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

            	SECURITIES AND EXCHANGE COMMISSION
                	WASHINGTON, D.C. 20549

                       	FORM 10-Q

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


               	FOR QUARTER ENDED MARCH 31, 1998


                  	COMMISSION FILE NO. 1-3920


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

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

                     	2250 EAST 73RD STREET
	                     TULSA, OKLAHOMA 74136
            	(Address of principal executive offices)

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


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

                     			YES   X 					NO    
			                         	---					     ---

	Indicate the number of shares outstanding of each of the issuer's classes 
of common stock, as of March 31, 1998.

        	Common Stock $ .10 Par Value . . . . . 6,778,345

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


<TABLE>
                  KINARK CORPORATION AND SUBSIDIARIES

               	INDEX TO QUARTERLY REPORT ON FORM 10-Q

<CAPTION>
			                                                            	PAGE
<S>                                                             <C>
PART  I.	FINANCIAL INFORMATION

         Forward Looking Statements or Information

        	Item 1.	Financial Statements

              			Independent Accountants' Review Report	         

              			Condensed Consolidated Balance Sheets as
			              of March 31, 1998 (unaudited), and
			              December 31, 1997	

              			Condensed Consolidated Statements of
			              Earnings for the three  months ended
			              March 31, 1998 and 1997 (unaudited)	

              			Condensed Consolidated Statements of
			              Cash Flows for the three months ended
			              March 31, 1998 and 1997 (unaudited)	

              			Notes to Condensed Consolidated Financial
			              Statements for the three  months ended
			              March 31, 1998 and 1997 (unaudited)

        	Item 2.	Management's Discussion and Analysis of
			              Financial Condition and Results of
			              Operations	 
	
         Item 3.	Quantitative and Qualitative Disclosure
			              About Market Risks	

PART II. 	OTHER INFORMATION 	

SIGNATURES			

</TABLE>




FORWARD LOOKING STATEMENTS OR INFORMATION

  Certain statements in this Form 10-Q, including information set forth under 
the caption "Management's Discussion and Analysis of Financial Condition and
Results of Operations", constitute "Forward-Looking Statements" within the 
meaning of the Private Securities Litigation Reform Act of 1995.  The Company
cautions investors that forward-looking statements included in this Form 10-Q,
or hereafter included in other pubicly available documents filed with the
Securities and Exchange Commission, reports to the Company's stockholders and
other pubically available statements issued or released by the Company involve
significant risks, uncertainties, and other factors which could cause the
Company's actual results, performance (financial or operating) or 
achievements to differ materially from the future results, performance 
(financial or operating) or achievements expressed or implied by such forward-
looking statements.  The Company believes that the important factors set forth 
in the Company's cautionary statements at Exhibit 99 to this Form 10-Q could
cause such a material difference to occur and investors are referred to
Exhibit 99 for such cautionary statements.




INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Board of Directors and Stockholders of
 Kinark Corporation:

We have reviewed the accompanying condensed consolidated balance sheet of 
Kinark Corporation and subsidiaries (the "Company") as of March 31, 1998, 
and the related condensed consolidated statements of earnings and of cash flows 
for the three month periods ended March 31, 1998 and 1997.  These financial 
statements are the responsibility of the Company's management.

We conducted our review in accordance with standards established by the 
American Institute of Certified Public Accountants.  A review of interim 
financial information consists principally of applying analytical procedures 
to financial data and of making inquiries of persons responsible for 
financial and accounting matters.  It is substantially less in scope than 
an audit conducted in accordance with generally accepted auditing standards, 
the objective of which is the expression of an opinion regarding the financial
statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that 
should be made to such condensed consolidated financial statements for them 
to be in conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing 
standards, the consolidated balance sheet of Kinark Corporation and 
subsidiaries as of December 31, 1997, and the related consolidated statements
of operations, stockholders' equity, and cash flows for the year then ended 
(not presented herein); and in our report dated February 20, 1998 (except as 
to the first paragraph of the Contingencies footnote, for which the date is 
March 6, 1998) we expressed an unqualified opinion on those consolidated 
financial statements.  In our opinion, the information set forth in the 
accompanying condensed consolidated balance sheet as of December 31, 1997 is 
fairly stated, in all material respects, in relation to the consolidated 
balance sheet from which it has been derived.


