=================================================================



                SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, D.C. 20549

                            FORM 10-Q

           QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
              OF THE SECURITIES EXCHANGE ACT OF 1934


                 For Quarter Ended March 31, 2001


                    Commission File No. 1-3920


                        KINARK CORPORATION
    (Exact name of the registrant as specified in its charter)

     Delaware                              71-0268502
(State of Incorporation)      (I.R.S. Employer Identification No.)

                      2250 East 73rd Street
                      Tulsa, Oklahoma 74136
             (Address of principal executive offices)

 Registrant's telephone number:           (918) 494-0964


     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 and 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 the number of shares outstanding of each of the
issuer's classes of common stock, as of March 31, 2001.

         Common Stock $ .10 Par Value . . . . . 6,712,209



=================================================================

               KINARK CORPORATION AND SUBSIDIARIES

              Index to Quarterly Report on Form 10-Q


Part  I.  Financial Information

          Forward Looking Statements or Information             2

          Item 1.   Financial Statements

                    Independent Accountants' Review Report      3

                    Condensed Consolidated Balance Sheets
                    as of March 31, 2001 (unaudited), and
                    December 31, 2000                           4

                    Condensed Consolidated Statements of
                    Operations and Comprehensive Income
                    for the three  months ended
                    March 31, 2001 and 2000 (unaudited)         5

                    Condensed Consolidated Statements of
                    Cash Flows for the three months ended
                    March 31, 2001 and 2000 (unaudited)         6

                    Notes to Condensed Consolidated
                    Financial Statements for the three
                    months ended March 31, 2001 and 2000
                    (unaudited)                               7-12

          Item 2.   Management's Discussion and Analysis
                    of Financial Condition and Results of
                    Operations                               13-16

          Item 3.   Quantitative and Qualitative
                    Disclosure About Market Risks               17

Part II.  Other Information                                     18

Signatures                                                      19

<PAGE>

Forward Looking Statements or Information

      Certain statements in this Form 10-Q, including information
set forth under the caption "Management's Discussion and Analysis
of Financial Condition and Results of Operations", constitute
"Forward-Looking Statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended.  Such statements are
typically punctuated by words or phrases such as "anticipates,"
"estimate," "should," "may," "management believes," and words or
phrases of similar import.  The Company cautions investors that
such forward-looking statements included in this Form 10-Q, or
hereafter included in other publicly available documents filed
with the Securities and Exchange Commission, reports to the
Company's stockholders and other publically available statements
issued or released by the Company involve significant risks,
uncertainties, and other factors which could cause the Company's
actual results, performance (financial or operating) or
achievements to differ materially from the future results,
performance (financial or operating) or achievements expressed or
implied by such forward-looking statements.  Factors that could
cause or contribute to such differences could include, but are not
limited to, changes in demand, prices, and the raw materials cost
of zinc; changes in economic conditions of the various markets the
Company serves, as well as the other risks detailed herein and in
the Company's reports filed with the Securities and Exchange
Commission.  The Company believes that the important factors set
forth in the Company's cautionary statements at Exhibit 99 to this
Form 10-Q could cause such a material difference to occur and
investors are referred to Exhibit 99 for such cautionary
statements.

<PAGE>

INDEPENDENT ACCOUNTANTS' REVIEW REPORT


To the Board of Directors and Stockholders of
 Kinark Corporation:

We have reviewed the accompanying condensed consolidated balance
sheet of Kinark Corporation and subsidiary (the "Company") as of
March 31, 2001, and the related condensed consolidated statements
of operations and comprehensive income, and of cash flows for the
three-month periods ended March 31, 2001 and 2000.  These
financial statements are the responsibility of the Company's
management.

We conducted our reviews in accordance with standards established
by the American Institute of Certified Public Accountants.  A
review of interim financial information consists principally of
applying analytical procedures to financial data and of making
inquiries of persons responsible for financial and accounting
matters.  It is substantially less in scope than an audit
conducted in accordance with auditing standards generally accepted
in the United States of America, 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 such condensed consolidated
financial statements for them to be in conformity with accounting
principles generally accepted in the United States of America.

We have previously audited, in accordance with auditing standards
generally accepted in the United States of America, the
consolidated balance sheet of Kinark Corporation and subsidiaries
as of December 31, 2000, and the related consolidated statements
of operations, stockholders' equity and comprehensive income, and
cash flows for the year then ended (not presented herein); and in
our report dated February 23, 2001, we expressed an unqualified
opinion on those consolidated financial statements.  In our
opinion, the information set forth in the accompanying condensed
consolidated balance sheet as of December 31, 2000 is fairly
stated, in all material respects, in relation to the consolidated
balance sheet from which it has been derived.



