----

----

| Delaware                                                                      |   | 75-1277589                                          |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

|   | Yes                x |   | No** **o |   |
|--------|----------------------|--------|---------------|--------|

| Large                accelerated filer o | Accelerated                filer o | Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------|

|   | Yes                o |   | No** **x |   |
|--------|----------------------|--------|---------------|--------|

| Class                                     |   | Outstanding                at April 30, 2007 |
|-------------------------------------------|--------|----------------------------------------------|
| Common                Stock, $1 Par Value |   | 7,951,177                Shares              |

----

KATY      INDUSTRIES, INC.

|                     |                                   |                                                                                               | Page   |
|--------------------------|----------------------------------------|----------------------------------------------------------------------------------------------------|--------|
| PART                  I  | FINANCIAL                  INFORMATION |                                                                                               |   |
|                     |                                   |                                                                                               |   |
|                     | Item                  1.               | Financial                  Statements:                                                             |   |
|                     |                                   |                                                                                               |   |
|                     |                                   | Condensed                  Consolidated Balance Sheets                                             |   |
|                     |                                   | March                  31, 2007 and December 31, 2006                  (unaudited)                 | 2,3    |
|                     |                                   |                                                                                               |   |
|                     |                                   | Condensed                  Consolidated Statements of                  Operations                  |   |
|                     |                                   | Three                  Months Ended March 31, 2007 and 2006                  (unaudited)           | 4      |
|                     |                                   |                                                                                               |   |
|                     |                                   | Condensed                  Consolidated Statements of Cash                  Flows                  |   |
|                     |                                   | Three                  Months Ended March 31, 2007 and 2006                  (unaudited)           | 5      |
|                     |                                   |                                                                                               |   |
|                     |                                   | Notes                  to Condensed Consolidated Financial Statements                  (unaudited) | 6      |
|                     |                                   |                                                                                               |   |
|                     | Item                  2.               | Management's                  Discussion and Analysis of                  Financial                |   |
|                     |                                   | Condition                  and Results of Operations                                               | 23     |
|                     |                                   |                                                                                               |   |
|                     | Item                  3.               | Quantitative                  and Qualitative Disclosures About Market                  Risk       | 34     |
|                     |                                   |                                                                                               |   |
|                     | Item                  4.               | Controls                  and Procedures                                                           | 34     |
|                     |                                   |                                                                                               |   |
|                     |                                   |                                                                                               |   |
| PART                  II | OTHER                  INFORMATION     |                                                                                               |   |
|                     |                                   |                                                                                               |   |
|                     | Item                  1.               | Legal                  Proceedings                                                                 | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  1A.              | Risk                  Factors                                                                      | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  2.               | Unregistered                  Sales of Equity Securities and Use of                  Proceeds      | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  3.               | Defaults                  Upon Senior Securities                                                   | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  4.               | Submission                  of Matters to a Vote of Security                  Holders              | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  5.               | Other                  Information                                                                 | 36     |
|                     |                                   |                                                                                               |   |
|                     | Item                  6.               | Exhibits                                                                                           | 36     |
|                     |                                   |                                                                                               |   |
|                     | Signatures                             |                                                                                               | 37     |

----

Index

PART      I FINANCIAL INFORMATION

|                                                                            |   | March                  31, |    | December                  31, |   |
|----------------------------------------------------------------------------|--------|----------------------------|---------|-------------------------------|--------|
|                                                                       |   | 2007                       |    | 2006                          |   |
| CURRENT                  ASSETS:                                           |   |                       |    |                          |   |   |   |
|                                                                       |   |                       |    |                          |   |   |   |
| Cash                  and cash equivalents                            |   | $                          | 2,919   |                          | $      | 7,392 |   |
| Accounts                  receivable, net                             |   |                       | 47,811  |                          |   | 55,014 |   |
| Inventories,                  net                                     |   |                       | 61,484  |                          |   | 55,960 |   |
| Other                  current assets                                 |   |                       | 3,592   |                          |   | 2,991 |   |
| Asset                  held for sale                                  |   |                       | -       |                          |   | 4,483 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|  Total                  current assets                                |   |                       | 115,806 |                          |   | 125,840 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|                                                                       |   |                       |    |                          |   |   |   |
| OTHER                  ASSETS:                                             |   |                       |    |                          |   |   |   |
|                                                                       |   |                       |    |                          |   |   |   |
| Goodwill                                                              |   |                       | 665     |                          |   | 665 |   |
| Intangibles,                  net                                     |   |                       | 6,358   |                          |   | 6,435 |   |
| Other                                                                 |   |                       | 8,576   |                          |   | 8,990 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|  Total                  other assets                                  |   |                       | 15,599  |                          |   | 16,090 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|                                                                       |   |                       |    |                          |   |   |   |
| PROPERTY                  AND EQUIPMENT:                                   |   |                       |    |                          |   |   |   |
| Land                  and improvements                                |   |                       | 336     |                          |   | 336 |   |
| Buildings                  and improvements                           |   |                       | 9,710   |                          |   | 9,669 |   |
| Machinery                  and equipment                              |   |                       | 120,701 |                          |   | 119,703 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|                                                                       |   |                       | 130,747 |                          |   | 129,708 |   |
| Less                  - Accumulated depreciation                      |   |                       | (89,780 | )                             |   | (87,964 | ) |
|                                                                       |   |                       |    |                          |   |   |   |
|  Property                  and equipment, net                         |   |                       | 40,967  |                          |   | 41,744 |   |
|                                                                       |   |                       |    |                          |   |   |   |
|  Total                  assets                                        |   | $                          | 172,372 |                          | $      | 183,674 |   |
|                                                                       |   |                       |    |                          |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements. |   |                       |    |                          |   |   |   |