/s/Deloitte & Touche LLP
Tulsa, Oklahoma
May 13, 1998




<TABLE>
                        KINARK CORPORATION AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
                                               		Unaudited
			                                              MARCH 31		       Dec 31
(Dollars in Thousands)		                           1998         		 1997 
-------------------------------------------------------------------------
<S>                                             <C>             <C>
ASSETS	
Cash	                                           $    	87        $    	259
Trade receivables, net		                           7,017          		7,094
Inventories		                                      4,175          		3,503
Prepaid expenses and other assets		                  770 	           	360
Deferred tax asset, net                              717 	      	     717		
 		                                               ------		         ------
   TOTAL CURRENT ASSETS		                         12,766         		11,933

                                                		------	        	 ------  
PROPERTY, PLANT AND EQUIPMENT, AT COST
   Land		                                            707 	            707
   Chemical storage facilities and
     warehousing equipment                        11,280           11,253
   Galvanizing plants and equipment               20,812           20,793
   Other                                             285              336
                                                  ------           ------
                                                  33,084           33,089
     Less:  Allowance for depreciation            18,393           18,199
		                                                ------	        	 ------
       TOTAL PROPERTY, PLANT & EQUIPMENT, NET     14,691           14,890
		                                                ------	        	 ------
DEFERRED TAX ASSET, NET	                            	606 	           	667

GOODWILL, NET		                                    3,965          		4,009

OTHER ASSETS		                                       464 	      	     456
		                                                ------        		 ------
	      TOTAL ASSETS	                            $	32,492        	$	31,955
                   	                              ======           ======		

LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable	                         $ 	1,735 	       $ 	1,672
Accrued payroll and employee benefits                753            1,176
Other taxes                                          942              818
Other accrued liabilities		                        1,841 	         	1,187
Current maturities of 
  long-term obligations		                            878 	       	    916
		                                                ------	          ------
   TOTAL CURRENT LIABILITIES		                     6,149 	          5,769
		                                                ------        	  ------


PENSION AND RELATED LIABILITIES                      863              928
LONG-TERM OBLIGATIONS	                            	8,013          		8,131
COMMITMENTS AND CONTINGENCIES                        ---              ---

STOCKHOLDERS' EQUITY
Common stock 	                                      	819             	819 
Additional paid-in capital		                      17,364         		17,364 
Minimum pension liability		                         (197)	          	(197)
Retained earnings	                                	5,293 	         	4,953 
Less:  Treasury stock at cost		                   (5,812)	        	(5,812)
		                                                ------           ------
  TOTAL STOCKHOLDERS' EQUITY	                    	17,467         		17,127 
		                                                ------           ------
      TOTAL LIABILITIES & 
         STOCKHOLDERS' EQUITY	                  $	32,492        	$	31,955 
		                                                ======           ======
</TABLE>
See notes to condensed consolidated financial statements.



<TABLE>
                   KINARK CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                                Unaudited
<CAPTION>
                                                              
	                                                	Three Months Ended
				                                                   March 31  	   
(Dollars in Thousands                           ------------------------
  Except per Share Amounts)                       1998            1997
------------------------------------------------------------------------	
<S>                                             <C>             <C>
SALES	                                          $	12,164 	      $	11,724  		 
COSTS AND EXPENSES
	Cost of sales		                                   9,355 	        	9,167 
	Selling, general & administrative	               	1,645         		1,286 
	Depreciation and amortization	 	                    701       		    632 
	                                                 ------          ------
	  TOTAL COSTS AND EXPENSES		                     11,701 	       	11,085
          	                                       ------          ------
OPERATING EARNINGS         		                        463           		639  		
OTHER (INCOME) EXPENSE
	Interest expense, net	                         	    176 	      	    203 
	Other income 		                                    (309)	      	    --- 
	                                                 ------          ------
	  TOTAL OTHER (INCOME) EXPENSE		                   (133)	          	203 

EARNINGS BEFORE INCOME TAXES 	                      	596 	          	436 
					
	Income tax expense 		                               256        		   184
          	                                       ------          ------
NET EARNINGS                                   $     340         $   252 
                                                		======          ======
		
BASIC EARNINGS PER COMMON SHARE                $     .05         $  	.04 

DILUTED EARNINGS PER COMMON SHARE               $	   .05         $  	.04 
 
</TABLE>

See notes to condensed consolidated financial statements.



