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, 2001
                  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),  1,027,334  shares
outstanding as of January 31, 2001.





                         1 of 12 Pages
<PAGE>
                     PART I


                     FINANCIAL INFORMATION









































                               - 2 -
        <PAGE>
<TABLE>
                     KIT MANUFACTURING COMPANY
                     STATEMENTS OF OPERATIONS
          (Dollars in Thousands Except Per Share Amounts)
                            (Unaudited)
    <CAPTION>


                                                          January 31,
                                                         2001     2000

<S>                                                    <C>         <C>
Sales                                                   $6,225    $10,482
Sales to retail sales partnership                          528        484

Costs and expenses:
   Cost of sales                                         6,662      9,255
   Cost of sales to retail sales
      partnership                                          397        363
   Selling, general and
      administrative expenses                            1,098      1,010
   Equity in loss of retail
      sales partnership                                     52        103
Operating (loss) income                                 (1,456)       235

Other income (expense)
  Interest income                                           71         55
  Interest expense                                         (69)       (17)
(Loss) income before income taxes                       (1,454)       273
(Benefit) provision for income
taxes
    (Note A)                                              (588)        96
Net (loss) income                                      $  (866)   $   177

Net (loss) income per share-
 basic and diluted                                      ($0.84)   $  0.16
    (Note B)
Weighted-average shares                              1,027,334  1,098,124
outstanding-
 basic and diluted
(Note B)
Dividends per share                                    $   -      $   -



STATEMENT OF SHAREHOLDERS'EQUITY
                      (Dollars in thousands)
                            (Unaudited)

                      Common Stock     Additional    Retained
                    Shares   Amount Paid-In Capital  Earnings    Total

Balance, 10/31/00 1,027,334   $694        $775        $10,403   $11,872
Net loss                                                 (866)     (866)
                    _______   ____       _____        _______    ______
Balance, 01/31/01 1,027,334   $694        $775        $ 9,537   $11,006
                   ========   =====      =====         ======    ======
<FN>
   <F1>The accompanying notes are an integral part of these financial
statements. </FN>
                                -3-
</TABLE>
<PAGE>
<TABLE>
                     KIT MANUFACTURING COMPANY
                          BALANCE SHEETS
                      (Dollars in Thousands)
                            (Unaudited)
<CAPTION>
                                         January 31,   October 31,
                                                 2001         2000

<S>                                         <C>           <C>
ASSETS
   Cash and cash investments                 $  7,145     $  4,489
   Accounts receivable, net                     2,634        2,446
   Accounts receivable from retail sales
     partnership                                  466          341
   Inventories:
     Raw materials                              1,902        1,664
     Work in process                              615          597
     Finished goods                               715          537
       Total inventories                        3,232        2,798
   Prepaids and other assets                      832          324
   Deferred income taxes                        1,025        1,025
       Total current assets                    15,334       11,423
   Property, plant and equipment, net           5,502        5,637
   Other assets                                   286          286
      Total assets                           $ 21,122     $ 17,346

LIABILITIES AND SHAREHOLDERS' EQUITY
   Line of credit                            $  3,979          -
   Accounts payable                             1,840     $    818
   Accrued payroll and related items              760          903
   Accrued marketing programs                     434          471
   Accrued expenses                             1,533        1,699
      Total current liabilities                 8,546        3,891
   Deferred income taxes                        1,487        1,487
   Losses in excess of investments in and
     advances to retail sales partnership          83           96
      Total liabilities                        10,116        5,474

   Commitments and contingencies

   Shareholders'equity
Common stock issued and outstanding               694          694
1,027,334 (January 31, 2001) and 1,110,934
(October 31, 2000) shares.
   Additional paid-in capital                     775          775
   Retained earnings                            9,537       10,403
          Total shareholders' equity           11,006       11,872
   Total liabilities and shareholders'       $ 21,122     $ 17,346
equity


<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,
                                                     2001      2000
<S>                                             <C>        <C>
Cash flow from operating activities:
   Cash received from customers                  $   6,531  $ 12,669
   Interest received                                    71        55
   Cash paid to suppliers and employees             (7,787)  (15,499)
   Interest paid                                       (69)      (17)
   Income taxes paid                                    (1)        -
Net cash used in operating activities               (1,255)    (2,792)

Cash flow from investing activities:
   Purchase of property, plant and equipment            (3)      (236)
   Advances to retail sales partnership                (65)        -
Net cash used in investing activities                  (68)      (236)

Cash flow from financing activities:
   Proceeds from line-of-credit borrowings            4,822      4,087
   Principal payments on line-of-credit                (843)    (1,988)
borrowings
   Purchase of treasury stock                           -         (126)
Net cash provided by financing activities             3,979      1,973