/s/Deloitte & Touche LLP
Tulsa, Oklahoma
May 11, 2001

<PAGE>

            KINARK CORPORATION AND SUBSIDIARY
           CONDENSED CONSOLIDATED BALANCE SHEETS
                                     Unaudited
                                     March 31        Dec 31
                                     ----------------------
(Dollars in Thousands)                 2001           2000
============================================================
ASSETS
Current Assets
  Cash and cash equivalents          $ 1,051        $   57
   Trade receivables, net              5,262         5,421
   Inventories                         6,411         5,953
   Prepaid expenses and other assets     245           200
  Deferred tax asset, net                620           605
                                      ------         -----
      Total Current Assets            13,589        12,236
                                      ------        ------
  Funds held by bond trustee             217         1,219

Property, Plant and Equipment, at Cost
  Land                                 1,600         1,600
  Galvanizing plants and equipment    34,979        25,968
  Other                                   66            66
                                      ------        ------
                                      36,645        27,634
  Less:  Allowance for depreciation   12,825        12,014
  Construction in progress               315         7,581
                                      ------        ------
  Total Property, Plant &
   Equipment, Net                     24,135        23,201
                                      ------        ------
  Goodwill, net of accumulated
   amortization                        3,530         3,577
  Other Assets                           540           443
                                      ------        ------
 TOTAL ASSETS                        $42,011       $40,676
                                      ======        ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
 Current maturities of long-term
  obligations                        $   821       $ 1,001
 Current portion of bonds payable        567           563
 Trade accounts payable                2,150         1,241
 Accrued payroll and employee benefits   780           823
 Other taxes                             124           194
 Other accrued liabilities             1,067           775
                                      ------         -----
   Total Current Liabilities           5,509         4,597
                                      ------        ------
Deferred Tax Liability, Net              733           732
Pension and Related Liabilities          122           127
Long-Term Obligations                  8,984         9,420
Bonds Payable                          8,345         8,487
Subordinated Notes Payable               900           ---
                                      ------         -----
 Total Liabilities                    24,593        23,363
Commitments and Contingencies (Note 8)   ---           ---
Stockholders' Equity
Common stock                             819           819
Additional paid-in capital            17,464        17,364
Accumulated other comprehensive loss     (42)          ---
Retained earnings                      5,157         5,110
Common shares in treasury at cost     (5,980)       (5,980)
                                      ------        ------
  Total Stockholders' Equity          17,418        17,313
                                      ------        ------
TOTAL LIABILITIES &
  STOCKHOLDERS' EQUITY               $42,011       $40,676
                                      ======        ======

See notes to condensed consolidated financial statements.

<PAGE>


                KINARK CORPORATION AND SUBSIDIARY
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                    AND COMPREHENSIVE INCOME
                            Unaudited

                                            Three Months Ended
                                                 March 31
                                         -----------------------

(Dollars in Thousands Except
     per Share Amounts)                    2001            2000
=================================================================
  Sales                                  $ 8,982         $ 9,202

   Cost of sales                           6,345           6,722
   Selling, general and administrative
     expenses                              1,315           1,450
   Depreciation and amortization             872             709
                                          ------          ------
  Total Costs and Expenses                 8,532           8,881
                                          ------          ------
  Operating Income before Casualty Loss      450             321
  Casualty loss                              ---             313
                                          ------          ------
  Operating Income                           450               8
   Interest expense, net                     268             212
   Other Expense                             101             ---
                                          ------          ------
Income (Loss) from Continuing Operations
   before Income Taxes                        81            (204)

   Income tax expense (benefit)               34             (90)
                                          ------          ------
Income (Loss) from Continuing Operations      47            (114)

Loss from Discontinued Operations, net of
   income tax benefit                        ---             (46)
                                          ------          ------
 Net Income (Loss)                            47            (160)
                                          ------          ------
Other Comprehensive Loss:
  Cash flow hedges:
    Cumulative effect, accounting for
      derivatives, net of related
      income taxes of $48                    (65)            ---
    Less:  reclassification adjustment
      for derivative losses included in
      net income, net of related income
      taxes of $16                            23             ---
                                          ------          ------
Other Comprehensive Loss                     (42)            ---
                                          ------          ------
Comprehensive Income                     $     5         $  (160)
                                          ======          ======

Net Income (Loss) Per Common Share
Continuing Operations:
 Basic and Diluted                        $  .01         $  (.02)
Discontinued Operations:
 Basic and Diluted                        $  ---         $   ---
Net Income (Loss):
 Basic and Diluted                        $  .01         $  (.02)

See notes to condensed consolidated financial statements.

