<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, 2000

                                       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, 2000.


<PAGE>

FINANCIAL INFORMATION

  ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<S>                                                                                       <C>


                                                                                         Page
              Consolidated Balance Sheets                                                ----
              at September 30, 2000
              and December 31, 1999                                                        3

              Consolidated Statements of Income and Comprehensive Income
              for the Nine Months Ended
              September 30, 2000 and September 30, 1999                                    5

              Consolidated Statements of Income and Comprehensive Income
              for the Three Months Ended
              September 30, 2000 and September 30, 1999                                    6

              Consolidated Statements of Cash Flows
              for the Nine Months Ended
              September 30, 2000 and September 30, 1999                                    7

              Notes to Consolidated Financial
              Statements                                                                   8

</TABLE>


                                       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                     2000                         1999
                                                            -------------               -------------


<S>                                                           <C>                           <C>
CURRENT ASSETS
    Cash and cash equivalents                                    $6,529                     $9,563
    Accounts receivable, net                                     45,159                     38,524
    Inventories, net (Note C)                                    33,635                     32,554
    Other current assets                                         10,535                      9,688
                                                                 ------                     ------

         Total current assets                                    95,858                     90,329

DUE FROM AFFILIATE                                                3,150                      3,150

PROPERTY AND EQUIPMENT, NET                                      23,731                     26,135

INVESTMENTS  (Note E)                                            52,819                     46,809

OTHER ASSETS                                                      4,410                      6,741
                                                                 ------                     ------

                                                               $179,968                   $173,164
                                                               ========                   ========

</TABLE>



The notes are an integral part of these consolidated financial 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,
                                                                                       2000                     1999
                      LIABILITIES AND STOCKHOLDERS' EQUITY                          -------------           ------------

<S>                                                                                 <C>                     <C>
CURRENT LIABILITIES
    Accounts payable                                                                  $ 25,307                 $ 21,564
    Bank loans                                                                          18,462                   19,018
    Current maturities of long-term debt                                                   566                    3,005
    Accrued expenses and other payables                                                  9,792                   11,597
    Due to related parties                                                               4,122                    1,947
    Advances from customers                                                              4,766                    2,609
                                                                                        ------                   ------

         Total current liabilities                                                      63,015                   59,740

LONG-TERM DEBT, less current portion                                                     3,020                    1,197

DUE TO AFFILIATES                                                                        2,204                    2,046

OTHER LIABILITIES AND DEFERRED
    CREDITS                                                                              5,987                    6,434

MINORITY INTERESTS                                                                      13,455                   14,851
                                                                                        ------                   ------
                                                                                        87,681                   84,268

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                                                                  114,800                  106,816
    Accumulated other comprehensive loss                                               (44,315)                 (39,722)
    Less treasury stock - at cost (649,752 shares)                                      (2,725)                  (2,725)
                                                                                       -------                  --------
                                                                                        92,287                   88,896
                                                                                       -------                  --------
                                                                                     $ 179,968                 $173,164
                                                                                       ========                 =======

</TABLE>


The notes are an integral part of these consolidated financial 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,
                                                                                        -------------------------------
                                                                                         2000                    1999
                                                                                         ----                    ----
<S>                                                                                 <C>                     <C>
Net sales                                                                              $132,837                 $131,952
Cost of sales                                                                           101,818                   95,973
                                                                                        -------                  -------

         Gross profit                                                                    31,019                   35,979

Selling, general and administrative expenses                                             29,781                   32,888
                                                                                        -------                  -------

         Operating income                                                                 1,238                    3,091
                                                                                        -------                  -------

Other income (expenses)
    Interest income                                                                         962                      988
    Equity in earnings of affiliates                                                      4,522                    4,313
    Foreign currency loss (Note B)                                                       (2,302)                  (2,642)
    Gain (loss) on sale of noncurrent assets, net (Note F)                                2,557                      (45)
    Interest expense                                                                     (1,768)                  (1,195)
    Rental income                                                                         1,766                    2,086
    Other, net                                                                            1,369                   (1,206)
                                                                                        -------                  --------

         Income before income taxes and
            Minority interest                                                             8,344                    5,390



Income taxes                                                                               (317)                    (965)
                                                                                        -------                 --------

         Income before minority interest                                                  8,027                    4,425

Minority Interests                                                                          (43)                    (195)
                                                                                        --------                --------

         NET INCOME                                                                      $7,984                   $4,230

Other comprehensive loss:
          Foreign currency translation adjustments                                       (4,593)                  (3,979)
                                                                                        --------                --------
          COMPREHENSIVE INCOME                                                           $3,391                     $251
                                                                                        ========                ========

