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 December 31, 1997

                                       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 2-18868

                       KNAPE & VOGT MANUFACTURING COMPANY
             (Exact name of registrant as specified in its charter)

       Michigan                                          38-0722920
(State of Incorporation)                       (IRS Employer Identification No.)

   2700 Oak Industrial Drive, NE
      Grand Rapids, Michigan                              49505
(Address of principal executive offices)                (Zip Code)

                                 (616) 459-3311
                               (Telephone Number)

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 ______

     3,485,742 common shares were outstanding as of January 31, 1998.
     2,434,134 Class B common shares were outstanding as of January 31, 1998.
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                                      INDEX

                                                                        Page No.

PART I.           FINANCIAL INFORMATION

     Item 1 Financial Statements.

          Condensed Consolidated Balance Sheets
          --December 31, 1997 (Unaudited) and June 30, 1997...................2

          Condensed Consolidated Statements of Income (Unaudited)
          --Six Months and Three Months Ended December 31, 1997 and 1996......3
     
          Condensed Consolidated Statements of Cash Flows (Unaudited)
          --Six Months Ended December 31, 1997 and 1996.......................4

          Notes to Condensed Consolidated Financial Statements (Unaudited)....5

     Item 2. Management's Discussion and Analysis of Financial
             Condition and Results of Operations............................6-7

PART II. OTHER INFORMATION

     Item 4. Submission of Matters to a Vote of Security Holders..............8

     Item 6. Exhibits and Reports on Form 8-K.................................8

SIGNATURES....................................................................9



                                        1
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
                                                                         Dec. 31, 1997     June 30, 1997
                                                                        --------------     -------------
                                                                         (Unaudited)
<S>                                                                    <C>              <C>
Assets
         Cash and equivalents ......................................   $     224,384    $   1,146,546
         Accounts receivable - net .................................      24,804,609       24,991,341
         Refundable income taxes ...................................       1,855,116        1,578,681
         Inventories ...............................................      21,067,666       18,629,454
         Other current assets ......................................       3,675,466        3,686,042
         Net current assets of discontinued operation ..............       1,285,404        1,462,089
                                                                       -------------    -------------
                  Total current assets .............................      52,912,645       51,494,153
                                                                       -------------    -------------

         Property, plant and equipment .............................      83,297,781       80,771,246
         Less accumulated depreciation .............................      35,271,438       32,184,444
                                                                       -------------    -------------
                  Net property, plant and equipment ................      48,026,343       48,586,802
                                                                       -------------    -------------

         Net property, plant and equipment of discontinued operation       1,290,416        1,440,740
         Other assets ..............................................      22,716,766       24,220,003
                                                                       -------------    -------------

                                                                       $ 124,946,170    $ 125,741,698
                                                                       =============    =============

Liabilities and Stockholders' Equity
         Accounts payable ..........................................   $  13,921,753    $   5,976,683
         Other accrued liabilities .................................       5,420,233        6,251,436
                                                                       -------------    -------------
                  Total current liabilities ........................      19,341,986       12,228,119

         Long-term debt ............................................      18,800,000       29,000,000
         Deferred income taxes and other long-term liabilities .....      10,993,351       11,053,081
                                                                       -------------    -------------
                  Total liabilities ................................      49,135,337       52,281,200
                                                                       -------------    -------------

Stockholders' equity
         Common stock ..............................................      11,838,852       11,807,658
         Additional paid-in capital ................................      33,516,118       33,340,541
         Foreign currency translation adjustment ...................      (1,719,348)      (1,345,978)
         Retained earnings .........................................      32,175,211       29,658,277
                                                                       -------------    -------------
                  Total stockholders' equity .......................      75,810,833       73,460,498
                                                                       -------------    -------------

                                                                       $ 124,946,170    $ 125,741,698
                                                                       =============    =============
</TABLE>
See accompanying notes.