<PAGE>


            KINARK CORPORATION AND SUBSIDIARY
       CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                           Unaudited

                                            Three Months Ended
                                                 March 31
                                           ---------------------
(Dollars in Thousands)                        2001         2000
=================================================================
Operating Activities
Net income (loss)                           $   47       $ (160)
Loss from discontinued operations              ---           46
Depreciation and amortization                  872          709
Deferred income taxes                          (14)         (66)
Gain on disposal of assets                     (11)         ---
Changes in assets and liabilities:
  Accounts receivable, net                     159          458
  Inventories and other assets                (538)        (620)
  Accounts payable, accrued
    liabilities and other                    1,041         (357)
                                            ------       ------
  Net cash provided by continuing operations 1,556           10
  Net cash used in discontinued operations     ---         (147)
                                            ------       ------
  Cash Provided by (Used In) Operating
    Activities                               1,556         (137)

Investing Activities
  Capital expenditures                      (1,751)      (1,205)
  Proceeds from sale of asset                    3          ---
                                            ------       ------
    Net cash used in continuing operations  (1,748)      (1,205)
    Net cash used in discontinued operations   ---          (98)
                                            ------       ------
    Cash Used in Investing Activities       (1,748)      (1,303)

Financing Activities
  Proceeds from subordinated debt              900          ---
  Proceeds from stock warrants                 100          ---
  Proceeds from tax exempt bonds               ---        9,050
  Tax exempt bond funds held by bond trustee 1,002       (7,420)
  Deferred financing costs                     (62)         ---
  Proceeds from long-term obligations        5,139        5,392
  Payment on long-term obligations          (5,754)      (5,410)
  Repayment on bonds                          (139)         ---
                                            ------       ------
    Net cash provided by continuing
      operations                             1,186        1,612
    Net cash used in discontinued
      operations                               ---           (4)
                                            ------       ------
    Cash Provided by Financing Activities    1,186        1,608
							  ------       ------
Increase in Cash and Cash Equivalents          994          168
Cash and Cash Equivalents at Beginning
  of Period                                     57          253
                                            ------       ------
Cash and Cash Equivalents at
  End of Period                            $ 1,051      $   421
                                            ======       ======
See notes to condensed consolidated financial statements.

<PAGE>


               KINARK CORPORATION AND SUBSIDIARY
      NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
       FOR THE THREE MONTHS ENDED MARCH 31, 2001 and 2000
                        UNAUDITED


 Note 1. Basis of Presentation
         ---------------------
The condensed consolidated financial statements included in this
report have been prepared by Kinark Corporation (the "Company")
pursuant to the rules and regulations of the Securities and
Exchange Commission for interim reporting and include all normal
and recurring adjustments which are, in the opinion of management,
necessary for a fair presentation.  These financial statements
have not been audited by an independent accountant.  The condensed
consolidated financial statements include the accounts of the
Company and its subsidiaries.

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 pursuant to such rules and regulations
for interim reporting.  The Company believes that the disclosures
are adequate to make the information presented not misleading.
However, these financial statements should be read in conjunction
with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-K, for the year ended December
31, 2000.  The financial data for the interim periods presented
may not necessarily reflect the results to be anticipated for the
complete year.

The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the balance
sheet dates and the reported amounts of revenues and expenses for
each of the years.  Actual results will be determined based on the
outcome of future events and could differ from the estimates.

During the third quarter of 2000, the Company's galvanizing
subsidiary, North American Galvanizing Company ("NAG"), negotiated
a new galvanizing contract with its largest customer.  Under terms
of the new one-year contract, NAG no longer provides additional
services that previously included procurement and fabrication of
steel products prior to galvanizing.  In the first quarter of 2001
and 2000, sales to this customer accounted for approximately 5.0%
and 10.1% of NAG's total sales, respectively.  Management does not
anticipate the new contract will have a negative impact on gross
margin.

<PAGE>

Note 2. Change in Accounting Principle
        ------------------------------
On January 1, 2001 the Company adopted Statement of Financial
Accounting Standards No. 133, "Accounting for Derivative
Instruments and Hedging Activities" ("SFAS No. 133").  The
statement, as amended, establishes accounting and reporting
standards for derivative instruments and for hedging activities.
It requires that an entity recognize all derivatives, at fair
value, as either assets or liabilities in the balance sheet with
an offset either to shareholder's equity and comprehensive income
or income depending upon the classification of the derivative.
The derivative instruments identified at January 1, 2001, under
the provisions of SFAS No. 133 had been previously designated in
hedging relationships that addressed the variable cash flow exposure
of forecasted purchases of zinc; under the transition provisions of
SFAS No. 133, on January 1, 2001 the Company recorded an after-
tax, cumulative-effect-type transition charge of $65,000 to
accumulated other comprehensive income related to these
derivatives.  The Company did not elect subsequent hedge accounting
for the derivative existing at January 1, 2001.  Accordingly, all
changes in the fair value of that derivative are recorded in income.

