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

                                  FORM 10-QSB
(Mark One)

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

For the quarterly period ended                September 30, 2001
                                             -------------------

[_]  Transition Report under Section 13 or 15 (d) of the Exchange Act

For the transition period from _______________________ to ______________________

Commission File Number:                      0-4036
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                       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 September 30,2001 was 1,966,047 shares.

Transitional small business disclosure format (check one):   Yes [_]  No[X]
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              Kreisler Manufacturing Corporation and Subsidiaries
                               Table of Contents



PART I  Financial Information

Item 1  Financial Statements
          Consolidated Balance Sheets
          Consolidated Statements of Operations
          Consolidated Statements of Cash Flows
          Notes To Financial Statements

Item 2  Management Discussion and Analysis of Financial Condition
        and Results of Operations


PART II Other Information

Item 1  Legal Proceedings

Item 2  Changes in Securities

Item 3  Defaults Upon Senior Securities

Item 4  Submission of Matters to Vote of Security Holders

Item 5  Other Information

Item 6  Exhibits and Reports of Form 8-K

                                       2
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PART I  FINANCIAL INFORMATION
Item 1  Financial Statements

              Kreisler Manufacturing Corporation and Subsidiaries
                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                     (Unaudited)
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                                                                  First Quarter Ended            Year Ended
                                                                        9/30/01                    6/30/01
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<S>                                                              <C>                         <C>
Assets
Cash and cash equivalents                                             $ 6,317,422               $ 5,053,878
Accounts receivable - trade                                             3,114,790                 4,321,944
Inventories:
   Raw Materials                                                        1,769,063                 1,649,954
   Work in Process                                                        957,034                   892,713
   Finished Goods                                                         174,007                   184,248
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                                                                        2,900,104                 2,726,915

Deferred tax asset                                                        355,000                   355,000
Insurance recoveries anticipated                                                -                         -
Other current assets                                                      193,035                    42,130
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Total current assets                                                   12,880,351                12,499,867
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Property, plant & equip., at cost, less accumulated                     1,243,499                 1,178,194
 depreciation of $3,262,643 for 9/30/01 and $3,167,743 for
 6/30/01.
Other assets:
   Insurance recoveries anticipated                                             -                         -
   Deferred tax asset                                                     471,200                   471,200
-----------------------------------------------------------------------------------------------------------
Total other assets                                                        471,200                   471,200
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                                                                      $14,595,050               $14,149,261
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Liabilities and Stockholders' Equity
Accounts payable - trade                                              $   578,852               $   661,460
Accrued expenses                                                          919,528                 1,150,466
Accrued environmental costs                                               871,000                   858,000
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Total current liabilities                                               2,369,380                 2,669,926
Long term liabilities:
   Accrued environmental costs                                            974,000                   959,000
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Total Liabilities                                                       3,343,380                 3,628,926
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Stockholders' Equity

Common Stock, $.125 par value - 3,000,000 shares authorized
 1,966,047 shares issued and outstanding                                  245,757                   245,757
Additional paid-in capital                                              1,621,366                 1,621,366

Retained earnings                                                       9,384,547                 8,653,212
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Total Stockholders' Equity                                             11,251,670                10,520,335
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                                                                      $14,595,050               $14,149,261
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</TABLE>

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

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

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Three Months Ended September 30                       2001          2000
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Revenues                                           $5,395,320    $3,769,713
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Cost of goods sold                                  4,087,601     3,186,941
Selling, general and administrative expenses          177,109       113,027
Provision for environmental remediation
    net of insurance recoveries anticipated                 -       730,000
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                                                    4,264,710     4,029,968
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Earnings (loss) from operations                     1,130,610      (260,255)

Other income:
Interest and other earnings                            39,073        55,539
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Earnings (loss) before income taxes                 1,169,683      (204,716)

Provision (benefit) for income tax                    438,350       (82,550)
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Net earnings (loss)                                $  731,333    $ (122,166)
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Earnings per share:
Net earnings (loss) basic shares                   $      .37    $     (.06)
Net earnings (loss) diluted shares                 $      .35    $     (.06)
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The accompanying notes are an integral part of these consolidated financial
statements

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

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Three Months Ended September 30                        2001            2000
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Cash flows from operating activities:
Net earnings (loss)                                $  731,333     $  (122,166)
Adjustments to reconcile net earnings (loss) to
  cash provided by operating activities:
Depreciation and amortization                          94,900          30,927
(Increase) decrease in operating assets:
Accounts receivable - trade                         1,207,153         120,524
Expected insurance recoveries                               0      (1,410,000)
Deferred tax asset                                          0        (235,600)
Inventories                                          (173,189)        234,991
Other current assets                                 (150,906)         (4,785)
Increase (decrease) in operating liabilities:
Accounts payable - trade                              (82,607)        (78,629)
Accrued expenses                                     (230,937)       (513,263)
Accrued environmental costs                            28,000       2,140,000
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Net adjustments                                       692,415         284,165
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Cash provided by operating activities               1,423,748         161,999

Cash flows from investing activities:
Purchase of property and equipment                   (160,205)        (68,134)
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Cash (used) by investing activities                  (160,205)        (68,134)

Increase in cash and cash equivalents               1,263,543          93,865
Cash and cash equivalents at beginning of year      5,053,879       4,045,523
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Cash and cash equivalents at September 30          $6,317,422     $ 4,139,388
-----------------------------------------------------------------------------

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

                                       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. 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 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 effect
increasing or decreasing profits.  A physical inventory was completed for the
period ended June 30, 2001

3.  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, (present value using a discount rate of 6.16%) to
be incurred over the next six years. It is reasonably possible that the
Company's recorded estimate of remediation cost may change in the near term.

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.

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Item 2.  Management's Discussion and Analysis

              Kreisler Manufacturing Corporation and Subsidiaries
                     MANAGEMENT'S DISCUSSION AND ANALYSIS
                     THREE MONTHS ENDED SEPTEMBER 30, 2001

Description of Business

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

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 engines with both military and commercial applications.  The primary
function of the Company's tubular products is to transport fluids, including
air, oil and gas to various parts of the aircraft or aircraft 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.

For this quarter sales activity was approximately 58% commercial aircraft
engines, 22% industrial gas turbine engines and 20% 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 customer.  Orders for
these are received through competitive proposals, which are made in response to

                                       3
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requests for bids from contractors who are frequently supplying engines to
various branches of the United States Government or to commercial businesses.


Results of Operations

Record first quarter revenues increased from $3,770,000 to $5,395,000. The
revenue increase of $1,625,000, or 43% reflects a $1.3 million increase in sales
to the industrial gas turbine market.

Selling, general and administrative expenses increased $64,000 or 57% primarily
due to increased salaries, professional fees and bonus accruals.

Income from operations was $1,131,000 an increase of $1,390,000, compared to the
same period in the prior year, as a result of increased sales and higher profit
margins.

Interest and other earnings decreased $16,000 or 30%.  Total other income in the
first quarter of fiscal year 2002 was $39,000 compared to $56,000 for the same
period in the prior year.  Higher cash balances and lower interest rates
resulted in the decrease.

Income before taxes for the first quarter of 2002 was $1,170,000 or 22% of
revenue versus a negative $204,000 or (5%) of revenue in 2001.

Current backlog at approximately $21.0 million increased $5.2 million or 33%
over June 30, 2001.

                                       8
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PART II  OTHER INFORMATION

Item 1  Legal Proceedings
        None

Item 2  Changes in Securities
        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


        (b)  Reports on 8K

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

                                       9
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                                     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


 November 2, 2001

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