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 March 31, 2001

                                       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 ______

     2,266,221   common shares were outstanding as of April 27, 2001.
     2,351,620   Class B common shares were outstanding as of April 27, 2001.
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                                      INDEX

                                                                        Page No.

PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements.

                  Condensed Consolidated Balance Sheets
                  --March 31, 2001 and July 1, 2000............................2

                  Condensed Consolidated Statements of Income
                  --Nine Months and Three Months Ended March 31, 2001
                    and April 1, 2000 .........................................3

                  Condensed Consolidated Statements of Cash Flows
                  --Nine Months Ended March 31, 2001 and April 1, 2000.........4

                  Notes to Condensed Consolidated Financial Statements.......5-7

         Item 2.  Management's Discussion and Analysis of Financial
                  Condition and Results of Operations.......................8-10

         Item 3.  Quantitative and Qualitative Disclosures About Market
                  Risk........................................................11

PART II. OTHER INFORMATION

         Item 6.  Exhibits and Reports on Form 8-K............................12

SIGNATURES....................................................................13


                                       1
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                          PART I. FINANCIAL INFORMATION

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
                                                                                  (Unaudited)            (Audited)
                                                                                Mar. 31, 2001         July 1, 2000
                                                                         ---------------------   ------------------
Assets
<S>                                                                      <C>                      <C>
Current assets
         Cash and equivalents                                             $         2,308,539     $      2,351,622
         Accounts receivable - net                                                 18,087,998           20,631,951
         Inventories                                                               16,466,499           15,092,393
         Prepaid expenses and other                                                 3,051,989            3,133,098
                                                                         ---------------------   ------------------
Total current assets                                                               39,915,025           41,209,064
                                                                         ---------------------   ------------------

Property, plant and equipment                                                      78,556,152           73,632,488
Less accumulated depreciation                                                      37,431,939           35,270,625
                                                                         ---------------------   ------------------
Net property, plant and equipment                                                  41,124,213           38,361,863
                                                                         ---------------------   ------------------
Goodwill                                                                            5,228,912            4,978,420
Other assets                                                                        2,956,252            3,738,305
                                                                         ---------------------   ------------------
                                                                          $        89,224,402     $     88,287,652
                                                                         =====================   ==================

Liabilities and Stockholders' Equity

Current liabilities
         Accounts payable                                                 $        11,128,945     $     12,833,665
         Other accrued liabilities                                                  9,135,810           11,997,006
                                                                         ---------------------   ------------------
Total current liabilities                                                          20,264,755           24,830,671
                                                                         ---------------------   ------------------
Long-term debt                                                                     24,280,000           20,050,000
Deferred income taxes and other long-term liabilities                               8,446,035            8,700,351
                                                                         ---------------------   ------------------
Total liabilities                                                                  52,990,790           53,581,022
                                                                         ---------------------   ------------------
Stockholders' Equity

Common stock (Common - 2,265,721 and 2,222,852 shares issued, Class B common -
       2,352,120 and 2,392,853 shares issued,
       Preferred - unissued)                                                        9,235,682            9,231,410
Additional paid-in capital                                                          8,502,727            8,482,908
Unearned stock grant                                                                  (94,500)             (94,500)
Accumulated other comprehensive income:
       Foreign currency translation adjustment                                       (177,429)             (39,172)
       Derivative adjustment                                                         (541,067)                   -
       Minimum supplemental executive retirement plan
          liability adjustment                                                     (1,128,069)          (1,130,405)
Retained earnings                                                                  20,436,268           18,256,389
                                                                         ---------------------   ------------------
Total stockholders' equity                                                         36,233,612           34,706,630
                                                                         ---------------------   ------------------
                                                                          $        89,224,402     $     88,287,652
                                                                         =====================   ==================
</TABLE>
See accompanying notes.