                                        2
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

<TABLE>
                                               Six Months Ended            Three Months Ended
                                       Dec. 31, 1997   Dec. 31, 1996  Dec. 31, 1997   Dec. 31, 1996
                                       --------------  -------------  -------------   -------------
<S>                                    <C>             <C>            <C>             <C>
Net sales ..........................   $ 87,336,259    $ 86,603,383   $ 42,677,957    $ 41,755,065

Cost of sales ......................     65,588,877      64,791,859     32,434,480      31,424,900
                                       ------------   ------------    ------------   -------------

Gross profit .......................     21,747,382      21,811,524     10,243,477      10,330,165

Selling and administrative expenses      13,981,742      14,209,014      6,767,474       6,922,933
                                       ------------    ------------    ------------   ------------

Operating income ...................      7,765,640       7,602,510      3,476,003       3,407,232

Other expenses .....................        746,404       1,089,190        323,793         554,504
                                       ------------    ------------    ------------   ------------

Income from continuing operations
   before income taxes .............      7,019,236       6,513,320      3,152,210       2,852,728

Income taxes - continuing operations      2,532,000       2,352,000      1,135,000       1,038,000
                                       ------------    ------------    ------------   ------------

Income from continuing operations ..      4,487,236       4,161,320      2,017,210       1,814,728

Income (loss) from discontinued
   operation, net of taxes .........        (93,639)              0       (294,525)              0
                                       ------------    ------------    ------------   ------------

Net income .........................   $  4,393,597    $  4,161,320   $  1,722,685    $  1,814,728
                                       ============    ============    ============   ============

Per common share:

Basic EPS:
Income from continuing operations ..   $        .76    $        .71   $       .34     $        .31
Income from discontinued operation .           (.02)            .00          (.05)             .00
                                       ------------    ------------    ------------   ------------
Net Income .........................   $        .74    $        .71   $       .29     $        .31
                                       ============    ============    ============   ============

Weighted average shares outstanding       5,915,080       5,886,514      5,915,666       5,887,454

Diluted EPS:
Income from continuing operations ..   $        .75    $        .71   $       .34     $       .31
Income from discontinued operation .           (.01)            .00          (.05)            .00
                                       ------------    ------------    ------------   -----------
Net Income .........................   $        .74    $        .71   $       .29     $       .31
                                       ============    ============   ============   ============

Weighted average shares outstanding       5,949,990       5,900,739     5,951,026       5,901,388

Cash Dividend - Common stock .......   $        .33    $        .33   $      .165     $      .165

Cash Dividend - Class B common stock   $        .30    $        .30   $       .15     $       .15
</TABLE>

See accompanying notes.

                                        3
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>

                                                                Six Months Ended
                                                      Dec. 31, 1997             Dec. 31, 1996
                                                      -------------             -------------
<S>                                                   <C>                       <C>
Operating Activities:
     Net income ...................................   $  4,393,597              $  4,161,320
     Non-cash items:
         Depreciation and amortization ............      3,826,709                 3,769,141
         Deferred income taxes ....................        155,000                   (19,000)
         Other long-term liabilities ..............       (210,597)                 (207,029)
         Changes in operating assets & liabilities:
              Accounts receivable .................        119,686                (2,070,711)
              Inventories .........................     (2,477,121)                 (107,778)
              Net assets of discontinued operation         141,448                   367,028
              Other current assets ................       (297,528)                1,166,926
              Accounts payable & accrued expenses .      7,152,629                (2,223,660)
                                                       -----------              ------------
Net cash provided by operating activities .........     12,803,823                 4,836,237
                                                       -----------              ------------

Investing Activities:
     Additions to property and equipment ..........     (2,673,543)               (2,739,039)
     Sale of property and equipment ...............          1,705                   238,183
     Payments for other assets ....................        807,138                  (453,295)
                                                       -----------              ------------
Net cash used for investing activities ............     (1,864,700)               (2,954,151)
                                                       -----------              ------------

Financing Activities:
     Proceeds from issuance of common stock .......        206,771                    89,435
     Additions to long-term debt ..................              0                   400,000
     Payments on long-term debt ...................    (10,200,000)                        0
     Cash dividends declared ......................     (1,876,663)               (1,866,587)
                                                      ------------              ------------
Net cash used for financing activities ............    (11,869,892)               (1,377,152)
                                                      ------------              ------------

Effect of Exchange Rate Changes on Cash ...........          8,607                    (5,876)
                                                      ------------              ------------

Net Increase (Decrease) in Cash & Equivalents .....       (922,162)                  499,058

Cash and Equivalents:
         Beginning of year ........................      1,146,546                   244,271
                                                      ------------              ------------
         End of period ............................   $    224,384              $    743,329
                                                      ============              ============