Basic net income per common share                                                         $1.40                    $0.74
                                                                                          =====                    =====

Average number of common shares outstanding                                           5,693,472                5,693,472
                                                                                      =========                =========

</TABLE>

The notes are an integral part of these consolidated financial 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,
                                                                                           --------------------------------
                                                                                                2000                 1999
                                                                                                ----                 ----
<S>                                                                                        <C>                     <C>


Net sales                                                                                     $48,882              $40,922
Cost of sales                                                                                  37,478               29,785
                                                                                               ------               ------

         Gross profit                                                                          11,404               11,137

Selling, general and administrative expenses                                                   10,308               11,176
                                                                                               ------               ------

         Operating income (loss)                                                                1,096                  (39)
                                                                                               ------               ------

Other income (expenses)
    Interest income                                                                               383                  423
    Equity in earnings of affiliates                                                            2,811                2,970
    Foreign currency loss (Note B)                                                               (868)              (1,272)
    Gain (loss) on sale of noncurrent assets, net                                                 376                 (359)
    Interest expense                                                                             (740)                (379)
    Rental income                                                                                 524                  680
    Other, net                                                                                    665                 (520)
                                                                                               ------               ------

         Income before income taxes and
             Minority interest                                                                  4,247                1,504

Income taxes                                                                                      (54)                (356)
                                                                                               -----                ------

         Income before minority interest                                                        4,193                1,148


Minority Interests                                                                               (297)                 758
                                                                                               ------               ------

         NET INCOME                                                                            $3,896               $1,906

Other comprehensive loss:
           Foreign currency translation adjustments                                            (2,438)                (929)
                                                                                               ------               ------
           COMPREHENSIVE INCOME                                                                $1,458                 $977
                                                                                               ======               ======

Basic net income  per common share                                                              $0.68                $0.33
                                                                                                -----                -----

Average number of common shares outstanding                                                 5,693,472            5,693,472
                                                                                            =========            =========

</TABLE>


The notes are an integral part of these consolidated financial statements.

                                       6

<PAGE>


                      IIC Industries, Inc. and Subsidiaries

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                          (dollar amounts in thousands)

<TABLE>
<CAPTION>

                                                                                             NINE MONTHS ENDED SEPTEMBER30,
                                                                                            -------------------------------


                                                                                                 2000              1999
                                                                                                 ----              ----
<S>                                                                                            <C>                <C>

Net cash provided by (used in) operating activities                                           $ 2,184              $(1,839)
                                                                                               ------               ------

Cash flows from investing activities
    Purchase of property and equipment                                                         (1,576)              (2,006)
    Purchase of investments                                                                    (5,558)              (1,973
    Proceeds on disposal of property and equipment                                                829                  655
    Advances from (to) affiliates                                                                 158                 (379)
    Proceeds on disposal of investments                                                         2,242                1,261
                                                                                               ------
    Restricted cash                                                                                                    367
                                                                                                                    ------

         Net cash (used in) investing activities                                               (3,905)              (2,075)
                                                                                               ------               ------

Cash flows from financing activities
    Acquisition of treasury shares by subsidiary                                                                    (1,140)
    Issuance of long-term debt                                                                  2,104                  563
    Principal payments of long term debt                                                       (2,679)                (331)
    Net (payments) receipts of short-term bank loans                                             (561)               4,527
                                                                                               ------               ------
         Net cash (used by) provided by financing activities                                   (1,136)               3,619

Effect of exchange rate on cash                                                                  (177)                (138)
                                                                                               ------               ------

         Net (decrease) increase in cash and cash equivalents
          during the period                                                                    (3,034)                (433)

Cash and cash equivalents at beginning of period                                                9,563               10,957
                                                                                               ------               ------

Cash and cash equivalents at end of period                                                     $6,529              $10,524
                                                                                               ======               ======

Supplemental disclosure of cash flow information:
    Cash paid during the period for
       Interest                                                                                $1,466               $1,051

       Income taxes                                                                               456                1,121

</TABLE>



The notes are an integral part of these consolidated financial statements.


                                       7


<PAGE>





                      IIC Industries, Inc. and Subsidiaries

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

NOTE A - BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

     The accompanying unaudited Consolidated Financial Statements were prepared
in accordance with the instructions for Form 10-Q and, therefore, do not include
all disclosures necessary for a complete presentation of financial condition,
results of operations, and cash flows in conformity with generally accepted
accounting principles. All adjustments which are, in the opinion of management,
of a normal recurring nature and are necessary for a fair presentation of the
interim financial statements, have been included. The results of operations for
the periods ended September 30, 2000 and September 30, 1999 are not necessarily
indicative of the results that may be expected for the entire fiscal year or any
other interim period.