----

Index

|                                                                                                                      |   | March                  31, |    | December                  31, |   |
|----------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|-------------------------------|--------|
|                                                                                                                 |   | 2007                       |    | 2006                          |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| CURRENT                  LIABILITIES:                                                                                |   |                       |    |                          |   |   |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| Accounts                  payable                                                                               |   | $                          | 32,836  |                          | $      | 33,684 |   |
| Accrued                  compensation                                                                           |   |                       | 3,814   |                          |   | 3,518 |   |
| Accrued                  expenses                                                                               |   |                       | 33,624  |                          |   | 38,187 |   |
| Current                  maturities of long-term debt                                                           |   |                       | 1,500   |                          |   | 1,125 |   |
| Revolving                  credit agreement                                                                     |   |                       | 41,491  |                          |   | 43,879 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
|  Total                  current liabilities                                                                     |   |                       | 113,265 |                          |   | 120,393 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| LONG-TERM                  DEBT, less current maturities                                                             |   |                       | 11,468  |                          |   | 11,867 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| OTHER                  LIABILITIES                                                                                   |   |                       | 9,889   |                          |   | 8,402 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| Total                  liabilities                                                                                   |   |                       | 134,622 |                          |   | 140,662 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| COMMITMENTS                  AND CONTINGENCIES (Note 9)                                                              |   |                       | -       |                          |   | - |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
| STOCKHOLDERS’                  EQUITY:                                                                         |   |                       |    |                          |   |   |   |
| 15%                  Convertible preferred stock, $100 par value,                  authorized                   |   |                       |    |                          |   |   |   |
|   1,200,000                  shares, issued and outstanding 1,131,551 shares,                                   |   |                       |    |                          |   |   |   |
|   liquidation                  value $113,155                                                                   |   |                       | 108,256 |                          |   | 108,256 |   |
| Common                  stock, $1 par value; authorized 35,000,000 shares;                                      |   |                       |    |                          |   |   |   |
|   issued                  9,822,304 shares                                                                      |   |                       | 9,822   |                          |   | 9,822 |   |
| Additional                  paid-in capital                                                                     |   |                       | 27,145  |                          |   | 27,069 |   |
| Accumulated                  other comprehensive income                                                         |   |                       | 1,862   |                          |   | 2,242 |   |
| Accumulated                  deficit                                                                            |   |                       | (87,375 | )                             |   | (82,403 | ) |
| Treasury                  stock, at cost, 1,871,127 shares and 1,869,827 shares,                  respectively  |   |                       | (21,960 | )                             |   | (21,974 | ) |
|                                                                                                                 |   |                       |    |                          |   |   |   |
|  Total                  stockholders' equity                                                                    |   |                       | 37,750  |                          |   | 43,012 |   |
|                                                                                                                 |   |                       |    |                          |   |   |   |
|  Total                  liabilities and stockholders' equity                                                    |   | $                          | 172,372 |                          | $      | 183,674 |   |
|                                                                                                                 |   |                       |         |                          |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements.                                           |   |                       |    |                          |   |   |   |

----

Index

KATY      INDUSTRIES, INC. AND SUBSIDIARIES

|                                                                                                |   | 2007   |   | 2006   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                                                |   |   |   |   |   |   |   |
| Net                  sales                                                                          |   | $      | 94,803 |   | $      | 75,818 |   |
| Cost                  of goods sold                                                                 |   |   | 86,559 |   |   | 65,407 |   |
| Gross                  profit                                                                  |   |   | 8,244  |   |   | 10,411 |   |
| Selling,                  general and administrative expenses                                       |   |   | 11,440 |   |   | 12,481 |   |
| Severance,                  restructuring and related charges                                       |   |   | 244    |   |   | 782 |   |
| (Gain)                  loss on sale of assets                                                      |   |   | (120   | )      |   | 102 |   |
| Operating                  loss                                                                |   |   | (3,320 | )      |   | (2,954 | ) |
| Interest                  expense                                                                   |   |   | (1,949 | )      |   | (1,740 | ) |
| Other,                  net                                                                         |   |   | 70     |   |   | 341 |   |
|                                                                                                |   |   |   |   |   |   |   |
| Loss                  from continuing operations before provision for income                  taxes |   |   | (5,199 | )      |   | (4,353 | ) |
| Provision                  for income taxes from continuing operations                              |   |   | (459   | )      |   | (262 | ) |
|                                                                                                |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                                    |   |   | (5,658 | )      |   | (4,615 | ) |
| Loss                  from operations of discontinued businesses (net of tax)                       |   |   | -      |   |   | (420 | ) |
| Gain                  on sale of discontinued businesses (net of tax)                               |   |   | 1,666  |   |   | - |   |
|                                                                                                |   |   |   |   |   |   |   |
| Loss                  before cumulative effect of a change in accounting                  principle |   |   | (3,992 | )      |   | (5,035 | ) |
| Cumulative                  effect of a change in accounting principle (net of tax)                 |   |   | -      |   |   | (756 | ) |
|                                                                                                |   |   |   |   |   |   |   |
| Net                  loss                                                                           |   | $      | (3,992 | )      | $      | (5,791 | ) |
|                                                                                                |   |   |   |   |   |   |   |
| Loss                  per share of common stock - Basic and diluted                                 |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                               |   | $      | (0.71  | )      | $      | (0.58 | ) |
| Discontinued                  operations                                                       |   |   | 0.21   |   |   | (0.05 | ) |
| Cumulative                  effect of a change in accounting principle                         |   |   | -      |   |   | (0.10 | ) |
| Net                  loss                                                                      |   | $      | (0.50  | )      | $      | (0.73 | ) |
|                                                                                                |   |   |   |   |   |   |   |
| Weighted                  average common shares outstanding (thousands):                            |   |   |   |   |   |   |   |
|  Basic                  and diluted                                                            |   |   | 7,951  |   |   | 7,971 |   |
|                                                                                                |   |   |   |   |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements.                          |   |   |   |   |   |   |   |

