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 September 30, 2000
                         ------------------

Commission file number 1-3919
                       ------


                     Keystone Consolidated Industries, Inc.
 ------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          Delaware                                              37-0364250
---------------------------------------------              --------------------
(State or other jurisdiction o fI.R.S. Employer
 incorporation or organization) Identification No.)

  5430 LBJ Freeway, Suite 1740, Three Lincoln Centre, Dallas, TX  75240-2697
--------------------------------------------------------------------------------
(Address of principal executive offices)                         (Zip Code)


Registrant's telephone number, including area code:    (972) 458-0028
                                                    -------------------------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Sections  13 or 15(d)  of the  Securities  Exchange  Act of 1934
during  the  preceding  12  months,  and (2) has  been  subject  to such  filing
requirements for the past 90 days.

                           Yes   X                            No _____
                               -----

Number of shares of common stock outstanding at November 13, 2000: 10,061,969


<PAGE>


                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                                      INDEX


                                                                        Page
                                                                       number

PART I.  FINANCIAL INFORMATION

  Item 1.         Financial Statements

                  Consolidated Balance Sheets - December 31, 1999
                   and September 30, 2000                                3-4

                  Consolidated Statements of Operations - Three months
                   and nine months ended September 30, 1999 and 2000       5

                  Consolidated Statements of Cash Flows - Nine months
                   ended September 30, 1999 and 2000                       6

                  Consolidated Statement of Stockholders' Equity - Nine
                   months ended September 30, 2000                         7

                  Notes to Consolidated Financial Statements            8-12

  Item 2.         Management's Discussion and Analysis of Financial
                   Condition and Results of Operations                 13-20

PART II. OTHER INFORMATION

  Item 1.         Legal Proceedings                                       21

  Item 6.         Exhibits and Reports on Form 8-K                        21


<PAGE>


                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                 (In thousands)

<TABLE>
<CAPTION>

                                                    December 31, September 30,
        ASSETS                                         1999           2000
                                                    -----------  -------------

Current assets:
<S>                                                    <C>           <C>
  Notes and accounts receivable .................      $ 32,010      $ 35,113
  Receivable from unconsolidated equity affiliate           809           560
  Inventories ...................................        66,083        55,504
  Deferred income taxes .........................        17,396        15,893
  Prepaid expenses and other ....................         1,364         1,101
                                                       --------      --------

     Total current assets .......................       117,662       108,171
                                                       --------      --------

Property, plant and equipment ...................       357,877       364,766
Less accumulated depreciation ...................       207,721       219,536
                                                       --------      --------

     Net property, plant and equipment ..........       150,156       145,230
                                                       --------      --------

Other assets:
  Restricted investments ........................         9,180         9,350
  Prepaid pension cost ..........................       126,126       128,858
  Deferred financing costs ......................         3,034         2,798
  Goodwill ......................................         1,002           908
  Deferred income taxes .........................          --           4,690
  Investment in unconsolidated equity affiliate .           281          --
  Other .........................................         3,477         2,940
                                                       --------      --------

     Total other assets .........................       143,100       149,544
                                                       --------      --------

                                                       $410,918      $402,945
                                                       ========      ========
</TABLE>

<PAGE>




                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                     CONSOLIDATED BALANCE SHEETS (CONTINUED)

                                 (In thousands)

<TABLE>
<CAPTION>

                                             December 31,    September 30,
                                                 1999            2000
                                             -----------     -------------
 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  <S>                                          <C>             <C>
  Notes payable and current maturities of
    long-term debt ......................      $  45,986       $  53,797
  Accounts payable ......................         30,689          35,647
  Accounts payable to affiliates ........             70               5
  Accrued OPEB cost .....................          9,500           9,500
  Other accrued liabilities .............         45,337          35,821
                                               ---------       ---------

      Total current liabilities .........        131,582         134,770
                                               ---------       ---------

Noncurrent liabilities:
  Long-term debt ........................        100,871         100,476
  Accrued OPEB cost .....................         98,802          97,866
  Deferred income taxes .................          1,100            --
  Negative goodwill .....................         22,709          21,692
  Other .................................          9,539           9,437
                                               ---------       ---------

      Total noncurrent liabilities ......        233,021         229,471
                                               ---------       ---------

Stockholders' equity:
  Common stock ..........................         10,656          10,792
  Additional paid-in capital ............         52,398          53,071
  Accumulated deficit ...................        (16,727)        (25,147)
  Treasury stock, at cost ...............            (12)            (12)
                                               ---------       ---------

      Total stockholders' equity ........         46,315          38,704
                                               ---------       ---------

                                               $ 410,918       $ 402,945
                                               =========       =========

</TABLE>

<PAGE>


                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                      (In thousands, except per share data)

<TABLE>
<CAPTION>

                                             Three months ended            Nine months ended
                                               September 30,                 September 30,
                                          ------------------ -------    -------------------------
                                           1999           2000            1999             2000
                                           ----           ----            ----             ----

Revenues and other income:
<S>                                      <C>            <C>             <C>             <C>
  Net sales .......................      $ 79,738       $  82,787       $ 277,379       $ 274,591
  Interest ........................           138             134             327             399
  Other, net ......................          --               137             313              98
                                         --------       ---------       ---------       ---------
                                           79,876          83,058         278,019         275,088
                                         --------       ---------       ---------       ---------