                                       2
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
<TABLE>
                                                         For the Nine Months Ended                 For the Three Months Ended
                                                         -------------------------                 --------------------------
                                                    Mar. 31, 2001         Apr. 1, 2000         Mar. 31, 2001         Apr. 1, 2000
                                                   ----------------      ----------------     ----------------      ----------------
<S>                                                <C>                   <C>                  <C>                   <C>
Net sales                                       $      106,229,784   $       110,191,475   $       33,569,582   $        38,704,961

Cost of sales                                           77,627,826            80,365,025           25,143,424            28,195,678
                                                   ----------------      ----------------     ----------------      ----------------
Gross profit                                            28,601,958            29,826,450            8,426,158            10,509,283
                                                   ----------------      ----------------     ----------------      ----------------
Selling and administrative expenses                     20,278,103            18,938,712            6,809,199             6,772,571

Impairment loss on assets held for sale                    300,000                     -              300,000                     -
                                                   ----------------      ----------------     ----------------      ----------------
Operating expenses                                      20,578,103            18,938,712            7,109,199             6,772,571
                                                   ----------------      ----------------     ----------------      ----------------
Operating income                                         8,023,855            10,887,738            1,316,959             3,736,712

Other expenses                                           1,312,597             1,052,994              457,168               363,123
                                                   ----------------      ----------------     ----------------      ----------------
Income before income taxes                               6,711,258             9,834,744              859,791             3,373,589

Income taxes                                             2,352,000             3,483,000              297,000             1,197,000
                                                   ----------------      ----------------     ----------------      ----------------
Net income                                      $        4,359,258   $         6,351,744   $          562,791   $         2,176,589
                                                   ================      ================     ================      ================
Basic earnings per share:
Net income per share                            $             0.94   $              1.35   $             0.12   $              0.47
                                                   ================      ================     ================      ================
Weighted average shares outstanding                      4,616,561             4,696,151            4,618,312             4,670,923

Diluted earnings per share:
Net income per share                            $             0.94   $              1.35   $             0.12   $              0.47
                                                   ================      ================     ================      ================
Weighted average shares outstanding                      4,618,331             4,700,076            4,618,507             4,673,734

Cash dividend - common stock                    $             .495   $               .45   $             .165   $               .15

Cash dividend - Class B common stock            $              .45   $              .409   $              .15   $              .136
</TABLE>
See accompanying notes.

                                       3
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
                                                                             Nine Months Ended
                                                                             -----------------
                                                                     Mar. 31, 2001            Apr. 1, 2000
                                                                -------------------     -------------------
<S>                                                             <C>                     <C>
Operating Activities:
     Net income                                                 $        4,359,258      $        6,351,744
     Non-cash items:
           Depreciation and amortization                                 4,679,463               4,395,431
           Deferred income taxes                                          (177,000)               (294,000)
           Other long-term liabilities                                     163,331                (584,359)
           Impairment loss on assets held for sale                         300,000                       -
           Loss on disposal of fixed assets                                177,630                  17,446
           Changes in operating assets and liabilities:
                    Accounts receivable                                  2,451,390                (922,290)
                    Inventories                                         (1,374,106)               (711,872)
                    Other current assets                                    15,901                  89,534
                    Accounts payable and accrued expenses               (5,088,922)              3,605,246
                                                               --------------------     -------------------
     Net cash provided by operating activities                           5,506,945              11,946,880
                                                               --------------------     -------------------

Investing Activities:
     Additions to property, plant and equipment                         (6,993,220)             (5,401,009)
     Net cash paid for acquisition                                        (505,745)             (5,309,674)
     Changes in other non-current assets                                    (7,017)                190,966
                                                               --------------------     -------------------
     Net cash used for investing activities                             (7,505,982)            (10,519,717)
                                                               --------------------     -------------------

Financing Activities:
     Cash dividends paid                                                (2,179,379)             (2,013,297)
     Proceeds from issuance of common stock                                 15,922                 188,483
     Repurchase and retirement of common stock                             (20,537)             (1,898,386)
     Borrowings on long-term debt                                        4,230,000               2,300,000
                                                               --------------------     -------------------
     Net cash provided by financing activities                           2,046,006              (1,423,200)
                                                               --------------------     -------------------

Effect of Exchange Rate Changes on Cash                                    (90,052)                 11,242
                                                               --------------------     -------------------

Net Increase (Decrease) in Cash and Equivalents                            (43,083)                 15,205

Cash and equivalents, beginning of year                                  2,351,622               1,621,002
                                                               --------------------     -------------------

Cash and equivalents, end of period                             $        2,308,539      $        1,636,207
                                                               ====================     ===================

Cash Paid During the Period - interest                          $        1,165,448      $        1,032,216
                            - income taxes                      $        3,653,830      $        2,975,000
Non-Cash Activities:
      Accrual of capital expenditures                           $          441,599      $          411,878
</TABLE>
See accompanying notes.