----

Index

KATY      INDUSTRIES, INC. AND SUBSIDIARIES

|                                                                          |   | 2007   |   | 2006   |   |
|-------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|                                                                          |   |   |   |   |   |   |   |
| Cash                  flows from operating activities:                        |   |   |   |   |   |   |   |
| Net                  loss                                                |   | $      | (3,992 | )      | $      | (5,791 | ) |
| (Income)                  loss from discontinued operations              |   |   | (1,666 | )      |   | 420 |   |
|   Loss                  from continuing operations                       |   |   | (5,658 | )      |   | (5,371 | ) |
| Cumulative                  effect of a change in accounting principle   |   |   | -      |   |   | 756 |   |
| Depreciation                  and amortization                           |   |   | 2,072  |   |   | 2,241 |   |
| Write-off                  and amortization of debt issuance costs       |   |   | 619    |   |   | 287 |   |
| Stock                  option expense                                    |   |   | 94     |   |   | 191 |   |
| (Gain)                  loss on sale of assets                           |   |   | (120   | )      |   | 102 |   |
| Deferred                  income taxes                                   |   |   | (94    | )      |   | - |   |
|                                                                          |   |   | (3,087 | )      |   | (1,794 | ) |
| Changes                  in operating assets and liabilities:            |   |   |   |   |   |   |   |
|   Accounts                  receivable                                   |   |   | 7,115  |   |   | 18,302 |   |
|   Inventories                                                            |   |   | (5,498 | )      |   | (6,451 | ) |
|   Other                  assets                                          |   |   | (708   | )      |   | (76 | ) |
|   Accounts                  payable                                      |   |   | 1,301  |   |   | (14,470 | ) |
|   Accrued                  expenses                                      |   |   | (4,078 | )      |   | (1,794 | ) |
|   Other,                  net                                            |   |   | 485    |   |   | (1,048 | ) |
|                                                                          |   |   | (1,383 | )      |   | (5,537 | ) |
|                                                                          |   |   |   |   |   |   |   |
| Net                  cash used in continuing operations                  |   |   | (4,470 | )      |   | (7,331 | ) |
| Net                  cash (used in) provided by discontinued operations  |   |   | (565   | )      |   | 389 |   |
| Net                  cash used in operating activities                   |   |   | (5,035 | )      |   | (6,942 | ) |
|                                                                          |   |   |   |   |   |   |   |
| Cash                  flows from investing activities:                        |   |   |   |   |   |   |   |
| Capital                  expenditures of continuing operations           |   |   | (1,130 | )      |   | (816 | ) |
| Proceeds                  from sale of discontinued operations, net      |   |   | 6,609  |   |   | - |   |
| Proceeds                  from sale of assets, net                       |   |   | 120    |   |   | 163 |   |
| Net                  cash provided by (used in) investing activities     |   |   | 5,599  |   |   | (653 | ) |
|                                                                          |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                        |   |   |   |   |   |   |   |
| Net                  (repayments) borrowings on revolving loans          |   |   | (2,454 | )      |   | 8,578 |   |
| Decrease                  in book overdraft                              |   |   | (2,153 | )      |   | (5,360 | ) |
| Repayments                  of term loans                                |   |   | (24    | )      |   | (714 | ) |
| Direct                  costs associated with debt facilities            |   |   | (125   | )      |   | (165 | ) |
| Repurchases                  of common stock                             |   |   | (3     | )      |   | (4 | ) |
| Proceeds                  from the exercise of stock options             |   |   | -      |   |   | 147 |   |
| Net                  cash (used in) provided by financing activities     |   |   | (4,759 | )      |   | 2,482 |   |
|                                                                          |   |   |   |   |   |   |   |
| Effect                  of exchange rate changes on cash and cash equivalents |   |   | (278   | )      |   | (307 | ) |
| Net                  decrease in cash and cash equivalents                    |   |   | (4,473 | )      |   | (5,420 | ) |
| Cash                  and cash equivalents, beginning of period               |   |   | 7,392  |   |   | 8,421 |   |
| Cash                  and cash equivalents, end of period                     |   | $      | 2,919  |   | $      | 3,001 |   |
|                                                                          |   |   |   |   |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements.    |   |   |   |   |   |   |   |

----

Index

KATY      INDUSTRIES, INC. AND SUBSIDIARIES

|                                     |   | March                  31, |   | December                  31, |   |
|-------------------------------------|--------|----------------------------|--------|-------------------------------|--------|
|                                |   | 2007                       |   | 2006                          |   |
|                                |   |                       |   |                          |   |   |   |
| Raw                  materials      |   | $                          | 16,800 |                          | $      | 15,915 |   |
| Work                  in process    |   |                       | 1,279  |                          |   | 613 |   |
| Finished                  goods     |   |                       | 54,012 |                          |   | 47,230 |   |
| Inventory                  reserves |   |                       | (6,833 | )                             |   | (3,769 | ) |
| LIFO                  reserve       |   |                       | (3,774 | )                             |   | (4,029 | ) |
|                                |   | $                          | 61,484 |                          | $      | 55,960 |   |
|                                |   |                       |   |                          |   |   |   |

----

Index

*Share-Based      Payment*

|                                                                        |   | Three                  Months Ended March 31, |   |
|------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                   |   | 2007                                          |   | 2006 |   |
|                                                                   |   |                                          |   |   |   |   |   |
| Selling,                  general and administrative expense           |   | $                                             | (85    | ) | $ | 489 |   |
| Cumulative                  effect of a change in accounting principle |   |                                          | -      |   |   | 756 |   |
|                                                                   |   | $                                             | (85    | ) | $ | 1,245 |   |
|                                                                   |   |                                          |   |   |   |   |   |

*Share-Based      Payment*

| Expected                  term (years) |   | 5.3                  - 6.5     |
|----------------------------------------|--------|--------------------------------|
| Volatility                             |   | 53.8%                  - 57.6% |
| Risk-free                  rate        |   | 3.98%                  - 4.48% |

----

Index

|                                   | March                  31,     |   | March                  31,     |
|----------------------------------------|--------------------------------|--------|--------------------------------|
|                                   | 2007                           |   | 2006                           |
|                                   |                           |   |                           |
| Expected                  term (years) | 0.1                  - 5.3     |   | 3.0                  - 5.3     |
| Volatility                             | 53.7%                  - 80.6% |   | 48.2%                  - 55.0% |
| Risk-free                  rate        | 4.54%                  - 5.07% |   | 4.37%                  - 4.83% |

*Accounting      for Derivative Financial Instruments and Hedging Activities*

|      | Notional                  Amount                                                                                                                           |   | Maturity                         |   | Rate                  Paid |   | Rate                  Received |   | Fair                  Value (2) |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|----------------------------|--------|--------------------------------|--------|---------------------------------|
|      | $                  15,000                                                                                                                                  |   | August                  17, 2007 |   | 4.49%                      |   | LIBOR                  (1)     |   | $                  58           |
|      |                                                                                                                                                       |   |                             |   |                       |   |                           |   |                            |
| (1)  | LIBOR                  rate is determined on the 23rd of each month and continues up to                  and                  including the maturity date. |
|      |                                                                                                                                                       |   |                             |   |                       |   |                           |   |                            |
| (2)  | The                  fair value is the mark-to-market                  value.                                                                              |

----

Index

|                                                                  |   | Three                  Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                             |   | March                  31,          |   |
|                                                             |   | 2007                                |   | 2006 |   |
| Net                  loss                                        |   | $                                   | (3,992 | ) | $ | (5,791 | ) |
| Foreign                  currency translation losses             |   |                                | (334   | ) |   | (417 | ) |
| Unrealized                  (losses) gains on interest rate swap |   |                                | (29    | ) |   | 93 |   |
| Other                                                            |   |                                | (17    | ) |   | - |   |
|                                                             |   |                                | (380   | ) |   | (324 | ) |
| Comprehensive                  loss                              |   | $                                   | (4,372 | ) | $ | (6,115 | ) |
|                                                             |   |                                |   |   |   |   |   |

