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

                                   FORM 10-QSB
(Mark One)

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

For the quarterly period ended  DECEMBER 31,2000
                                ----------------

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

For the transition period from ____________________ to ___________________

Commission File Number:              0-4036
                                     ------

                       KREISLER MANUFACTURING CORPORATION
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


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


          5960 CENTRAL AVENUE, SUITE H., ST. PETERSBURG, FLORIDA 33707
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                    (Address of principal executive offices)


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


                                 NOT APPLICABLE
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              (Former name, former address and former fiscal year,
                          if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

                             [X] Yes     [ ] No

The number of shares outstanding of issuer's Common Stock, par value $.125 per
share, as of December 31,2000 was 1,958,056 shares.

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


<PAGE>

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                                TABLE OF CONTENTS

PART I            Financial Information

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

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


PART II           Other Information

Item 1            Legal Proceedings

Item 2            Changes in Securities

Item 3            Defaults Upon Senior Securities

Item 4            Submission of Matters to Vote of Security Holders

Item 5            Other Information

Item 6            Exhibits and Reports of Form 8-K

<PAGE>

PART I        FINANCIAL INFORMATION

ITEM 1        FINANCIAL STATEMENTS

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                 (UNAUDITED)
---------------------------------------------------------------------------------------------
                                                             SECOND QUARTER ENDED  YEAR ENDED
                                                                   12/31/00         6/30/00
---------------------------------------------------------------------------------------------
<S>                                                              <C>              <C>
ASSETS

Cash and cash equivalents                                        $ 5,033,986      $ 4,045,523
Accounts receivable - trade                                        2,177,384        2,574,499
Inventories
   Raw Materials                                                   1,164,331        1,738,934
   Work in Process                                                   955,651          500,265
   Finished Goods                                                    162,497          102,000
---------------------------------------------------------------------------------------------
                                                                   2,282,479        2,341,199

Deferred tax asset                                                    90,200           26,600
Insurance recoveries anticipated                                     580,000               --
Other current assets                                                  49,037           44,967
---------------------------------------------------------------------------------------------
Total current assets                                              10,213,086        9,032,788
Property, plant & equip., at cost, less accum. deprec                610,218          469,692
Other assets:
    Insurance recoveries anticipated                                 830,000               --
    Deferred tax asset                                               172,000               --
---------------------------------------------------------------------------------------------
Total other assets                                                 1,002,000               --
---------------------------------------------------------------------------------------------
                                                                 $11,825,304      $ 9,502,480
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LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable - trade                                         $   448,625      $   575,128
Accrued expenses                                                     727,378          746,516
Accrued environmental costs                                          880,000               --
---------------------------------------------------------------------------------------------
Total current liabilities                                          2,056,003        1,321,644
Long term liabilities:
     Accrued environmental costs                                   1,260,000               --
---------------------------------------------------------------------------------------------
Total Liabilities                                                  3,316,003        1,321,644

Stockholders' Equity

Common Stock, $.125 par value - 3,000,000 shares authorized
 1,958,056 shares issued and outstanding for December 31, 2000
 and 1,955,379 as of June 30, 2000                                   244,757          244,423
Additional paid-in capital                                         1,589,701        1,586,700
Retained earnings                                                  6,674,843        6,349,713
---------------------------------------------------------------------------------------------
Total Stockholders' Equity                                         8,509,301        8,180,836
---------------------------------------------------------------------------------------------
                                                                 $11,825,304      $ 9,502,480
---------------------------------------------------------------------------------------------
</TABLE>

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

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

--------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31                        2000             1999
--------------------------------------------------------------------------------

REVENUES                                          $ 4,268,414      $ 2,814,031
--------------------------------------------------------------------------------

Cost of goods sold                                  3,409,471        2,945,221
Selling, general and administrative expenses          182,844          229,895
--------------------------------------------------------------------------------
                                                    3,592,315        3,175,116
--------------------------------------------------------------------------------
Income from operations                                676,099         (361,085)

