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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB
(Mark One)

[X]  Quarterly Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934

For the quarterly period ended     March 31, 2002
                                   --------------

[_]  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:        0-4036
                               ------

                       Kreisler Manufacturing Corporation
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        (Exact name of small business issuer as specified in its charter)

               Delaware                                  22-1044792
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    (State of other jurisdiction of                   (I.R.S. employer
     incorporation or organization)                  Identification No.)

          5960 Central Avenue, Suite H., St. Petersburg, Florida 33707
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                    (Address of principal executive offices)

                                 (727) 347-1144
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                           (Issuer's telephone number)

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

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 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.

                                 [X] Yes [_] No

The number of shares outstanding of issuer's Common Stock, par value $.125 per
share, as of March 31, 2002 was 1,976,547 shares.

Transitional small business disclosure format (check one):   Yes [_]  No [X]

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              Kreisler Manufacturing Corporation and Subsidiaries
                                Table of Contents

<TABLE>
<CAPTION>
PART I    Financial Information                                            Page Number
<S>                                                                        <C>
Item 1    Financial Statements
            Consolidated Balance Sheets                                         3
            Consolidated Statements of Operations                               4
            Consolidated Statements of Cash Flows                               5
            Notes To Financial Statements                                       6-7

Item 2    Management's Discussion and Analysis or Plan of Operation             8-9

PART II   Other Information

Item 1    Legal Proceedings                                                     10

Item 2    Changes in Securities and Use of Proceeds                             10

Item 3    Defaults Upon Senior Securities                                       10

Item 4    Submission of Matters to a Vote of Security Holders                   10

Item 5    Other Information                                                     10

Item 6    Exhibits and Reports on Form 8-K                                      11-12
</TABLE>

                                       2

<PAGE>

PART I        FINANCIAL INFORMATION

Item 1        Financial Statements

               Kreisler Manufacturing Corporation and Subsidiaries
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                 (Unaudited)
------------------------------------------------------------------------------------------------------------------
                                                                             Third Quarter Ended        Year Ended
                                                                                    3/31/02               6/30/01
------------------------------------------------------------------------------------------------------------------
<S>                                                                          <C>                      <C>
Assets
Cash and cash equivalents                                                         $ 6,526,274          $ 5,053,878
Accounts receivable - trade                                                         2,165,904            4,321,944
Inventories
   Raw Materials                                                                    1,937,775            1,649,954
   Work in Process                                                                    808,914              892,713
   Finished Goods                                                                     170,704              184,248
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                                                                                    2,917,393            2,726,915

Deferred tax asset                                                                    362,467              355,000
Other current assets                                                                  305,131               42,130
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Total current assets                                                               12,277,169           12,499,867
Property, plant & equip., at cost, less accumulated
Depreciation of $3,452,443 for 3/31/02 and $3,167,743 for 6/30/01                   1,361,668            1,178,194
Other Assets:
   Deferred tax asset, noncurrent                                                     321,433              471,200
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Total other assets                                                                    321,433              471,200
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                                                                                  $13,960,270          $14,149,261
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Liabilities and Stockholders' Equity
Accounts payable - trade                                                          $   453,819          $   661,460
Accrued expenses                                                                      582,226            1,150,466
Accrued environmental costs                                                           683,033              858,000
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Total current liabilities                                                           1,719,078            2,669,926
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Long term liabilities:
Accrued environmental costs                                                           639,000              959,000
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Total liabilities                                                                   2,358,078            3,628,926
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Stockholders' Equity

Common Stock, $.125 par value - 3,000,000 shares authorized 1,976,547 and
1,966,047 shares issued and outstanding for March 31, 2002 and June 30, 2001
respectively.
                                                                                      249,068              245,757
Additional paid-in capital                                                          1,651,179            1,621,366
Retained earnings                                                                   9,701,945            8,653,212
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Total Stockholders' Equity                                                         11,601,192           10,520,335
------------------------------------------------------------------------------------------------------------------
                                                                                  $13,960,270          $14,149,261
------------------------------------------------------------------------------------------------------------------
</TABLE>

