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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM 10-Q







|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended October 31, 2010

or



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

For the transition period from
 to

Commission file number 0-5286





KEWAUNEE
SCIENTIFIC CORPORATION

(Exact name of registrant as specified in its charter)







|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|Delaware                                                       |  | 38-0715562                       
|(State or other jurisdiction of
incorporation or organization) |  | (IRS Employer Identification No.)
|                                                               | 
|2700 West Front Street Statesville, North Carolina             |  | 28677-2927                       
|(Address of principal executive offices)                       |  | (Zip Code)                       

Registrants telephone number, including area code: (704) 873-7202





Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of large accelerated
filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller reporting company |  | x

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act).    Yes   ̈    No  x

As of
December 6, 2010, the registrant had outstanding 2,576,167 shares of Common Stock.









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KEWAUNEE SCIENTIFIC CORPORATION

INDEX TO FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2010



|                              |  |                                                                                              |    |             |    | 
|----------------------------- |  | -------------------------------------------------------------------------------------------- | -- | ----------- | -- | 
|                              |  |                                                                                              |    | Page Number |   
|                              | 
|PART I. FINANCIAL INFORMATION |  |                                                                                              |    |            
|                              |  |                                                                                             
|Item 1.                       |  | Financial Statements                                                                         |    |             | 1  | 
|                              |  |                                                                                             
|                              |  | Consolidated Statements of Operations  Three and Six months ended October 31, 2010 and 2009 |    |             | 1  | 
|                              |  |                                                                                             
|                              |  | Consolidated Balance Sheets  October 31, 2010 and April 30, 2010                            |    |             | 2  | 
|                              |  |                                                                                             
|                              |  | Consolidated Statements of Cash Flows  Six months ended October 31, 2010 and 2009           |    |             | 3  | 
|                              |  |                                                                                             
|                              |  | Notes to Consolidated Financial Statements                                                   |    |             | 4  | 
|                              |  |                                                                                             
|Item 2.                       |  | Managements Discussion and Analysis of Financial Condition and Results of Operations        |    |             | 7  | 
|                              |  |                                                                                             
|                              |  | Review by Independent Registered Public Accounting Firm                                      |    |             | 9  | 
|                              |  |                                                                                             
|                              |  | Report of Independent Registered Public Accounting Firm                                      |    |             | 10 | 
|                              |  |                                                                                             
|Item 3.                       |  | Quantitative and Qualitative Disclosures About Market Risk                                   |    |             | 11 | 
|                              |  |                                                                                             
|Item 4.                       |  | Controls and Procedures                                                                      |    |             | 11 | 
|                              | 
|PART II. OTHER INFORMATION    |  |                                                                                              |    |            
|                              |  |                                                                                             
|Item 6.                       |  | Exhibits                                                                                     |    |             | 12 | 
|                              | 
|SIGNATURE                     |  |                                                                                              | 13 |            



i



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##### Table of Contents

Part 1. Financial Information



|Item 1. | Financial Statements
|------- | --------------------

Kewaunee Scientific Corporation

Consolidated Statements of Operations

(Unaudited)

(in thousands, except per share data)