Net increase (decrease) in cash                       2,656     (1,055)
Cash at beginning of period                           4,489      4,731
Cash at end of period                             $   7,145   $  3,676

Reconciliation of net (loss) income to net cash
used in operating activities:
Net (loss) income                                 $    (866)  $    177
Adjustments to reconcile net (loss) income to
net cash used in operating activities:
Depreciation                                            138         59
Equity in loss of retail sales partnership               52        103
Changes in operating assets and liabilities:
Accounts receivable                                    (313)     1,702
Inventories                                            (434)    (2,154)
Prepaids and other assets                                81       (629)
Accounts payable and accruals                           676     (2,146)
Accrued income taxes                                   (589)        96
Net cash used in operating activities            $   (1,255)  $ (2,792)

<FN>
   <F1>The accompanying notes are an integral part of these financial
statements.
</FN>
</TABLE>                           - 5 -
<PAGE>



                     KIT MANUFACTURING COMPANY
                   NOTES TO 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.
Certain amounts in prior period financial statements have been
reclassified to conform to current period presentation.

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 conducted 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 Company's investment in and advances to the retail
sales partnership, net of the Company's pro rata share of
cumulative equity in losses, is reflected as a noncurrent
liability totaling $83,000 and $96,000 at January 31, 2001 and
October 31, 2000, respectively. The retail sales partnership has
reflected all advances from the Company as a component of current
liabilities equal to $690,000 and $80,000 at January 31, 2001 and
October 31, 2000, respectively. The condensed unaudited financial
information of the partnership is as follows:



                               - 6 -
<PAGE>


<TABLE>
                     KIT MANUFACTURING COMPANY
                   NOTES TO FINANCIAL STATEMENTS
                                 (Unaudited)

<CAPTION>                                            January 31,
  (Dollars in Thousands)                           2001      2000

Condensed Statement
  of Income Information:
<S>                                            <C>         <C>
     Sales                                      $1,156      $1,075
     Cost of sales                                 952         959
     Selling, general and administrative expenses  188         229
     Interest expense                               68          50
     Net loss                                   $  (52)      $(163)

                                          January 31,  October 31,
                                                  2001        2000

Condensed Balance Sheet Information:
      Current assets                            $2,773      $2,601
      Noncurrent assets                            373         390
                                                $3,146      $2,991

      Current liabilities                       $3,891      $3,662
      Noncurrent liabilities                        28          50
      Members' deficit                            (773)       (721)
                                                $3,146      $2,991

</TABLE>


Note H The Company evaluates the performance of its operating
segments
based on operating income or losses. Each segment records direct
expenses related and allocable to its employees. The Company does
not allocate income taxes, interest income or interest expense to
operating segments. Identifiable assets are primarily those
directly used in the operations of each segment. No individual
customer accounted for greater than 10% of net sales for any
period presented. Except for the retail sales partnership, no
individual customer accounted for greater than 10% of net accounts
receivable for period-end presented.
<TABLE>
                                              Three Months Ended
(Dollars in Thousands)                             January 31,
<CAPTION>                                       2001       2000
Sales
  <S>                                          <C>       <C>
   Manufactured homes                          $ 3,026   $ 6,071
   Recreational vehicles                         3,727     4,895
   Total sales                                 $ 6,753   $10,966

Income/(loss) before income taxes
   Operating (loss) income
   Manufactured homes                           $ (644)    $ 332
   Recreational vehicles                          (812)      (97)
 Total operating (loss) income                  (1,456)      235
   Interest income                                  71        55
   Interest expense                                (69)      (17)
(Loss) income before income taxes              $(1,454)    $ 273

</TABLE>

                               - 7 -
<PAGE>

                     KIT MANUFACTURING COMPANY
                   NOTES TO FINANCIAL STATEMENTS
                            (Unaudited)



Note I On December 15, 1998, the Company was named as a defendant
in a lawsuit filed by one of its former dealers. A jury awarded
the plaintiff $370,000 in damages, however, the verdict is
currently under appeal with
the Idaho State Supreme Court. The outcome of the appeal is not
known
at this time but the Company intends to defend it position
vigorously.

The Company, in its normal course of business is party to other
pending
lawsuits or may be subject to other threatened lawsuits. While the
outcome of pending or threatened lawsuits cannot be predicted with
certainty, and an unfavorable outcome could have a negative impact
on the Company, at this time, in the opinion of management, the
ultimate resolution of these matters will not have a material
effect on the Company's financial position, results of operation
or liquidity.