See the accompanying notes

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               Kreisler Manufacturing Corporation and Subsidiaries
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------
Three Months Ended March 31                                                  2002            2001
-----------------------------------------------------------------------------------------------------
<S>                                                                      <C>             <C>
Revenues                                                                 $  3,560,961    $  4,317,360
-----------------------------------------------------------------------------------------------------

Cost of goods sold                                                          3,583,368       3,762,155
Selling, general and administrative expenses                                  187,021         137,692
Change in provision for environmental remediation                                  --      (1,090,000)
-----------------------------------------------------------------------------------------------------
                                                                            3,770,389       2,809,847
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(Loss) income from operations                                                (209,428)      1,507,513

Other income :
Interest and other earnings                                                    49,589          75,351
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(Loss) income before income taxes                                            (159 839)      1,582,864

Provision for income tax                                                      (59,878)        633,977
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Net (loss) income                                                        $    (99,961)   $    948,887
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Earnings per share:
Net (loss) income basic shares                                           $       (.05)   $        .48
Net (loss) income diluted shares                                         $       (.05)   $        .46
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Nine Months Ended March 31                                                   2002            2001
-----------------------------------------------------------------------------------------------------

Revenues                                                                 $ 14,363,819    $ 12,355,487
-----------------------------------------------------------------------------------------------------

Cost of goods sold                                                         12,220,694      10,358,567
Selling, general and administrative expenses                                  596,900         433,563
Change in provision for environmental remediation                                  --        (360,000)
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                                                                           12,817,594      10,432,130
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Income from operations                                                      1,546,225       1,923,357

Other income :
Interest and other earnings                                                   139,103         199,994
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Income before income taxes                                                  1,685,328       2,123,351

Provision for income tax                                                      636,603         849,340
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Net income                                                               $  1,048,725    $  1,274,011
-----------------------------------------------------------------------------------------------------
Earnings per share:
Net income basic shares                                                  $        .53    $        .65
Net income diluted shares                                                $        .51    $        .63
-----------------------------------------------------------------------------------------------------
</TABLE>

See the accompanying notes

                                        4

<PAGE>

               Kreisler Manufacturing Corporation and Subsidiaries
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
Nine Months Ended March 31                                                   2002           2001
---------------------------------------------------------------------------------------------------
<S>                                                                      <C>            <C>
Cash flows from operating activities:
Net earnings                                                             $ 1,048,725    $ 1,274,011
Adjustments to reconcile net income to
  cash provided by operating activities:
Depreciation and amortization                                                284,700        102,659
(Increase) decrease in operating assets:
Accounts receivable - trade                                                2,156,040       (117,717)
Inventories                                                                 (190,478)      (335,533)
Deferred tax benefit                                                         142,300       (799,600)
Insurance recovery                                                                --     (2,500,000)
Other current assets                                                        (263,002)        (8,873)
Increase (decrease) in operating liabilities:
Accounts payable - trade                                                    (207,635)       412,397
Accrued expenses                                                            (568,239)       787,206
Accrued environmental costs                                                 (494,967)     2,140,000
---------------------------------------------------------------------------------------------------
Net adjustments                                                              858,719       (319,461)
---------------------------------------------------------------------------------------------------
Cash provided by operating activities                                      1,907,444        954,550

Cash flows from investing activities:
Purchase of property and equipment                                          (468,174)      (449,990)
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Cash used by investing activities                                           (468,174)      (449,990)

Cash flows from financing activities:
Exercised Stock Options                                                       33,125          6,668
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Cash provided by financing activities                                         33,125          6,668

Increase in cash and cash equivalents                                      1,472,395        511,228
Cash and cash equivalents at beginning of year                             5,053,879      4,045,523
---------------------------------------------------------------------------------------------------
Cash and cash equivalents at March 31                                    $ 6,526,274    $ 4,556,751
---------------------------------------------------------------------------------------------------