|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|----------------------------------------------------------------------------------- |  | ---------------------------- | ------ | - | -------------------------- | - | ------ | ---- |  | - | ------ | - |  | - | ------ | -
|                                                                                    |  | Three months endedOctober 31 |        |   | Six months endedOctober 31 |  
|                                                                                    |  | 2010                         |        |   | 2009                       |   |        | 2010 |  |   | 2009   |  
|Net Sales                                                                           |  | $                            | 25,625 |   |                            | $ | 27,088 |      |  | $ | 50,483 |   |  | $ | 53,337 |  
|Costs of products sold                                                              |  |                              | 20,208 |   |                            |   | 20,878 |      |  |   | 40,067 |   |  |   | 41,363 |  
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Gross profit                                                                        |  |                              | 5,417  |   |                            |   | 6,210  |      |  |   | 10,416 |   |  |   | 11,974 |  
|Operating expenses                                                                  |  |                              | 4,045  |   |                            |   | 3,976  |      |  |   | 7,946  |   |  |   | 7,942  |  
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Operating earnings                                                                  |  |                              | 1,372  |   |                            |   | 2,234  |      |  |   | 2,470  |   |  |   | 4,032  |  
|Other expense                                                                       |  |                              | (1     | ) |                            |   |       |      |  |   | (1     | ) |  |   |       |  
|Interest expense                                                                    |  |                              | (77    | ) |                            |   | (39    | )    |  |   | (122   | ) |  |   | (80    | )
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Earnings before income taxes                                                        |  |                              | 1,294  |   |                            |   | 2,195  |      |  |   | 2,347  |   |  |   | 3,952  |  
|Income tax expense                                                                  |  |                              | 414    |   |                            |   | 751    |      |  |   | 743    |   |  |   | 1,340  |  
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Net earnings                                                                        |  |                              | 880    |   |                            |   | 1,444  |      |  |   | 1,604  |   |  |   | 2,612  |  
|Less: net earnings attributable to the noncontrolling interest                      |  |                              | 25     |   |                            |   | 92     |      |  |   | 92     |   |  |   | 189    |  
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Net earnings attributable to Kewaunee Scientific Corporation                        |  | $                            | 855    |   |                            | $ | 1,352  |      |  | $ | 1,512  |   |  | $ | 2,423  |  
|                                                                                    |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|                                                                                    |  |                              |        |  
|Net earnings per share attributable to Kewaunee Scientific Corporation stockholders |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Basic                                                                               |  | $                            | 0.33   |   |                            | $ | 0.53   |      |  | $ | 0.59   |   |  | $ | 0.95   |  
|Diluted                                                                             |  | $                            | 0.33   |   |                            | $ | 0.53   |      |  | $ | 0.59   |   |  | $ | 0.95   |  
|                                                                                    |  |                              |        |  
|Weighted average number of common shares outstanding (in thousands)                 |  |                              |        |   |                            |   |        |      |  |   |        |   |  |   |        |  
|Basic                                                                               |  |                              | 2,573  |   |                            |   | 2,560  |      |  |   | 2,573  |   |  |   | 2,558  |  
|Diluted                                                                             |  |                              | 2,578  |   |                            |   | 2,571  |      |  |   | 2,578  |   |  |   | 2,564  |  

See accompanying
notes to consolidated financial statements.



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Kewaunee Scientific Corporation

Consolidated Balance Sheets

(in thousands)



|                                                           |  |                 |         |   |               |   |         |  
|---------------------------------------------------------- |  | --------------- | ------- | - | ------------- | - | ------- | -
|                                                           |  | October 31,2010 |         |   | April 30,2010 |  
|                                                           |  | (Unaudited)     |         |   |               |  
|Assets                                                     |  |                 |         |   |               |   |         |  
|Current assets:                                            |  |                 |         |   |               |   |         |  
|Cash and cash equivalents                                  |  | $               | 1,248   |   |               | $ | 1,722   |  
|Restricted cash                                            |  |                 | 544     |   |               |   | 544     |  
|Receivables, less allowance                                |  |                 | 26,993  |   |               |   | 26,169  |  
|Inventories                                                |  |                 | 9,058   |   |               |   | 8,350   |  
|Deferred income taxes                                      |  |                 | 511     |   |               |   | 390     |  
|Prepaid expenses and other current assets                  |  |                 | 1,692   |   |               |   | 1,407   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total current assets                                       |  |                 | 40,046  |   |               |   | 38,582  |  
|                                                           |  |                
|Property, plant and equipment, at cost                     |  |                 | 46,821  |   |               |   | 43,200  |  
|Accumulated depreciation                                   |  |                 | (30,483 | ) |               |   | (29,385 | )
|                                                           |  |                 |         |   |               |   |         |  
|Net property, plant and equipment                          |  |                 | 16,338  |   |               |   | 13,815  |  
|                                                           |  |                
|Deferred income taxes                                      |  |                 | 706     |   |               |   | 663     |  
|Other                                                      |  |                 | 3,692   |   |               |   | 3,561   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total other assets                                         |  |                 | 4,398   |   |               |   | 4,224   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total Assets                                               |  | $               | 60,782  |   |               | $ | 56,621  |  
|                                                           |  |                 |         |   |               |   |         |  
|                                                           |  |                
|Liabilities and Equity                                     |  |                 |         |   |               |   |         |  
|Current liabilities:                                       |  |                 |         |   |               |   |         |  
|Short-term borrowings                                      |  | $               | 4,147   |   |               | $ | 4,872   |  
|Current obligations under capital leases                   |  |                 | 80      |   |               |   | 82      |  
|Current portion of long-term                               |  |                 | 200     |   |               |   |        |  
|Accounts payable                                           |  |                 | 9,211   |   |               |   | 9,540   |  
|Employee compensation and amounts withheld                 |  |                 | 1,416   |   |               |   | 1,358   |  
|Deferred revenue                                           |  |                 | 899     |   |               |   | 586     |  
|Other accrued expenses                                     |  |                 | 2,312   |   |               |   | 2,059   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total current liabilities                                  |  |                 | 18,265  |   |               |   | 18,497  |  
|                                                           |  |                
|Obligations under capital leases                           |  |                 | 79      |   |               |   | 119     |  
|Long-term debt                                             |  |                 | 3,767   |   |               |   |        |  
|Accrued employee benefit plan costs                        |  |                 | 6,023   |   |               |   | 6,333   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total Liabilities                                          |  |                 | 28,134  |   |               |   | 24,949  |  
|Equity:                                                    |  |                 |         |   |               |   |         |  
|Common Stock                                               |  |                 | 6,550   |   |               |   | 6,550   |  
|Additional paid-in-capital                                 |  |                 | 946     |   |               |   | 855     |  
|Retained earnings                                          |  |                 | 29,396  |   |               |   | 28,398  |  
|Accumulated other comprehensive loss                       |  |                 | (5,124  | ) |               |   | (4,898  | )
|Common stock in treasury, at cost                          |  |                 | (473    | ) |               |   | (472    | )
|                                                           |  |                 |         |   |               |   |         |  
|Total Kewaunee Scientific Corporation stockholders equity |  |                 | 31,295  |   |               |   | 30,433  |  
|Noncontrolling interest                                    |  |                 | 1,353   |   |               |   | 1,239   |  
|                                                           |  |                 |         |   |               |   |         |  
|Total Equity                                               |  |                 | 32,648  |   |               |   | 31,672  |  
|                                                           |  |                 |         |   |               |   |         |  
|Total Liabilities and Equity                               |  | $               | 60,782  |   |               | $ | 56,621  |  
|                                                           |  |                 |         |   |               |   |         |  

