FORM 10-Q
                                
               SECURITIES AND EXCHANGE COMMISSION
                                
                    Washington, D.C.  20549
                                
           Quarterly Report Under Section 13 or 15(d)
             of the Securities Exchange Act of 1934
                                
                                
For Quarter Ended April 30, 1998                  Commission file number 2-31520
                                
                                
                                
                     KIT MANUFACTURING COMPANY                               
     (Exact name of registrant as specified in its charter)
                                
                                
                                
                                
        California                                            95-1525261   
(State or other jurisdiction of                             (I.R.S.Employer
incorporation or organization)                              Identification No.)
                                
                                
                                
530 East Wardlow Road,   P.O. Box 848,   Long Beach, California     90801  
(Address of principal executive offices)                         (Zip Code)
                                
Registrant's telephone number, including area code             (562)595-7451
                                
                                
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       .

              APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.  Common
Stock (no par value), 1,110,934 shares outstanding as of April 30, 1998.

                                 


                  Index to Exhibits - Page 11

                          1 of 11 Pages
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                             PART I               

                      FINANCIAL INFORMATION








































                                 



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<PAGE>
                                
                                
<TABLE>                       KIT MANUFACTURING COMPANY   
                               STATEMENTS OF OPERATION      
                      (Dollars in Thousands Except Per Share Amounts)  
                                     (Unaudited)  
  <CAPTION>
                                       Three Months Ended     Six Months Ended
                                           April 30,             April 30,
                                   1998      1997             1998      1997
<S>                                <C>       <C>              <C>       <C>
Sales                              $16,831   $23,134          $30,650   $39,723
                                                       
Costs and expenses:                                                   
     Cost of sales                  15,317    22,108           28,235    37,365
     Selling, general and                                             
        administrative expenses      1,429     2,198            2,612     4,085
                                    16,746    24,306           30,847    41,450
                                                           
Operating income (loss)                 85    (1,172)            (197)   (1,727)
                                                  
Other income                                                
    Interest income (expense), net       5       (77)              22       (68)
                                                  
Income (loss) before income taxes       90    (1,249)            (175)   (1,795)
                                                  
Expense (benefit) for income taxes                                         
     (Note A)                           35      (512)             (73)     (736)
                                                            
Net income (loss)                      $55     ($737)           ($102)  ($1,059)
                                                            
Shares outstanding                                          
     (Note B)                    1,110,934  1,110,934        1,110,934 1,110,934
                                                            
Income (loss) before income 
taxes per share
     (Note B)                        $0.08    ($1.12)          ($0.16)   ($1.62)
                                                            
Net income (loss) per share                                      
     (Note B)                        $0.05    ($0.66)          ($0.09)   ($0.95)
                                                            
Dividends per share                $    -     $    -          $    -    $   -
                                   
<FN>
 <F1>The accompanying notes are an integral part of these financial statements 
</FN>
                                      -3-
</TABLE>
<PAGE>
                                        
                                        
                                        
                                        
<TABLE>
                            KIT MANUFACTURING COMPANY
                                BALANCE SHEET     
                              (Dollars in thousands)  
<CAPTION>
                                                  April 30,      October 31,
                                                      1998             1997
<S>                                              <C>              <C>
ASSETS                                                 
                                                  (Unaudited)         
     Cash and cash investments                    $3,982             $3,673
     Accounts receivable, net                      4,424              4,533
     Inventories:                                      
         Raw materials                             1,826              1,876
         Work in process                             629                907
         Finished goods                            1,085                619
           Total inventories                       3,540              3,402
     Prepaids and income tax refunds receivable    1,657              2,632
           Total current assets                   13,603             14,240
     Property, plant and equipment, net            6,711              6,844
     Other assets                                     58                 53
           Total assets                          $20,372            $21,137
                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                       
     Note payable to bank                         $1,445
     Accounts payable                              1,869             $2,697
     Accrued payroll and related items             1,322              1,604
     Accrued marketing programs                      410                809
     Accrued expenses                              1,316              1,915
           Total current liabilities               6,362              7,025
     Deferred income taxes                         1,487              1,487
           Total liabilities                       7,849              8,512
                                                            
     Commitments and contingencies           
     Shareholders' equity                                        
     Common stock and additional paid-in capital,      
         issued and outstanding 1,110,934 shares   1,592              1,592
     Retained earnings:                                 
        Balance at beginning of period            11,033             13,345
        Net loss for period                         (102)            (2,312)
        Balance at end of period                  10,931             11,033
             Total shareholders' equity           12,523             12,625
     Total liabilities and shareholders' equity  $20,372            $21,137
                                                            