Note 3. Earnings Per Common Share
        -------------------------
Basic and diluted earnings per common share for the periods presented
have been computed based upon the weighted average number of shares
outstanding of 6,712,209 and 6,712,219 for the three months ended
March 31, 2001 and 2000, respectively.  Due to the prices of stock
options and warrants being higher than the share market value, the
outstanding stock options  and warrants have no dilutive effect on
the calculation of earnings per share.  The number of options excluded
from the calculation of diluted earnings per share are 389,208 and
383,000 at March 31, 2001 and 2000, respectively.

Note 4. Inventories
        -----------
Inventories consist of raw zinc "pigs," molten zinc in galvanizing
kettles and other chemicals and materials used in the  hot dip
galvanizing process.  Iventories are stated at the lower of cost
or market with market value based on ultimate realizable value
from the galvanizing process.  Zinc cost is determined on a last-
in first-out (LIFO) basis.  Other inventories are valued primarily
on an average cost basis.

Note 5. Bonds Payable
        -------------
During the first quarter of 2000, the Company issued $9,050,000 of
Harris County Industrial Development Corporation Adjustable Rate
Industrial Development Bonds, Series 2000 (the "Bonds").  The
Bonds are senior to other debt of the Company.  Bond proceeds,
which are held in trust by Bank One Trust Company, N.A.
("Trustee"), were used by NAG for the purchase of land and
construction of a hot dip galvanizing plant in Harris County,
Texas.  The Trustee holds the unexpended bond funds and delivers

<PAGE>

funds to the Company as requested for appropriate expenditures.
Unexpended bond funds at March 31, 2001 were $217,000.

The Bonds bear interest at a variable rate (5.25% at March 31,
2001) that can be converted to a fixed rate upon certain
conditions outlined in the bond agreement.  The Bonds are subject
to annual redemption of $230,000 commencing on June 15, 2001,
which increases annually thereafter to a maximum redemption of
$960,000 on June 15, 2012.  Beginning January 2001, the Company
began making monthly amortization payments of principal and
interest of $86,000 into a sinking fund. The final maturity date
of the Bonds is June 15, 2013.  The Company has the option of
early redemption of the Bonds at par unless the bonds are
converted to a fixed interest rate, in which case they are
redeemable at a premium during a period specified in the bond
agreement.  The Company's obligation under the bond agreement
is secured through a letter of credit with a bank which must
remain in effect as long as any Bonds are outstanding.  The
letter of credit is collateralized by substantially all the assets
of the Company.

Note 6. Subordinated Debt
        -----------------
In February 2001, the Company completed a $1,000,000 Private
Placement of subordinated debt with stock warrants to purchase
666,666 shares of common stock of the Company.  $100,000 of the
proceeds has been allocated to the stock warrants.  The Company
plans to use these proceeds for general working capital and
construction of a new galvanizing plant in St. Louis.  Participation
in the Private Placement was offered to the Company's directors and
eligible stockholders holding a minimum of 100,000 shares of common
stock.  The notes mature February 17, 2006 and bear interest at 10%
payable annually.  Terms of the warrants, which expire February 17,
2008, permit the holder to purchase shares of the Company's common
stock at any time prior to the Expiration Date, for cash at an
Exercise Price of $.856 per share (fair value at date of issuance)
or by surrender of shares of the Company's common stock with a fair
market value equal to the aggregate Exercise Price.  As of March 31,
2001 no warrants had been exercised.

Note 7. Long-Term Obligations
        ---------------------


                            March 31           December 31
(Dollars in Thousands)        2001                 2000
=================================================================
Revolving line of credit   $ 6,524               $ 6,666
Term loan                    3,228                 3,407
10.0% note due 2001            ---                   289
9.5% note due 2015              22                    23
Capital leases                  31                    36
=================================================================
                             9,805                10,421
Less current portion           821                 1,001
=================================================================
                           $ 8,984               $ 9,420
=================================================================

<PAGE>

Kinark has a credit agreement with a domestic bank which provides
a $4,200,000 term loan and a maximum line of credit of $9,000,000
for working capital and general corporate purposes.  The
expiration date of this agreement is September 2002.  Interest
rates on borrowings are based upon current bank prime rate or, at
the option of the Company, upon the London Interbank Offered Rate,
subject to a rate margin adjustment determined by the Company's
consolidated debt service ratio.

Substantially all of the company's accounts receivable,
inventories, fixed assets and the stock of its subsidiary, North
American Galvanizing Company, are pledged as collateral under the
agreement, and the agreement is secured by a guaranty from this
subsidiary.  The credit agreement requires the Company to maintain
compliance with covenant limits for current ratio, debt to
tangible net worth ratio, debt service coverage ratio and capital
expenditures ratio.  The Company was in compliance with such
covenants at March 31, 2001.