See accompanying notes to consolidated financial statements.



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Kewaunee Scientific Corporation

Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)



|                                                                                    |  |                            |        |   |      |   |        |  
|----------------------------------------------------------------------------------- |  | -------------------------- | ------ | - | ---- | - | ------ | -
|                                                                                    |  | Six months endedOctober 31 |       
|                                                                                    |  | 2010                       |        |   | 2009 |  
|Cash flows from operating activities:                                               |  |                            |        |   |      |   |        |  
|Net earnings                                                                        |  | $                          | 1,604  |   |      | $ | 2,612  |  
|Adjustments to reconcile net earnings to net cash provided by operating activities: |  |                            |        |   |      |   |        |  
|Depreciation                                                                        |  |                            | 1,189  |   |      |   | 1,255  |  
|Bad debt provision                                                                  |  |                            | 85     |   |      |   | 71     |  
|Provision for deferred income tax expense                                           |  |                            | (164   | ) |      |   | 10     |  
|Decrease in prepaid income taxes                                                    |  |                            |       |   |      |   | 9      |  
|Increase in receivables                                                             |  |                            | (909   | ) |      |   | (2,205 | )
|Increase in inventories                                                             |  |                            | (708   | ) |      |   | (278   | )
|(Decrease) increase in accounts payable and other accrued expenses                  |  |                            | (18    | ) |      |   | 432    |  
|Increase in deferred revenue                                                        |  |                            | 313    |   |      |   | 29     |  
|Other, net                                                                          |  |                            | (913   | ) |      |   | 138    |  
|                                                                                    |  |                            |        |   |      |   |        |  
|Net cash provided by operating activities                                           |  |                            | 479    |   |      |   | 2,073  |  
|                                                                                    |  |                           
|Cash flows from investing activities:                                               |  |                            |        |   |      |   |        |  
|Capital expenditures                                                                |  |                            | (3,712 | ) |      |   | (2,278 | )
|Increase in restricted cash                                                         |  |                            |       |   |      |   | (5     | )
|                                                                                    |  |                            |        |   |      |   |        |  
|Net cash used in investing activities                                               |  |                            | (3,712 | ) |      |   | (2,283 | )
|                                                                                    |  |                           
|Cash flows from financing activities:                                               |  |                            |        |   |      |   |        |  
|Proceeds from long-term debt                                                        |  |                            | 4,000  |   |      |   |       |  
|Payments on long-term debt                                                          |  |                            | (33    | ) |      |   |       |  
|Dividends paid                                                                      |  |                            | (514   | ) |      |   | (461   | )
|Payments on short-term borrowings, net                                              |  |                            | (725   | ) |      |   | (350   | )
|Payments on capital leases                                                          |  |                            | (42    | ) |      |   | (144   | )
|Purchase of treasury stock                                                          |  |                            | (42    | ) |      |   | (114   | )
|Proceeds from exercise of stock options (including tax benefit)                     |  |                            | 41     |   |      |   | 135    |  
|                                                                                    |  |                            |        |   |      |   |        |  
|Net cash provided by (used in) financing activities                                 |  |                            | 2,685  |   |      |   | (934   | )
|                                                                                    |  |                           
|Effect of exchange rate changes on cash                                             |  |                            | 74     |   |      |   | 181    |  
|                                                                                    |  |                            |        |   |      |   |        |  
|Decrease in cash and cash equivalents                                               |  |                            | (474   | ) |      |   | (963   | )
|                                                                                    |  |                           
|Cash and cash equivalents, beginning of period                                      |  |                            | 1,722  |   |      |   | 3,559  |  
|                                                                                    |  |                            |        |   |      |   |        |  
|                                                                                    |  |                           
|Cash and cash equivalents, end of period                                            |  | $                          | 1,248  |   |      | $ | 2,596  |  
|                                                                                    |  |                            |        |   |      |   |        |  