Cash Paid During the Period  - interest............   $    756,628              $  1,009,927
                             - income taxes .......   $  2,091,110              $  1,511,663

</TABLE>
                                        4
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1 - Basis of Financial Statement Preparation

The  accompanying  unaudited  condensed  consolidated  financial  statements and
related notes have been prepared  pursuant to the rules and  regulations  of the
Security  and  Exchange  Commission.  The  information  furnished  reflects  all
adjustments  which are,  in the  opinion  of  management,  necessary  for a fair
statement  of  results  of  operations.  Interim  results  are  not  necessarily
indicative  of the  results  for  the  year  end  and are  subject  to year  end
adjustments,  and audit by independent public accountants.  The balance sheet at
June 30,  1997,  has been taken from the audited  financial  statements  at that
date. The condensed  consolidated  financial statements and notes should be read
in conjunction with the Company's 1997 annual report.

Note 2 - Common Stock and Per Share Information

Income  per  share is  determined  based on  weighted  average  number of shares
outstanding during each period.

Common  stock  is $2 par - shares  authorized  6,000,000  of  common  stock  and
4,000,000 of Class B common stock. Shares issued:  3,485,292 of common stock and
2,434,134 of Class B stock at December 31, 1997;  and  3,465,664 of common stock
and 2,438,165 of Class B common stock at June 30, 1997.

Note 3 - Inventories

Inventories  are  valued  at the  lower of FIFO  (first-in,  first-out)  cost or
market. Inventories are summarized as follows:
<TABLE>
                                                 Dec. 31, 1997             June 30, 1997
                                                 -------------             -------------
<S>                                             <C>                       <C>
Finished products                               $   11,727,439            $   11,219,379
Work in process                                      3,293,480                 1,950,391
Raw materials                                        6,046,747                 5,459,684
                                              ----------------          ----------------

Total                                           $   21,067,666            $   18,629,454
                                                ==============            ==============
</TABLE>
Note 4 - New Accounting Standards Not Yet Adopted

Effective for periods  beginning after December 15, 1997, the Company must adopt
Statement of Financial  Accounting  Standards No. 130, "Reporting  Comprehensive
Income" and No. 131,  "Disclosures  about  Segments of an Enterprise and Related
Information." No. 130 will require the Company to report comprehensive income as
part of the consolidated financial statements.  No. 131 will require the Company
to report  certain  information  about  operating  segments in the  consolidated
financial  statements.  The Company is currently  evaluating  the  provisions of
these statements to determine their impact.

Note 5 - Newly Adopted Accounting Standard

In February 1997, the Financial  Accounting  Standards  Board (FASB) issued SFAS
No. 128,  "Earnings  Per Share." The  statement  simplifies  the  standards  for
computing  earnings per share (EPS),  and makes them comparable to international
EPS  standards.  The  statement  requires the  presentation  of both "basic" and
"diluted"  EPS on  the  face  of  the  income  statement  with  a  supplementary
reconciliation of numerators and denominators used in the calculations.  For the
periods presented, the numerators remained the sam in both the basic and diluted
EPS calculations.  The denominator was increased in the diluted  computation due
to the recognition of stock options as common stock equivalents.

                                        5
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Certain  matters  discussed in this section include  forward-looking  statements
involving  risks  and  uncertainties  including  but not  limited  to  economic,
competitive,  governmental  and  technological  factors  affecting  Knape & Vogt
Manufacturing  Company's  operations,  markets,  products,  services and prices.
Readers  are  cautioned  not to place undue  reliance  on those  forward-looking
statements which speak only as of the date of this report.