Other income:
Interest and other earnings                            69,104           62,112
--------------------------------------------------------------------------------
Income before income taxes                            745,203         (298,973)

Income tax provision                                  297,913               --
--------------------------------------------------------------------------------
Net Income                                        $   447,290      $  (298,973)
--------------------------------------------------------------------------------
Earnings per share:
Net income (loss) - basic shares                  $       .23      $      (.15)
Net income (loss) - diluted shares                $       .22      $      (.14)
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
SIX MONTHS ENDED DECEMBER 31                          2000              1999
--------------------------------------------------------------------------------

REVENUES                                          $ 8,038,127      $ 5,629,591
--------------------------------------------------------------------------------

Cost of goods sold                                  6,596,412        5,483,318
Selling, general and administrative expenses          295,871          441,815
Provision for environmental remediation               730,000               --
--------------------------------------------------------------------------------
                                                    7,622,283        5,925,133
--------------------------------------------------------------------------------
Income from operations                                415,844         (295,542)

Other income:
Interest and other earnings                           124,643          105,659
--------------------------------------------------------------------------------
Income before income taxes                            540,487         (189,883)

Provision for income tax                              215,363           43,636
--------------------------------------------------------------------------------
Net income                                        $   325,124      $  (233,519)
--------------------------------------------------------------------------------
Income per share:
Net income (loss) - basic shares                  $       .17      $      (.12)
Net income (loss) - diluted shares                $       .16      $      (.11)
--------------------------------------------------------------------------------


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

<PAGE>

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------
SIX MONTHS ENDED DECEMBER 31                              2000             1999
------------------------------------------------------------------------------------
<S>                                                   <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income or (loss)                                  $   325,124       $  (233,519)
Adjustments to reconcile net income to
  cash provided (used) by operating activities:
Depreciation and amortization                              68,440            46,381
(Increase) decrease in operating assets:
Accounts receivable - trade                               397,115         1,288,681
Inventories                                                58,720          (331,990)
Deferred tax benefit                                     (235,600)               --
Expected insurance recoveries                          (1,410,000)               --
Other current assets                                       (4,070)            8,071
Increase (decrease) in operating liabilities:
Accounts payable - trade                                 (126,500)         (278,684)
Accrued expenses                                          (19,133)         (749,702)
Accrued environmental costs                             2,140,000                --
------------------------------------------------------------------------------------
Net cash provided (used) by operating activities        1,194,096          (250,762)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment                       (208,968)         (102,942)
------------------------------------------------------------------------------------
Cash (used) by investing activities                      (208,968)         (102,942)

CASH FLOWS FROM FINANCING ACTIVITIES:
Exercised stock options                                     3,335             6,667
------------------------------------------------------------------------------------
Cash provided by financing activities                       3,335             6,667

Increase (decrease) in cash and cash equivalents          988,463          (347,037)
Cash and cash equivalents at beginning of year          4,045,523         4,170,103
------------------------------------------------------------------------------------
Cash and cash equivalents at December 31              $ 5,033,986       $ 3,823,066
------------------------------------------------------------------------------------
</TABLE>

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

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  Principles of Consolidation

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

The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's annual
financial statements and notes. Accordingly, these statements should be read in
conjunction with the consolidated financial statements and notes thereto
appearing in the Annual Report of the Company for the fiscal year ended June 30,
2000.

2.  Inventories

On September and March reports the inventory is determined on a cost of goods
sold basis. Material usage is based on historical cost. Any change on December
31 and year end physical inventory compared with that based on cost of goods
sold could materially effect increasing or decreasing profits.

3.  Income Tax Provision

At December 31, 2000, the Company had no net operating loss carryforward for
federal income tax purposes, and a net operating loss carryforward for Florida
state income tax purposes of approximately $60,000, expiring over a period of
years through 2011.

4. Contingencies

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

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

<PAGE>

The Company has notified its liability insurance carriers which issued liability
policies to the Company during the period from 1959 to 1985 and, at this time,
management believes it is probable that its liability insurance policies will
cover an estimated $1.41 million of the remediation expenses.