Costs and expenses:
  Cost of goods sold ..............        76,226          78,844         253,373         260,340
  Selling .........................         1,630           1,453           5,540           4,967
  General and administrative ......         4,423           4,395          15,608          13,663
  Pension expense (credit) .........           185          (1,260)         (3,815)         (2,732)
  Interest ........................         3,507           3,894          10,552          11,504
                                         --------       ---------       ---------       ---------
                                           85,971          87,326         281,258         287,742
                                         --------       ---------       ---------       ---------

                                           (6,095)         (4,268)         (3,239)        (12,654)

Equity in losses of unconsolidated
  equity affiliate ................            (9)            (29)             (9)           (281)
                                         --------       ---------       ---------       ---------

   Loss before income taxes .......        (6,104)         (4,297)         (3,248)        (12,935)

Income tax benefit ................        (1,911)         (1,146)         (1,288)         (4,515)

Minority interest in after tax
  earnings (losses) ...............           (75)            (58)             27            --
                                         --------       ---------       ---------       ---------

   Net loss .......................      $ (4,118)      $  (3,093)      $  (1,987)      $  (8,420)
                                         ========       =========       =========       =========


Net loss per share:
  Basic ...........................      $   (.41)      $    (.31)      $    (.20)      $    (.84)
                                         ========       =========       =========       =========
  Diluted .........................      $   (.41)      $    (.31)      $    (.20)      $    (.84)
                                         ========       =========       =========       =========

Weighted average common and common
equivalent shares outstanding:
  Basic ...........................         9,927          10,062           9,897          10,032
                                         ========       =========       =========       =========
  Diluted .........................         9,927          10,062           9,897          10,032
                                         ========       =========       =========       =========
</TABLE>

<PAGE>


                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  Nine months ended September 30, 1999 and 2000
                                 (In thousands)
<TABLE>
<CAPTION>

                                                              1999            2000
                                                              ----            ----

Cash flows from operating activities:
<S>                                                         <C>            <C>
  Net loss ...........................................      $ (1,987)      $ (8,420)
  Depreciation and amortization ......................        16,439         13,664
  Amortization of deferred financing costs ...........           389            359
  Deferred income taxes ..............................          (284)        (4,287)
  Other, net .........................................        (3,687)        (1,221)
  Change in assets and liabilities:
    Accounts receivable ..............................          (209)        (2,392)
    Inventories ......................................       (10,881)        10,579
    Prepaid pension cost .............................        (3,815)        (2,732)
    Accounts payable .................................        (9,305)         4,893
    Other, net .......................................         3,388         (8,120)
                                                            --------       --------

      Net cash provided (used) by operating activities        (9,952)         2,323
                                                            --------       --------

Cash flows from investing activities:
  Capital expenditures ...............................       (12,438)        (9,692)
  Other, net .........................................           766            (47)
                                                            --------       --------

      Net cash used by investing activities ..........       (11,672)        (9,739)
                                                            --------       --------

Cash flows from financing activities:
  Revolving credit facilities, net ...................        22,220          8,702
  Other notes payable and long-term debt:
    Additions ........................................           659            201
    Principal payments ...............................        (1,255)        (1,487)
                                                            --------       --------

      Net cash provided by financing activities ......        21,624          7,416
                                                            --------       --------

Net change in cash and cash equivalents ..............          --             --

Cash and cash equivalents, beginning of period .......          --             --
                                                            --------       --------

Cash and cash equivalents, end of period .............      $   --         $   --
                                                            ========       ========

Supplemental disclosures:
  Cash paid for:
    Interest, net of amount capitalized ..............      $ 12,644       $ 13,595
    Income taxes (refund received) ...................        (3,533)      $   (766)
  Common stock contributed to employee benefit plan ..      $    722       $    809

</TABLE>


<PAGE>


                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

                      Nine months ended September 30, 2000
                                 (In thousands)

<TABLE>
<CAPTION>

                                             Additional
                                  Common       paid-in      Accumulated    Treasury
                                  Stock        capital        deficit        stock      Total
                                 -------      --------      -----------    ---------  ---------

<S>                               <C>          <C>          <C>            <C>        <C>
Balance - December 31, 1999       $10,656      $52,398      $(16,727)      $(12)      $ 46,315

Net loss ...................         --           --          (8,420)       --          (8,420)

Issuance of common stock ...          136          673          --          --             809
                                  -------      -------      --------       ----       --------

Balance - September 30, 2000      $10,792      $53,071      $(25,147)      $(12)      $ 38,704
                                  =======      =======      ========       ====       ========

</TABLE>

<PAGE>



                     KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Note 1 - Organization and basis of presentation:

         The consolidated  balance sheet at December 31, 1999 has been condensed
from the Company's audited  consolidated  financial statements at that date. The
consolidated balance sheet at September 30, 2000 and the consolidated statements
of operations  and cash flows for the interim  periods ended  September 30, 1999
and 2000, and the consolidated statement of stockholders' equity for the interim
period ended September 30, 2000, have each been prepared by the Company, without
audit. In the opinion of management, all adjustments,  consisting only of normal
recurring  adjustments,  necessary to present fairly the consolidated  financial
position,  results of  operations  and cash flows  have been made.  However,  it
should be understood that  accounting  measurements at interim dates may be less
precise than at year end. The results of operations for the interim  periods are
not necessarily indicative of the operating results for a full year or of future
operations.

         Certain information  normally included in financial statements prepared
in accordance with generally accepted  accounting  principles has been condensed
or omitted. The accompanying consolidated financial statements should be read in
conjunction with the consolidated financial statements included in the Company's
Annual  Report on Form 10-K for the year ended  December  31, 1999 (the  "Annual
Report").