*Accounting      for Uncertainty in Income Taxes*

*Fair      Value Measurements*

*The      Fair Value Option for Financial Assets and Financial Liabilities Including      an      Amendment of FASB Statement No. 115*

|                            |   | March                  31, |   | December                  31, |   |
|---------------------------------|--------|----------------------------|--------|-------------------------------|--------|
|                            |   | 2007                       |   | 2006                          |   |
|                            |   | Gross                      |   | Accumulated                   |   | Net                  Carrying |   | Gross |   | Accumulated |   | Net                  Carrying |   |
|                            |   | Amount                     |   | Amortization                  |   | Amount |   | Amount |   | Amortization |   | Amount |   |
| Patents                         |   | $                          | 1,583  |                          | $      | (1,093 | ) | $ | 490 |   | $ | 1,511 |   | $ | (1,065 | ) | $ | 446 |   |
| Customer                  lists |   |                       | 10,454 |                          |   | (8,157 | ) |   | 2,297 |   |   | 10,454 |   |   | (8,111 | ) |   | 2,343 |   |
| Tradenames                      |   |                       | 5,613  |                          |   | (2,410 | ) |   | 3,203 |   |   | 5,612 |   |   | (2,345 | ) |   | 3,267 |   |
| Other                           |   |                       | 441    |                          |   | (73 | ) |   | 368 |   |   | 441 |   |   | (62 | ) |   | 379 |   |
| Total                           |   | $                          | 18,091 |                          | $      | (11,733 | ) | $ | 6,358 |   | $ | 18,018 |   | $ | (11,583 | ) | $ | 6,435 |   |
|                            |   |                       |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

| 2007                    (remainder) |   | $      | 639    |   |
|-------------------------------------|--------|--------|--------|--------|
| 2008                                |   |   | 635    |   |
| 2009                                |   |   | 600    |   |
| 2010                                |   |   | 547    |   |
| 2011                                |   |   | 507    |   |
| 2012                                |   |   | 505    |   |
| Thereafter                          |   |   | 2,925  |   |
|                                |   | $      | 6,358  |   |
|                                |   |   |   |   |

|                                                                                           |   | March                  31, |    | December                  31, |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------|---------|-------------------------------|--------|
|                                                                                      |   | 2007                       |    | 2006                          |   |
|                                                                                      |   |                       |    |                          |   |   |   |
| Term                  loan payable under Bank of America Credit Agreement, interest based |   |                       |    |                          |   |   |   |
| on                  LIBOR and Prime Rates (8.38% - 9.50%), due through 2009               |   | $                          | 12,968  |                          | $      | 12,992 |   |
| Revolving                  loans payable under the Bank of America Credit Agreement,      |   |                       |    |                          |   |   |   |
| interest                  based on LIBOR and Prime Rates (8.13% - 9.25%)                  |   |                       | 41,491  |                          |   | 43,879 |   |
| Total                  debt                                                               |   |                       | 54,459  |                          |   | 56,871 |   |
| Less                  revolving loans, classified as current (see below)                  |   |                       | (41,491 | )                             |   | (43,879 | ) |
| Less                  current maturities                                                  |   |                       | (1,500  | )                             |   | (1,125 | ) |
| Long-term                  debt                                                           |   | $                          | 11,468  |                          | $      | 11,867 |   |
|                                                                                      |   |                       |    |                          |   |   |   |

----

Index

| 2007   |   | $      | 1,125  |   |
|--------|--------|--------|--------|--------|
| 2008   |   |   | 1,500  |   |
| 2009   |   |   | 10,343 |   |
|   |   | $      | 12,968 |   |
|   |   |   |   |   |

----

Index

*Balance      Sheet Classification of Borrowings Outstanding under Revolving Credit Agreements      that Include Both a Subjective Acceleration Clause and a Lock-Box      Arrangement*

|                                                           |   | Pension                  Benefits |   | Other                  Benefits |   |
|-----------------------------------------------------------|--------|-----------------------------------|--------|---------------------------------|--------|
|                                                      |   | March                  31,        |   | March                  31,      |   | March                  31, |   | March                  31, |   |
|                                                      |   | 2007                              |   | 2006                            |   | 2007 |   | 2006 |   |
|                                                      |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Components                  of net periodic benefit cost: |   |                              |   |                            |   |   |   |   |   |   |   |   |   |
| Service                  cost                             |   | $                                 | 2      |                            | $      | 2 |   | $ | - |   | $ | - |   |
| Interest                  cost                            |   |                              | 23     |                            |   | 22 |   |   | 51 |   |   | 36 |   |
| Expected                  return on plan assets           |   |                              | (24    | )                               |   | (22 | ) |   | - |   |   | - |   |
| Amortization                  of prior service cost       |   |                              | -      |                            |   | - |   |   | 22 |   |   | 14 |   |
| Amortization                  of net loss                 |   |                              | 13     |                            |   | 14 |   |   | 4 |   |   | 10 |   |
| Net                  periodic benefit cost                |   | $                                 | 14     |                            | $      | 16 |   | $ | 77 |   | $ | 60 |   |
|                                                      |   |                              |   |                            |   |   |   |   |   |   |   |   |   |

----

Index

|                                                           |   |    |      |   |     |   |        | Weighted                        |                        |   |   |   |
|-----------------------------------------------------------|--------|---------|-----------|--------|----------|--------|-------------|---------------------------------|-----------------------------|--------|--------|--------|
|                                                           |   |    |      |   | Weighted |   | Average     |                            | Aggregate                   |   |
|                                                      |   |    |      |   | Average  |   | Remaining   |                            | Intrinsic                   |   |
|                                                           |   |    |      |   | Exercise |   | Contractual |                            | Value                       |   |
|                                                           |   | Options |      | Price  |     | Life   |        | (in                  thousands) |                        |
|                                                      |   |    |      |   |     |   |        |                            |                        |   |   |   |   |
| Outstanding                  at December 31, 2006         |   |    | 1,718,000 |   | $        | 3.66   |        |                            |                        |   |   |   |   |
|                                                      |   |    |      |   |     |   |        |                            |                        |   |   |   |   |
| Granted                                                   |   |    | -         |   | $        | 0.00   |        |                            |                        |   |   |   |   |
| Exercised                                                 |   |    | -         |   | $        | 0.00   |        |                            |                        |   |   |   |   |
| Cancelled                                                 |   |    | -         |   | $        | 0.00   |        |                            |                        |   |   |   |   |
|                                                      |   |    |      |   |     |   |        |                            |                        |   |   |   |   |
| Outstanding                  at March 31, 2007            |   |    | 1,718,000 |   | $        | 3.66   |        |                            | 6.45                  years |   | $      | -      |   |
|                                                      |   |    |      |   |     |   |        |                            |                        |   |   |   |   |
| Vested                  and Exercisable at March 31, 2007 |   |    | 1,098,000 |   | $        | 4.20   |        |                            | 5.44                  years |   | $      | -      |   |
|                                                      |   |    |      |   |     |   |        |                            |                        |   |   |   |   |