     The accompanying unaudited Consolidated Financial Statements include the
accounts of IIC Industries and its majority-owned subsidiaries (collectively the
"Company"). All significant intercompany balances and transactions have been
eliminated in consolidation.


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 period-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 period-end exchange rates and nonmonetary
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, NET

     Inventories, net are as follows:


                                SEPTEMBER 30,                  December 31,
                                   2000                            1999
                                 -------                          -----

     Raw materials              $ 4,577                       $ 4,950
     Work-in-progress               757                           517
     Finished goods              28,301                        27,087
                                 ------                        ------

                                $33,635                       $32,554
                                 ======                        ======


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 $1.6 million.

     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 $1.8 million.

NOTE E - INVESTMENTS

     At September 30, 2000 and September 30, 1999, the Company's effective
ownership percentage of Danubius, Rt. ("Danubius"), a publicly traded company,
was approximately 41% and 37% at a cumulative cost of approximately $44 million
and $37 million, respectively. Danubius owns a number of hotels in Hungary and
the Czech Republic, which specialize in spa facilities. The Company's share of
Danubius' net assets and was $50.5 million in September 2000 and $47.3 million
in September 1999.


                                       9

<PAGE>


                      IIC Industries, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)


NOTE E (CONTINUED)

     The Company accounted for these investments under the equity method. Under
     this method, the investments are carried at cost plus the Company's share
     of earnings or losses less distributions.

     The following is unaudited summarized financial information of Danubius (in
     thousands), presented in accordance with International Accounting
     Standards. There were no significant differences between international
     accounting standards and generally accepted accounting principles in the
     United States, as they relate to Danubius:

<TABLE>
<CAPTION>

                                  SEPTEMBER 30, 2000             September 30, 1999
                                  ------------------             ------------------
           <S>                    <C>                             <C>

         Current assets                $24,977                        $41,411
         Noncurrent assets             144,378                        134,426
         Current liabilities            20,076                         16,193
         Noncurrent liabilities         43,562                         31,855
         Stockholders' equity          105,717                        127,789



                                   NINE MONTHS ENDED              Nine Months ended
                                   SEPTEMBER 30, 2000            September 30, 1999
                                   ------------------            ------------------


         Sales                         $82,316                        $81,489
         Operating income               16,578                         15,362
         Net income                     12,200                         13,297


</TABLE>

                                       10


<PAGE>


                      IIC Industries, Inc. and Subsidiaries

             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)


NOTE F- GAIN ON SALE OF INVESTMENTS

     During March 2000, the Company sold an equity interest in an Israeli oil &
gas exploration venture, which resulted in a gain of approximately $2.1 million.

NOTE G- 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, as amended by SFAS No. 137, is effective for all fiscal quarters
of fiscal years beginning after June 15, 2000. The Company does not expect that
the adoption of SFAS No. 133 will have a significant impact on the Company's
results of operations.

     In December 1999, the Securities and Exchange Commission released Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements
(SAB101), providing the staff's views in applying generally accepted accounting
principles to selected revenue recognition issues. For companies such as IIC
Industries, Inc., with fiscal years that begin between December 16, 1999 and
March 15, 2000, portions of SAB 101 become effective for the fourth quarter of
2000. The company believes that adopting these portions of SAB 101 will not have
a material effect on the company's financial position or overall trends in
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 the nine months ended September 30, 2000 and
1999 certain information with respect to the results of operations of the
Company and its principal subsidiaries.


<TABLE>
<CAPTION>
                                                                                      Income (Loss) Before
                                                                                       Income Taxes and
Nine Months Ended                     Net Sales                  Gross Profit          Minority Interests        Net Income (Loss)
-----------------               -------------------            ------------------      --------------------      ------------------
September 30, 2000               Amount           %            Amount           %        Amount        %         Amount         %
------------------               ------           -            ------           -        ------        -         ------         -
                             (In thousands)                     (In thousands)            (In thousands)           (In thousands)

<S>                         <C>                  <C>           <C>            <C>        <C>          <C>        <C>          <C>

IIC Industries Inc.                     --         --                 --        --      $1,316       15.8       $1,263         15.8
(parent company)

Israel Tractors &                  $47,244       35.6             11,453      36.9       1,864       22.3        1,749         21.9
Equipment Co. (Israel)

Balton CP Group (Africa)            46,630       35.1             13,230      42.7         408        4.9          206          2.6

Investor RT Group (Hungary)         38,963       29.3              6,336      20.4       4,756       57.0        4,766         59.7
                                    ------       ----             ------      ----       -----       ----        -----         ----