         At  September  30,  2000,  Contran  Corporation  ("Contran")  and other
entities related to Mr. Harold C. Simmons, beneficially own approximately 50% of
the Company.  Substantially  all of Contran's  outstanding  voting stock is held
either  by  trusts   established  for  the  benefit  of  certain   children  and
grandchildren  of Mr. Simmons,  of which Mr. Simmons is sole trustee,  or by Mr.
Simmons directly.  The Company may be deemed to be controlled by Contran and Mr.
Simmons.

         The Company  will adopt  Statement of  Financial  Accounting  Standards
("SFAS") No. 133, Accounting for Derivative  Instruments and Hedging Activities,
as amended,  no later than the first  quarter of 2001.  Under SFAS No. 133,  all
derivatives  will be recognized as either assets or liabilities  and measured at
fair value.  The accounting for changes in fair value of derivatives will depend
upon the intended use of the  derivative.  The impact on the Company of adopting
SFAS No. 133, if any, has not yet been determined but will be dependent upon the
extent  to which the  Company  is a party to  derivative  contracts  or  hedging
activities  covered  by  SFAS  No.  133  at  the  time  of  adoption,  including
derivatives  embedded in  non-derivative  host  contracts.  As  permitted by the
transition  requirements of SFAS No. 133, as amended,  Keystone will exempt from
the scope of SFAS No. 133 all host  contracts  containing  embedded  derivatives
which were acquired or issued prior to January 1, 1999.

         The Company will adopt the Securities and Exchange  Commission's  ("the
SEC")  Staff  Accounting  Bulletin  ("SAB")  No. 101,  Revenue  Recognition,  as
amended,  in the fourth  quarter of 2000.  SAB No. 101 provides  guidance on the
recognition,  presentation and disclosure of revenue, including specifying basic
criteria  that must be met  before  revenue  can be  recognized.  The  impact on
Keystone of adopting  SAB No. 101, if any, has not yet been  determined,  but is
not expected to be material.  If the impact of adopting SAB No. 101 is material,
the Company will adopt SAB No. 101  retroactively  to the beginning of 2000, and
previously-reported  results of operations  for the first three quarters of 2000
would be restated.

Note 2 - Inventories:

         Inventories are stated at the lower of cost or market.  At December 31,
1999 and September 30, 2000, the last-in,  first-out ("LIFO") method was used to
determine  the  cost  of  approximately  79% and  76%,  respectively,  of  total
inventories  and the  first-in,  first-out  or average cost methods were used to
determine the cost of other inventories.

<TABLE>
<CAPTION>
                                           December 31,      September 30,
                                             1999                  2000
                                           ------------      -------------
                                                   (In thousands)

Raw materials:
<S>                                          <C>                <C>
Steel and wire products .........            $20,985            $17,893
                                             -------            -------

Work in process -
  Steel and wire products .......             12,657             10,279
                                             -------            -------

Finished products:
  Steel and wire products .......             20,179             17,253
  Lawn and garden products ......              5,595              3,075
                                             -------            -------
                                              25,774             20,328
                                             -------            -------
Supplies:
  Steel and wire products .......             15,378             15,715
                                             -------            -------
                                              74,794             64,215
                                             -------            -------

Less LIFO reserve:
  Steel and wire products .......              8,711              8,711
                                             -------            -------
                                             $66,083            $55,504
                                             =======            =======
</TABLE>

Note 3 - Notes payable and long-term debt:

<TABLE>
<CAPTION>

                                                      December 31,   September 30,
                                                         1999            2000
                                                      -----------    -------------
                                                              (In thousands)

<S>                                                     <C>             <C>
9 5/8% Senior Secured Notes, due August 2007            $100,000        $100,000
Commercial credit agreements:
  Revolving credit facilities:
    Keystone ...............................              35,568          44,144
    EWP ....................................               4,908           5,830
    Garden Zone ............................               3,541           2,745
  Term loan - EWP ..........................                 437             152
Other ......................................               2,403           1,402
                                                        --------        --------
                                                         146,857         154,273
  Less current maturities ..................              45,986          53,797
                                                        --------        --------

                                                        $100,871        $100,476
                                                        ========        ========
</TABLE>

Note 4 - Income taxes:

         Summarized  below are (i) the  differences  between the  provision  for
income taxes or income tax benefit, and the amounts that would be expected using
the U.S.  federal  statutory  income tax rate of 35%, and (ii) the components of
the provision (benefit) for income taxes.

<TABLE>
<CAPTION>

                                                          Nine months ended
                                                           September 30,
                                                   ----------------------------
                                                    1999               2000
                                                    ----               ----
                                                        (In thousands)


<S>                                                <C>                 <C>
Expected tax benefit, at statutory rate            $(1,137)            $(4,527)
U.S. state income taxes, net ..........                155                  96
Amortization of goodwill ..............               (326)               (323)
Other, net ............................                 20                 239
                                                   -------             -------

Income tax benefit ....................            $(1,288)            $(4,515)
                                                   =======             =======

Comprehensive income tax benefit:
  Currently payable (refundable):
    U.S. Federal ......................            $(1,118)            $  (271)
    U.S. State ........................                114                  43
                                                   -------             -------

      Net currently payable (refundable             (1,004)               (228)
    Deferred income taxes, net ........               (284)             (4,287)
                                                   -------             -------

                                                   $(1,288)            $(4,515)
                                                   =======             =======
</TABLE>

Note 5 - Other accrued liabilities:

<TABLE>
<CAPTION>

                                                   December 31,   September 30,
                                                       1999            2000
                                                   ------------   -------------

Current:
<S>                                                <C>                <C>
  Employee benefits ..............                 $13,181            $10,943
  Environmental ..................                  10,093              8,637
  Self insurance .................                   7,218              7,398
  Interest .......................                   4,034              1,694
  Disposition of former facilities                     617                341
  Legal and professional .........                     829                555
  Accrued maintenance .............                    --                  789
  Other ..........................                   9,365              5,464
                                                   -------            -------

                                                   $45,337            $35,821
                                                   =======            =======

Noncurrent:
  Environmental ..................                 $ 8,143            $ 8,436
  Deferred gain ..................                     274               --
  Other ..........................                   1,122              1,001
                                                   -------            -------

                                                   $ 9,539            $ 9,437
                                                   =======            =======
</TABLE>


         Keystone generally  undertakes planned major maintenance  activities on
an annual  basis,  usually in the  fourth  quarter  of each  year.  These  major
maintenance  activities are conducted  during a shut-down of the Company's steel
and rod  mills.  Repair  and  maintenance  costs  estimated  to be  incurred  in
connection  with these  planned  major  maintenance  activities  are  accrued in
advance on a straight-line basis throughout the year and are included in cost of
goods sold.

Note 6 - Operations:

         The Company's operations are comprised of two segments; the manufacture
and  sale of  carbon  steel  rod,  wire  and  wire  products  for  agricultural,
industrial,  construction,  commercial,  original  equipment  manufacturers  and
retail consumer markets and the distribution of wire,  plastic and wood lawn and
garden products to retailers through Garden Zone.

<PAGE>

         Beginning in August 1999, Keystone is also engaged in a scrap recycling
joint venture through its 50% interest in an unconsolidated equity affiliate.

<TABLE>
<CAPTION>

                                        Three months ended           Nine months ended
                                           September 30,              September 30,
                                       ---------------------      ------------------------
                                          1999         2000          1999          2000
                                          ----         ----          ----          ----
                                                       (In thousands)

Revenues:
<S>                                     <C>          <C>           <C>           <C>
  Steel and wire products ..........    $ 77,677     $  81,795     $ 267,508     $ 268,795
  Lawn and garden products .........       2,434         1,051        12,753         5,983
                                        --------     ---------     ---------     ---------
                                          80,111        82,846       280,261       274,778
  Elimination of intersegment
    revenues .......................        (373)          (59)       (2,882)         (187)
                                        --------     ---------     ---------     ---------

                                        $ 79,738     $  82,787     $ 277,379     $ 274,591
                                        ========     =========     =========     =========

Loss before income taxes:
  Operating profit (loss):
    Steel and wire products ........    $ (2,392)    $     181     $   7,771     $    (161)
    Lawn and garden products .......         (73)          (85)          223           227
                                        --------     ---------     ---------     ---------
                                          (2,465)           96         7,994            66
  General corporate items:
    Interest income ................         138           134           327           399
    General expense, net ...........        (261)         (604)       (1,008)       (1,615)
  Interest expense .................      (3,507)       (3,894)      (10,552)      (11,504)
  Equity in losses of unconsolidated
    equity affiliate ...............          (9)          (29)           (9)         (281)
                                        --------     ---------     ---------     ---------

    Loss before income taxes .......    $ (6,104)    $  (4,297)    $  (3,248)    $ (12,935)
                                        ========     =========     =========     =========
</TABLE>


Note 7 - Contingencies:

         At September 30, 2000,  the Company's  financial  statements  reflected
accrued  liabilities of $17.1 million for estimated  remedial costs arising from
environmental  issues.  There is no assurance  regarding  the  ultimate  cost of
remedial measures that might eventually be required by environmental authorities
or  that  additional   environmental   hazards,   requiring   further   remedial
expenditures,  might not be asserted  by such  authorities  or private  parties.
Accordingly,  the  ultimate  costs of remedial  measures  may exceed the amounts
currently accrued.

         For additional  information  related to commitments and  contingencies,
see "Management's  Discussion and Analysis of Financial Condition and Results of
Operations" and the Annual Report.


<PAGE>


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

RESULTS OF OPERATIONS:

         Keystone  believes  it is a leading  manufacturer  of  fabricated  wire
products, industrial wire and carbon steel rod for the agricultural, industrial,
construction,  original  equipment  manufacturer  and retail  consumer  markets.
Historically,  the Company has experienced  greater sales and profits during the
first  half of the  year due to the  seasonality  of  sales  in  principal  wire
products markets,  including the agricultural and construction markets. Keystone
is also engaged in the  distribution  of wire,  plastic and wood lawn and garden
products  to  retailers  through its 51%  ownership  interest in Garden Zone LLC
("Garden Zone").

        Beginning  in August 1999,  Keystone is also engaged in scrap  recycling
through its  unconsolidated  50% interest in Alter Recycling
Company, L.L.C. ("ARC").