| Non-Vested                  at December 31, 2006     |   |   | 53,434  |   |
|------------------------------------------------------|--------|--------|---------|--------|
|                                                 |   |   |    |   |
| Granted                                              |   |   | -       |   |
| Vested                                               |   |   | (26,667 | )      |
|                                                 |   |   |    |   |
| Non-Vested                  at March 31, 2007        |   |   | 26,767  |   |
|                                                 |   |   |    |   |
| Total                  Outstanding at March 31, 2007 |   |   | 798,281 |   |
|                                                 |   |   |    |   |

----

Index

*General      Environmental Claims*

----

Index

*W.J.      Smith Wood Preserving Company (“W.J. Smith”)*

*Asbestos      Claims *

----

Index

*Non-Environmental      Litigation - Banco del Atlantico, S.A.*

*Banco      del Atlantico, S.A. v. Woods Industries, Inc., et al.*
** **
*Civil      Action No.*
*** ***
*L-96-139      (now *
*      U.S.      District Court, Southern District of Indiana).*

*with      prejudice *
*with      prejudice*

*with      prejudice*

----

Index

*Other      Claims*

----

Index

|                                                                        |    |   |                                                          |   | Three                  months ended March 31, |    |
|------------------------------------------------------------------------|---------|--------|---------------------------------------------------------------|--------|-----------------------------------------------|---------|
|                                                                   |    |   |                                                          |   | 2007                                          |    | 2006 |   |
| Maintenance                  Products Group                            |    |   |                                                          |   |                                          |    |   |   |   |   |
|     Net                  external sales            |    |   |                                                          |   | $                                             | 50,308  |   | $ | 49,973 |   |
|     Operating                  income              |    |   |                                                          |   |                                          | 830     |   |   | 946 |   |
|     Operating                  margin              |    |   |                                                          |   |                                          | 1.6     | % |   | 1.9 | % |
|     Depreciation                  and amortization |    |   |                                                          |   |                                          | 1,873   |   |   | 1,968 |   |
|     Capital                  expenditures          |    |   |                                                          |   |                                          | 1,017   |   |   | 653 |   |
|                                                                   |    |   |                                                          |   |                                          |    |   |   |   |   |
| Electrical                  Products Group                             |    |   |                                                          |   |                                          |    |   |   |   |   |
|     Net                  external sales            |    |   |                                                          |   | $                                             | 44,495  |   | $ | 25,845 |   |
|     Operating                  (loss) income       |    |   |                                                          |   |                                          | (1,360  | ) |   | 59 |   |
|     Operating                  (deficit) margin    |    |   |                                                          |   |                                          | (3.1    | %) |   | 0.2 | % |
|     Depreciation                  and amortization |    |   |                                                          |   |                                          | 165     |   |   | 239 |   |
|     Capital                  expenditures          |    |   |                                                          |   |                                          | 113     |   |   | 163 |   |
|                                                                   |    |   |                                                          |   |                                          |    |   |   |   |   |
| Total                                                                  |    |   |                                                          |   |                                          |    |   |   |   |   |
|     Net                  external sales            |  - |   | Operating                  segments                           |   | $                                             | 94,803  |   | $ | 75,818 |   |
|                                                                        |    |   | Total                                                    |   | $                                             | 94,803  |   | $ | 75,818 |   |
|                                                                   |    |   |                                                          |   |                                          |         |   |   |  |   |
|     Operating                  loss                | -       |   | Operating                  segments                           |   | $                                             | (530    | ) | $ | 1,005 |   |
|                                                                   | -       |   | Unallocated                  corporate                        |   |                                          | (2,666  | ) |   | (3,075 | ) |
|                                                                   | -       |   | Severance,                  restructuring and related charges |   |                                          | (244    | ) |   | (782 | ) |
|                                                                   | -       |   | Gain                  (loss) on sale of assets                |   |                                          | 120     |   |   | (102 | ) |
|                                                                   |    |   | Total                                                    |   | $                                             | (3,320  | ) | $ | (2,954 | ) |
|                                                                   |    |   |                                                          |   |                                          |         |   |   |  |   |
|     Depreciation                  and amortization | -       |   | Operating                  segments                           |   | $                                             | 2,038   |   | $ | 2,207 |   |
|                                                                   | -       |   | Unallocated                  corporate                        |   |                                          | 34      |   |   | 34 |   |
|                                                                   |    |   | Total                                                    |   | $                                             | 2,072   |   | $ | 2,241 |   |
|                                                                   |    |   |                                                          |   |                                          |    |   |   |   |   |
|     Capital                  expenditures          | -       |   | Operating                  segments                           |   | $                                             | 1,130   |   | $ | 816 |   |
|                                                                        |    |   | Total                                                    |   | $                                             | 1,130   |   | $ | 816 |   |
|                                                                   |    |   |                                                          |   |                                          |    |   |   |   |   |
|                                                                   |    |   |                                                          |   | March                  31,                    |    | December                  31, |   |
|                                                                   |    |   |                                                          |   | 2007                                          |    | 2006 |   |
|     Total                  assets                  | -       |   | Maintenance                  Products Group                   |   | $                                             | 99,221  |   | $ | 95,963 |   |
|                                                                   | -       |   | Electrical                  Products Group                    |   |                                          | 66,253  |   |   | 74,161 |   |
|                                                                   | -       |   | Other                  [a]                                    |   |                                          | 2,217   |   |   | 6,700 |   |
|                                                                   | -       |   | Unallocated                  corporate                        |   |                                          | 4,681   |   |   | 6,850 |   |
|                                                                        |    |   | Total                                                    |   | $                                             | 172,372 |   | $ | 183,674 |   |
|                                                                   |    |   |                                                          |   |                                          |         |   |   |  |   |