<TABLE>
                     KINARK CORPORATION AND SUBSIDIARIES
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  Unaudited
<CAPTION>
		                                                 Three Months Ended
		                                                     March 31
                                                   --------------------
(Dollars in Thousands)	                               1998      	1997
-----------------------------------------------------------------------
<S>                                                <C>         <C>
OPERATING ACTIVITIES
Net earnings 	                                     $    340  	 $   	252 
Adjustments to reconcile net earnings to net
cash provided by operating activities:
	Depreciation and amortization		                        701       		632 
 Gain on involuntary conversion of assets              (309)        ---
	Deferred income taxes		                                 61     		  240  	
 Change in assets and liabilities:
		Accounts receivable		                                  77    		  (316)
		Inventories and other	                            	(1,090)      	 283 
		Accounts payable, accrued liabilities and other       353 		     (231)
          		                                         ------      ------
	NET CASH PROVIDED BY OPERATING ACTIVITIES		            133 	   	   860 

INVESTING ACTIVITIES
	Capital expenditures                               		 (474) 		    (573)
 Proceeds from involuntary conversion of assets         325         ---
	Acquisition of galvanizing business		                  --- 	   	(2,236)
		                                                   ------      ------
	NET CASH USED FOR INVESTING ACTIVITIES		              (149)    	(2,809) 	

FINANCING ACTIVITIES
	Proceeds from long-term obligations		                4,071     		2,810 
	Payments on long-term obligations		                 (4,227) 	   (2,624)
		                                                   ------      ------
	NET CASH PROVIDED BY (USED FOR) 
   FINANCING ACTIVITIES		                              (156)   	   186 
		                                                   ------      ------
DECREASE IN CASH           	                          	(172)   		(1,763)
CASH AT BEGINNING OF PERIOD		                           259      	2,041
	                                                    ------      ------ 
CASH AT END OF PERIOD                               $    87     $   278
		                                                   ======      ======
</TABLE>
See notes to condensed consolidated financial statements.




                   KINARK CORPORATION AND SUBSIDIARIES
          	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
	           FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
	                                UNAUDITED


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

		Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting 
principles have been condensed or omitted pursuant to such rules and 
regulations for interim reporting.  The Company believes that the disclosures
are adequate to make the information presented not misleading.  However, 
these financial statements should be read in conjunction with the financial 
statements and notes thereto included in the Company's Annual Report on 
Form 10-K, for the year ended December 31, 1997.  The financial data for the 
interim periods presented may not necessarily reflect the results to be 
anticipated for the complete year.

NOTE 2.	EARNINGS PER COMMON SHARE
		      -------------------------
		Diluted earnings per common share for the periods presented has been 
computed based upon the weighted average number of shares outstanding adjusted
for the dilutive effect of stock options of 6,793,832 and 6,799,526 for the 
three months ended March 31, 1998 and 1997 respectively.  Basic earnings per 
common share for these same periods has been computed based upon the average 
number of shares outstanding of 6,778,345 for each period.

NOTE 3.	INVENTORIES
      		-----------
		Inventories consist primarily of raw zinc "pigs," molten zinc in 
galvanizing kettles and other chemicals and materials used in the  hot dip 
galvanizing process.  All inventories are stated at the lower of cost or 
market with market value based on ultimate realizable value from the 
galvanizing process.  Zinc cost is determined on a last-in- first-out (LIFO) 
basis.  Other inventories are valued primarily on an average cost basis.