         As  provided by the safe harbor  provisions  of the Private  Securities
Litigation  Reform Act of 1995, the Company cautions that the statements in this
Quarterly  Report on Form 10-Q relating to matters that are not historical facts
including, but not limited to, statements found in this "Management's Discussion
And  Analysis Of Financial  Condition  And Results Of  Operations,"  are forward
looking statements that represent  management's beliefs and assumptions based on
currently available information. Forward-looking statements can be identified by
the use of words such as "believes," "intends," "may," "should,"  "anticipates,"
"expected" or comparable terminology, or by discussions of strategies or trends.
Although  Keystone believes the expectations  reflected in such  forward-looking
statements are reasonable, it cannot give any assurances that these expectations
will prove to be correct.  Such  statements by their nature involve  substantial
risks and uncertainties that could  significantly  impact expected results,  and
actual  future  results  could differ  materially  from those  described in such
forward-looking  statements.  While it is not  possible to identify all factors,
Keystone continues to face many risks and uncertainties.  Among the factors that
could  cause  actual  future  results  to  differ  materially  are the risks and
uncertainties  discussed in this Quarterly  Report and those described from time
to  time in the  Company's  other  filings  with  the  Securities  and  Exchange
Commission  including,  but not  limited  to,  future  supply and demand for the
Company's products (including  cyclicality thereof),  customer inventory levels,
changes in raw  material and other  operating  costs (such as scrap and energy),
general  economic  conditions,  competitive  products and  substitute  products,
customer  and  competitor  strategies,  the  impact of  pricing  and  production
decisions, the possibility of labor disruptions,  environmental matters (such as
those  requiring   emission  and  discharge   standards  for  existing  and  new
facilities),  government  regulations and possible changes therein, the ultimate
resolution of pending  litigation,  successful  implementation  of the Company's
capital improvements plan, international trade policies of the United States and
certain foreign  countries,  and any possible future  litigation and other risks
and  uncertainties  as discussed in this Quarterly Report and the Annual Report,
including without  limitation,  the section referenced above. Should one or more
of these risks  materialize (or the consequences of such a development  worsen),
or should the  underlying  assumptions  prove  incorrect,  actual  results could
differ  materially from those forecasted or expected.  The Company disclaims any
intention  or  obligation  to  update or revise  any  forward-looking  statement
whether as a result of new information, future events or otherwise.

         The following  table sets forth the  Company's  steel and wire products
production and sales volume data for the periods indicated.

<TABLE>
<CAPTION>
                                  Three months ended         Nine months ended
                                     September 30,              September 30,
                                  ------------------        ------------------
                                  1999         2000         1999          2000
                                  ----         ----         ----          ----
                                            (In thousands of tons)

Production volume:
 Billets:
<S>                                <C>          <C>          <C>          <C>
  Produced ..............          174          196          503          529
  Purchased .............           12          --            42            8
 Rod ....................          173          185          519          533

Sales volume:
 Fabricated wire products           70           76          251          253
 Industrial wire ........           32           30          110          101
 Steel rod ..............           55           68          166          201
                                   ---          ---          ---          ---

                                   157          174          527          555
                                   ===          ===          ===          ===

</TABLE>


         The  following  table sets forth the  components  of the  Company's net
sales for the periods indicated.

<TABLE>
<CAPTION>

                                Three months ended       Nine months ended
                                   September 30,            September 30,
                                -------------------      ------------------
                                  1999      2000          1999         2000
                                  ----      ----          ----         ----
                                             (In millions)

Steel and wire products:
<S>                             <C>        <C>         <C>         <C>
  Fabricated wire products      $  47.9    $   49.5    $  172.4    $  168.0
  Industrial wire ........         15.0        13.5        51.0        45.5
  Rod ....................         14.5        18.4        43.1        54.1
  Other ..................           .2          .4         1.0         1.2
                                -------    --------     -------     -------
                                   77.6        81.8       267.5       268.8

Lawn and garden products .          2.1         1.0         9.9         5.8
                                -------    --------     -------     -------

                                $  79.7    $   82.8    $  277.4    $  274.6
                                =======    ========    ========    ========

</TABLE>




<PAGE>


         The following  table sets forth selected  operating data of the Company
as a percentage of net sales for the periods indicated.

<TABLE>
<CAPTION>

                                         Three months ended        Nine months ended
                                            September 30,             September 30,
                                        -------------------       ---------------------
                                          1999         2000         1999        2000
                                          ----         ----         ----        ----

<S>                                       <C>          <C>          <C>          <C>
Net sales ........................        100.0%       100.0%       100.0%       100.0%
Cost of goods sold ...............         95.6         95.2         91.3         94.8
                                          -----        -----        -----        -----
Gross profit .....................          4.4          4.8          8.7          5.2
Selling expense ..................          2.0          1.8          2.0          1.8
General and administrative expense          5.6          5.3          5.6          5.0

Loss before income taxes .........         (7.7)%       (5.2)%       (1.2)%       (4.7)%
Benefit for income taxes .........         (2.4)        (1.4)         (.5)        (1.6)
Minority interest in after-tax
  earnings (losses) ..............          (.1)         (.1)          -            -
                                          -----        -----        -----        -----

Net loss .........................         (5.4)%       (3.7)%        (.7)%       (3.1)%
                                          =====        =====        =====        =====

</TABLE>

         Billet  production  during the third quarter of 2000  increased  22,000
tons or 13% to 196,000 tons from 174,000 tons during the third  quarter of 1999.
The  196,000  tons of billet  production  was the same as that of the 2000 first
quarter,  which was a record level of billet production for a single quarter. As
a result of the  increased  billet  production,  Keystone  did not  purchase any
billets  during the 2000 third  quarter as compared to  purchases of 12,000 tons
during the 1999 third quarter.  Keystone's higher billet production  enabled rod
production  during the third  quarter  of 2000 to  increase  to 185,000  tons as
compared to production of 173,000 tons in the 1999 third quarter.  This level of
rod production was the highest for a third quarter in over 10 years.