                                  $132,837      100.0            $31,019     100.0      $8,344      100.0       $7,984        100.0
                                  ========      =====             ======      ====      ======      =====        =====        =====



                                                                                      Income (Loss) Before
                                                                                       Income Taxes and
Nine Months Ended                   Net Sales                  Gross Profit            Minority Interests        Net Income (Loss)
------------------              -------------------           -------------------    ------------------------    ------------------
September 30, 1999              Amount           %            Amount           %        Amount        %         Amount         %
------------------              ------           -            ------           -        ------        -         ------         -
                             (In thousands)                 (In thousands)                (In thousands)            (In thousands)


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

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


                                       13


<PAGE>



CONSOLIDATED RESULTS OF OPERATIONS

     Net Sales. Net Sales on a consolidated basis for the nine months ended
September 30, 2000 increased by approximately $900,000 as compared to the
comparable period in 1999. The increase is principally due to an increase in
demand for the products of Israel Tractor, which is partially offset by a
reduction in demand at Balton CP, the deconsolidation of certain subsidiaries in
Investor and the devaluation of the Hungarian forint.

     Gross Profit. Gross Profits on a consolidated basis for the nine months
ended September 30, 2000 decreased by approximately $5 million or approximately
13.8%, to approximately $31 million, or approximately 23% of Net Sales, from
approximately $36 million, or approximately 27% of Net Sales, in the
corresponding period in 1999. The decrease was mainly attributable to the
deconsolidation of certain Investor subsidiaries and the devaluation of the
Hungarian forint.

     Operating income. Operating income on a consolidated basis for the nine
months ended September 30, 2000 decreased by approximately $1.85 million, to
$1.24 million, or approximately 0.9 % of net sales, from approximately $3.1
million, or approximately 2.3% of Net Sales for the corresponding period in
1999. This decrease was principally due to the reduction in Gross Profit,
partially offset by the reduction of operating expenses in the Investor group.

     Interest income. Interest income decreased for the nine months ended
September 30, 2000 by $26,000.

     Interest expense. Interest expense in the first nine months ended September
30, 2000 increased by $573,000 , or approximately 48 %, to approximately $1.77
million due to the increase in borrowings.

     Income before Income Taxes and Minority Interests. Income before Income
Taxes and Minority Interests in the first nine months ended September 30, 2000
was approximately $8.34 million, compared to Income before Income Taxes and
Minority Interest in the first nine months of 1999 of approximately $5.39
million. The increase in Income was primarily due to the gain on sale of equity
shares of an oil and gas venture. The increase was partially offset by the
reduction in operating income from 1999 to 2000.


                                       14


<PAGE>



     The table below sets forth for the nine months ended September 30, 2000 and
1999 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, 2000          Nine Months Ended September 30, 1999

                                                         Income (Loss) before                         Income (Loss) before
                                                           Income Taxes and                             Income Taxes and
                                      Net Sales            Minority Interest        Net Sales          Minority Interest
                                     ----------           -------------------       ---------         --------------------

<S>                                <C>      <C>         <C>       <C>       <C>         <C>          <C>        <C>
                                    Amount       %       Amount       %         Amount        %        Amount          %

                                    (In thousands)            (In thousands)      (In thousands)         (In thousands)


Vehicle sales and distribution       $9,149      6.9        $211      2.5      $10,513        8.0       $284           5.3
(Investor)
Processing/storage of agricultural   26,724     20.1         297      3.6       22,969       17.4        178           3.3
products (Investor)

Other Industries                      3,090      2.3       5,564     66.7        8,908        6.7      2,577          47.8


Tractors and heavy equipment         47,244     35.6       1,864     22.3       39,325       29.8      1,707          31.7
(Israel Tractor)
Agricultural, communications and
electrical equipment (Balton CP)     46,630     35.1         408      4.9       50,237       38.1        644          11.9
                                   --------    -----      -------    -----    --------      -----     -------        -----

                                   $132,837    100.0      $8,344    100.0     $131,952      100.0     $5,390         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, 2000 decreased by
        approximately $1,364,000, or approximately 13%, as compared to the
        corresponding period in 1999.

     o  There was Income before Minority Interests and Income Taxes for the nine
        months ended September 30, 2000 of $211,000 as compared to $284,000 in
        the corresponding period in 1999.The decrease in Net Sales and in Income
        before Income Taxes and Minority Interests was primarily due to the
        devaluation of the Hungarian forint and competitive market conditions.