It is reasonably possible that the Company's recorded estimate of this
remediation and probable insurance recoveries may change in the near term.

With respect to the environmental issue discussed above, the Company has
recorded the present value of the estimated cost and probable insurance using a
discount rate of 6.16%. The recorded discounted amounts are as follows:


                  Accrued Environmental cost           $ 2,140,000
                  Expected insurance recoveries         (1,410,000)
                                                       -----------
                                                       $   730,000
                                                       -----------

<PAGE>

ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS

               KREISLER MANUFACTURING CORPORATION AND SUBSIDIARIES
                      MANAGEMENT'S DISCUSSION AND ANALYSIS
             FOR THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2000

Description of Business

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

Forward Looking Statements

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

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

Products

    The Company fabricates precision metal components and assemblies primarily
for aircraft engines with both military and commercial applications. The primary
function of the Company's tubular products is to transport fluids, including
air, oil and gas to various parts of the aircraft or aircraft engine.

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

    Over the past three years, ninety percent of the Company's products were
tubular assemblies. For the fiscal year ended June 30, 2000, the sales activity
was approximately thirty percent for military aircraft engines and seventy
percent for commercial aircraft engines.

    Substantially all sales of products are made through an in-house sales staff
supported by a government sales representative. All products are manufactured to
the blueprints and specifications of the particular customer. Orders for these
are received through competitive proposals, which are made in response to
requests for bids

<PAGE>

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

Results of Operations

   Kreisler Manufacturing Corporations revenue for the second quarter and six
months ended December 31,2000 increased $1,454,000 or 52% and $2,409,000 or 43%
respectively compared with the same period in the prior year. Revenue increased
both with current and new customers on new and mature programs.

     Operating income for the second quarter and six months ended December 31,
2000 increased $1,037,183 or 287% and $711,386 or 241% respectively compared to
the same period in the prior year. Restated without $730,000 estimated accrued
environmental costs, operating income for the six months ended December 31, 2000
was $1,145,844 or 14.3%.

   Cash and Cash equivalents increased $988,000 or 24% from June 30, 2000 to
$5,034,000 on December 31, 2000.

   Capital equipment budget for the year is $700,000 with $435,000 or 62% of the
expenditure in the fourth quarter of this fiscal year.

   At the present time with uncertain economic conditions Kreisler's backlog has
increased 12% since June 30, 2000 with shipments over $8,000,000 for the six
months ended December 31, 2000. Entry into the industrial gas turbine industry
creates an opportunity for Kreisler to expand into a new market. A new program
has started and development of another is in progress. This is a growth market
with the energy crisis throughout the world.



                                   IN MEMORIAM


     It is with deep regret that we announce the untimely loss of a director of
the Company, Harry Brill-Edwards, in an automobile accident on November 30,2000.
Harry started with Kreisler in 1993 as a consultant during difficult business
conditions. His contributions were invaluable in turning the company around. In
1994 he became a member of the Board and with knowledge, experience and insight
brought a dynamic to the Board of Directors in establishing policy and direction
for the Company. Harry will be missed by all of us. His contributions and
friendship will always be remembered. We extend our sympathy to Harry's wife
Heidi and children Alex, Chris and Phil.


<PAGE>

PART II       OTHER INFORMATION

ITEM 1        LEGAL PROCEEDINGS

              None

ITEM 2        CHANGES IN SECURITIES

              None

ITEM 3        DEFAULTS UPON SENIOR SECURITIES

              None

ITEM 4        SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS

              None

ITEM 5        OTHER INFORMATION

              None

ITEM 6        EXHIBITS AND REPORTS ON FORM 8K

              (a) Part I Exhibits
                  11.  Statement re: computation of per share earnings
                  27.  Financial data schedule


<PAGE>

                                    SIGNATURE
                                    ---------

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




                       KREISLER MANUFACTURING CORPORATION
                                  (Registrant)



                             BY /s/ EDWARD L. STERN
                             ----------------------
                                 Edward L. Stern
                              President, Treasurer


January 23, 2001