RESULTS OF OPERATIONS

Net Sales

The following  table  indicates the Company's sales (in millions) and percentage
of total sales by product  category  for the six month and three  month  periods
ended December 31, 1997 and 1996:
<TABLE>
                                    Six Months Ended December 31,                          Three Months Ended December 31,
                                 1997                      1996                           1997                          1996
                                 ----                      ----                           ----                          ----
<S>                           <C>         <C>             <C>         <C>             <C>          <C>              <C>        <C>
Shelving systems       $      41.1        47.1%     $     40.6        46.9%      $    19.4         45.4%       $    18.3       43.7%
Drawer slides                 31.9        36.5%           30.1        34.8%           16.3         38.2%            15.1       36.1%
Hardware                      14.3        16.4%           14.1        16.3%            7.0         16.4%             7.5       18.1%
Furniture components           0.0         0.0%            1.8         2.0%              0          0.0%             0.9        2.1%
                           -------       ------         ------       ------         ------        ------          ------      ------
Total                  $      87.3       100.0%     $     86.6       100.0%      $    42.7        100.0%        $   41.8      100.0%
                           =======       ======         ======       ======         ======        ======          ======      ======
</TABLE>                       
Net sales for the six months and second  quarter of fiscal 1998  increased  $0.7
million, or 0.8%, and $0.9 million, or 2.2%,  respectively,  over the comparable
periods of fiscal 1997.  Shelving  systems sales  increased by $1.1 million,  or
6.0%,  for the quarter due to Hirsh's  recent  addition of two  national  retail
customers for its free-standing shelving products.  Drawer slide sales increased
by $1.2  million,  or 7.9%,  for the  quarter due to strong  sales of  precision
drawer slides including initial shipments o precision drawer slides to the metal
office  furniture  market.  Hardware  product  line sales  decreased  during the
quarter by $0.5 million from last year despite Feeny's continued increase in the
sales of its kitchen and bath  products.  This increase was offset by a decrease
in Hirsh's Iron Horse product  line,  caused by a reduction in promotions of the
product line at major home centers.  Furniture  component  sales were eliminated
with the sale of Modar at the end of the third quarter of fiscal 1997.

Costs and Expenses

Cost of sales was 75.1% of sales for the first six months and 76.0% of sales for
the second  quarter of fiscal 1998  compared to 74.8% and 75.3% of sales for the
first six months and second quarter of fiscal 1997,  respectively.  The increase
is due to higher overtime costs and start-up costs associated with the Company's
entry into the metal office furniture market.

Selling  and  administrative  expenses  for the six  months  was  16.0% of sales
compared  to 16.4%  for the same  period  last year and for the  second  quarter
decreased  to 15.9% of sales from  16.6% for the same  quarter  last  year.  The
reduction is due to the Company's ability to keep costs flat on a higher revenue
stream, as well as the cost savings from the sale of Modar.

Other Expenses

Interest expense was $307,921 for the quarter ended December 31, 1997,  compared
to $517,881 for the quarter ended December 31, 1996. The Company has reduced its
level of borrowing to  $18,800,000  at December 31, 1997,  from  $35,400,000  at
December 31, 1996.  Interest expense for the six months ended December 31, 1997,
was $717,112 compared to $1,021,188 for the six months ended December 31, 1996.

                                        6
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                   (Continued)

Income Taxes

The effective tax rates for the six months and quarter ended  December 31, 1997,
were 36.1% and 36.0% which were relatively consistent with the rates for the six
months and quarter ended December 31, 1996, of 36.1% and 36.4%.

Income from Continuing Operations

Income from  continuing  operations  was at record levels of $4,487,236  for the
first six months and $2,017,210  for the second quarter of 1998.  Basic earnings
per share from continuing  operations for the six months  increased 7.0% to $.76
compared  to $.71  last  year and basic  and  diluted  income  per share for the
quarter rose 9.7% to $.34  compared to $.31 in the second  quarter of last year.
Diluted earnings per share for the six months ended December 31, 1997, increased
to $.75 from $.71 for the six months ended December 31, 1996.

Income from Discontinued Operation

Loss from discontinued  operation was $93,639,  or $.02 basic earnings per share
and $.01 diluted earnings per share,  for the first six months and $294,525,  or
$.05 basic and  diluted  earnings  per share,  for the second  quarter of fiscal
1998.  The six months and quarter ended  December 31, 1996,  did not include any
income, or loss, recorded on the discontinued operation as the estimated loss on
discontinued  operation  recorded at June 30,  1996,  included a  provision  for
fiscal 1997 anticipated  operating losses. In accordance with Generally Accepted
Accounting Principles, income or loss attributable to the discontinued operation
subsequent to June 30, 1997, is reflected as incurred.

The  Company  has been  seeking a buyer for  Roll-it and has engaged the firm of
J.J.B.  Hilliard,  W.L. Lyons,  Inc. to assist in the sale.  Several  interested
buyers have signed confidentiality  agreements with the Company.  Although it is
difficult to predict, the Company expects to sell Roll-it during fiscal 1998.