Income taxes paid                                                        $   720,400    $   619,300
---------------------------------------------------------------------------------------------------
</TABLE>

See the accompanying notes

                                       5

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               Kreisler Manufacturing Corporation and Subsidiaries
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  Principles of Consolidation

The financial statements include the accounts of the Company and its
wholly-owned subsidiaries after elimination of significant intercompany
transactions. The preparation of financial statements in conformity with
generally accepted accounting principles requires the use of management's
estimates. In the opinion of management all adjustments necessary for a fair
presentation of such financial statements have been included. Such adjustments
consisted only of normal recurring items. Interim results are not necessarily
indicative of results for a full year.

The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's annual
financial statements and notes. Accordingly, these statements should be read in
conjunction with the consolidated financial statements and notes thereto
appearing in the Annual Report of the Company for the fiscal year ended June 30,
2001.

2.  Inventories

On interim reports for September 30, and March 31, the inventory is determined
on a cost of goods sold basis. Material usage is based on historical cost. Any
change in year end physical inventory compared with that based on cost of goods
sold could materially increase or decrease profits. A physical inventory was
completed for the period ended December 31, 2001.

4.  Contingencies

Certain federal and state laws authorize the United States Environmental
Protection Agency (EPA) to Issue orders and bring enforcement actions to compel
responsible parties to take investigative and remedial actions at any site that
is determined to present an imminent and substantial danger to the public or the
environment because on an actual or threatened release of one or more hazardous
substances. These statutory provisions impose joint and several responsibility
without regard to fault on all responsible parties, including the generators of
the hazardous substances, for certain investigative and remedial costs at sites
where these substances are or were produced or handled which contain
constituents classified hazardous. The Company generally provides for the
disposal or processing of such substances through licensed, independent
contractors.

In July 1999 the Company became aware of historical releases of hazardous
substances at its leased facility located at 180 Van Riper Avenue, Elmwood Park,
New Jersey (Facility). The Company promptly notified the New Jersey Department
of Environmental Protection (Department) as required by the New Jersey Spill
Compensation and Control Act (Spill Act), N.J.S.A. 58:10-23.11, and retained the
services of environmental remediation consultants to perform a full site
characterization in accordance with the Department's Technical Requirements for
Site Remediation, N.J.A.C. 7:26E-1.1. The site characterization has been
completed. The preliminary cost estimate for remediation of the site is
approximately $ 2.140 million, to be incurred over the next six years.

The Company has notified its liability insurance carriers which issued liability
policies to the Company during the period from 1959 to 1985. The Company has
reached a settlement with one of its insurance carriers in the amount of
$2,500,000.

                                       6

<PAGE>

Item 2.  Management's Discussion and Analysis

               Kreisler Manufacturing Corporation and Subsidiaries
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
              FOR THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 2002

  Description of Business

  Kreisler Manufacturing Corporation is a Delaware Corporation incorporated on
December 13, 1968, which succeeded a New Jersey Corporation business corporation
which was incorporated in New Jersey in 1940, which succeeded a New York
Corporation which was incorporated in 1930. Kreisler Manufacturing Corporation
and its wholly-owned subsidiary, Kreisler Industrial Corporation (collectively
the "Company") which was incorporated in New Jersey on July 3, 1956 manufactures
precision metal components and assemblies at Elmwood Park, New Jersey for use in
military and commercial aircraft engines and industrial gas turbines.

  Forward Looking Statements

  This Quarterly Report on Form 10QSB contains forward looking statements,
particularly with respect to the Liquidity and Capital Resources section of
Management's Discussion and Analysis of Financial Condition and Results of
Operations. Additional written or oral forward-looking statements may be made by
the Company from time to time, in filings with the SEC or otherwise. Such
forward-looking statements are within the meaning of that term in Section 27A of
the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of
1934. Such statements may include, but not be limited to, projections of
revenue, income, losses, cash flows, capital expenditures, plans for future
operation, financing needs or plans, plans relating to products or services of
the Company, estimates concerning the effects of litigation or other disputes,
as well as assumptions to any of the foregoing.