See accompanying notes to consolidated financial statements



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Kewaunee Scientific Corporation

Notes to Consolidated Financial Statements

(unaudited)

A. Financial Information

The unaudited interim consolidated financial statements of Kewaunee Scientific Corporation (the Company or Kewaunee) have been
prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the Commission). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with
accounting principles generally accepted in the United States of America have been condensed or omitted, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the
Companys 2010 Annual Report to Stockholders. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

The preparation of the interim consolidated financial statements requires management to make certain estimates and assumptions that affect reported
amounts and disclosures. Actual results could differ from those estimates.

B. Inventories

Inventories consisted of the following (in thousands):



|                  |  |                  |       |  |                |   |       | 
|----------------- |  | ---------------- | ----- |  | -------------- | - | ----- | 
|                  |  | October 31, 2010 |       |  | April 30, 2010 |  
|Finished products |  | $                | 2,067 |  |                | $ | 2,199 | 
|Work in process   |  |                  | 1,417 |  |                |   | 1,237 | 
|Raw materials     |  |                  | 5,574 |  |                |   | 4,914 | 
|                  |  |                  |       |  |                |   |       | 
|                  |  | $                | 9,058 |  |                | $ | 8,350 | 
|                  |  |                  |       |  |                |   |       | 

For interim reporting, LIFO inventories are computed based on year-to-date quantities and interim changes in price levels.
Changes in quantities and price levels are reflected in the interim consolidated financial statements in the period in which they occur.

C.
Comprehensive Income

A reconciliation of net earnings and total comprehensive income for the three and six months ended
October 31, 2010 and 2009 is as follows (in thousands):



|                                                              |  |                                    |       |   |                                    |   |       | 
|------------------------------------------------------------- |  | ---------------------------------- | ----- | - | ---------------------------------- | - | ----- | 
|                                                              |  | Three months endedOctober 31, 2010 |       |   | Three months endedOctober 31, 2009 |  
|Net earnings                                                  |  | $                                  | 855   |   |                                    | $ | 1,352 | 
|Change in cumulative foreign currency translation adjustments |  |                                    | 98    |   |                                    |   | 109   | 
|Change in fair value of cash flow hedge, net of tax           |  |                                    | (197  | ) |                                    |   |      | 
|                                                              |  |                                    |       |   |                                    |   |       | 
|Total comprehensive income                                    |  | $                                  | 756   |   |                                    | $ | 1,461 | 
|                                                              |  |                                    |       |   |                                    |   |       | 
|                                                              |  |                                   
|                                                              |  | Six months endedOctober 31, 2010   |       |   | Six months endedOctober 31, 2009   |  
|Net earnings                                                  |  | $                                  | 1,512 |   |                                    | $ | 2,423 | 
|Change in cumulative foreign currency translation adjustments |  |                                    | (18   | ) |                                    |   | 213   | 
|Change in fair value of cash flow hedge, net of tax           |  |                                    | (208  | ) |                                    |   |      | 
|                                                              |  |                                    |       |   |                                    |   |       | 
|Total comprehensive income                                    |  | $                                  | 1,286 |   |                                    | $ | 2,636 | 
|                                                              |  |                                    |       |   |                                    |   |       | 

Assets and liabilities for the Companys foreign subsidiaries are translated at exchange rates prevailing on the
balance sheet date. Revenues and expenses are translated at weighted average exchange rates prevailing during the period and any resulting translation adjustments are reported separately in stockholders equity.



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D. Segment Information

The following table provides financial information by business segments for the three and six months ended October 31, 2010 and 2009 (in thousands):



