FORM 10-Q
                              
             SECURITIES AND EXCHANGE COMMISSION
                              
                   Washington, D.C.  20549
                              
         Quarterly Report Under Section 13 or 15(d)
           of the Securities Exchange Act of 1934
                              
                              
             For Quarter Ended January 31, 1999
               Commission file number 2-31520
                              
                              
                  KIT MANUFACTURING COMPANY
   (Exact name of registrant as specified in its charter)
                              
                              
                              
                              
        California                           95-1525261
(State or other jurisdiction of           (I.R.S.Employer
incorporation or organization)            Identification No.)
                              

530 East Wardlow Road, P.O. Box 848, Long Beach,California 90801
    (Address of principal executive offices)            (Zip Code)
                              
Registrant's telephone number, including area code (562)595-7451
                              
                              
Indicate by check mark whether the registrant (1) has  filed
all  reports required to be filed by Section 13 or 15(d)  of
the Securities Exchange Act of 1934 during the preceding  12
months  (or for such shorter period that the registrant  was
required to file such reports), and (2) has been subject  to
such filing requirements for the past 90 days.  Yes    X   .
No       .

             APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate  the number of shares outstanding of  each  of  the
issuer's  classes of common stock, as of the  close  of  the
period covered by this report.  Common Stock (no par value),
1,110,934 shares outstanding as of January 31, 1999.




                 Index to Exhibits - Page 11

                         1 of 11 Pages
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                            PART I


                     FINANCIAL INFORMATION












































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<TABLE>
                    KIT MANUFACTURING COMPANY
                    STATEMENTS OF OPERATIONS
         (Dollars in Thousands Except Per Share Amounts)
                           (Unaudited)
<CAPTION>
                                                    Three Months Ended
                                                        January 31,
                                                    1999        1998
<S>                                                <C>         <C>
Sales                                              $12,644     $13,819
                                               
Costs and expenses:
Cost of sales                                       11,294      12,918
Selling, general and administrative expenses         1,174       1,183
                                                    12,468      14,101
                         
Operating income (loss)                                176        (282)
Interest income, net                                    12          17

Income (loss) before income taxes                      188        (265)
Provision(benefit) for income taxes                     61        (108)
      (Note A)
                                                    
Net income (loss)                                      $127      ($157)
                                                    
Net income (loss) per share - basic and diluted       $0.11     ($0.14)
(Note B)

Shares outstanding - basic and diluted            1,110,934   1,110,934
(Note B)
                                                    
Dividends per share                                 $   -        $  -



<FN>
<F1>The accompanying notes are an integral part of these financial statements
</FN>
                               -3-
</TABLE>
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<TABLE>
                            KIT MANUFACTURING COMPANY
                                 BALANCE SHEETS
                             (Dollars in thousands)
<CAPTION>
                                                  January 31,  October 31,
                                                      1999       1998
<S>                                               <C>          <C>
ASSETS                                               (Unaudited)
     Cash and cash investments                    $4,272        $3,230
     Accounts receivable, net                      3,346         4,041
     Inventories:
         Raw materials                             1,988         1,758
         Work in process                             772           685
         Finished goods                            2,689         2,378
           Total inventories                       5,449         4,821
     Prepaids and income tax refunds receivable    1,518         1,372
           Total current assets                   14,585        13,464
     Property, plant and equipment, net            7,113         6,735
     Other assets                                    121           152
           Total assets                          $21,819       $20,351
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY
     Note payable to bank                          $2,783
     Accounts payable                               1,672       $2,688
     Accrued payroll and related items              1,190        1,587
     Accrued marketing programs                       900          718
     Accrued expenses                               1,399        1,610
           Total current liabilities                7,944        6,603
     Deferred income taxes                          1,480        1,480
           Total liabilities                        9,424        8,083
                                                            
     Commitments and contingencies
     Shareholders' equity
     Common stock and additional paid-in capital,
         issued and outstanding 1,110,934 shares    1,592         1,592
     Retained earnings:
        Balance at beginning of period             10,676        11,033
        Net income (loss) for period                  127          (357)
        Balance at end of period                   10,803        10,676
             Total shareholders' equity            12,395        12,268
     Total liabilities and shareholders' equity   $21,819       $20,351
                                                            
<FN>
  <F1>The accompanying notes are an integral part of these financial statements
</FN>
                                       -4-
</TABLE>
<PAGE>
                                        
                                        
                                        
<TABLE>
                            KIT MANUFACTURING COMPANY
                            STATEMENTS OF CASH FLOWS
                             (Dollars in thousands)
                                   (Unaudited)
<CAPTION>
          