Term loan payments are based on a five-year amortization schedule
with equal monthly payments of principal and interest, and the
loan may be prepaid without penalty.  The revolving line of credit
may be paid down without penalty, or additional funds may be
borrowed up to the maximum line of credit.

At March 31, 2001, $9,752,000 was outstanding under the agreement,
and $275,000 was reserved for outstanding irrevocable letters of
credit for workers' compensation insurance coverage.  At the end
of the first quarter 2001, the Company had borrowed the maximum funds
available under the agreement based on the underlying value of its
accounts receivables and inventories at March 31, 2001.

Note 8. Commitments and Contingencies
        -----------------------------
The Company has commitments with domestic and foreign zinc
producers to purchase zinc used in its hot dip galvanizing
operations.  The terms of the commitments typically range from one
to twelve months.  Commitments for the future delivery of zinc either
reflect rates then quoted on the London Metals Exchange and are
not subject to price adjustment or are based on such quoted prices
at the time of delivery.  At March 31, 2001, the aggregate
commitments for the procurement of zinc at fixed prices were
$5,300,000 and unpriced commitments for the purchase of zinc
represented approximately 556 tons.

The Company utilizes derivative instruments, from time-to-time, which
are intended to offset the impact of potential fluctuations in the
market price of zinc.  At March 31, 2001, commodity collar
contracts with a bank were in place for a notional quantity of
400,000 pounds of zinc per month, representing approximately 20%
of NAG's projected zinc usage on an annual basis.  These contracts
contain a cap and floor price for a notional quantity of zinc, and
they are cash settled each month based on the average of the daily
closing price of zinc on the London Metal Exchange.  The contracts
expire in August and September, 2001.  The fair value of the
commodity collar contracts in place at March 31, 2001 was a loss
of $136,000.  For each potential decrease of $.01 per pound in the
market price of zinc below the contractual floor price, the
Company will incur a cash settlement cost of $4,000 per month.
The Company expects to continue evaluating derivative instruments to
minimize the impact of zinc price fluctuations, as part of its
inventory management strategy.

<PAGE>

NAG was notified in 1997 by the Illinois Environmental Protection
Agency ("IEPA") that it was one of a number of potentially
responsible parties under the Comprehensive Environmental
Response, Compensation, and Liability Information System
("CERCLIS") in connection with cleanup of an abandoned site
formerly owned by Sandoval Zinc Co. ("Sandoval").  NAG arranged
for the treatment and disposal of hazardous substances at Sandoval
in the ordinary course of its business.  Based on current
information and the stage of investigation, NAG's share of any
probable future costs cannot be estimated at this time.

The Company expects it will continue to have environmental
compliance costs in the future associated with operations in the
galvanizing business.  The Company is committed to complying with
the environmental legislation and regulations affecting its
operations.  Due to the uncertainties associated with future
environmental technologies, regulatory interpretations, and
prospective legislative activity, management cannot quantify
potential costs in this area.

The Company expenses or capitalizes, where appropriate,
environmental expenditures that relate to current operations as
they are incurred.  Such expenditures are expensed when they are
attributable to past operations and are not expected to contribute
to current or future revenue generation.  The Company records
liabilities when remediation or other environmental assessment or
clean-up efforts are probable and the cost can be reasonably
estimated.

Various litigation arising in the ordinary course of business is
pending against the Company.

Management believes that resolution of the Company's litigation
and environmental matters should not materially affect the
Company's consolidated financial position or liquidity.  Should
future developments cause the Company to record an additional
liability for environmental matters, litigation or customer
claims, the recording of such a liability could have a material
impact on the results of operations for the period involved.

Note 9. Labor Agreement
        ---------------
In April 2001, NAG concluded negotiations of a one-year labor
agreement with the United Steel Workers Union covering
approximately 70 production workers at its Tulsa galvanizing
plants.  The new agreement is not materially changed from the
previous agreement which expired March 31, 2001.

<PAGE>

Note 10. Discontinued Operations
        -----------------------
During the second quarter of 2000, the Company elected to sell its
Lake River Corporation ("Lake River") and North American
Warehousing Company ("NAW") subsidiaries, comprising the Company's
bulk liquids terminal and public warehousing businesses.
Accordingly, first quarter 2000 operating results for the Lake
River and NAW segments are accounted for as discontinued
operations, and amounts in the financial statements and related
notes for all periods shown have been restated to reflect
discontinued operations accounting.

Note 11. Segment Disclosures
         -------------------
Subsequent to the sale of Lake River and NAW, the Company's sole
business is hot dip galvanizing and coatings which is conducted
through its wholly owned subsidiary, North American Galvanizing
Company.