                                       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
Securities  and Exchange  Commission.  The  information  furnished  reflects all
adjustments,  which are,  in the  opinion of  management,  necessary  for a fair
statement  of the results of  operations  and  consist of only normal  recurring
adjustments.  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 July 1, 2000, 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  2000
annual report.

Effective  July 1,  1999,  the  Company  adopted a 52- or 53-week  fiscal  year,
changing the year-end date from June 30 to the Saturday nearest the end of June.

Certain prior year  information has been  reclassified to conform to the current
year presentation.

Note 2 - Common Stock and Per Share Information

Common  stock  is $2 par - shares  authorized  6,000,000  of  common  stock  and
4,000,000 of Class B common stock.

The following  table  reconciles  the numerators  and  denominators  used in the
calculations of basic and diluted EPS for each of the periods presented:
<TABLE>
                                                 For the nine months ended                  For the three months ended
                                                 -------------------------                  --------------------------
                                             Mar. 31, 2001        Apr. 1, 2000          Mar. 31, 2001           Apr. 1, 2000
                                          -------------------  -------------------  ----------------------  ----------------------
<S>                                       <C>                  <C>                  <C>                     <C>
Numerators:
  Numerator for both basic and
  diluted EPS, net income                         $4,359,258           $6,351,744                $562,791              $2,176,589
                                          ===================  ===================  ======================  ======================
Denominators:
  Denominator for basic EPS,
  weighted-average common shares
  outstanding                                      4,616,561            4,696,151               4,618,312               4,670,923
  Potentially dilutive shares
  resulting from stock option plans                    1,770                3,925                     195                   2,811
                                          -------------------  -------------------  ----------------------  ----------------------
  Denominator for diluted EPS                      4,618,331            4,700,076               4,618,507               4,673,734
                                          ===================  ===================  ======================  ======================
</TABLE>

The following exercisable stock options were not included in the computation of
diluted EPS because the option prices were greater than average quarterly market
prices.
<TABLE>
                                              Mar. 31, 2001                 Apr. 1, 2000
                                          -----------------------       ----------------------
<S>                                          <C>                           <C>
Exercise Price
 $13.64                                                   21,835                            -
 $14.09                                                   21,450                            -
 $16.74                                                   11,192                       11,495
 $18.18                                                   10,450                       11,000
</TABLE>

                                       5
<PAGE>
Note 3 - Inventories

Inventories  are  valued  at the  lower of FIFO  (first-in,  first-out)  cost or
market. Inventories are summarized as follows:
<TABLE>
                                     Mar. 31, 2001     July 1, 2000
                                     -------------     ------------
<S>                                  <C>               <C>
Finished products                     $10,864,752      $  8,778,556
Work in process                         2,121,722         2,339,958
Raw materials                           3,480,025         3,973,879
                                      ------------     ------------
Total                                 $16,466,499      $ 15,092,393
                                      ===========      ============
</TABLE>

Note 4 - Adoption of New Accounting Standard

The  Company  adopted  Statement  of  Financial  Accounting  Standards  No. 133,
"Accounting for Derivative Instruments and Hedging Activities," on July 2, 2000.
The Company uses an interest-rate swap to convert a portion of its variable-rate
revolver to a fixed  rate.  The  resulting  cost of funds is lower than it would
have  been  had  fixed-rate  borrowings  been  issued  directly.  The  level  of
fixed-rate debt, after the effects of interest-rate  swaps have been considered,
is  between  85 and 95  percent  of the  Company's  total  outstanding  debt  of
$24,280,000 at March 31, 2001 and $20,050,000 at July 1, 2000.

In accordance with the transition  provisions of FAS 133, the Company recorded a
net-of-tax  cumulative-effect-type adjustment in accumulated other comprehensive
income to recognize  the fair value of the  interest-rate  swap  designated as a
cash-flow hedging instrument.  The derivative was also recognized as a liability
on the balance sheet at its fair value of $833,067.