         As a result of high  levels of  production  during  the first and third
quarters of 2000, both billet and rod production during the first nine months of
2000 increased as compared to the first nine months of 1999.  Billet  production
in the first nine months of 2000  increased  26,000 tons from  production in the
first nine  months of 1999 and rod  production  in the first nine months of 2000
increased 14,000 tons from production in the first nine months of 1999.

         Net sales of $82.8  million in the 2000 third  quarter  were up 4% from
$79.7  million  during the same period in 1999.  This  increase in sales was due
primarily  to an 11%  increase  in  shipments  of the  Company's  steel and wire
products  partially  offset by a 5% decline in overall  per-ton  product selling
prices. In addition, Garden Zone's sales during the 2000 third quarter were down
$1.1 million from the 1999 third quarter to $1.0 million  primarily due to lower
shipments  to a major  customer.  Shipments of carbon  steel rod  increased  23%
during  the 2000 third  quarter as  compared  to the 1999  third  quarter  while
per-ton selling prices increased 3%. Industrial wire shipments declined 7% while
per-ton selling prices declined 4%.  Fabricated wire products  shipments  during
the 2000 third quarter  increased 9% as compared to the 1999 third quarter while
per-ton selling prices declined 5%.

         Net sales of $274.6  million in the first nine months of 2000 were down
1% from $277.4  million in the first nine months of 1999.  This decline in sales
was  primarily  due to a 5% decline in per-ton  selling  prices of the Company's
steel and wire  products  partially  offset by a 5%  increase in  shipments.  In
addition,  Garden  Zone's  sales  during the first nine months of 2000 were down
$4.1 million from the same period in 1999 to $5.8 million  primarily  due to the
lower shipments to the major customer.  Carbon steel rod shipments increased 21%
during  the first nine  months of 2000  compared  to the 1999 nine month  period
while per-ton selling prices increased 4%. Industrial wire shipments declined 8%
while per-ton  selling prices declined 3%.  Fabricated  wire products  shipments
during the first nine months of 2000  increased 1% as compared to the first nine
months of 1999 while per-ton selling prices declined 3%.

         Gross profit  during the 2000 third  quarter  increased to $3.9 million
from $3.5  million  in the 1999  third  quarter as the  Company's  gross  margin
increased from 4.4% in the 1999 period to 4.8% in the 2000 third  quarter.  This
increase in gross margin was due primarily to lower charges for  electricity and
purchased  billet costs  partially  offset by the lower overall  per-ton selling
price of the Company's  products and higher charges for natural gas.  Keystone's
cost for scrap steel,  the Company's  primary raw material during the 2000 third
quarter was  relatively  constant with the 1999 third  quarter cost.  During the
2000 third quarter,  the Company  purchased  141,000 tons of scrap at an average
price of $94 per ton as compared to 1999 third quarter purchases of 206,000 tons
at an average price of $95 per ton. During the 2000 third quarter,  Keystone did
not  purchase  any billets as compared to  purchases  of 12,000 tons in the 1999
third quarter at an average price of $190 per ton.

         Gross  profit  during the first nine  months of 2000  declined to $14.3
million  from $24.0  million in the first nine  months of 1999 as the  Company's
gross  margin  declined  from 8.7% in the 1999  period to 5.2% in the first nine
months of 2000.  This decrease in gross margin was due primarily to higher costs
for scrap  steel,  the lower  overall  per-ton  selling  price of the  Company's
products and higher production costs.  During the first nine months of 2000, the
Company  purchased  531,000 tons of scrap at an average price of $104 per ton as
compared to 1999  purchases of 542,000 tons at an average  price of $89 per ton.
During the first nine months of 2000,  Keystone  purchased 8,000 tons of billets
at an average  price of $215 per ton,  as  compared  to 42,000 tons in the first
nine months of 1999 at an average price of $196 per ton. The production  outages
and furnace  break-out  during the first six months of 2000  adversely  impacted
gross profit by $5.3 million including lost billet production of 64,000 tons.

         Selling  expenses of $1.5 million  during the third quarter of 2000 and
$5.0 million  during the first nine months of 2000 were both lower than the same
periods in 1999, but were relatively constant as a percentage of sales.

         General and  administrative  expenses were  approximately  $4.4 million
during both the third quarter of 2000 and the third quarter of 1999.  During the
first nine months of 2000, general and administrative expenses amounted to $13.7
million as  compared  to $15.6  million  during  the first nine  months of 1999,
primarily  due to the higher costs  associated  with the start-up of Garden Zone
and  unfavorable  legal  settlements  during  the first  six  months of the 1999
period.

         The overfunded  defined  benefit pension credit in the third quarter of
2000 was $1.3 million as compared to expense of $185,000 in the third quarter of
1999, and the overfunded  benefit pension credit declined to $2.7 million during
the first nine months of 2000 from $3.8 million  during the same period in 1999.
The 1999 third  quarter  pension  expense of  $185,000  was due  primarily  to a
reduction in the estimated  pension credit for the full year of 1999 as a result
of the increased  pension benefits  included in the Company's new labor contract
with  the  Peoria  facility's  union  entered  into  during  1999.  Excluding  a
curtailment loss discussed below,  Keystone currently anticipates the total 2000
overfunded  defined  benefit  pension  credit will  approximate  $3.7 million as
compared to a total credit in 1999 of $5.6 million. During the fourth quarter of
2000, in its effort to reduce fixed costs,  Keystone offered an early retirement
package with enhanced pension benefits to a group of salaried employees.  If the
entire  group  accepts the package,  the Company will record a non-cash  pension
charge in the 2000 fourth quarter of approximately  $3.6 million related to such
retirement  package.  However,  if the entire group  accepts the package,  fixed
labor costs would be reduced by more than $3.5  million  per year  beginning  in
January 2001.