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







                               - 8 -



<PAGE>

                     KIT MANUFACTURING COMPANY
    Management's Discussion and Analysis of Financial Condition
                     and Results of Operations

FINANCIAL CONDITION  JANUARY 31, 2001 COMPARED TO OCTOBER 31, 2000


Under first quarter market conditions, the Company borrowed on its
line  of  credit to maintain its inventory levels to  provide  for
anticipated  first quarter sales and to pay down  certain  current
liabilities.  The  Company's  working capital  decreased  $744,000
primarily  due to the increase in the line of credit and  accounts
payable for expenses incurred during the quarter ended January 31,
2001.  The  current ratio decreased to 1.8:1 at January  31,  2001
compared  to 2.9:1 at October 31, 2000. The current ratio  is  the
result of dividing current assets by current liabilities. It is  a
financial measure that indicates the ability of a company  to  pay
its current obligations with its current assets.

The Company's liquidity position as reflected in the current ratio
described above, capital resources, working capital, and  $368,000
unused line of credit, is considered to be adequate to provide for
near term cash needs.

 RESULTS OF OPERATIONS  QUARTER ENDED JANUARY 31, 2001 COMPARED TO
                  QUARTER ENDED JANUARY 31, 2000

The  nature  of  the Company's business is seasonal. Historically,
sales in the second and third quarters have been higher than sales
achieved  in the other fiscal quarters of the year. Thus, expenses
and,  to  a  greater  extent, operating income  vary  by  quarter.
Caution,  therefore,  is  advised when appraising  results  for  a
period  shorter  than  a full year, or when comparing  any  period
other than to the same period of the previous year.

Total   sales  for  the  quarter  ended  January  31,  2001   were
$6,753,000, a 38% decrease from sales of $10,966,000 for the  same
quarter  of  the  prior  year. The decrease  consisted  of  a  50%
decrease  in  manufactured  home  sales  and  a  24%  decrease  in
recreational  vehicle  (RV)  sales.  Sales  decreases  in  the  RV
division  have  been significantly impacted from  rising  interest
rates and higher fuel costs. Sales of manufactured homes have been
impacted  unfavorably by lender's tightened  credit  standards  as
well as industry-wide excess finished goods inventory levels.

Cost of sales for the quarter ended January 31, 2001 was
$7,059,000, a 27% decrease from cost of sales of $9,618,000 for
the same quarter of the prior year.  This decrease is due
principally to the reduction of sales attributed to the
manufactured homes division and to a lesser degree, the
recreational vehicle division.  Cost of sales as a percent
of sales increased 17% when compared to the same quarter of the
prior year, which resulted in the Company reporting a negative
gross profit margin for the quarter ended January 31, 2001.
Although product margins for both divisions are marginally lower
to those of the same period in 2001, the disproportional reduction
in gross profit compared to sales is due principally to the under
absorption of fixed overhead costs brought about by lower
production and sales volumes.

                                -9-
<PAGE>


                     KIT MANUFACTURING COMPANY
    Management's Discussion and Analysis of Financial Condition
                     and Results of Operations

Selling, general and administrative expenses for the quarter ended
January 31, 2001 increased to 16% of sales in comparison to 9% of
sales for the same quarter of the prior year. The selling, general
and administrative dollars increased 9%, or $88,000, from
$1,010,000 for the quarter ended January 31, 2000 to $1,098,000
for the quarter ended January 31, 2001 primarily due increased
legal expenses for the current quarter.

Interest  income for the current quarter was $71,000  compared  to
$55,000  in  the same quarter of the prior year. The increase  was
due primarily to an increase in average balances of invested funds
(from  the  proceeds  of the sales of the Chino,  California,  and
McPherson,  Kansas  properties in second  and  third  quarters  of
fiscal  2000),  compared to the same quarter of  the  prior  year.
Interest  expense for the current quarter was $69,000 compared  to
$17,000  in  the same quarter of the prior year. This  change  was
primarily   the  result  of  an  increase  in  average  short-term
borrowings.

The  net  loss  for the three months ended January  31,  2001  was
$866,000,  or $0.84 per share, compared to net income of $177,000,
or $0.16 per share, for the same quarter of the prior year.

                                10




<PAGE>
                              PART II

                         OTHER INFORMATION




                            Item 6 (b).

  Form 8-K was not required to be filed during the quarter ended
                         January 31, 2001.





























                                11
<PAGE>








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 3/12/01             /s/ Dan Pocapalia
                         Dan Pocapalia
                         Chairman of the Board,
                         Chief Executive Officer
                         (Principal Executive Officer)



DATE 3/12/01             /s/ Bruce K. Skinner
                         Bruce K. Skinner
                         Vice President and Treasurer
                         (Principal Financial and Accounting
                         Officer)














                                12
</PAGE>