The Company has formally  documented the relationship  between the interest-rate
swap and the revolver, as well as its risk-management objective and strategy for
undertaking the hedge transaction.  This process includes linking the derivative
that has been designated as a cash-flow  hedge to the specific  liability on the
balance sheet. The Company also formally assesses, both at the hedge's inception
and on an ongoing basis,  whether the derivative used in the hedging transaction
is highly effective in offsetting  changes in the cash flows of the hedged item.
If it is determined  that the  derivative is not highly  effective as a hedge or
that it has ceased to be a highly  effective hedge, the Company will discontinue
hedge accounting prospectively.


Note 5 - Comprehensive Income

Comprehensive income is comprised of net income and all changes to stockholders'
equity, except those due to investments by owners and distributions to owners.

Comprehensive income and its components consist of the following:
<TABLE>
                                                   For the Nine Months Ended               For the Three Months Ended
                                                   -------------------------               --------------------------
                                               Mar. 31, 2001        Apr. 1, 2000        Mar. 31, 2001        Apr. 1, 2000
                                            -------------------  ------------------  -------------------  ------------------
<S>                                          <C>                    <C>                 <C>                  <C>
Net income                                         $4,359,258          $6,351,744             $562,791          $2,176,589
Other comprehensive income:
  Foreign currency translation adjustment            (138,257)             30,363             (111,615)             (6,973)
  Derivative adjustment                              (541,067)                  -             (323,475)                  -
  Minimum SERP liability adjustment                     2,336                (620)               1,845                 142
                                            -------------------  ------------------  -------------------  ------------------
Comprehensive income                               $3,682,270          $6,381,487             $129,546          $2,169,758
                                            ===================  ==================  ===================  ==================
</TABLE>
                                       6
<PAGE>
Note 6 - Assets Held for Sale

During  fiscal 2000,  the Company  offered its former  powder coat  facility for
sale.  As a result of this  decision,  the  related  assets of  $1,779,405  were
transferred  to the  category  "Net Assets Held for Sale" and a loss of $105,000
was  recorded  in the  fourth  quarter of fiscal  2000  based upon the  buy/sell
agreement.  The purchaser was unable to close the  transaction  and the building
remains listed with a real estate broker. In addition,  the Company has listed a
former facility in Muncie, Indiana for sale. Based upon new information obtained
during the third quarter of fiscal 2001  regarding the current fair market value
of the facilities held for sale, the Company  recorded an additional  impairment
loss of $300,000 pre-tax.

Note 7 - Acquisition

On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries,  Inc. (Idea).  Idea designed,  manufactured  and marketed  ergonomic
products, including adjustable keyboard mechanisms,  keyboard and computer mouse
platforms,  wrist rests and CPU holders.  The acquisition was recorded using the
purchase method of accounting.  Accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed,  based on the estimated fair values
at the date of the  acquisition.  The cost of the  acquisition  in excess of net
identifiable  assets  acquired  has  been  recorded  as  goodwill  and is  being
amortized on a straight-line basis over 15 years.

The  terms  of  the  Idea   acquisition   agreement   provided  for   additional
consideration to be paid if Idea's sales exceeded  certain targeted levels.  The
maximum amount of contingent consideration was $550,000 payable through 2001. In
calendar  year 1999,  the  additional  consideration  payment was $44,255 and in
calendar  year 2000 the  remaining  contingent  consideration  was  earned.  All
additional consideration paid was recorded as goodwill.

The results of the acquisition  were not material to the Company's  consolidated
operating  results,  therefore  pro  forma  financial  statements  have not been
prepared.

Note 8 - Restricted Stock and Performance-Option Plan

On February 1, 2000, William Dutmers, Chairman of the Board, President and Chief
Executive Officer of Knape & Vogt, was granted 6,600 shares of restricted common
stock and the option to purchase an  additional  27,500  shares of the Company's
common stock at a price of $14.43 per share. The grant and the options will vest
if the  Company  achieves  specific  financial  objectives  within  a  five-year
performance  period.  During the  performance  period,  the grantee may vote and
receive  dividends  on the  restricted  shares,  but the shares  are  subject to
transfer  restrictions and are forfeited if the grantee terminates employment or
the Company does not achieve its financial objectives.