Note 12. Subsequent Event
         ----------------
In April 2001, the Company amended its bank credit agreement and
established an equipment acquisition term loan facility evidenced
by a promissory note in the principal amount of $276,000.  The
note carries interest at the prime rate and requires equal monthly
payments of principal and interest to maturity at September 30,
2002, at which time the unpaid principal balance and accrued
interest are due.

<PAGE>

               Kinark Corporation and Subsidiary
              Management's Discussion and Analysis of
           Financial Condition and Results of Operations


     Kinark Corporation's (the "Company") business is hot dip
galvanizing  and coatings, which is conducted through its wholly-
owned subsidiary, North American Galvanizing Company.

     In 2000, Kinark exited the chemical storage and warehousing
business with the sale of its wholly-owned subsidiaries, Lake
River Corporation ("Lake River") and North American Warehousing
Company ("NAW").  As a result, these subsidiaries have been
classified as discontinued operations for accounting purposes and
their revenues and expenses are not included in the results of
continuing operations analyzed below.  These subsidiaries
accounted for approximately 16% of the Company's consolidated
sales in the first quarter of 2000.  Currently, the Company's sole
line of business is hot dip galvanizing.

     During the third quarter of 2000, NAG negotiated a new
galvanizing contract with its largest customer, which resulted in
the elimination of procurement and fabrication of steel products
prior to galvanizing.  Total sales to this customer in the first
quarter of 2001 and 2000 accounted for approximately 5% and 10.1%
of NAG's total sales, respectively.  The Company currently does
not provide steel fabrication services and has no plans to
resume such services in the future.

Results of Operations
                            2001           2000
                        -----------    -----------
                       $ (000)     %  $ (000)      %      Change
=================================================================
Revenue
  Galvanizing          $ 8,982 100.0% $ 8,269   89.9%       8.6%
  Steel Fabrication        ---   ---      933   10.1%     100.0%
                         ----- -----    -----  -----      -----
  Total                $ 8,982 100.0% $ 9,202  100.0%     (3.2)%


     During the first quarter of 2001, NAG commissioned its newest
and largest facility in Houston, Texas and began galvanizing
fabricated steel structures for a number of regional and national
accounts.  Following completion of start-up evaluation and testing
during the quarter, the newly designated Fairbanks Plant
successfully shifted into production and accounted for
approximately 10% of NAG's total tonnage for the first quarter of
2001.  Engineered with state-of-the-art galvanizing technology and
automation, the Fairbanks Plant is delivering increasing volumes
of structural steel fabrications for a variety of end-users,
efficiently and with improved turn-around times.  For the quarter
ended March 31, 2001, NAG galvanized and delivered over 36,000
tons of product, for an increase of 8.6% over the same quarter of
2000, and the highest first quarter volume ever.  For these periods,
NAG's average selling prices were stable.

     Galvanizing sales in the first quarter of 2001 increased 8.6%
to $8,982,000, compared to galvanizing sales of $8,269,000 in the
same period a year ago, excluding revenues from steel fabrication.
Despite absorbing the cost of start-up at the Fairbanks Plant,

<PAGE>

operating income increased 40.1% in the  first quarter of 2001 to
$450,000, versus comparably measured operating income of
$321,000 in the same quarter a year ago.  In the first quarter 2000,
NAG recorded a casualty loss of $313,000 for the expenses
associated with a kettle failure, resulting in adjusted operating
income of $8,000.

     Gross profit margin on sales improved to 29.4% for the first
quarter of 2001, compared to 26.9% in the first quarter of 2000.
The lower cost of zinc and continuing efficiencies being attained
in the galvanizing process are reflected in the higher gross
margin rate in 2001.  First-quarter average selling prices were
comparable for both 2001 and 2000.  Significantly, the downward
trend of selling prices NAG experienced during 2000 was reversed
in the first quarter of 2001 as the average price per ton
increased 4.3% over the fourth quarter of 2000.

     Depreciation, including amortization of goodwill, was
$872,000 in the first quarter of 2001 compared to $709,000 in the
first quarter of 2000.  The increase is attributable primarily to
the addition of the Fairbanks Plant and acquisitions made in 2000.

     Selling, general and administrative expenses ("SG&A") of
$1,315,000 in the first quarter of 2001 decreased $135,000, or
9.3%, from $1,450,000 in the first quarter of 2000.  The
reductions in SG&A reflect management's continuing effort to
streamline staff and control expenses throughout the Company.

     Net interest expense in the first quarter of 2001 was
$268,000 compared to $212,000 in the same quarter of 2000. The
increase in 2001 primarily reflects interest expense of industrial
revenue bonds that was capitalized during construction of the
Fairbanks Plant in 2000, and for related start-up working capital.
The Company's effective income tax rate for the three months ended
March 31, 2001 was 42%, compared to 44.1% for the three months ended
March 31, 2000.  The rates were higher than federal statutory rates
primarily due to non-deductible amortization of goodwill and state
income taxes.