----

Index

|                                                                                   |   | Three                  Months Ended March 31, |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                              |   | 2007                                          |   | 2006 |   |
| Consolidation                  of St. Louis manufacturing/distribution facilities |   | $                                             | 189    |   | $ | 699 |   |
| Consolidation                  of Glit facilities                                 |   |                                          | 19     |   |   | - |   |
| Shutdown                  of Woods Canada manufacturing                           |   |                                          | 36     |   |   | - |   |
| Corporate                  office relocation                                      |   |                                          | -      |   |   | 83 |   |
| Total                  severance, restructuring and related charges               |   | $                                             | 244    |   | $ | 782 |   |
|                                                                              |   |                                          |   |   |   |   |   |

|                                                                 |   | Contract                   |   |
|-----------------------------------------------------------------|--------|----------------------------|--------|
|                                                            |   | Termination                |   |
|                                                            |   | Costs                  [b] |   |
| Restructuring                  liabilities at December 31, 2006 |   | $                          | 465    |   |
| Additions                                                       |   |                       | 189    |   |
| Payments                                                        |   |                       | (223   | ) |
| Restructuring                  liabilities at March 31, 2007    |   | $                          | 431    |   |
|                                                            |   |                       |   |   |

|                                                            |   |   |   | One-time                      |   | Contract                   |   |
|-----------------------------------------------------------------|--------|--------|--------|-------------------------------|--------|----------------------------|--------|
|                                                            |   |   |   | Termination                   |   | Termination                |   |
|                                                            |   | Total  |   | Benefits                  [a] |   | Costs                  [b] |   |
| Restructuring                  liabilities at December 31, 2006 |   | $      | 5      |                          | $      | -                          |   | $ | 5 |   |
| Additions                                                       |   |   | 19     |                          |   | 19                         |   |   | - |   |
| Payments                                                        |   |   | (24    | )                             |   | (19                        | )      |   | (5 | ) |
| Restructuring                  liabilities at March 31, 2007    |   | $      | -      |                          | $      | -                          |   | $ | - |   |
|                                                            |   |   |   |                          |   |                       |   |   |   |   |

----

Index

|                                                            |   | Contract                   |   |
|-----------------------------------------------------------------|--------|----------------------------|--------|
|                                                            |   | Termination                |   |
|                                                            |   | Costs                  [b] |   |
| Restructuring                  liabilities at December 31, 2006 |   | $                          | 491    |   |
| Additions                                                       |   |                       | 36     |   |
| Payments                                                        |   |                       | (67    | ) |
| Restructuring                  liabilities at March 31, 2007    |   | $                          | 460    |   |
|                                                            |   |                       |   |   |

|                                                             |   |   |   | One-time                      |   | Contract                   |   |
|------------------------------------------------------------------|--------|--------|--------|-------------------------------|--------|----------------------------|--------|
|                                                             |   |   |   | Termination                   |   | Termination                |   |
|                                                             |   | Total  |   | Benefits                  [a] |   | Costs                  [b] |   |
| Restructuring                  liabilities at December 31, 2006  |   | $      | 961    |                          | $      | -                          |   | $ | 961 |   |
| Additions                                                        |   |   | 244    |                          |   | 19                         |   |   | 225 |   |
| Payments                                                         |   |   | (314   | )                             |   | (19                        | )      |   | (295 | ) |
| Restructuring                  liabilities at March 31, 2007 [c] |   | $      | 891    |                          | $      | -                          |   | $ | 891 |   |
|                                                             |   |   |   |                          |   |                       |   |   |  |   |

|                                                            |   |   |   | Maintenance |   | Electrical |   |
|-----------------------------------------------------------------|--------|--------|--------|-------------|--------|------------|--------|
|                                                            |   |   |   | Products    |   | Products   |   |
|                                                            |   | Total  |   | Group       |   | Group      |   |
| Restructuring                  liabilities at December 31, 2006 |   | $      | 961    |        | $      | 470        |   | $ | 491 |   |
| Additions                                                       |   |   | 244    |        |   | 208        |   |   | 36 |   |
| Payments                                                        |   |   | (314   | )           |   | (247       | )      |   | (67 | ) |
| Restructuring                  liabilities at March 31, 2007    |   | $      | 891    |        | $      | 431        |   | $ | 460 |   |
|                                                            |   |   |   |        |   |       |   |   |   |   |

----

Index

|                            |   |   |   | Maintenance |   | Electrical |   |
|---------------------------------|--------|--------|--------|-------------|--------|------------|--------|
|                            |   |   |   | Products    |   | Products   |   |
|                            |   | Total  |   | Group       |   | Group      |   |
| 2007                            |   | $      | 325    |        | $      | 148        |   | $ | 177 |   |
| 2008                            |   |   | 341    |        |   | 99         |   |   | 242 |   |
| 2009                            |   |   | 98     |        |   | 57         |   |   | 41 |   |
| 2010                            |   |   | 61     |        |   | 61         |   |   | - |   |
| 2011                            |   |   | 66     |        |   | 66         |   |   | - |   |
| Thereafter                      |   |   | -      |        |   | -          |   |   | - |   |
| Total                  Payments |   | $      | 891    |        | $      | 431        |   | $ | 460 |   |
|                            |   |   |   |        |   |       |   |   |   |   |

*Accounting      for the Impairments or Disposal of Long Lived Assets*

----

Index

|                                      |   | March                  31, |    | December                  31, |   |
|-------------------------------------------|--------|----------------------------|---------|-------------------------------|--------|
|                                      |   | 2007                       |    | 2006                          |   |
|                                      |   |                       |    |                          |   |
| Current                  assets:          |   |                       |    |                          |   |
| Accounts                  receivable, net |   | $                          | -       |                          | $      | 83 |   |
|                                      |   | $                          |  - |                          | $      | 83 |   |
|                                      |   |                       |    |                          |   |   |   |
| Current                  liabilities:     |   |                       |    |                          |   |   |   |
| Accrued                  expenses         |   | $                          | 492     |                          | $      | 1,143 |   |
|                                      |   | $                          | 492     |                          | $      | 1,143 |   |
|                                      |   |                       |    |                          |   |   |   |

|                                                             |   | Three                  months ended |   |
|------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                             |   | March                  31,          |   |
|                                                             |   | 2007                                |   | 2006 |   |
|                                                             |   |                                |   |   |   |
| Net                  sales                                       |   | $                                   | -      |   | $ | 8,078 |   |
| Pre-tax                  operating loss                          |   | $                                   | -      |   | $ | (430 | ) |
| Pre-tax                  gain on sale of discontinued businesses |   | $                                   | 1,666  |   | $ | - |   |
|                                                             |   |                                |   |   |   |   |   |