Note 9 - Stock Repurchase

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,320,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer at a price  range of  $17.27 to $20 per  share.  The Board of
Directors  also  approved  the  purchase  in the  open  market  or in  privately
negotiated  transactions,  following  the  completion of the Dutch  Auction,  of
shares of common  stock in an amount which when added to the number of shares of
common stock  purchased in the Dutch  Auction would equal  1,485,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862  shares
at a price of $19.09 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an a  dditional  440,000  shares  for the stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased   635,150  shares  through  the  third  quarter  of  fiscal  2001  for
approximately  $9.3 million with the price per share ranging from  approximately
$12 to $17.

                                       7
<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.  When  used in this  document,  the  words
"believes,"  "expects,"  "anticipates,"  "goal," "think," "forecast," "project,"
"estimates,"   "likely,"  and  similar  expressions   identify   forward-looking
statements.   Forward-looking  statements  include,  but  are  not  limited  to,
statements  concerning future revenue and net income growth. Such statements are
subject to certain risks and uncertainties,  which would cause actual results to
differ  materially  from those  expressed  or  implied  by such  forward-looking
statements.  Readers  are  cautioned  not  to  place  undue  reliance  on  those
forward-looking statements that speak only as of the date of this report.


RESULTS OF OPERATIONS

Net Sales

The  following  table  indicates  the  Company's  net  sales (in  millions)  and
percentage of total sales by product  category for the six-month and three-month
periods ended March 31, 2001 and April 1, 2000:
<TABLE>
                                        Nine Months Ended                                    Three Months Ended
                                        -----------------                                    ------------------
                              Mar. 31,                  Apr. 1,                     Mar. 31,                 Apr. 1,
                               2001        %            2000          %             2001        %            2000           %
                         ----------------------  -------------------------   ------------------------  -------------------------
<S>                          <C>         <C>            <C>        <C>              <C>       <C>            <C>          <C>
Shelving systems               $29.3     27.6%          $37.9       34.4%            $9.3      27.7%          $13.3       34.4%
Drawer slides                   49.2     46.4%           51.1       46.4%            15.4      45.8%           17.5       45.1%
Hardware/ Ergonomic             27.7     26.0%           21.2       19.2%             8.9      26.5%            7.9       20.5%
                         ----------------------  -------------------------   ------------------------  -------------------------

Total                         $106.2    100.0%         $110.2      100.0%           $33.6     100.0%          $38.7      100.0%
                         ======================  =========================   ========================  =========================
</TABLE>

Net sales for both the third  quarter  and the first nine  months of fiscal 2001
were lower than the prior year.  During the third  quarter,  only the  ergonomic
product  line  showed  growth  over the prior  year and of the  Company's  sales
channels only the dealer  channel grew compared to the prior year.  The majority
of the decline represented the overall downturn in economic conditions. This was
clearly reflected when BIFMA, the furniture manufacturing  association,  lowered
its estimated  growth for the office  furniture  industry from 5.0% to just 2.8%
for calendar 2001.

The  Company's  sales  were  especially  soft in the month of  January  and have
steadily increased through the end of the third quarter.  The Company,  however,
estimates that same product sales for the remainder of the fiscal year will most
likely  remain  relatively  flat when  compared to the prior  year.  The Company
anticipates  being  able to  offset  some of the  slowdown  in the  market  with
introduction  of new products.  During the first week of April 2001, the Company
launched  an  ergonomic  lighting  line,  which will  broaden  its  offering  of
ergonomic products to the office furniture industry.

Gross Profit

Gross profit,  as a percentage of net sales, was 25.1% for the third quarter and
26.9% for the first  nine  months of fiscal  2001  compared  to 27.2% and 27.1%,
respectively,  for the same periods in the prior year.  The lower sales  volumes
during the third  quarter of fiscal  2001 made it  difficult  for the Company to
effectively  leverage its fixed overhead costs. In addition,  the decline in the
Canadian  exchange  rate  continued  to  negatively  impact  the  margins of the
Company's wholly owned Canadian subsidiary.