                                       15

<PAGE>


Processing/Storage of Agricultural Products Segment

     o  Net Sales for the nine months ended September 30, 2000 increased by
        approximately $3.75 million or 16%, as compared to the corresponding
        period in 1999. The increase in Net Sales was primarily due to an
        increase in demand for the Company's products.

     o  The Income before Income Taxes and Minority Interest for the nine months
        ended September 30, 2000 was $297,000 compared to Income before Income
        Taxes and Minority Interest of $178,000 for the corresponding period in
        1999. 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, 2000 decreased by
        approximately $5.8 million as compared to the corresponding period in
        1999. This was due to the deconsolidation of certain subsidiaries.

     o  The Income before Income Taxes and Minority Interest was approximately
        $5.56 million for the nine months ended September 30, 2000 compared to
        income of approximately $2.58 million for the nine months ended
        September 30, 1999. The increase in income arose primarily due to gain
        on sale of equity shares of an oil & gas venture in March 2000.

        ISRAEL TRACTOR: TRACTORS AND HEAVY EQUIPMENT SEGMENT

     o  Net Sales for the nine months ended September 30, 2000 increased by $7.9
        million,or approximately 20% as compared to the corresponding period in
        1999. This increase was due to an increase in demand for the Company's
        products.

     o  The Income before Income Taxes and Minority Interest for the nine months
        ended September 30, 2000 was $1.86 million as compared to $1.71 million
        for the corresponding period in 1999 as a result of the equity in
        earnings of Danubius partially offset by an increase in operational
        costs.

        BALTON CP: AGRICULTURAL, COMMUNICATIONS AND ELECTRICAL EQUIPMENT SEGMENT

     o  Net Sales for the nine months ended September 30, 2000 decreased by
        approximately $3.6 million or approximately 7.2 %, as compared to the
        corresponding period in 1999. This was due to decreased demand for the
        Company's products as a result of unstable market conditions.

     o  Income before Income Taxes and Minority Interests for the nine months
        ended September 30, 2000 decreased by approximately $236,000, as
        compared to the corresponding period in 1999.

                                       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 2000. At
September 30, 2000, IIC Industries Inc., (the "Parent Company"), and its
wholly-owned Israel Tractor subsidiary, had working capital of $19.1 million,
including cash and cash equivalents of $2.1 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 12.5%. 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, 2000, Israel Tractor, Investor and Balton had outstanding
short-term indebtedness of approximately $6.6 million, $5.3 million and $6.6
million, respectively.

     At September 30, 2000, Israel Tractor, Investor and Balton had unused lines
of short-term credit of $2.4 million, $4.4 million, and $10.8 million,
respectively.

     During the first nine months of 2000, Israel Tractor, Investor, and Balton
made capital expenditures of $392,000; $854,000 and $330,000 respectively, for
the purchase of equipment and vehicles and improvements to property. Such
expenditures were made from internally generated funds. At September 30, 2000,
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 low in 1999 and during the first nine months of
2000, and therefore did not significantly affect operations in that country.
Furthermore, there was a revaluation of the Israeli shekel against the U.S.
Dollar in the first nine months of 2000 of approximately 2.5%.

     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, as amended by SFAS No. 137, is effective for all fiscal quarters
of fiscal years beginning after June 15, 2000. The Company does not expect that
the adoption of SFAS No. 133 will have a significant impact on the Company's
results of operations.

     In December 1999, the Securities and Exchange Commission released Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements
(SAB101), providing the staff's views in applying generally accepted accounting
principles to selected revenue recognition issues. For companies such as IIC
Industries, Inc., with fiscal years that begin between December 16, 1999 and
March 15, 2000, portions of SAB 101 become effective for the fourth quarter of
2000. The company believes that adopting these portions of SAB 101 will not have
a material effect on the company's financial position or overall trends in
results of operations.








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 1999 and the first nine months ended
September 30, 2000, the income from the Company's Hungarian, and


                                       18

<PAGE>


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 the European Currency Unit,
underwent devaluations against the U.S. dollar at the rate of 15% during 1999.
For the first nine months of 2000, the Hungarian currency has been further
devalued by approximately 19% 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 of the African countries such as Zambia and Uganda operate
in hyper-inflationary economies.

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, 2000, Israel Tractor had foreign currency forward contracts,
with notional values of $5 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 counter parties 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 2000, although there can be no assurances that interest
rates will not significantly change.


                                OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

          None

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

          None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES


                                       19

<PAGE>


          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

          No reports on Form 8-K were filed during the period covered by this
          report.

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


                                       20

<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 17, 2000

                                     IIC INDUSTRIES, INC.


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

                                     By: /s/ John Smith
                                         --------------
                                          John Smith, Director,
                                          Assistant Secretary and assisting
                                          on financial matters.