|                                               |  |                    |        |  |                         |   |       |           |  |   |        |   |  |   |        | 
|---------------------------------------------- |  | ------------------ | ------ |  | ----------------------- | - | ----- | --------- |  | - | ------ | - |  | - | ------ | 
|                                               |  | DomesticOperations |        |  | InternationalOperations |   |       | Corporate |  |   | Total  |  
|Three months ended October 31, 2010            |  |                    |        |  |                         |   |       |           |  |   |        |   |  |   |        | 
|Revenues from external customers               |  | $                  | 22,269 |  |                         | $ | 3,356 |           |  | $ |       |   |  | $ | 25,625 | 
|Intersegment revenues                          |  |                    | 504    |  |                         |   | 4     |           |  |   | (508   | ) |  |   |       | 
|Operating earnings (loss) before income taxes  |  |                    | 2,112  |  |                         |   | 105   |           |  |   | (923   | ) |  |   | 1,294  | 
|Three months ended October 31, 2009            |  |                    |        |  |                         |   |       |           |  |   |        |   |  |   |        | 
|Revenues from external customers               |  | $                  | 24,713 |  |                         | $ | 2,375 |           |  | $ |       |   |  | $ | 27,088 | 
|Intersegment revenues                          |  |                    | 271    |  |                         |   | 310   |           |  |   | (581   | ) |  |   |       | 
|Operating earnings (loss) before incomes taxes |  |                    | 2,900  |  |                         |   | 206   |           |  |   | (911   | ) |  |   | 2,195  | 
|Six months ended October 31, 2010              |  |                    |        |  |                         |   |       |           |  |   |        |   |  |   |        | 
|Revenues from external customers               |  | $                  | 43,216 |  |                         | $ | 7,267 |           |  | $ |       |   |  | $ | 50,483 | 
|Intersegment revenues                          |  |                    | 1,167  |  |                         |   | 647   |           |  |   | (1,814 | ) |  |   |       | 
|Operating earnings (loss) before incomes taxes |  |                    | 3,697  |  |                         |   | 333   |           |  |   | (1,683 | ) |  |   | 2,347  | 
|Six months ended October 31, 2009              |  |                    |        |  |                         |   |       |           |  |   |        |   |  |   |        | 
|Revenues from external customers               |  | $                  | 48,071 |  |                         | $ | 5,266 |           |  | $ |       |   |  | $ | 53,337 | 
|Intersegment revenues                          |  |                    | 691    |  |                         |   | 417   |           |  |   | (1,108 | ) |  |   |       | 
|Operating earnings (loss) before incomes taxes |  |                    | 5,445  |  |                         |   | 509   |           |  |   | (2,002 | ) |  |   | 3,952  | 

E. Defined Pension Plans

The Company has non-contributory defined benefit pension plans covering substantially all salaried and hourly employees. These plans were
amended as of April 30, 2005, no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans. Contributions of $719,000 were paid to the plans
during the six months ended October 31, 2010, and the Company does not expect any contributions to be paid to the plans during the remainder of the current fiscal year. No contributions were made during the comparable periods of the prior year.

Pension expense consisted of the following (in thousands):



|                               |  |                                    |      |   |                                    |   |      |  
|------------------------------ |  | ---------------------------------- | ---- | - | ---------------------------------- | - | ---- | -
|                               |  | Three months endedOctober 31, 2010 |      |   | Three months endedOctober 31, 2009 |  
|Service cost                   |  | $                                  | -0-  |   |                                    | $ | -0-  |  
|Interest cost                  |  |                                    | 240  |   |                                    |   | 245  |  
|Expected return on plan assets |  |                                    | (289 | ) |                                    |   | (234 | )
|Recognition of net loss        |  |                                    | 172  |   |                                    |   | 187  |  
|                               |  |                                    |      |   |                                    |   |      |  
|Net periodic pension expense   |  | $                                  | 123  |   |                                    | $ | 198  |  
|                               |  |                                    |      |   |                                    |   |      |  
|                               |  |                                   
|                               |  | Six months endedOctober 31, 2010   |      |   | Six months endedOctober 31, 2009   |  
|Service cost                   |  | $                                  | -0-  |   |                                    | $ | -0-  |  
|Interest cost                  |  |                                    | 480  |   |                                    |   | 475  |  
|Expected return on plan assets |  |                                    | (578 | ) |                                    |   | (469 | )
|Recognition of net loss        |  |                                    | 344  |   |                                    |   | 347  |  
|                               |  |                                    |      |   |                                    |   |      |  
|Net periodic pension expense   |  | $                                  | 246  |   |                                    | $ | 353  |  
|                               |  |                                    |      |   |                                    |   |      |  

F. Credit Arrangement

In July 2009, the Company amended its unsecured revolving credit facility to extend the facilitys expiration date to July 31, 2012, and modify the variable rate component of the interest
calculation. Monthly interest payments under the facility, as amended, are calculated at the 30-day LIBOR Market Interest Rate plus a variable rate ranging from 1.575% to 2.175%.

In July 2009, the Company entered into an interest rate SWAP agreement whereby the interest rate payable by the Company on $2 million of outstanding advances under the revolving credit facility was
effectively converted to a fixed interest rate of 3.9% for the period beginning August 3, 2009, and ending August 1, 2012. The Company entered into this interest rate swap to mitigate future interest rate risk associated with advances
under the credit facility.