NOTE 4.	DEBT OBLIGATIONS
      		----------------	
		In 1997, the Company entered into a two-year bank credit agreement which 
provides a $8,500,000 maximum revolving line of credit, a $1,250,000 
advancing term loan for expansion of galvanizing plants, and a $3,500,000 
term loan, all of which expire May 1999.  

		Substantially all of the Company's accounts receivable, inventories and 
fixed assets are pledged as collateral under the agreement, and the agreement
is secured by a guaranty from each of the Company's subsidiaries.  Amounts 
borrowed under the agreement bear interest at prime minus or plus a spread 
ranging from minus 25 basis points to plus 50 basis points, determined by a 
coverage ratio of defined earnings to debt service.  

		Term loan payments are based on a five year amortization schedule with 
equal monthly payments of principal and interest.  The advancing term loan, 
once funded, will require equal monthly payments of principal and interest 
based on a seven year amortization schedule.

		The revolver may be paid down without penalty, or additional funds may be 
borrowed up to the revolver limits.  The term loan and the advancing term 
loan may be pre-paid without penalty.  The agreement provides for capital 
expenditures related to a minimum coverage ratio of defined earnings to debt 
service plus capital expenditures, limits the pledging of assets for new 
debt, and requires the Company to maintain a minimum net worth.  The Company 
was in compliance with such covenants at March 31, 1998. 

NOTE 5.	NEW ACCOUNTING STANDARDS
      		------------------------
		Effective January 1, 1998, the Company adopted Statement of Financial 
Accounting Standards ("SFAS") No. 130, "Comprehensive Income", and SFAS 
No. 131, "Disclosure About Segments of an Enterprise", for the year ending 
December 31, 1998.

		SFAS No. 130 provides for a disclosure of the components of comprehensive 
income necessary to reconcile reported net earnings with the net change in 
retained earnings for the current reporting period.  At March 31, 1998, there
was no difference between net earnings and comprehensive income.  SFAS 
No. 131 modifies current segment reporting requirements and establishes 
criteria for reported disclosures about a company's products and services, 
geographic areas and major customers in annual and interim financial 
statements.  The Company does not believe that there will be significant 
reporting changes resulting from adoption of SFAS No. 131.

NOTE 6.  INVOLUNTARY CONVERSION OF ASSETS
         --------------------------------
  During the first quarter of 1998, fire destroyed an acid recycling system 
at one of the Company's galvanizing plants.  Production at the facility was not
significantly affected by the incident and no personal injuries were sustained.
The acid recycling system was covered by insurance for its current replacement
value.  As a result of the expected receipt of insurance proceeds, the Company
recorded a pre-tax gain of $309,000 for the first quarter of 1998, and has
committed to purchase a new acid recovery system for $410,000.

NOTE 7.  COMMITMENTS AND CONTINGENCIES
         -----------------------------
  In 1995 the Company's galvanizing subsidiary participated with the United 
States Environmental Protection Agency ("EPA") in the removal of soil from a 
former galvanizing site in Philadelphia, PA sold in 1981.  In 1995, the 
Company was notified by the EPA that all requirements relating to the 
performance of the Response Action Plan had been completed.  Subsequently in 
November 1997, the Company was advised by the EPA that it would seek recovery
of response costs of approximately $480,000 associated with the environmental
cleanup that had been performed at the former Philadelphia site.  On March 6,
1998, the Company was informed that the Department of Justice ("DOJ") had 
filed a lawsuit naming North American Galvanizing Company and Boyles 
Galvanizing Company (a former subsidiary company merged into North American 
Galvanizing Company in 1997) in a CERCLA Cost Recovery Action for 
approximately $480,000, in connection with the cleanup of the Philadelphia 
site.  The Company had been holding discussions on the matter with DOJ, and 
in May 1998, the parties reached an agreement to settle the EPA's claims.  As
a result, the Company recorded a pre-tax charge to cost of sales of $158,000 
for the quarter ended March 31, 1998 for the estimated net impact of the 
settlement.  The parties are now in the process of drafting a Consent Decree 
to finalize agreement on the terms and conditions of that decree.