Net Income

Net  income of  $4,393,597  for the six  months  was 5.0% of sales  compared  to
$4,161,320,  for the first six months last year which was 4.8% of sales. For the
quarter ended  December 31, 1997,  net income was  $1,722,685  which was 4.0% of
sales  compared to $1,814,728  which was 4.3% of sales for the second quarter of
last year.

Liquidity and Capital Resources

Net cash from operating activities for the first six months provided $12,803,823
as  compared to  $4,836,237  for the first six months of fiscal  1997.  Accounts
payable & accrued  expenses  increased by  $7,152,629 in the first six months of
fiscal  1998  compared to a decrease  of  $2,223,660  in the first six months of
fiscal  1997.  Also,  accounts  receivable  decreased  $119,686 in the first six
months of fiscal 1998  compared to an  increase of  $2,070,711  in the first six
months of  fiscal  1997.  Net cash  from  operating  activities  was  negatively
impacted by an increase in inventories  which is attributable to the increase in
sales and sales backlog. The overall improvement in liquidity is a direct result
of the Company's focus on cash management.

Capital  expenditures  totaled  $2,673,543 for the six months ended December 31,
1997, compared to $2,739,039 for the six months ended December 31, 1996. Capital
expenditures  for the fiscal year are expected to be at  approximately  the same
levels  as last  year.  Long-term  debt  decreased  $10,200,000  due to the cash
provided from  operating  activities.  In the remainder of the year, the Company
will continue to  aggressively  attempt to generate cash using the newly adopted
Economic Value Added, or EVA, philosophy.  Anticipated cash flow from operations
will  substantially  fund working  capital,  capital  expenditures  and dividend
payments.


                                        7
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                           PART II. OTHER INFORMATION


Item 4. Submission of Matters to a Vote of Security Holders

          (a)  Knape  &  Vogt   Manufacturing   Company's   Annual   Meeting  of
     Shareholders was held on October 17, 1997.

          (b) Proxies were  distributed  by Knape & Vogt  Manufacturing  Company
     pursuant to Regulation 14A under the Securities Exchange Act of 1934. There
     was  no  opposition  to  management's  nominees  as  listed  in  the  proxy
     statement, and all nominees were elected.

     The vote on the nominees was:

                                                For                 Withheld
     John E. Fallon (1) (2)                   23,064,719           1,104,917
     Allan E. Perry (1) (3)                    2,455,075             344,602

     (1)  Term expires in 2000.
     (2)  Elected by vote of holders  of Common  stock and Class B Common  stock
     voting as a class. 
     (3)  Elected by vote of holders of Common stock voting as a class.

     Members of the board of  directors  whose  terms have not yet  expired  are
     William R. Dutmers,  term expiring in 1999, Richard S. Knape, term expiring
     in 1999, Michael J. Kregor, term expiring in 1999, Mary Rita Cuddohy,  term
     expiring in 1999,  Raymond E.  Knape,  term  expiring  in 1998,  Herbert F.
     Knape,  term  expiring in 1998,  and Richard C.  Simkins,  term expiring in
     1998.

          (c) The  following  proposal  was adopted by a vote of the majority of
     the  outstanding  shares  of Knape & Vogt  Common  Stock and Class B Common
     Stock as follows:

     A proposal to approve the Company's 1997 Stock Incentive Plan.

     The vote on the proposal above was:

     For                                         22,075,703
     Against                                      1,366,185
     Abstain                                        242,676


Item 6. Exhibits and Reports on Form 8-K

          (a)  Exhibits - None

          (b)  Reports  on Form 8-K There  were no reports on Form 8-K filed for
     the three months ended December 31, 1997.


                                        8
<PAGE>
                                   SIGNATURES


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



                                        Knape & Vogt Manufacturing Company
                                                  (Registrant)





Date:        February 10, 1998                 /s/ Allan E. Perry
                                               Allan E. Perry
                                               President and
                                               Chief Executive Officer

Date:        February 10, 1998                 /s/ Richard C. Simkins
                                               Richard C. Simkins
                                               Executive Vice President, CFO,
                                               Secretary and Treasurer



                                        9