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G. Long-Term Debt

On August 2, 2010, the Company amended its existing bank agreement covering its unsecured $14 million revolving credit facility to provide for an additional $4 million seven-year term loan secured by
the Companys real property and equipment located in Statesville, North Carolina. The term loan requires monthly principal payments of approximately $17,000, plus interest calculated at the 30-day LIBOR Market Index Rate plus 1.575%, with
payment of the outstanding principal balance and any unpaid interest at the term loan maturity date. In June 2010, the Company entered into an interest rate swap agreement whereby the interest rate payable by the Company on the term loan was
effectively converted to a fixed interest rate of 4.875%, effective August 2, 2010. The term loan includes financial covenants similar to the unsecured revolving credit facility. The proceeds of the term loan are being used primarily to fund
the expansion of the Companys Statesville, North Carolina manufacturing facilities.

H. Derivative Instruments and Hedging
Activities

As described in Note G above, the Company entered into an interest rate swap agreement with an initial notional amount of $4
million, whereby the interest rate payable by the Company on the unpaid balance of the new term loan is effectively converted to a fixed interest rate of 4.875% for the period beginning August 2, 2010, and ending August 1, 2017. The
Company entered into this interest rate swap to mitigate future interest rate risk associated with advances under the credit facility. The Company does not use derivatives for trading or speculative purposes. The effective portion of changes in the
fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects
earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company did not record any hedge ineffectiveness in earnings during the three months and six months periods ended
October 31, 2010 and 2009.

The reduction in fair value of cash flow hedges, net of tax for the three months and six months ended
October 31, 2010 was $197,000 and $208,000, respectively. The change in fair value was recorded in the Companys consolidated balance sheet as a current liability and accumulated other comprehensive loss.

I. Reclassifications

Certain 2009
amounts have been reclassified to conform with the 2010 presentation in the consolidated statements of cash flows. Such reclassifications had no impact on net earnings.



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|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

The Companys 2010 Annual Report to Stockholders contains managements discussion and analysis of financial condition and results of operations at and for the year ended April 30, 2010. The
following discussion and analysis describes material changes in the Companys financial condition since April 30, 2010. The analysis of results of operations compares the three and six months ended October 31, 2010 with the comparable
periods of the prior fiscal year.

Results of Operations

Sales for the three months ended October 31, 2010 were $25,625,000, a decrease of 5% from sales of $27,088,000 in the second quarter last year. The decline primarily resulted from a continuing
softness in the domestic marketplace for small and mid-sized laboratory projects. Domestic sales were $22,269,000, down from $24,713,000 in the second quarter last year, while international sales were $3,356,000, up from $2,375,000 in the second
quarter last year.

Sales for the six months ended October 31, 2010 were $50,483,000, down 5% from sales of $53,337,000, in the same
period last year. Domestic operations sales were $43,216,000, down from sales of $48,071,000 in the same period last year. International operations sales were $7,267,000, up from sales of $5,266,000 in the same period last year.

The order backlog was $66.0 million at October 31, 2010, down slightly from $66.9 million at July 31, 2010 and up from $65.2 million at
October 31, 2009.

The gross profit margin for the three months ended October 31, 2010 was 21.1% of sales, as compared to 22.9% of
sales in the comparable quarter of the prior year. The gross profit margin for the six months ended October 31, 2010 was 20.6% of sales, as compared to 22.4% of sales in the comparable quarter of the prior year. The decreases in gross profit
margin percentages for the current year periods were primarily due to aggressive pricing in all of the Companys markets and the unfavorable impact of lower production volumes.

Operating expenses for the three months ended October 31, 2010 were $4,045,000, or 15.8% of sales, as compared to $3,976,000, or 14.7% of sales, in the comparable period of the prior year. Operating
expenses for the six months ended October 31, 2010 were $7,946,000, or 15.7% of sales, as compared to $7,942,000, or 14.9% of sales, in the comparable period of the prior year. The ratio of operating expenses to sales increased for the current
year periods as operating expenses were relatively unchanged from the prior year periods while sales declined. Pension expense decreased $75,000 and $107,000 for the three and six months periods ended October 31, 2010, respectively, and
incentive compensation expense decreased $52,000 and $211,000, respectively, for these periods. Those increases were offset by increases in various other operating expense categories.

Operating earnings were $1,372,000 and $2,470,000 for the three and six months ended October 31, 2010. This compares to operating earnings of $2,234,000 and $4,032,000 for the comparable periods of
the prior year.

Interest expense was $78,000 and $122,000 for the three and six months ended October 31, 2010, respectively, as compared
to $39,000 and $80,000 for the comparable periods of the prior year. The increase in interest expense for the current year periods resulted primarily from higher bank borrowings.

