding period in 1998.

     The increase in Net Sales and in Income before Income Taxes and Minority
Interests was primarily due to increased marketing activity resulting in more
vehicles being sold, while maintaining the margin.


                                       15
<PAGE>

Processing/Storage of Agricultural Products Segment

     o    Net Sales for the nine months ended September 30, 1999 decreased by
          approximately $29 million or 56%, as compared to the corresponding
          period in 1998. The decrease in Net Sales was primarily due to the
          rationalization of Investor's agricultural commodity business.

     o    The Income before Income Taxes and Minority Interest for the nine
          months ended September 30, 1999 was $178,000 compared to a Loss before
          Income Taxes and Minority Interest of ($321,000) for the corresponding
          period in 1998. This increase in income was primarily due to the
          rationalization of the agricultural commodity trading business.

Other Industries

     o    Net Sales for the nine months ended September 30, 1999 increased by
          approximately $7.8 million as compared to the corresponding period in
          1998.

     o    The Income before Income Taxes and Minority Interest was approximately
          $2,577,000 for the nine months ended September 30, 1999 compared to
          income of approximately $4,621,000 for the nine months ended September
          30, 1998. The decrease in income arose primarily due to higher
          interest costs, foreign currency transaction losses and the lower
          equity earnings from Danubius.

     ISRAEL TRACTOR: TRACTORS AND HEAVY EQUIPMENT SEGMENT

     o    Net Sales for the nine months ended September 30, 1999 decreased by
          $1.9 million,or approximately 5% as compared to the corresponding
          period in 1998. This decrease was due to a decrease in demand for the
          Company's products.

     o    The Income before Income Taxes and Minority Interest for the nine
          months ended September 30, 1999 was $1,707,000 as compared to $42,000
          for the corresponding period in 1998 as a result of a reduction of
          expenses.


     BALTON CP: AGRICULTURAL, COMMUNICATIONS AND ELECTRICAL EQUIPMENT SEGMENT

     o    Net Sales for the nine months ended September 30, 1999 increased by
          approximately $303 thousand or approximately 0.6%, as compared to the
          corresponding period in 1998. This was due to increased demand for the
          Company's products.

     o    Income before Income Taxes and Minority Interests for the nine months
          ended September 30, 1999 decreased by approximately $1.8 million, as
          compared to the corresponding period in 1998, as a result of local
          currency devaluation losses.



                                       16
<PAGE>





INCOME TAXES

The Company may be subject to tax in some or all of the foreign countries in
which it has operations. However, foreign taxes imposed on the Company's income
may qualify as a foreign income tax and therefore be eligible for credit against
the Company's United States income tax liability subject to certain limitations
set out in the Internal Revenue Code of 1986, as amended (or alternatively, for
deduction against income in determining such liability). The limitations set out
in the Code include, among others, computation rules under which foreign tax
credits allowable with respect to specific classes of income cannot exceed the
United States federal income taxes otherwise payable with respect to each class
of income. Foreign income taxes exceeding the credit limitation for the year of
payment or accrual can be carried back for two taxable years and forward for
five taxable years, in order to reduce United States federal income taxes,
subject to the credit limitations applicable in each of such years. Other
restrictions on the foreign tax credit include a prohibition on the use of the
credit to reduce liability for the United States corporate alternative minimum
taxes by more than 90%.



LIQUIDITY AND CAPITAL RESOURCES

     The Company has financed its operations through funds generated internally
and through cash and cash equivalents available at the beginning of 1999. At
September 30, 1999, IIC Industries Inc., (the "Parent Company"), and its
wholly-owned Israel Tractor subsidiary, had working capital of $25.4 million,
including cash and cash equivalents of $7.4 million. Cash of subsidiaries that
are not wholly-owned (including the Investor Group and the Balton CP Group) is
generally not available for use by the Parent Company or other subsidiaries
(except to the extent paid to the Parent Company as reimbursement for general
overhead paid by the Parent Company or as management fees) other than in the
form of dividends, if and when declared. Dividends to the Parent Company from
its Israel Tractor subsidiary are subject to a withholding tax of 15% to 25%.
The Parent Company does not expect to receive cash dividends or other
distributions in the foreseeable future from any of its subsidiaries.

     At September 30, 1999, Israel Tractor, Investor and Balton had outstanding
short-term indebtedness of approximately $4.6 million, $9.2 million and $4.5
million, respectively.