                                       8
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

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

Operating Expenses

Selling and  administrative  expenses,  as a percentage of net sales, were 20.3%
for the  third  quarter  and  19.1% for the  first  nine  months of fiscal  2001
compared  to 17.5% and 17.2%,  respectively,  for the same  periods in the prior
year.  The increase was  primarily  attributable  to the fact that the ergonomic
product line has a higher  level of selling  costs  associated  with it than the
Company's other product lines. In addition, the Company incurred severance costs
of  approximately  $350,000 in the third quarter of fiscal 2001  associated with
the layoffs, which took place in January 2001.

During  the third  quarter  of  fiscal  2001,  the  Company  recorded  a pre-tax
impairment  loss on the assets  held for sale of  $300,000  or $.04 per  diluted
share. The loss reflected new information,  which lowered the Company's estimate
of the fair market value of the properties listed for sale.

Other Expenses

Interest expense was $415,609 for the quarter and $1,204,536 for the nine months
ended March 31, 2001, compared with $362,932 and $1,051,793,  respectively,  for
the same  periods in the prior  year.  The  increase  in  interest  expense  was
attributable to the higher level of borrowings during fiscal 2001.

Income Taxes

The  effective  tax rates for the quarter and nine months  ended March 31, 2001,
were 34.5% and 35.0%  compared with the rates of 35.5% and 35.4%,  respectively,
for the same periods in the prior year.

Net Income

For the  quarter  ended  March 31,  2001,  net income was  $562,791 or $0.12 per
diluted  share  compared to  $2,176,589 or $0.47 per diluted share for the third
quarter of last year. Net income of  $4,359,258,  or $0.94 per diluted share was
recorded for the first nine months of fiscal 2001 compared with  $6,351,744,  or
$1.35 per diluted share for the same period in the prior year.

Liquidity and Capital Resources

Net cash from  operating  activities  for the first nine  months of fiscal  2001
provided net cash of $5,506,945  compared with  $11,946,880  for the first n ine
months of fiscal  2000.  The decrease  was  attributable  to lower net income of
approximately  $2,000,000  combined  with  higher  inventory  levels of imported
product and a decrease in accounts  payable and other accrued  liabilities.  The
decrease in accounts payable was due to lower purchasing levels. The decrease in
other  accrued  liabilities  reflects the impact of incentive  plans,  which are
variable with the Company's performance, specifically the EVA bonuses.

Capital  expenditures  totaled  $6,993,220  for the nine months  ended March 31,
2001,  compared  to  $5,401,009  for the nine months  ended  April 1, 2000.  The
increased capital spending  reflected  investments in manufacturing  technology,
the completion of the new facility at the Indiana subsidiary and tooling for new
products. There were no significant capital expenditure commitments at March 31,
2001.  Quarterly capital  expenditures  during the fourth quarter of fiscal 2001
are  anticipated to be  approximately  the same level as incurred during each of
the first three quarters of the fiscal year.

                                       9
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

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

On October 1, 1999, the Company acquired substantially all of the assets of Idea
Industries,  Inc. (Idea).  Idea designed,  manufactured  and marketed  ergonomic
products, including adjustable keyboard mechanisms,  keyboard and computer mouse
platforms,  wrist rests and CPU holders.  The acquisition was recorded using the
purchase method of accounting.  Accordingly, the purchase price was allocated to
the assets acquired and liabilities assumed,  based on the estimated fair values
at the date of the  acquisition.  The cost of the  acquisition  in excess of net
identifiable  assets  acquired  has  been  recorded  as  goodwill  and is  being
amortized on a straight-line basis over 15 years.

The  terms  of  the  Idea   acquisition   agreement   provided  for   additional
consideration to be paid if Idea's sales exceeded  certain targeted levels.  The
maximum amount of contingent consideration was $550,000 payable through 2001. In
calendar  year 1999,  the  additional  consideration  payment was $44,255 and in
calendar  year 2000 the  remaining  contingent  consideration  was  earned.  All
additional consideration paid was recorded as goodwill.