Income tax expense of $414,000 and $743,000 was recorded for the three and six months ended October 31, 2010, respectively, as compared to income tax expense of $751,000 and $1,340,000 recorded for
the comparable periods of the prior year. The effective tax rates were 32.0% and 31.7% for the three and six months ended October 31, 2010, respectively, and were 34.2% and 33.9% for the three and six months ended October 31, 2009. The
effective tax rates for each of the three and six month periods differs from the statutory rate primarily due to the impact of varying income tax rates on income earned by the Companys foreign subsidiaries. In addition to this factor, the
effective tax rates for all the periods were favorably impacted by earned state and federal tax credits. The decrease in the effective tax rates in the current year periods as compared to the prior year periods resulted primarily from the fact that
the higher pre-tax earnings levels in the prior year periods were less impacted by earned stated and federal tax credits, and to a lesser extent, the impact of higher pretax earnings in the current year periods from geographic areas with lower
statutory income tax rates.

Net earnings attributable to the noncontrolling interest related to the Companys two subsidiaries that are
not 100% owned by the Company were $25,000 and $92,000 for the three and six months ended October 31, 2010, respectively, as compared to $92,000 and $189,000, respectively, for the comparable periods of the prior year. The decrease in the net
earnings attributable to the noncontrolling interest in the current periods were due to lower earnings of the two subsidiaries.

Net earnings
for the three months ended October 31, 2010 were $855,000, or $0.33 per diluted share, a decrease from net earnings of $1,352,000, or $0.53 per diluted share, in the second quarter of the prior year. Net earnings for the six months were
$1,512,000, or $0.59 per diluted share, down from net earnings of $2,423,000, or $0.95 per diluted share, for the same period last year. Earnings for the three and six months periods of the current year were unfavorably impacted by lower sales
volume and continued aggressive pricing in all of the Companys markets.



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Liquidity and Capital Resources

Historically, the Companys principal sources of liquidity have been funds generated from operations, supplemented as needed by short-term borrowings under the Companys revolving credit
facility. Additionally, certain machinery and equipment are financed by non-cancellable operating leases or capital leases. The Company believes that these sources will be sufficient to support ongoing business requirements, including capital
expenditures through the current fiscal year.

The Company had working capital of $21.8 million at October 31, 2010, compared to $20.1
million at April 30, 2010. The ratio of current assets to current liabilities was 2.2-to-1.0 at October 31, 2010, compared to 2.1-to-1.0 at April 30, 2010. At October 31, 2010, advances of $4,147,000 were outstanding under the
Companys bank revolving credit facility, as compared to advances of $4,872,000 outstanding as of April 30, 2010. Total bank borrowings and capital lease obligations were $8,273,000 at October 31, 2010, as compared to $5,073,000 at
April 30, 2010.

The Companys operations provided cash of $479,000 during the six months ended October 31, 2010. Cash was
primarily provided from earnings, which was partially offset by increased accounts receivable of $909,000 and an increase in inventory of $708,000. The Companys operations provided cash of $2,073,000 during the six months ended
October 31, 2009, with cash primarily provided from earnings, which was partially offset by increased accounts receivable of $2,205,000.

During the six months ended October 31, 2010, net cash of $3,712,000 was used in investing activities, primarily for capital expenditures. This
compares to the use of $2,283,000 for investing activities in the comparable period of the prior year, primarily for capital expenditures.

The Companys financing activities provided cash of $2,685,000 during the six months ended October 31, 2010. Cash provided was primarily from
the proceeds from $4,000,000 in new long-term debt, partially offset by cash dividends paid of $514,000, and repayment of short-term borrowings of $725,000. The proceeds of the term loan are being used primarily to fund the expansion of the
Companys Statesville, North Carolina manufacturing facilities. Financing activities used cash of $934,000 in the same period for the prior year, which included $461,000 for cash dividends, $144,000 for payments on obligations of capital
leases, and repayment of short-term borrowings of $350,000.

Outlook for Third Quarter of Fiscal Year 2011

The Companys ability to predict future demand for its products continues to be limited given, among other general economic factors affecting the
Company and its markets, the Companys role as subcontractor or supplier to dealers for subcontractors, and the fact that demand for its products is dependent upon the number of laboratory construction projects planned and/or current progress
in projects already under construction.