  NAG received notice on April 21, 1997 from the Illinois Environmental 
Protection Agency ("IEPA") that it was a potentially responsible party under 
the Comprehensive Environmental Response, Compensation, and Liability 
Information System ("CERCLIS") in connection with cleanup of an abandoned 
site formerly owned by Sandoval Zinc Co.  Sandoval had operated a secondary 
zinc smelter at the site until it closed in 1985.  The IEPA notice includes 
NAG as one of 59 organizations which arranged for the treatment and disposal 
of hazardous substances at Sandoval.  The Company is in the process of 
determining the proportional share of substances that NAG shipped to 
Sandoval, and does not believe based on current information that the ultimate
resolution of this matter will have a material adverse impact on the 
Company's final position or results of operations.

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

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

  On April 13, 1998, the Company received notice from the Internal Revenue 
Service that Rogers Galvanizing Company and its subsidiaries ("Rogers") for the
year ended September 30, 1996 had been selected for examination.  Management
does not believe that the results of the examination, which is underway, will
result in any significant determination of tax liability for the Company.  In
1997, Rogers was merged into North American Galvanizing Company, a newly 
formed subsidiary of the Company.

NOTE 8.  UNION CONTRACTS
         ---------------
  North American Galvanizing Company ("NAG") currently is negotiating a new
labor contract covering approximately 125 production workers at three of its
Tulsa plants that operate under a bargaining agreement with the United 
Steelworkers.  The present labor contract expired in 1997 and has been 
extended, without modification, by mutual agreement between the union and NAG.
Historically, NAG has renewed its labor contract for a new 3 to 4-year term
without interruption.




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


<TABLE>
RESULTS OF OPERATIONS

REVENUES
<CAPTION>
	Quarter Ended March 31                      1998              1997  
		                                      ---------------   ---------------	
                                              					% of		      	     % of
		                                    	$	(000)   	Sales  	$	(000)  	Sales
	                                       ---------------------------------
 <S>                                   <C>        <C>     <C>       <C>
	  Galvanizing                        	$	 9,624  	79.1%	  $	9,340  	79.7%
	  Chemical Storage		                     1,423	  11.7%	  	 1,412 	 12.0%
	  Warehousing		                          1,117	   9.2%		     972    8.3%
                                     			 ------   -----    ------   -----
	   	Total                            	$	12,164	 100.0%	  $11,724 	100.0%
			                                      ======  =====     ======  =====
</TABLE>

  	Kinark's consolidated sales for the first quarter of 1998 increased 
$440,000, or 3.8%, in comparison to the first quarter of 1997, due to higher 
revenues at all of its business units. 

  	NORTH AMERICAN GALVANIZING COMPANY ("NAG").  Galvanizing sales were up 
$284,000, or 3%, for the first quarter of 1998 in comparison to the first 
quarter of 1997, due to improved price levels and continued good demand for 
galvanized steel structures from industrial and communications tower 
manufacturers that serve the construction markets. While total shipments in 
the first quarter of 1998 were down 4% from the tonnage level shipped during 
the first quarter of 1997, NAG's plants serving the southwestern region of the
country increased production to support strong construction activity in that 
area.  NAG operates eleven galvanizing plants located in six states throughout
the mid and south-central United States.

 	LAKE RIVER CORPORATION ("LAKE RIVER").  First quarter 1998 sales at Lake 
River's chemical storage operation were slightly higher than the sales level 
recorded in the comparable period for 1997.  Bulk liquid storage throughput 
remained even with 1997, but drum filling activities increased significantly 
during the first quarter of 1998 with the consolidation of a major account's 
business into Lake River.  Lake River's bulk liquid storage and specialty 
chemicals blending and drumming facilities serve the greater Chicago area.

 	NORTH AMERICAN WAREHOUSE COMPANY ("NAW").  Warehousing operated at record 
levels during the first quarter of 1998 as sales increased $145,000, or 14.9%,
from the first quarter of 1997.  Warehousing sales increased from the 
addition of new accounts and expanded inventories from existing customers.  
Chicago based NAW is operating at near-capacity with 410,000 square feet of 
public warehousing space for general merchandise, food grade and chemical 
products.  NAW's business will be impacted in 1998 due to the expected loss
of its largest customer during the third quarter of 1998.  In 1997, this
customer's account represented 4.7% of the Company's consolidated sales and
55% of NAW's sales.  The loss of this customer reflects a decision by the
customer to realign its marketing distribution network.  NAW will not renew
a warehouse lease scheduled to expire July 1, 1998 as part of its planned cost
reduction measures to partially offset the loss of this major account.