     Income from continuing operations before income taxes was
$81,000 for the first quarter of 2001 compared with a loss of
$204,000 in the first quarter of 2000.  Net income after tax was
$47,000, or $.01 per share, in the first quarter of 2001 compared
to a net loss of $160,000, or $.02 per share.

Liquidity and Capital Resources

     For the first three months of 2001, the Company's continuing
operating activities generated cash of $1,556,000 compared to cash
generated of $10,000 in the first three months of 2000.  The increase
in cash generated by year 2001 operating activities over the same
period a year ago reflects increases in net income and depreciation
and a decrease in working capital.

     Comparing primary working capital generators of cash flow in
the first quarter of 2001 to the same period of 2000, the Company
reduced accounts receivables approximately $1,100,000 reflecting
management's successful efforts to accelerate collections and
improve account turn-over.  Concurrently, inventories increased
approximately $1,200,000 primarily as a result of commissioning
the new Fairbanks Plant, which required additions to zinc
inventory in excess of 2,000,000 pounds.  In addition, accounts
payable, accrued liabilities and current debt obligations payable

<PAGE>

within one year increased approximately $990,000 in the current
year first quarter over last year.

     Capital expenditures in the first quarter of 2001 were
$1,751,000, of which $1,000,000 was for the new galvanizing plant
in Houston.  The Company's financing activities in the first
quarter of 2001 included making payments of $5,754,000 on long-
term obligations, payments of $139,000 on tax exempt bonds and
receiving proceeds of $5,139,000 from utilization of the line of
credit, for a net decrease of $754,000 in long-term obligations.
In March 2000, the Company obtained $9,050,000 from the issuance
of tax-exempt industrial revenue bonds, the proceeds of which were
used for the construction of the Fairbanks Plant in Houston,
Texas.  In February 2001, the Company issued $1,000,000 of
subordinated debt, the proceeds of which are committed primarily
for construction of a new galvanizing plant in St. Louis, Missouri
in 2001.  The Company's current credit facility includes a maximum
$9,000,000 revolving line of credit under a bank credit agreement
that expires September 2002.  Based on the underlying value of
collaterized accounts receivables and inventory, the Company had
fully utilized available funds under the line of credit at
March 31, 2001.  The Company believes it has the ability to
generate cash to meet its foreseeable needs for working capital
and maintenance of its operating facilities.

Environmental Matters and Other Contingencies

     As previously reported, NAG was notified in 1997 by the
Illinois Environmental Protection Agency ("IEPA") that is was a
potentially responsible party under the Comprehensive
Environmental Response, Compensation, and Liability Information
System ("CERCLIS")in connection with cleanup of an abandoned site
formerly owned by Sandoval Zinc Co.  The IEPA notice includes NAG
as one of 59 organizations which arranged for the treatment and
disposal of hazardous substances at Sandoval.  Based on current
information and the preliminary state of investigation, NAG's
share of any probable future costs cannot be estimated at this
time.

     During 2000, NAG resolved an insurance claim arising from the
failure of a galvanizing kettle during 1999.  A major part of the
claim resulted from additional costs incurred to galvanize product
at an alternate NAG location in order to meet delivery
commitments. NAG recorded a casualty loss of $313,000 during the
first quarter of 2000, primarily representing costs incurred
during that period to transport product to an alternative
galvanizing location.

     The Company's facilities are subject to extensive
environmental legislation and regulations affecting their
operations and the discharge of wastes.  The cost of compliance
with such regulations was approximately $222,000 in the first
three months of 2001 and $240,000 for the same period in 2000, for
the disposal and recycling of waste acids generated by the
galvanizing operations.  NAG operates on-site sulphuric acid
recovery systems at one of its galvanizing plants, and uses
hydrochloric acid at its other galvanizing plants.

     The Company is committed to complying with all federal, state
and local environmental laws and regulations and using its best
management practices to anticipate and satisfy future
requirements. As is typical in the galvanizing and chemicals
businesses, the Company will have additional environmental
compliance costs associated with past, present, and future
operations.  Management has committed resources to discovering and
eliminating environmental issues as they arise.  Because of the

<PAGE>

frequent changes in environmental technology, laws and regulations
management cannot quantify the Company's potential costs in this
area.

Discontinued Operations

     During the second quarter of 2000, the Company elected to sell
its Lake River and NAW subsidiaries, comprising the Company's bulk
liquids terminal and public warehousing businesses (see Note 10 to
Condensed Consolidated Financial Statements).

 <PAGE>


Quantitative and Qualitative Disclosures About Market Risk

     Kinark's current operations include managing market risks
related to changes in interest rates and zinc commodity prices.