----

Index

Item      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATIONS

|                                                                                                |   |                                                          |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                                                                |   | 2007                                                          |   | 2006 |   |
|                                                                                                |   | (Amounts                  in Millions, Except Per Share Data) |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |
|                                                                                                |   | $                                                             |   | %                  to Sales |   | $ |   | %                  to Sales |   |
| Net                  sales                                                                          |   | $                                                             | 94.8   |   |   | 100.0 |   | $ | 75.8 |   |   | 100.0 |   |
| Cost                  of goods sold                                                                 |   |                                                          | 86.6   |   |   | 91.3 |   |   | 65.4 |   |   | 86.3 |   |
| Gross                  profit                                                                       |   |                                                          | 8.2    |   |   | 8.7 |   |   | 10.4 |   |   | 13.7 |   |
| Selling,                  general and administrative expenses                                       |   |                                                          | 11.4   |   |   | 12.1 |   |   | 12.5 |   |   | 16.5 |   |
| Severance,                  restructuring and related charges                                       |   |                                                          | 0.2    |   |   | 0.3 |   |   | 0.8 |   |   | 1.0 |   |
| (Gain)                  loss on sale of assets                                                      |   |                                                          | (0.1   | ) |   | (0.1 | ) |   | 0.1 |   |   | 0.2 |   |
| Operating                  loss                                                                     |   |                                                          | (3.3   | ) |   | (3.6 | ) |   | (3.0 | ) |   | (4.0 | ) |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                                                   |   |                                                          | (2.0   | ) |   |   |   |   | (1.7 | ) |   |   |   |
| Other,                  net                                                                         |   |                                                          | 0.1    |   |   |   |   |   | 0.3 |   |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations before provision for income                  taxes |   |                                                          | (5.2   | ) |   |   |   |   | (4.4 | ) |   |   |   |
| Provision                  for income taxes from continuing operations                              |   |                                                          | (0.5   | ) |   |   |   |   | (0.2 | ) |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                                    |   |                                                          | (5.7   | ) |   |   |   |   | (4.6 | ) |   |   |   |
| Loss                  from operations of discontinued businesses (net of tax)                       |   |                                                          | -      |   |   |   |   |   | (0.4 | ) |   |   |   |
| Gain                  on sale of discontinued businesses (net of tax)                               |   |                                                          | 1.7    |   |   |   |   |   | - |   |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  before cumulative effect of a change in accounting                  principle |   |                                                          | (4.0   | ) |   |   |   |   | (5.0 | ) |   |   |   |
| Cumulative                  effect of a change in accounting principle (net of tax)                 |   |                                                          | -      |   |   |   |   |   | (0.8 | ) |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net                  loss                                                                           |   | $                                                             | (4.0   | ) |   |   |   | $ | (5.8 | ) |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  per share of common stock - basic and diluted:                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                |   |                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss                  from continuing operations                                                    |   | $                                                             | (0.71  | ) |   |   |   | $ | (0.58 | ) |   |   |   |
| Discontinued                  operations                                                            |   |                                                          | 0.21   |   |   |   |   |   | (0.05 | ) |   |   |   |
| Cumulative                  effect of a change in accounting principle                              |   |                                                          | -      |   |   |   |   |   | (0.10 | ) |   |   |   |
| Net                  loss                                                                           |   | $                                                             | (0.50  | ) |   |   |   | $ | (0.73 | ) |   |   |   |
|                                                                                                |   |                                                          |        |   |   |   |   |   |  |   |   |   |   |

----

Index

*Maintenance      Products Group*

*Electrical      Products Group*

|                                                          | Three                  months ended March 31, |   |                      |   |   |   |
|---------------------------------------------------------------|-----------------------------------------------|--------|---------------------------|--------|--------|--------|
|                                                          | (Amounts                  in Millions)        |   |                      |   |   |   |
|                                                          | 2007                                          |   | 2006                      |   | Change |   |
|                                                          | $                                             |   | %                  Margin |   | $      |   | %                  Margin |   | $ |   | %                  Margin |   |
| Maintenance                  Products Group                   | $                                             | 0.8    |                      |   | 1.6    |   | $ | 0.9 |   |   | 1.9 |   | $ | (0.1 | ) |   | (0.3 | ) |
| Electrical                  Products Group                    |                                          | (1.3   | )                         |   | (3.1   | )      |   | 0.1 |   |   | 0.2 |   |   | (1.4 | ) |   | (3.3 | ) |
| Unallocated                  corporate expense                |                                          | (2.7   | )                         |   |   |   |   | (3.1 | ) |   |   |   |   | 0.4 |   |   |   |   |
|                                                          |                                          | (3.2   | )                         |   | (3.4   | )      |   | (2.1 | ) |   | (2.7 | ) |   | (1.1 | ) |   | (0.7 | ) |
|                                                          |                                          |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Severance,                  restructuring and related charges |                                          | (0.2   | )                         |   |   |   |   | (0.8 | ) |   |   |   |   | 0.6 |   |   |   |   |
| Gain                  (loss) on sale of assets                |                                          | 0.1    |                      |   |   |   |   | (0.1 | ) |   |   |   |   | 0.2 |   |   |   |   |
| Operating                  loss                               | $                                             | (3.3   | )                         |   | (3.5   | )      | $ | (3.0 | ) |   | (3.9 | ) | $ | (0.3 | ) |   | 0.4 |   |
|                                                          |                                          |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

*Maintenance      Products Group*

----

Index

*Electrical      Products Group*

*Corporate*

*Severance,      Restructuring and Related Charges*

----

Index

----

Index

*Balance      Sheet Classification of Borrowings Outstanding under Revolving Credit Agreements      that Include Both a Subjective Acceleration Clause and a Lock-Box      Arrangement*