<TABLE>
COSTS AND EXPENSES
<CAPTION>
	Quarter Ended March 31                        1998	  	       1997
		                                       --------------  ---------------
					                                              % of          			% of
		                                      	$	(000 )	Sales 	$	(000)  	Sales
                                        ----------------------------------
<S>                                      <C>      <C>    <C>       <C>
	Cost of sales	                          $ 9,355 	76.9%	 $	9,167 	 78.1%
	Selling, general & 
	 administrative		                         1,645	 13.5%		  1,286  	11.0%
	Depreciation and 
      amortization		                         701   5.8%		    632 	  5.4%
		                                        ------  ----    ------   ----
	Total	                                 	$11,701	 96.2%	 $11,085 	 94.5%
		                                        ======  ====    ======   ====
</TABLE>
	
	The Company's cost of sales, as a percentage of sales, decreased 1.2% for 
the first quarter of 1998 in comparison to the first quarter of 1997, through 
a combination of productivity improvements and higher revenues.  In the 
galvanizing unit, emphasis on specialty niche new business is generating 
increasing margins.  In both the chemical storage and warehousing units, the 
relatively fixed component of labor provides leverage opportunities from 
added business volume.  Cost of sales for the first quarter of 1998 includes a
charge for the estimated cost to settle the EPA's claim to recover its 
cleanup costs at a former galvanizing site, as discussed under Environmental 
Matters in this section.  Excluding this settlement, the Company's cost of 
sales would have been 75.6% of sales, representing a decrease of 2.5% and an 
excellent improvement from the first quarter of 1997.

	The Company's total SG&A expenses for the first quarter of 1998 increased 
$359,000 to $1,645,000, compared to $1,286,000 in the first quarter of 1997. 
During the first quarter of 1997, the Company benefitted from a refund of 
real estate taxes related to prior years in the amount of $172,000.  This 
refund represented approximately 48% of the increase in SG&A expenses for the
first quarter of 1998 over the first quarter of last year.  The balance of 
the increase in SG&A expenses for 1998 primarily reflected salaries and related
cost to expand the galvanizing sales function.  Depreciation expense 
increased $69,000 for the first quarter of 1998 primarily as a result of the 
Company's capital improvement programs ongoing at the galvanizing plants.

INTEREST EXPENSE

	Interest expense of $176,000 in the first quarter of 1998 was down $27,000 
from interest expense of $203,000 for the first quarter of 1997 due to a 
reduction in long-term debt and lower average interest rates under the 
Company's loan agreement with a bank.  Interest expense during the first 
quarter of 1998 was 1.4% of sales compared to 1.7% of sales for the same 
period in 1997.

OTHER INCOME

	In the first quarter of 1998, the Company reported other income of $309,000 
from expected insurance proceeds covering the loss of an acid recycling 
system at one of its galvanizing plants.  Production at the facility was not 
significantly affected by the incident and the Company is proceeding to 
replace the lost system.

INCOME TAXES

	Income tax expense for the first quarter of 1998 was $256,000 compared to 
$184,000 for the first quarter of 1997.  Income tax expense includes current 
and deferred Federal and state income tax recorded at current rates. The 
Company's effective tax rate on earnings was 43% and 42.2% for the first 
quarters of 1998 and 1997, respectively.

EARNINGS

	The Company's net earnings were $340,000 for the first quarter of 1998, an 
increase of 34.9% over net earnings of $252,000 for the first quarter of 
1997.  Basic and diluted earnings per share for the three months ended 
March 31, 1998 were $.05 per share, compared to basic and diluted earnings 
per share of $.04 for the same period a year ago.