         Interest expense in the third quarter of 2000 was higher than the third
quarter of 1999 due  principally to higher average  borrowing  levels and higher
interest  rates.  Average  borrowings by the Company under its revolving  credit
facilities,  EWP term loan and Senior Secured Notes approximated  $153.9 million
in the third quarter of 2000 as compared to $144.2  million in the third quarter
of 1999. During the third quarter of 2000, the average interest rate paid by the
Company was 9.7% per annum as compared to 9.3% per annum in the third quarter of
1999.

         Interest  expense in the first nine months of 2000 was also higher than
the first nine months of 1999 due  principally  to higher  borrowing  levels and
higher  interest  rates.  Average  borrowings by the Company under its revolving
credit facilities,  EWP term loan and Senior Secured Notes  approximated  $152.2
million in the first nine months of 2000 as  compared  to $143.3  million in the
first nine  months of 1999.  During the first nine  months of 2000,  the average
interest  rate paid by the  Company  was 9.6% per annum as  compared to 9.3% per
annum in the first nine months of 1999.

         The  principal  reasons for the  difference  between  the U.S.  federal
statutory  income  tax rate and the  Company's  effective  income  tax rates are
explained in Note 4 to the Consolidated Financial Statements.

         As a result of the items discussed  above,  the Company  incurred a net
loss during the third  quarter of 2000 of $3.1 million as compared to a net loss
of $4.1  million in the third  quarter of 1999,  and a net loss during the first
nine months of 2000 of $8.4 million as compared to a net loss of $2.0 million in
the first nine months of 1999.

         In  addition  to the  early  retirement  package  offered  to  salaried
employees,  the Company is  continuing  to take action  towards  reducing  fixed
costs.  Keystone  believes a combination of its early  retirement  package and a
restructuring  of it work force will  enable the Company to, by the end of 2000,
reduce its existing  salaried  employee  headcount  by 20% and  existing  hourly
employee headcount by 8%. Reductions in the Company's  workforce other than from
the early retirement  package will result in added expense and cash requirements
related to severance and other  termination  costs during the fourth  quarter of
this year.


<PAGE>


         Keystone  believes  it  successfully  achieved  its April 1 rod selling
price  increase  during the third quarter of 2000,  and that its markets  remain
relatively  stable.  However,  Keystone's  customers  have been  lowering  their
inventory  levels during the third quarter of 2000 which has in turn put pricing
pressure on the Company's  products.  Keystone does not anticipate any relief in
this area during the fourth  quarter,  although the Company does not  anticipate
further pricing declines during the fourth quarter. In addition,  during October
2000, Keystone experienced an unplanned outage at its electric arc furnace. This
outage  resulted in  approximately  12 days lost  production and repair costs of
approximately $1 million,  although  Keystone  anticipates a portion of the loss
will be covered by insurance.  As such,  despite  improving  production  levels,
declining  fixed  costs and scrap  costs  that the  Company  anticipates  during
November  will be at their  lowest  levels in over 10 years,  as a result of the
continuing pricing pressures, the furnace outage, the possibility of the pension
curtailment  loss and severance  related charges,  Keystone  believes results of
operations  during the fourth  quarter  of 2000 will not  improve  over the $5.5
million loss recorded during the fourth quarter of 1999.

LIQUIDITY AND CAPITAL RESOURCES:

         The Company's cash flows from operating  activities are affected by the
seasonality  of  its  business  as  sales  of  certain   products  used  in  the
agricultural and construction industries are typically highest during the second
quarter  and  lowest  during the fourth  quarter  of each year.  These  seasonal
fluctuations  impact  the timing of  production,  sales and  purchases  and have
typically  resulted  in a use of  cash  from  operations  and  increases  in the
outstanding  balance under the Company's  revolving credit facilities during the
first quarter of each year.

         At September 30, 2000 the Company had negative working capital of $26.6
million,  including  $1.1  million of notes  payable and current  maturities  of
long-term debt as well as outstanding  borrowings under the Company's  revolving
credit  facilities of $52.7 million.  The amount of available  borrowings  under
these  revolving  credit  facilities is based on  formula-determined  amounts of
trade  receivables and  inventories,  less the amount of outstanding  letters of
credit.  Under the terms of the indenture related to the Company's 9 5/8% Senior
Secured  Notes,   Keystone's  ability  to  borrow  under  its  revolving  credit
facilities may be limited.  At September 30, 2000,  unused credit  available for
borrowing under Keystone's $60 million revolving credit facility,  which expires
December 31, 2001 and EWP's $7 million revolving credit facility,  which expires
June 30, 2002,  were $8.5 million and $1.2 million,  respectively.  At September
30, 2000, there was no unused credit available for borrowing under Garden Zone's
$4 million revolving credit facility, which expires December 11, 2000. The terms
of the  indenture  will  permit  Keystone  to borrow  all of the  unused  credit
available  under its revolving  credit  facilities  during the fourth quarter of
2000.  Keystone's $60 million revolving credit facility requires Keystone to use
daily cash  receipts  to reduce  outstanding  borrowings,  which  results in the
Company maintaining zero cash balances when there are balances outstanding under
this credit facility.