The Company expects that sales and earnings for the second half of fiscal year 2011 will likely
improve over the first half of the fiscal year. The Companys expectations are based on a number of factors, including scheduled delivery dates for orders in the order backlog, a modest recovery in the global economy, and continuing increased
sales opportunities in the international marketplace.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this report constitute forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the Reform Act). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could significantly impact results or achievements expressed or implied by such
forward-looking statements. These factors include, but are not limited to, economic, competitive, governmental, and technological factors affecting the Companys operations, markets, products, services, and prices, as well as prices for certain
raw materials and energy. The cautionary statements made pursuant to the Reform Act herein and elsewhere by the Company should not be construed as exhaustive. The Company cannot always predict what factors would cause actual results to differ
materially from those indicated by the forward-looking statements. In addition, readers are urged to consider statements that include the terms believes, belief, expects, plans, objectives,
anticipates, intends or the like to be uncertain and forward-looking. Over time, the Companys actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that
are expressed or implied by the Companys forward-looking statements, and such difference might be significant and harmful to stockholders interests. Many important factors that could cause such a difference are described under the
caption Risk Factors, in Item 1A of the Companys 2010 Annual Report on Form 10-K.



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REVIEW BY INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

A review of the interim consolidated financial information included in this Quarterly Report on Form 10-Q for each of the three and six month periods
ended October 31, 2010 and October 31, 2009 has been performed by Cherry, Bekaert & Holland, L.L.P., the Companys independent registered public accounting firm. Their report on the interim consolidated financial information
follows.



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have reviewed the accompanying consolidated balance sheet of Kewaunee Scientific Corporation and its subsidiaries (the Company) as of
October 31, 2010, and the related consolidated statements of operations for the three month and six month periods ended October 31, 2010 and 2009 and the related consolidated statements of cash flows for the six-month periods ended
October 31, 2010 and 2009. These interim consolidated financial statements are the responsibility of the Companys management.

We
conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons
responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression
of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we
are not aware of any material modifications that should be made to the interim consolidated financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated
balance sheet as of April 30, 2010, and the related statements of operations, of stockholders equity and of cash flows for the year then ended (not presented herein) and in our report dated July 16, 2010, we expressed an unqualified
opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of April 30, 2010 is fairly stated in all material respects in relation to the consolidated
financial statement from which it has been derived.

/s/ Cherry, Bekaert & Holland, L.L.P.

Charlotte, North Carolina

December 10,
2010



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|Item 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------

There are no material changes to the disclosures made on this matter in the Companys Annual Report on Form 10-K for the fiscal year ended April 30, 2010.



|Item 4. | Controls and Procedures
|------- | -----------------------

(a) Evaluation of disclosure controls and procedures

An evaluation was performed under the supervision and the participation of the Companys management, including the Chief Executive Officer (CEO) and Chief Financial Officer
(CFO), of the effectiveness of the design and operation of the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of October 31,
2010. Based on that evaluation, the Companys management, including the CEO and CFO, concluded that, as of October 31, 2010, the Companys disclosure controls and procedures were adequate and effective and designed to ensure that all
material information required to be filed in this quarterly report is made known to them by others within the Company and its subsidiaries.

(b) Changes in internal controls

There was no significant change in the
Companys internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companys internal control over financial reporting.



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##### Table of Contents

PART II. OTHER INFORMATION



|Item 6. | Exhibits
|------- | --------



|     |  |                                                                                                                                                             
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1  |  | By-Laws (as amended August 25, 2010)(1)                                                                                                                     
|     | 
|10.1 |  | Amended and Restated Loan and Security Agreement dated as of August 2, 2010 between Bank of America, N.A. and Kewaunee Scientific Corporation.(2)           
|     | 
|10.2 |  | 2010 Stock Option Plan for Directors *(3)                                                                                                                   
|     | 
|31.1 |  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|     | 
|31.2 |  | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|     | 
|32.1 |  | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.          
|     | 
|32.2 |  | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.          



|* | The referenced exhibit is a management contract or compensatory plan or arrangement.
|- | ------------------------------------------------------------------------------------

|(1) | Filed with this Form 10-Q with the Securities and Exchange Commission.
|--- | ----------------------------------------------------------------------

|(2) | Filed as an exhibit to the Kewaunee Scientific Corporation Current Report on Form 8-K (Commission File No. 0-5286) filed on August 4, 2010, and incorporated herein
by reference.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(3) | Filed as Appendix A to the Kewaunee Scientific Corporation Proxy Statement for its Annual Meeting of Stockholders on August 25, 2010 (Commission File No. 0-5286)
filed on July 23, 2010, and incorporated herein by reference.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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SIGNATURE

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



|                        |  |  |  |                                              |  |                                                                                                              
|----------------------- |  |  |  | -------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------
|                        |  |  |  | KEWAUNEE SCIENTIFIC CORPORATION (Registrant)
|                        |  |  | 
|Date: December 13, 2010 |  |  |  | By                                           |  | /s/ D. Michael Parker                                                                                        
|                        |  |  |  |                                              |  | D. Michael Parker (As duly
authorized officer and Senior Vice President, Finance and Chief Financial Officer)



13