LIQUIDITY AND CAPITAL RESOURCES

	The Company's operating activities generated net cash of $133,000 in the 
first quarter of 1998, compared to net cash of $860,000 generated in the 
first quarter of 1997.  The net reduction in cash flow for the first quarter 
of 1998 was due primarily to the Company's decision to capitalize on 
relatively improved commodity prices and increase zinc inventories to 
support projected galvanizing requirements in the current year.  Cash 
totaled $87,000 at March 31, 1998, as compared to $259,000 at the beginning 
of 1998.  The Company strives to maintain minimum cash balances through its 
centralized treasury function that anticipates funding requirements on a 
daily basis.

	Capital expenditures were $474,000 in the first quarter of 1998, compared 
to $573,000 in the first quarter of 1997.  Capital expenditures in both 
periods were primarily for facilities improvements and replacement of 
operating equipment and process tanks to support the Company's core 
galvanizing business.  The Company anticipates that its investment in 
capital additions for all of 1998 will be approximately even with 1997 
capital expenditures of $3,100,000.  

	Financing activities in the first quarter of 1998 consisted of scheduled 
payments to reduce term loans and lease obligations, and borrowings or 
repayments on a revolving line of credit used for working capital.  For the 
three months ended March 31, 1998, the Company paid down its debt a net of 
$156,000 as a result of cash generated from its operations and available 
cash balances.

	As discussed in Note 4 to the Company's condensed Consolidated Financial 
Statements, the Company entered into a new two year bank credit agreement on 
April 30, 1997, which provides a $8,500,000 revolving line of credit, a 
$1,250,000 advancing term loan and a $3,500,000 term loan.  

	The Company believes that it has the ability to continue to generate cash 
from operations and has available borrowing capacity to meet its foreseeable 
needs for working capital and planned capital expenditures.	

ENVIRONMENTAL MATTERS

	As previously reported in 1995, Boyles Galvanizing participated in the 
final clean-up of a former galvanizing plant site in Philadelphia, 
Pennsylvania (the "Philadelphia site") and received notification from the 
EPA that it had demonstrated to the satisfaction of the EPA that all 
requirements relating to the performance of the Response Action Plan had 
been completed.  Cleanup of this site consisted primarily of soil removal 
at a cost of approximately $85,000 to Boyles.

	In November of 1997, the EPA informed the Company that it would seek to 
recover from the Company its costs associated with the 1995 cleanup of the 
Philadelphia site, in the amount of $480,000.  On March 6, 1998, the Company 
was informed that the Department of Justice ("DOJ") had filed a lawsuit 
naming North American Galvanizing Company and Boyles Galvanizing Company 
(a former subsidiary company merged into North American Galvanizing Company 
in 1997) in a CERCLA Cost Recovery Action for approximately $480,000, in 
connection with the cleanup of the Philadelphia site.  The Company had been 
holding discussions on the matter with DOJ, and in May 1998, the parties 
reached an agreement to settle the EPA's claims.  As a result, the Company 
recorded a pre-tax charge of $158,000 against earnings for the quarter ended 
March 31, 1998 for the estimated net impact of the settlement.  The parties 
are now in the process of drafting a Consent Decree to finalize agreement on 
the terms and conditions of that decree.

	NAG received notice on April 21, 1997 from the Illinois Environmental 
Protection Agency ("IEPA") that it was a potentially responsible party 
under the comprehensive Environmental Response, Compensation, and Liability 
Information System ("CERCLIS") in connection with cleanup of an abandoned site 
formerly owned by Sandoval Zinc Co.  Sandoval had operated a secondary zinc 
smelter at the site until it closed in 1985.  The IEPA notice includes NAG 
as one of 59 organizations which arranged for the treatment and disposal of
hazardous substances at Sandoval.  The Company is in the process of 
determining the proportional share of substances that NAG shipped to 
Sandoval, and does not believe based on current information that the 
ultimate resolution of this matter will have a material impact on the 
Company's financial position or results of operations.