          For the three months ended January 31,
                                                          1999      1998
<S>                                                      <C>       <C>
Cash flows from operating activities:
        Cash received from customers                     $13,339   $13,874
        Interest received                                     48        27
        Cash received from operations                     13,387    13,901
                                                            
        Cash paid to suppliers and employees              14,381    16,196
        Interest paid                                         36        10
        Cash disbursed for operations                     14,417    16,206
                                                            
Net cash used in operating activities                     (1,030)   (2,305)
                                                            
Cash flows from investing activities:
       Purchase of property, plant and equipment            (352)     (685)
       Changes in other current and non-current assets      (359)      299
Net cash used in investing activities                       (711)     (386)
                                                            
Cash flows from financing activities:
        Proceeds from line-of-credit borrowings            6,430     1,655
        Principal payments on line-of-credit borrowings   (3,647)        0
Net cash provided by financing activities                  2,783     1,655
                                                            
Net increase (decrease) in cash                            1,042    (1,036)
Cash at beginning of year                                  3,230     3,673
Cash at end of period                                     $4,272    $2,637
                                                            
Reconciliation of net income (loss) to net cash used in operating
activities:
Net income (loss)                                           $127     ($157)
                                                            
Adjustments to reconcile net income (loss) to 
net cash used in operating activities:
Depreciation                                                 158       162
Decrease in accounts receivable                              695        55
Increase in inventories                                     (628)   (2,599)
(Decrease) increase in accounts payable 
and accrued liabilities                                   (1,442)      344
Increase (decrease) in  income taxes payable                  60      (110)
Net cash used in operating activities                    ($1,030)  ($2,305)

<FN>
<F1>The accompanying notes are an integral part of these financial statements
</FN>
                                       -5-
</TABLE>
<PAGE>
                                        
                    KIT MANUFACTURING COMPANY
             NOTES TO CONDENSED FINANCIAL STATEMENTS
                           (Unaudited)
                                
Note A -  The provision or benefit for income taxes is calculated
using the Company's estimated annual effective tax rate.

Note  B  -   Per  share amounts are based on the weighted-average
number  of  common  shares outstanding.  Options  have  not  been
included  in the computations because their effect would  not  be
dilutive.

Note  C -  In the opinion of management, all material adjustments
which  are  necessary for a fair statement of financial position,
results of operations and cash flows have been included in  these
financial statements.

Note  D  -   The  results  of  the  period  are  not  necessarily
indicative of annual results due to seasonality of the business.

Note E -  Financial information contained herein is unaudited.

Note F -  The Company is contingently liable to various financial
institutions   on   repurchase  agreements  in  connection   with
wholesale   inventory  financing.   In  general,   inventory   is
repurchased  by  the  Company upon default by  a  dealer  with  a
financing institution and then resold through normal distribution
channels.   In  addition, the Company is contingently  liable  to
financial   institutions  for  letters  of  credit   which   were
established  to  satisfy the self-insured  workers'  compensation
regulations   of  the  states  in  which  the  Company   conducts
manufacturing operations.

Management  does  not  expect  that  losses,  if  any,  from  the
contingencies  described above will be of material importance  to
the financial condition or earnings of the Company.

Note  G  -   The Financial Accounting Standards Board (FASB)  has
issued Statement of Financial Accounting Standards (FAS) No. 131,
"Disclosures  about  Segments  of  an  Enterprise   and   Related
Information".  Management does not anticipate that  the  adoption
of  these standards will have a significant effect on earnings or
the financial position of the Company.








                                









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                    KIT MANUFACTURING COMPANY
   Management's Discussion and Analysis of Financial Condition
                    and Results of Operations
                                
 FINANCIAL CONDITION - JANUARY 31, 1999 COMPARED TO OCTOBER 31,
                              1998
                                
Under  first  quarter market conditions, the Company borrowed  on
its  line  of credit to maintain its inventory levels to  provide
for  anticipated  second quarter sales.   The  Company's  working
capital  decreased $220,000 due to the line of credit  borrowings
for  the  inventory  build-up. The current  ratio  was  1.8:1  at
January 31, 1999 compared to 2.0:1 at October 31, 1998.

The  Company's  liquidity position as reflected  in  the  current
ratio  described above, capital resources, including excess plant
capacity,  working  capital,  and  unused  line  of  credit,  are
considered to be adequate to provide for near term cash needs.
                                