On  September 1, 1998,  the Company  announced  its  intention to purchase up to
1,320,000  shares of the  Company's  common  stock  pursuant to a Dutch  Auction
self-tender  offer at a price  range of  $17.27 to $20 per  share.  The Board of
Directors  also  approved  the  purchase  in the  open  market  or in  privately
negotiated  transactions,  following  the  completion of the Dutch  Auction,  of
shares of common  stock in an amount which when added to the number of shares of
common stock  purchased in the Dutch  Auction would equal  1,485,000.  The Dutch
Auction was concluded on October 7, 1998, with the purchase of 1,353,862  shares
at a price of $19.09 per share.

At each of the January 22,  1999,  and the August 20,  1999,  Board of Directors
meetings,  the  Board  approved  an  additional  440,000  shares  for the  stock
repurchase  program.  Utilizing  these  Board  authorizations,  the  Company has
purchased  635,150  shares  through  the  second  quarter  of  fiscal  2001  for
approximately  $9.3 million with the price per share ranging from  approximately
$12 to $17. Since the beginning of the stock repurchase  program in fiscal 1999,
the Company has purchased 1,989,012 shares for approximately $35.7 million.

The long-term  debt balance  increased to $24,280,000 at March 31, 2001 compared
with $20,050,000 at July 1, 2000, and $20,000,000 at April 1, 2000. The increase
reflects funds utilized for capital expenditures.

Anticipated  cash flows from operations and available  balances on the revolving
credit  line are  expected  to be  adequate  to fund  working  capital,  capital
expenditures and dividend payments.

                                       10
<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                    QUANTITATIVE AND QUALITATIVE DISCLOSURES
                                ABOUT MARKET RISK


The Company is exposed to market  risks,  which  include  changes in the foreign
currency  exchange rate as measured  against the U.S. dollar and changes in U.S.
interest  rates.  The Company  holds a derivative  instrument  in the form of an
interest rate swap,  which is viewed as a risk  management  tool and is not used
for trading or speculative purposes.  The intent of the interest rate swap is to
effectively fix the interest rate on part of the borrowings  under the Company's
variable rate revolving credit agreement.

Quantitative disclosures relating to financial instruments and debt are included
in the tables below.

The  following  table  provides  information  on the  Company's  fixed  maturity
investments  as of March 31,  2001,  that are  sensitive  to changes in interest
rates.  The table also  presents the  corresponding  interest  rate swap on this
debt.  Since the interest rate swap  effectively  fixes the interest rate on the
notional amount of debt, changes in interest rates have no current effect on the
interest  expense  recorded by the Company on the portion of the debt covered by
the interest rate swap.
<TABLE>
Liability                                     Amount                   Maturity Date
---------                                     ------                   -------------
<S>                                         <C>                        <C>
Variable rate revolving credit
  agreement                                 $45 million                November 1, 2004
First $20,000,000 at an interest rate
  of 5.1038% plus weighted average
  credit spread of .5%
Amounts in excess of $20,000,000 have
  an interest rate of approximately 5.0%

Interest Rate Swap
Notional amount                             $20 million                June 1, 2006
  Pay fixed/Receive variable - 5.10375%
  Pay fixed interest rate - 6.25%
</TABLE>

The  Company  has  a  sales  office  located  in  Canada.  Sales  are  typically
denominated  in  Canadian  dollars,  thereby  creating  exposures  to changes in
exchange rates. The changes in the Canadian/U.S. exchange rate may positively or
negatively affect the Company's sales, gross margins and retained earnings.  The
Company  attempts  to  minimize   currency   exposure  through  working  capital
management.  The Company  does not hedge its exposure to  translation  gains and
losses relating to foreign currency net asset exposures.

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<PAGE>
               KNAPE & VOGT MANUFACTURING COMPANY AND SUBSIDIARIES

                           PART II. OTHER INFORMATION



Item 6. Exhibits and Reports on Form 8-K

        (a)   Exhibits
              There were no exhibits for the three months ended March 31, 2001.

        (b)   Reports on Form 8-K
              There were no reports on Form 8-K filed for the three months ended
              March 31, 2001.






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<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:     May 4, 2001                         /s/ William R. Dutmers
                                              William R. Dutmers
                                              Chairman, President and
                                              Chief Executive Officer

                                              /s/ Leslie J. Cummings
                                              Leslie J. Cummings
                                              Vice President of Finance and
                                              Treasurer





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