	The Company's facilities are subject to extensive environmental legislation 
and regulations affecting their operations and the discharge of wastes.  The 
cost of compliance with such regulations during 1997 approximated $1,000,000 
with the disposal and recycling of waste acids generated by the galvanizing 
operations representing the major expenditure in this area.  The Company 
operates on-site sulphuric acid recovery systems at three of its galvanizing 
plants.  Recovered acid is returned to production, thereby eliminating the 
substantial expense associated with the alternative of waste treatment and 
removal to an off-site location.  The recovery process generates a 
non-hazardous dry ferrous sulphate crystal by-product which the Company 
sells commercially.  

	The Company's other galvanizing plants use hydrochloric acid, which 
requires the off-site disposal of waste acids.  Due to the increasing 
cost of waste disposal and decreasing availability of approved disposal 
methods, alternative waste hydrochloric acid recycling methods have been 
evaluated over recent years.  While it appears that the technology for an 
economically feasible system is available, no proven system for the 
recycling of hydrochloric acid used in hot dip galvanizing is currently 
on the market.  Hydrochloric acid recycling systems will be further 
evaluated as new systems become available.  Future capital expenditures 
in this area are expected to increase, but such expenditures should 
significantly reduce waste acid disposal expense.

	Environmentally related expenditures at Lake River represent a relatively 
small percentage of the Company's total costs.  The majority of waste 
disposal costs at Lake River are incurred on behalf of customers and are 
reimbursable.  Lake River does not take title to the chemicals stored, 
blended, drummed or bagged in its facilities and thus is responsible only 
for the proper handling of these materials while under its care, custody, 
and control.  As previously reported, Kinark has escrowed proceeds from the
sale of the assets of Kinpak, Inc. (a former subsidiary sold in 1996) for 
some possible environmental remediation.

	The Company is committed to complying with all federal, state and local 
environmental laws and regulations and using its best management practices 
to anticipate and satisfy future requirements.  As is typical in the 
galvanizing and chemicals businesses, the Company will have additional 
environmental compliance costs associated with past, present, and future 
operations. Management has committed resources to discovering and 
eliminating environmental issues as they arise.  Because of the frequent 
changes in environmental technology, laws and regulations management 
cannot reasonably attempt to quantify the Company's potential costs in 
this area.  However, such costs are expected to increase above their 
current levels as discussed above.

CURRENT DEVELOPMENTS

	The Company has determined that its primary computer systems are structured 
to accommodate the year 2000 and beyond, and the operation of these systems 
will not be affected by the upcoming change in the millennium.  The Company's
operations are highly dependent on the reliable performance of its 
computer-based information, control and accounting systems.  For this 
reason, during 1997 Kinark undertook a review of its company-wide computer 
support facilities to assess the extent of Year 2000 issues, if any.  Going 
forward, in addition to monitoring the Year 2000 compliance readiness of its 
own computer systems, the Company will continue to assess the compliance 
readiness of its major customers, key suppliers and service providers.  The 
Company believes that the cost of this ongoing assessment should not exceed 
$100,000 and will not have a material impact on the results of its 
operations, liquidity, and capital resources.  




                      QUANTITATIVE AND QUALITATIVE 
                      DISCLOSURE ABOUT MARKET RISKS


	Not Applicable.




                                 PART II

                           	OTHER INFORMATION


ITEM 1.	LEGAL PROCEEDINGS
      		-----------------
		      Not applicable.
	
ITEM 2.	CHANGES IN SECURITIES
		      ---------------------
		      Not applicable.

ITEM 3.	DEFAULTS UPON SENIOR SECURITIES
      		-------------------------------
		      Not applicable.

ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
      		---------------------------------------------------
	      	Not applicable.

ITEM 5.	OTHER INFORMATION.
      		-----------------
	      	Not applicable.

ITEM 6.	EXHIBITS AND REPORTS ON FORM 8-K
      		--------------------------------
	 	     (a)Exhibits
		
		         27   Financial Data Schedule

		         99   Cautionary Statements by the Company Related to
                Forward-Looking Statements
	
	      	(b)Reports on Form 8-K

                The Company did not file any reports on Form 8-K during
                the quarter ended March 31, 1998.





                                  	SIGNATURES


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



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



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


Date:   May 14, 1998
       -------------