<FN>
<F1>The accompanying notes are an integral part of these financial statements
</FN>
                                      -4-
</TABLE>
<PAGE>
                                        
                                        
                                        
                                        
<TABLE>
                            KIT MANUFACTURING COMPANY     
                             STATEMENTS OF CASH FLOWS     
                             (Dollars in thousands)  
                                  (Unaudited)    
<CAPTION>
                                            For the six months ended April 30,
                                                       1998            1997
<S>                                                 <C>                 <C>
Cash flows from operating activities:
        Cash received from customers                $30,760             $41,417
        Interest received                                62                  37
        Cash received from operations                30,822              41,454
                                                            
        Cash paid to suppliers and employees         32,770              44,288
        Interest paid                                    41                 106
        Income taxes (received) paid                 (1,267)                 35
        Cash disbursed for operations                31,544              44,429
                                                            
Net cash used in operating activities                  (722)             (2,975)
                                                            
Cash flows from investing activities:                  
       Purchase of property, plant and equipment       (779)              (866)
       Changes in other current and noncurrent assets   365                (98)
Net cash used in investing activities                  (414)              (964)
                                                            
Cash flows from financing activities:                  
      Proceeds from line-of-credit borrowings         7,217              9,280
      Principal payments on line-of-credit borrowings(5,772)            (4,801)
Net cash provided by financing activities             1,445              4,479
                                                            
Net increase in cash                                    309                540
Cash at beginning of year                             3,673              2,281
Cash at end of period                                $3,982             $2,821

                                                            
Reconciliation of net loss to net cash used in operating activities:

Net loss                                              ($102)           ($1,059)
                                                            
Adjustments to reconcile net loss to net cash used in operating activities:
          
Depreciation                                            323                336
Decrease in accounts receivable                         109              1,694
Increase in inventories                                (138)              (499)
Decrease in accounts payable and accrued liabilities (2,108)            (2,676)
Increase (decrease) in  income taxes payable          1,194               (771)
                                                            
Net cash used in operating activities                 ($722)           ($2,975)
<FN>
<F1>The accompanying notes are an integral part of these financial statements
</FN>
                                      -5-
</TABLE>
<PAGE>
                                        
                                        
                                        
                           KIT MANUFACTURING COMPANY
                    NOTES TO CONDENSED FINANCIAL STATEMENTS       
                                 (Unaudited)
                                        
                                        
Note A - The provision or benefit for income taxes is calculated using the
Company's estimated annual effective tax rate.

Note B - Per share amounts are based on the weighted average number of common
shares outstanding.  Options have not been included in the computations because
their effect would not be dilutive.

Note C - In the opinion of management, all material adjustments which are
necessary for a fair statement of financial position, results of operations and
cash flows have been included in these financial statements.

Note D - The results of the period are not necessarily indicative of annual
results due to seasonality of the business.

Note E - Financial information contained herein is unaudited.

Note F - The Company is contingently liable to various financial institutions on
repurchase agreements in connection with wholesale inventory financing.  In
general, inventory is repurchased by the Company upon default by a dealer with a
financing institution and then resold through normal distribution channels.  In
addition, the Company is contingently liable to financial institutions for
letters of credit which were established to satisfy the self-insured workers'
compensation regulations of the states in which the Company conducts
manufacturing operations.

Management does not expect that losses, if any, from the contingencies described
above will be of material importance to the financial condition or earnings of
the Company.

Note G - In June 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (FAS) No. 130, "Reporting
Comprehensive Income".  FAS 130 establishes standards for reporting and display
of comprehensive income and its components in a full set of general-purpose
financial statements.  FAS 130 is effective for fiscal years beginning after
December 15, 1997.  Management has not assessed the impact of adopting this
standard.

Note H - In June 1997, FASB issued FAS 131, "Disclosures about Segments of an
Enterprise and Related Information".  FAS 131 requires that public business
enterprises report certain information about operating segments in complete sets
of financial statements of the enterprise and in condensed financial statements
of interim periods to shareholders.  FAS 131 is effective for fiscal years
beginning after December 15, 1997.  Management has not assessed the impact of
adopting this standard.











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                      KIT MANUFACTURING COMPANY
     Management's Discussion and Analysis of Financial Condition
                      and Results of Operations
                                  
  FINANCIAL CONDITION - APRIL 30, 1998 COMPARED TO OCTOBER 31, 1997
                                  
Under second quarter market conditions, the Company borrowed on its line of
credit to maintain its inventory levels to provide for  anticipated second
quarter sales.  The Company's working capital increased $16,000 due to the net
effect of the receipt of prior year's income tax refunds and the increase in
line of credit borrowings for inventory build-up.  The current ratio was 2.14:1
at April 30, 1998 compared to 2.0:1 at October 31, 1997.