         During  the  first  nine  months  of  2000,  the  Company's   operating
activities  provided  approximately  $2.3  million of cash  compared to a use of
approximately $10.0 million in cash in the first nine months of 1999 principally
due to the $10.6  million  decline  in  inventories  during  the 2000  period as
opposed to a $10.9  million  increase  in  inventories  during  the 1999  period
partially offset by lower earnings in the 2000 period.

         During  the  first  nine  months  of 2000,  the  Company  made  capital
expenditures  of $9.7  million as  compared  to $12.4  million in the first nine
months of 1999.  Capital  expenditures  for 2000 are  currently  estimated to be
approximately  $12.0 million and are related primarily to upgrades of production
equipment.  These  capital  expenditures  will be funded  using  cash flows from
operations  together with  borrowing  availability  under  Keystone's  revolving
credit facilities.

         At September 30, 2000,  the Company's  financial  statements  reflected
accrued  liabilities  of $17.1 million for estimated  remediation  costs arising
from environmental  issues. There is no assurance regarding the ultimate cost of
remedial measures that might eventually be required by environmental authorities
or  that  additional   environmental   hazards,   requiring   further   remedial
expenditures,  might not be asserted  by such  authorities  or private  parties.
Accordingly, the costs of remedial measures may exceed the amounts accrued.

         In  addition  to  the  planned  reductions  in  fixed  costs  discussed
previously,  the  Company is taking  additional  action  towards  improving  its
liquidity.  These  actions  include,  but  are not  limited  to,  attempting  to
negotiate an "over-advance"  facility with its primary lender for a short period
of time, reducing inventory levels through more efficient  production  schedules
and a consignment program for 50,000 tons of scrap steel, offering enhanced cash
discounts to significant  customers for prepayment of their purchase  orders and
reducing  capital  expenditures.  The  Company is also  considering  the sale of
certain divisions or subsidiaries  that are not necessary to achieve  Keystone's
long-term business  objectives.  However,  there can be no assurance the Company
will be successful in any of these or other efforts, or that if successful, they
will provide sufficient  liquidity for the Company's  operations during the next
year.

         Keystone incurs  significant  ongoing costs for plant and equipment and
substantial employee medical benefits for both current and retired employees. As
such,  the Company is vulnerable  to business  downturns and increases in costs,
and accordingly, routinely compares its liquidity requirements and capital needs
against its estimated  future operating cash flows. As a result of this process,
the Company has in the past, and may in the future,  reduce  controllable costs,
modify  product  mix,  acquire and dispose of  businesses,  restructure  certain
indebtedness,  and raise  additional  equity capital.  Keystone will continue to
evaluate the need for similar  actions or other  measures in the future in order
to meet its obligations.  The Company also routinely  evaluates  acquisitions of
interests in, or combinations  with,  companies related to the Company's current
businesses.  Keystone  intends to consider  such  acquisition  activities in the
future and, in connection with this activity,  may consider  issuing  additional
equity  securities  or  increasing  the  indebtedness  of the Company.  However,
Keystone's  ability to incur new debt in the future will be limited by the terms
of the indenture related to the 9 5/8% Senior Secured Notes.


<PAGE>


         Management  currently believes the cash flows from operations  together
with the funds available under the Company's revolving credit facilities will be
sufficient  to  fund  the  anticipated  needs  of  its  operations  and  capital
improvements  for the year ending  December 31, 2000.  This belief is based upon
management's assessment of various financial and operational factors, including,
but not limited to, assumptions  relating to product shipments,  product mix and
selling  prices,  production  schedules,   productivity  rates,  raw  materials,
electricity,  labor,  employee  benefits  and other  fixed and  variable  costs,
interest rates, repayments of long-term debt, capital expenditures and available
borrowings under the Company's revolving credit facilities. However, liabilities
under  environmental  laws and  regulations  with  respect to the  clean-up  and
disposal  of  wastes,  or any  significant  increases  in the cost of  providing
medical  coverage to active and retired  employees could have a material adverse
effect on the future liquidity, financial condition and results of operations of
the  Company.  Additionally,  significant  declines  in the  Company's  end user
markets or market share, the inability to maintain  satisfactory  billet and rod
production levels, or other unanticipated costs, if significant, could result in
a need for funds greater than the Company currently has available.  There can be
no  assurance  the  Company  would  be able to  obtain  an  adequate  amount  of
additional financing.

ACCOUNTING PRINCIPLES NOT YET ADOPTED:

         See Note 1 to the Consolidated Financial Statements.




<PAGE>


PART II.  OTHER INFORMATION

ITEM 1. Legal Proceedings

        Reference  is made to  disclosure  provided  under the caption  "Current
litigation" in Note 15 to the Consolidated  Financial Statements included in the
Annual Report.

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

(a)     The following exhibit is included herein:

        27.1      Financial Data Schedule for the nine month period ended
                  September 30, 2000.

(b)     Reports on Form 8-K filed during the quarter ended September 30, 2000:

        None.


<PAGE>





                               S I G N A T U R E S



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.


                                          Keystone Consolidated Industries, Inc.
                                          --------------------------------------
                                                      (Registrant)



Date: November 13, 2000                 By /s/Bert E. Downing, Jr.
                                        -------------------------------------
                                        Bert E. Downing, Jr.
                                        Vice President and Corporate Controller
                                          (Principal Financial and Accounting
                                              Officer)