     At September 30, 1999, Israel Tractor, Investor and Balton had unused lines
of short-term credit of $2.4 million, $3.4 million and $ 3.2 million,
respectively .

     During the first nine months of 1999, Israel Tractor, Investor, and Balton
made capital expenditures of $293,000; $811,000 and $ 902,000 respectively, for
the purchase of equipment and vehicles and improvements to property. Such
expenditures were made from internally generated funds. At September 30, 1999,
the Company had no significant capital commitments.



                                       17
<PAGE>


INFLATION

     Inflation has been a persistent aspect of the Hungarian economy in recent
years, although the annual rate of inflation has been predictable and has
therefore been taken into account by the government and private businesses.
Inflation has contributed to the devaluation of the Hungarian currency and has
therefore had an effect on Investor's financial condition.

     Inflation in Israel was moderate in 1998 and during the first nine months
of 1999, and therefore did not significantly affect operations in that country.
Furthermore, there was a devaluation of the Israeli shekel against the U.S.
Dollar in the first nine months of 1999 of 2%.

     Significant rates of inflation persisted in the African countries where
Balton CP operates, triggering significant devaluations of local currencies.


NEW ACCOUNTING PRONOUNCEMENT

     In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 ("SFAS No. 133"), "Accounting for
Derivative Instruments and Hedging Activities". SFAS No. 133 establishes
accounting and reporting standards for derivative instruments and for hedging
activities and is effective for all fiscal quarters of fiscal years beginning
after June 15, 2000. The adoption of SFAS No. 133 will not or is not expected to
have a significant impact on the Company's results of operations.


YEAR 2000 COMPLIANCE

     In July 1996, the Emerging Issues Task Force ("EITF") of the Financial
Accounting Standards Board ("FASB") issued EITF 96-14, "Accounting for the Costs
Associated with Modifying Computer Software for the Year 2000," which requires
that costs associated with modifying computer software for the Year 2000 be
expensed as incurred.

The Company conducted a comprehensive review of its systems, equipment, product
and services, suppliers, customers and building facilities to identify its
exposure to any adverse impact of Year 2000 non-compliance. The Company
implemented procedures that it deemed necessary to safeguard the Company from
computer-related issues associated with adverse effects as a result of
improperly recognizing the millennial date change.

The external and internal remediation costs to be incurred for the modification
of internal-use software to address Year 2000 issues were not material. These
cost estimates included the costs of external contractors, non-capitalizable
purchases of software and hardware, and the direct cost of internal



                                       18
<PAGE>

employees working on Year 2000 projects. The Company's cost estimate did not
include any potential litigation or warranty costs related to Year 2000 issues
if the Company's remediation efforts are not successful.

The Company undertook a program to alert its suppliers and dealers of Year 2000
issues. Based on its contacts with suppliers and dealers, the Company believes
that a predominant portion of our suppliers is Year 2000 compliant. Based on
third-party representations and internal testing, and subject to the Company's
ongoing compliance efforts, the costs and uncertainties relating to timely
resolution of Year 2000 issues applicable to the Company's business and
operations are not reasonably expected by the Company to have a material adverse
effect on the Company's financial position, cash flows or results of operations.
For those suppliers and dealers that have not adequately responded to our Year
2000 concerns, we have followed up to ultimately achieve an acceptable level of
compliance within our supply chain. As there can be no assurance that an
acceptable level of Year 2000 compliance will be achieved, the Company has
developed contingency plans to address potential issues.

Based upon the Company's review and efforts to date, the Company has completed
its critical Year 2000 compliance issues and testing. If the Company's Year 2000
compliance efforts, as well as the efforts of the Company's suppliers and
dealers, individually and in the aggregate, are not successful, it could have a
material adverse effect on the Company's financial position, cash flows and
results of operations. Factors that could cause actual results to differ include
unanticipated supplier or dealer failures, disruption of utilities,
transportation or telecommunications breakdowns, foreign or domestic
governmental failures, as well as unanticipated failures on our part to address
Year 2000 related issues. The most likely worst case scenario for the Company in
light of these risks would involve a potential loss in sales resulting from
order, production and shipping delays throughout the Company's supply chain
caused by Year 2000 related disruptions. The degree of sales loss impact would
depend on the severity of the disruption, the time required to correct it,
whether the sales loss was temporary or permanent, and the degree to which our
primary competitors were also impacted by the disruption. The Company has
developed Year 2000 contingency plans that were designed to mitigate the impact
on the Company if its Year 2000 compliance efforts are not successful. The
Company's contingency plans include the use of alternative systems and
non-computerized approaches to our business including manual procedures for
machine operation, collecting and reporting of its business information, as well
as alternative sources of supply. At this time, the Company has determined it
will not be necessary to stockpile inventory or supplies as part of its
contingency planning.