The Company's liquidity position as reflected in the current ratio described
above, capital resources, including excess plant capacity, working capital, and
unused line of credit, are considered to be adequate to provide for near term
anticipated growth.

                                  
  RESULTS OF OPERATIONS - QUARTER ENDED APRIL 30, 1998 COMPARED TO
                    QUARTER ENDED APRIL 30, 1997
                                  
Total sales for the quarter ended April 30, 1998 were $16,831,000, a 27%
decrease from sales of $23,134,000 for the same quarter of the prior year.  The
decrease consisted of a 5% increase in manufactured housing sales and a 38%
decrease in recreational vehicle (RV) sales.  Manufactured housing sales
increased due to increased marketing efforts, more competitive product pricing,
and continued offerings of a wide range of products.  RV sales decreased due to
the continued shift to sales of lower priced entry level products and the
closure of the RV plant in Kansas.

Cost of sales decreased 31% from the same quarter of the prior year and
decreased 5% as a percent of sales due primarily to the decline in sales volume.
The resulting increase in gross profit margins compared to the first quarter of
fiscal 1997 is chiefly attributed to the cost containments associated with the
successful introduction of the Company's new RV models for the entry level
market.

Selling, general and administrative expenses decreased 35% over the same quarter
of the prior year and decreased 1% as a percent of sales. This was due primarily
to the continued planned reductions in marketing costs and overhead costs.

Net interest income for the current quarter was $5,000 compared to net interest
expense of $77,000 in the same quarter of the prior year. This was a result of
an increase in the average net short-term investments and lower average
borrowing levels due to a decline in material purchases.

The net income for the three months ended April 30, 1998 was $55,000, or $0.05
per share, compared to net loss of $737,000, or $0.66 per share, for the same
quarter of the prior year.
                                  
                                  
                                  
                                  
                                  
                                  
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<PAGE>
                                  
                                  
                                  
                                  
                      KIT MANUFACTURING COMPANY
     Management's Discussion and Analysis of Financial Condition
                      and Results of Operations

                                   
RESULTS OF OPERATIONS - SIX MONTHS ENDED APRIL 30, 1998 COMPARED TO SIX
MONTHS ENDED APRIL 30, 1997

Total sales for the six months ended April 30, 1998 were $30,650,000, a 23%
decrease from sales of $39,723,000 for the same quarter of the prior year.  The
decrease consisted of a 13% increase in manufactured housing sales and a 36%
decrease in recreational vehicle (RV) sales.  Manufactured housing sales
increased due to increased marketing efforts, more competitive product pricing,
and continued offerings of a wide range of products.  RV sales decreased due to
the continued shift to sales of lower priced entry level products and the
closure of the RV plant in Kansas.

Cost of sales decreased 24% from the same six months of the prior year and
decreased 2% as a percent of sales due primarily to the decline in sales volume.
The resulting increase in gross profit margins compared to the prior year is
chiefly attributed to the cost containments associated with the successful
introduction of the Company's new RV models for the entry level market.

Selling, general and administrative expenses decreased 36% over the same six
months of the prior year and decreased 2% as a percent of sales. This was due
primarily to the continued planned reductions in marketing costs and overhead
costs.

Net interest income for the current six months was $22,000 compared to net
interest expense of $68,000 in the same six months of the prior year. This was a
result of an increase in the average net short-term investments and lower
average borrowing levels due to a decline in material purchases.

The net loss for the six months ended April 30, 1998 was $102,000, or $0.09 per
share, compared to net loss of $1,059,000, or $0.95 per share, for the same six
months of the prior year.

                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
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                             PART II                         
                                  
                          OTHER INFORMATION
                                  
                                  
                             Item 6 (a).
                                  
 See Index to Exhibits on page 10.
                                  
                                  
                             Item 6 (b).
                                  
 Form 8-K was not required to be filed during the quarter ended April 30, 1998.
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
                                  
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<PAGE>

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.

                              KIT MANUFACTURING COMPANY
                                   (Registrant)



DATE 5/29/98                  /s/ Dan Pocapalia                             
                              Dan Pocapalia
                              Chairman of the Board,
                              Chief Executive Officer and President
                              (Principal Executive Officer)



DATE 5/29/98                  /s/ Bruce K. Skinner                          
                              Bruce K. Skinner
                              Vice President and Treasurer
                              (Principal Financial and Accounting Officer)




























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<PAGE>
                                  
                                  
                      KIT MANUFACTURING COMPANY
                          INDEX TO EXHIBITS
                                  
                                  
Item:
     
     (27) Financial Data Schedule










































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