     Interest Rate Risk.  Kinark is exposed to financial market
risk related to changing interest rates.  Changing interest rates
will affect interest paid on Kinark's variable rate debt.  At
March 31, 2001, $9,752,000 was outstanding or obligated under the
credit agreement with an effective rate of 8.25% and $8,912,000
was outstanding under the bond agreement with an effective rate of
5.25% (see Note 5 to Condensed Consolidated Financial Statements),
and $1,000,000 of 10% subordinated promissory notes was
outstanding.  The borrowings are due approximately as follows:
$943,000 in 2001, $9,822,000 in 2002, $617,000 in 2003 and
$8,282,000 in years 2004 through 2013.  Each increase of 10 basis
points in the effective interest rate would result in an annual
increase in interest charges of approximately $18,600 based on
March 31, 2001 outstanding borrowings.  The actual effect of
changes in interest rates is dependent on actual amounts
outstanding which vary under the revolving credit facility.  The
Company monitors interest rates and has sufficient flexibility to
renegotiate the loan agreement, without penalty, in the event
market conditions and interest rates change.

     Zinc Price Risk.  NAG enters into purchase commitments with
domestic and foreign zinc producers to purchase certain of its
zinc requirements for its hot dip galvanizing operations.
Commitments for the future delivery of zinc reflect rates quoted
on the London Metals Exchange which are not subject to future
price adjustment. At March 31, 2001, the aggregate commitments for
the procurement of zinc were approximately $5.3 million.
Additional procurement commitments of approximately 556 tons were
unpriced at March 31,2001.  During the third and fourth quarters
of 2000, the Company entered into two one-year commodity collar
contracts which are intended to offset the impact of potential
fluctuations in the market price of zinc.  The contracts are cash
settled monthly based on a commodity reference price, determined
by the average of the daily closing price of zinc on the London
Metal Exchange.  At March 31, 2001, the commodity collar contracts
were in place for a notional quantity of 400,000 pounds of zinc
per month through September 30, 2001.  The fair value of the
commodity collar contracts in place at this date was an unrealized
loss of $136,000. Depending on zinc price trends, and other
factors, the Company may elect to increase its use of zinc
derivative instruments from time-to-time.  Management believes these
procurement and hedging programs ensure adequate supplies of zinc
and may assist in stabilizing income from its galvanizing
operations.  With respect to the zinc purchase commitments, a
potential decrease of 10% in the market price of zinc from the
March 31, 2001 level would cause a lost gross margin opportunity
of approximately $530,000.  With respect to the zinc commodity
collar contract, for each potential decrease of $.01 per pound in
the market price of zinc below the contractual floor price the
Company would incur an additional cash settlement of $4,000 per
month.

<PAGE>

                           PART II
                      OTHER INFORMATION


Item 1. Legal Proceedings
        -----------------
        Not applicable.

Item 2. Changes in Securities
        ---------------------
        Not applicable.

Item 3. Defaults Upon Senior Securities
        -------------------------------
        Not applicable.

Item 4. Submission of Matters to a Vote of Security Holders
        ---------------------------------------------------
        Not applicable.

Item 5. Other Information
        -----------------
        Not applicable.

Item 6. Exhibits and Reports on Form 8-K
        --------------------------------
       (a) Exhibits

           3.1 The Company's Restated Certificate of
               Incorporation (incorporated by reference to
               Exhibit 3.1 to the Company's Pre-Effective
               Amendment No. 1 to Registration Statement on
               Form S-3 (Reg. No. 333-4937) filed on
               June 7, 1996).

          3.2  The Company's Amended and Restated
               Bylaws (incorporated by reference to Exhibit
               3.2 to the Company's Quarterly Report on
               Form 10-Q dated March 31, 1996).

           99  Cautionary Statements by the Company Related to
               Forward-Looking Statements

       (b) Reports on form 8-K

           The Company did not file a Form 8-K Current
           Report during the quarter ended March 31, 2001.

<PAGE>

                           SIGNATURES

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



                                    KINARK CORPORATION
                                   ---------------------
                                        Registrant




                                     /S/Paul R. Chastain
                                    ---------------------
                                       Paul R. Chastain
                                      Vice President and
                                    Chief Financial Officer
                                 (Principal Financial Officer)


Date:    May 14, 2001
         ------------

<PAGE>


                             EXHIBIT INDEX

Ex.  No.   Description

3.1        The Company's Restated Certificate of Incorporation
           (incorporated by reference to Exhibit 3.1 to the
           Company's Pre-Effective Amendment No. 1 to
           Registration Statement on Form S-3
           (Reg. No. 333-4937) filed on June 7, 1996).

3.2        The Company's Amended and Restated Bylaws (incorporated
           by reference to Exhibit 3.2 to the Company's Quarterly
           Report on Form 10-Q dated March 31, 1996).

 99        Cautionary Statements by the Company Related to
           Forward-Looking Statements.