The information included in this "Year 2000" section represents forward-looking
statements and involves risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements. The Company
has evaluated the impact of the Year 2000 issue on the business and does not
expect to incur significant costs with year 2000 compliance. The Company
believes that all software and hardware requirements to enable it to cope with
year 2000 issue have been implemented.



                                       19
<PAGE>





ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

DISCLOSURE ABOUT FOREIGN CURRENCY RISK

Substantially all of the Company's revenues are derived from foreign operations.
As such, its income is significantly affected by fluctuations in currency
exchange rates and by currency controls. Most of the countries where the Company
operates such as Hungary and several African countries do not have freely
convertible currencies and their currencies have been subject to devaluations in
recent years. In particular, during 1998, the income from the Company's
Hungarian, Israeli and certain African subsidiaries was significantly reduced by
losses arising from foreign exchange transactions due to significant currency
devaluations against the U.S. dollar. The Hungarian currency, which floats
against a basket of two currencies (the U.S. dollar and the European Currency
Unit) underwent devaluations against the U.S. dollar at the rate of 7% during
1998. Since the beginning of 1999, the Hungarian currency has been further
devalued by approximately 11% against the U.S. Dollar. Since the functional
currency for Investor is the Forint, these devaluations have resulted in certain
currency translation adjustments directly impacting stockholders' equity.
Furthermore, certain African countries such as Nigeria, Ghana & Zambia operate
in hyper-inflationary economies, and, the Israeli shekel devalued 17.6% against
the U.S. dollar in 1998, even though the devaluation was modest in previous
years. Since the beginning of 1999, the Israeli shekel has been devalued by
approximately 2% against the U.S. Dollar.

Derivative financial instruments are utilized by the Company to reduce foreign
exchange risk and price risk relating to its heavy equipment distribution and
agricultural commodity business. The Company does not hold or issue derivative
financial instruments for trading purposes.

Israel Tractor enters into foreign currency forward contracts and call option
contracts to reduce the impact of fluctuations of certain currencies against the
U.S. dollar. Gains and losses resulting from such transactions are reflected in
the results of operations. These contracts reduce exposure to currency movements
resulting primarily from nondollar-denominated trade receivables and the Israeli
tax effects of dollar-denominated trade purchases.

At September 30, 1999, Israel Tractor had foreign currency forward contracts,
with notional values of $2 million, to purchase and sell Israeli shekels. All of
the contracts mature in the next six months.

Current pricing models were used to estimate the fair values of foreign currency
forward contracts, and call options. The counterparties to these contracts are
creditworthy multinational commercial banks or other financial institutions,
which are recognized market makers.

DISCLOSURE ABOUT INTEREST RATE RISK

          The Company is subject to market risk from exposure to changes in
interest rates based on its financing, investing, and cash management
activities. The Company utilizes a balanced mix of debt maturities along with
both fixed-rate and variable-rate debt to manage its exposures to changes in
interest rates. The Company does not expect changes in interest rates to have a
material effect on income or cash flows in 1999, although there can be no
assurances that interest rates will not significantly change.


                                       20
<PAGE>




                                OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

             None

ITEM 2.    CHANGES IN SECURITIES AND USE OF PROCEEDS

             None

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

             None

ITEM 4.    SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

             None

ITEM 5.    OTHER INFORMATION

             None

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     On October 28, 1999, the Company filed an 8-K regarding the change in the
Company's Certifying Accountant.


     EXHIBIT NO.           DESCRIPTION
     -----------           -----------
        27                 Financial Data Schedule



                                       21

<PAGE>

                                   SIGNATURES


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



Date:  November 19, 1999

                                     IIC INDUSTRIES, INC.




                                     By: /s/ Fortunee F. Cohen
                                        -------------------------------
                                        Fortunee F. Cohen, Secretary


                                     By: /s/ Michael M. Wreschner
                                        -------------------------------
                                        Michael M. Wreschner, Director,
                                        Assistant Secretary and  assisting
                                        on financial matters.