  Forward looking statements are inherently subject to risks and uncertainties,
some of which can not be predicted. Future events and actual results could
differ materially from those set forth in or underlying the forward looking
statements.

  Products

  The Company fabricates precision metal components and assemblies primarily for
aircraft, spacecraft and industrial gas turbine engines. The primary function of
the Company's tubular products is to transport fluids including air, oil and gas
to various parts of the engine.

  Tube assemblies may be made of various materials and configurations,
including titanium, inconel and stainless steel. These quality controlled and
highly engineered manifold assemblies transfer fuel for combustion, oil for
lubrication, hydraulic fluid to activate thrust reversers and impingement tubes
or baffles to cool vanes in the combustion section of the engine and industrial
gas turbines.

For this quarter sales activity was approximately 60% commercial aircraft
engines, 13% industrial gas turbine engines and 27% military engines.

  Substantially all sales of products are made through an in-house sales staff
supported by a government sales representative. All products are manufactured to
the blueprints and specifications of the particular

                                       7

<PAGE>

customer. Orders are received through competitive proposals which are made in
response to requests for bids from contractors who are frequently supplying
engines for commercial businesses or various branches of the United States
Government.

Results of Operations

   Revenue for the third quarter ended March 31, 2002 decreased $756,000 or
17.5% and for the nine months ended March 31, 2002 increased $2,008,000 or 16.3%
compared to the same periods in the prior year. The weaker third quarter sales
reflect the significant reduction in demand for large commercial aircraft
engines and industrial gas turbines supported by the company. Revenue for the
third quarter decreased $1,847,000 or 34.1% compared to the second quarter.
Third quarter sales for components related to commercial aircraft engines,
industrial gas turbines and military engines decreased 30%, 64% and 9%,
respectively, compared to the second quarter.

   Income from operations, less selling, general & administrative expenses
(SG&A) for the third quarter and nine months ended March 31, 2002, compared to
the same periods in the prior year decreased $1,668,000 and $214,000,
respectively. Income from operations, less SG&A, for the third quarter and
nine months ended March 31, 2001 included a net gain related to an environmental
insurance recovery of $1,090,000 and $360,000, respectively. Without this
recovery adjustment, the income from operations, less SG&A, for the third
quarter decreased $578,000 and for the nine months ended March 31, 2002, and
increased $146,000 compared to the same period in the prior year.

   Cash and cash equivalents increased over $1,970,000 compared to the same
period in the prior year. While other income for the nine months declined
$61,000 or 30% due to reduced money market interest rates.

   Selling, general and administrative expenses increased $163,000 or 38% for
the nine months ended March 31,2002 and $49,000 or 36% for the third quarter.

   Current backlog is approximately $18.4 million or an increase of $1.4 million
from the end of the second quarter. Compared to the same period in the prior
year the backlog increased $1.9 million, or 12%.

   Stockholders equity on basic shares is $5.89 per share as of March 31, 2002
compared to $4.83 per share in the prior year or a 22% increase in value.

                                        8

<PAGE>

PART II   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 Matter to a Vote of Security Holders
          None

Item 5    Other Information
          None

Item 6    Exhibits and Reports on Form 8K
(a)Part I Exhibits

               11. Statement re: computation of per share earnings

          (a) Reports on 8K

               No reports on form 8K were filed during the last period covered
by this report.

                                       9

<PAGE>

                                    SIGNATURE
                                    ---------

Pursuant to the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.


                       KREISLER MANUFACTURING CORPORATION
                                  (Registrant)


                             By /s/ Edward L. Stern
                             ----------------------------
                                   Edward L. Stern
                                 President, Treasurer

May 14, 2002

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