 RESULTS OF OPERATIONS - QUARTER ENDED JANUARY 31, 1999 COMPARED
               TO QUARTER ENDED JANUARY 31,  1998
                                
Total  sales  for  the  quarter  ended  January  31,  1999   were
$12,644,000, a 9% decrease from sales of $13,819,000 for the same
quarter  of  the  prior year. The decrease consisted  of  an  18%
increase  in  manufactured housing sales and a  31%  decrease  in
recreational  vehicle  (RV)  sales.  Manufactured  housing  sales
increased  due  to increased marketing efforts, more  competitive
product  pricing,  and continued offerings of  a  wide  range  of
products.  RV sales decreased due to the closure of the Kansas RV
plant in April 1998.

Cost  of  sales decreased 13% from the same quarter of the  prior
year  and  decreased  4%  as a percent of  sales.  The  resulting
increase in gross profit margins compared to the first quarter of
fiscal 1998 is chiefly attributed to the material and labor  cost
containments  associated  with  the  controls  over  recreational
vehicle and manufactured housing production.

Selling, general and administrative expenses decreased less  than
1% and remained at approximately 9% of sales in comparison to the
same  quarter  of the prior year. This was due primarily  to  the
continued controls over marketing and overhead costs.

Net  interest income for the current quarter was $12,000 compared
to  net  interest income of $17,000 in the same  quarter  of  the
prior  year. This was a result of an increase in the average  net
short-term borrowings.

The  net  income for the three months ended January 31, 1999  was
$127,000,  or $0.11 per share, compared to net loss of  $157,000,
or $0.14 per share, for the same quarter of the prior year.

The  Company  has instituted a program to determine  whether  its
computer  information systems are able to interpret dates  beyond
the  year  1999  (the  "Year 2000 Compliance  Program")  and  has
implemented programming modifications to its main operational and
financial  reporting systems that will address these issues.  All
modified  programming  is  currently  operational.  The   Company
believes  that its present computer information systems  software
and hardware is Year 2000 compliant and

-7-

<PAGE>

intends  to obtain certification of such for any future purchases
of computer software and hardware.

The  Company is also in the process of evaluating non-information
technology systems, which would include telephone equipment, time-
keeping equipment and surveillance equipment. The Company expects
this evaluation to be completed by early 1999.

The  Company is in the process of contacting its major suppliers,
service vendors and customers regarding Year 2000 compliance  and
anticipates  that this phase of the Year 2000 Compliance  Program
will be completed early in fiscal 1999.

The  total  cost  of  the  Year 2000 Compliance  Program  is  not
expected  to  be material to the Company's financial position  or
results  of operations. To date, the Company has spent less  than
$25,000  on Year 2000 compliance. The Company believes  that  the
cost of ensuring Year 2000 compliance for its own operational and
financial systems will be less than $50,000.

Although management believes the Company has an adequate plan  to
be  Year  2000  compliant, there can be no  assurance  that  this
program will ultimately be successful. The Company believes  that
it  has  sufficient  resources  to  implement  new  and  modified
computer systems and programming to address the Year 2000  issue,
and,  accordingly, has not to date identified the  need  for  any
contingency  planning. However, the Company's ongoing  assessment
of  its  financial  and  operations systems  and  non-information
technology  systems may reveal the need for contingency  planning
in the future.

To  date,  based  on  the progress of the "Year  2000  Compliance
Program",  management believes the Company's computer information
systems  will  be capable of interpreting dates beyond  the  year
1999 before fiscal year end. Also, management does not anticipate
any  Year  2000  problems  within its non-information  technology
systems  nor  from its suppliers, service vendors  and  customers
based on the data gathered during the compliance program testwork
completed.

                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
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                             PART II
                        OTHER INFORMATION
                                
                                
                           Item 6 (a).
                                
                See Index to Exhibits on page 10.
                                
                                
                           Item 6 (b).
                                
 Form 8-K was not required to be filed during the quarter ended
                        January 31, 1999.
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
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Pursuant to the requirements of the Securities Exchange Act of

1934, the registrant has duly caused this report to be signed on

its behalf by the undersigned thereunto duly authorized.



                                  KIT MANUFACTURING COMPANY
(Registrant)



DATE 1/31/99             /s/ Dan Pocapalia
                         Dan Pocapalia
                         Chairman of the Board,
                         Chief Executive Officer and President
                         (Principal Executive Officer)



DATE 1/31/99             /s/ Bruce K. Skinner
                         Bruce K. Skinner
                         Vice President and Treasurer
                         (Principal Financial and Accounting
                         Officer)

























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                    KIT MANUFACTURING COMPANY
                        INDEX TO EXHIBITS
                                
                                
Item:
     
     (27) Financial Data Schedule










































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