----

Index

| Contractual                  Cash Obligations    |   | Total  |   | Due                  in less than 1 year |   | Due                  in 1-3 years |   | Due                  in 3-5 years |   | Due                  after 5 years |   |
|--------------------------------------------------|--------|--------|--------|------------------------------------------|--------|-----------------------------------|--------|-----------------------------------|--------|------------------------------------|--------|
| Revolving                  Credit Facility [a]   |   | $      | 41,491 |                                     | $      | 41,491                            |   | $                                 | -      |                               | $      | - |   | $ | - |   |
| Term                  Loan                       |   |   | 12,968 |                                     |   | 1,500                             |   |                              | 11,468 |                               |   | - |   |   | - |   |
| Interest                  on debt [b]            |   |   | 8,861  |                                     |   | 4,379                             |   |                              | 4,482  |                               |   | - |   |   | - |   |
| Operating                  leases [c]            |   |   | 20,366 |                                     |   | 7,751                             |   |                              | 9,423  |                               |   | 2,668 |   |   | 524 |   |
| Severance                  and restructuring [c] |   |   | 521    |                                     |   | 148                               |   |                              | 265    |                               |   | 108 |   |   | - |   |
| Postretirement                  benefits [d]     |   |   | 5,807  |                                     |   | 694                               |   |                              | 1,498  |                               |   | 1,194 |   |   | 2,421 |   |
| Total                  Contractual Obligations   |   | $      | 90,014 |                                     | $      | 55,963                            |   | $                                 | 27,136 |                               | $      | 3,970 |   | $ | 2,945 |   |
|                                             |   |   |   |                                     |   |                              |   |                              |   |                               |   |   |   |   |   |   |
|                                             |   |   |   |                                     |   |                              |   |                              |   |                               |   |   |   |   |   |   |
| Other                  Commercial Commitments    |   | Total  |   | Due                  in less than 1 year |   | Due                  in 1-3 years |   | Due                  in 3-5 years |   | Due                  after 5 years |   |
| Commercial                  letters of credit    |   | $      | 664    |                                     | $      | 664                               |   | $                                 | -      |                               | $      | - |   | $ | - |   |
| Stand-by                  letters of credit      |   |   | 5,949  |                                     |   | 5,949                             |   |                              | -      |                               |   | - |   |   | - |   |
| Total                  Commercial Commitments    |   | $      | 6,613  |                                     | $      | 6,613                             |   | $                                 | -      |                               | $      | - |   | $ | - |   |
|                                             |   |   |   |                                     |   |                              |   |                              |   |                               |   |   |   |   |   |   |

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Index

*Operating      Activities*

*Investing      Activities*

*Financing      Activities*

----

Index

|                                                                                   |   | Three                  Months Ended March 31, |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------------|--------|
|                                                                              |   | 2007                                          |   | 2006 |   |
| Consolidation                  of St. Louis manufacturing/distribution facilities |   | $                                             | 189    |   | $ | 699 |   |
| Consolidation                  of Glit facilities                                 |   |                                          | 19     |   |   | - |   |
| Shutdown                  of Woods Canada manufacturing                           |   |                                          | 36     |   |   | - |   |
| Corporate                  office relocation                                      |   |                                          | -      |   |   | 83 |   |
| Total                  severance, restructuring and related charges               |   | $                                             | 244    |   | $ | 782 |   |
|                                                                              |   |                                          |   |   |   |   |   |

|                                        |   | Total                  Expected Cost |   | Total                  Provision to Date |   |
|---------------------------------------------|--------|--------------------------------------|--------|------------------------------------------|--------|
|                                        |   |                                 |   |                                     |   |   |   |
| Maintenance                  Products Group |   | $                                    | 21,301 |                                     | $      | 21,001 |   |
| Electrical                  Products Group  |   |                                 | 12,683 |                                     |   | 12,683 |   |
| Corporate                                   |   |                                 | 12,290 |                                     |   | 12,290 |   |
|                                        |   | $                                    | 46,274 |                                     | $      | 45,974 |   |
|                                        |   |                                 |   |                                     |   |   |   |

|                                                             |   |   |   | One-time                      |   | Contract                   |   |
|------------------------------------------------------------------|--------|--------|--------|-------------------------------|--------|----------------------------|--------|
|                                                             |   |   |   | Termination                   |   | Termination                |   |
|                                                             |   | Total  |   | Benefits                  [a] |   | Costs                  [b] |   |
| Restructuring                  liabilities at December 31, 2006  |   | $      | 961    |                          | $      | -                          |   | $ | 961 |   |
| Additions                                                        |   |   | 244    |                          |   | 19                         |   |   | 225 |   |
| Payments                                                         |   |   | (314   | )                             |   | (19                        | )      |   | (295 | ) |
| Restructuring                  liabilities at March 31, 2007 [c] |   | $      | 891    |                          | $      | -                          |   | $ | 891 |   |
|                                                             |   |   |   |                          |   |                       |   |   |  |   |

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Index

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Index

| -   | Increases                in the cost of, or in some cases continuation of, the current price                levels                of plastic resins, copper, paper board packaging, and other raw                materials. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our                inability to reduce product costs, including manufacturing, sourcing,                freight, and other product costs. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Greater                reliance on third parties for our finished goods as we increase the                portion of our manufacturing that is outsourced. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our                inability to reduce administrative costs through consolidation of                functions and systems improvements. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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Index

| -   | Our                inability to execute our systems integration plan. |
|---------------|-----------------------------------------------------------------------|

| -   | Our                inability to successfully integrate our operations as a result of                the                facility consolidations. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our                inability to achieve product price increases, especially as they                relate to                potentially higher raw material                costs. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                potential impact of losing lines of business at large mass merchant                retailers in the discount and do-it-yourself                markets. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Competition                from foreign competitors. |
|---------------|------------------------------------------------------|

| -   | The                potential impact of rising interest rates on our LIBOR-based Bank                of                America Credit Agreement. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Our                inability to meet covenants associated with the Bank of America Credit                Agreement. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

| -   | The                potential impact of rising costs for insurance for properties and                various                forms of liabilities. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | The                potential impact of changes in foreign currency exchange rates related                to                our foreign operations. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Labor                issues, including union activities that require an increase in production                costs or lead to a strike, thus impairing production and decreasing                sales.                We are also subject to labor relations issues at entities involved                in our                supply chain, including both suppliers and those involved in                transportation and shipping. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| -   | Changes                in significant laws and government regulations affecting environmental                compliance and income taxes. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------|

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Index

Item      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK

** **

Item      4. CONTROLS AND PROCEDURES

| (a)   | Evaluation                of Disclosure Controls and                Procedures |
|-----------------|--------------------------------------------------------------------------------|

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Index

| (b)   | Change                in Internal Controls |
|-----------------|--------------------------------------------|

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Index

PART      II - OTHER INFORMATION

Item      1. LEGAL PROCEEDINGS

Item      1A. RISK FACTORS

Item      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS

Item      3. DEFAULTS UPON SENIOR SECURITIES

Item      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS

Item      5. OTHER INFORMATION

Item      6. EXHIBITS

|   | 31.1 | CEO                Certification pursuant to Securities Exchange Act                Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley                Act                of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | CFO                Certification pursuant to Securities Exchange Act                Rule 13a-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley                Act                of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1                       | CEO                Certification required by 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2                       | CFO                Certification required by 18 U.S.C. Section 1350, as                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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Index

Signatures

----