|SECURITIES
AND EXCHANGE COMMISSIONWashington,
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 September 30, 2001.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------

||_| | 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:
 0-24293


LMI
AEROSPACE, INC.(Exact name of registrant as specified in its charter)
|------------------------------------------------------------------------------------------------------------

|Missouri
               (State or Other Jurisdiction of
                Incorporation or Organization) | 43-1309065
     (I.R.S. Employer 
    Identification No.)
|------------------------------------------------------------------------------------------------------ | ---------------------------------------------------------

|3600 Mueller Road
                    St. Charles, Missouri
           (Address of Principal Executive Offices) | 63301
     (ZIP Code)
|--------------------------------------------------------------------------------------------------------------- | ---------------------

|(636)
946-6525 (Registrant's Telephone Number, Including Area Code)


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

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the
latest practicable date.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Title of classof Common Stock | Number of Shares outstandingas of Septembr 30, 2001
|----------------------------- | ---------------------------------------------------

|Common Stock, par value $.02 per share | 8,022,846
|-------------------------------------- | ---------

|LMI
AEROSPACE, INC.

QUARTERLY
REPORT ON FORM 10-Q
FOR THE FISCAL QUARTER ENDING SEPTEMBER 30, 2001
|---------------------------------------------------------------------------------------------------

`PART I. FINANCIAL INFORMATION

Item 1.  FINANCIAL STATEMENTS (UNAUDITED)

         Condensed Consolidated Balance Sheets as
         of December 31, 2000 and September 30, 2001

         Condensed Consolidated Statements of Operations for the
         three months and the nine months ended
         September 30, 2000 and 2001

         Condensed Consolidated Statements of Cash Flows for the
         the nine months ended September 30, 2000 and 2001

         Notes to Unaudited Condensed Consolidated Financial Statements


Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATION


                           PART II. OTHER INFORMATION

Item 5.  OTHER INFORMATION

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K


SIGNATURE PAGE


EXHIBIT INDEX`

|LMI
Aerospace, Inc.Condensed
Consolidated Balance Sheets(Amounts in thousands, except share and per share data)
|---------------------------------------------------------------------------------------------------------------

`December 31,     September 30,
                                                      2000              2001
                                                                    (unaudited)
                                                 -------------------------------
Assets
Current assets:
   Cash and cash equivalents                         $ 1,676          $  2,662
   Investments                                           536               463
   Trade accounts receivable, net                      6,627             9,496
   Inventories                                        15,909            20,736
   Prepaid expenses                                      361             1,205
   Income taxes receivable                               498               194
   Deferred income taxes                                 782               782
                                                 -------------------------------
Total current assets                                  26,389            35,538

Property, plant, and equipment, net                   21,059            24,440
Other assets                                             345               300
Goodwill, net                                          1,888             7,648
                                                 -------------------------------
                                                    $ 49,681          $ 67,926
                                                 ===============================

Liabilities and stockholders' equity
Current liabilities:
   Accounts payable                                  $ 3,570          $  3,759
   Accrued expenses                                    1,962             2,798
   Current installments of long-term debt                104             2,248
                                                 -------------------------------
Total current liabilities                              5,636             8,805

Long-term debt, less current installments                121            12,664
Deferred income taxes                                  1,245             1,219
                                                 -------------------------------
Total noncurrent liabilities                           1,366            13,883

Stockholders' equity:
   Common stock of $.02 par value;
     authorized 28,000,000 shares;
     issued 8,734,422 and 8,736,427 at
     December 31, 2000 and at
     September 30, 2001, respectively                    175               175
   Additional paid-in capital                         26,165            26,171
   Treasury Stock, at cost, 628,604 and
     711,576 shares at December 31, 2000
     and September 30, 2001, respectively             (3,174)           (3,383)
   Accumulated other comprehensive loss                 (272)             (319)
   Retained earnings                                  19,785            22,594
                                                 -------------------------------
Total stockholders' equity                            42,679            45,238
                                                 -------------------------------
                                                    $ 49,681         $  67,926
                                                 ===============================

See accompanying notes.`

|LMI
Aerospace, Inc.Condensed
Consolidated Statements of Operations(Amounts in thousands, except per share data)(Unaudited)
|--------------------------------------------------------------------------------------------------------------------------

`For the Three Months          For the Nine Months
                              Ended September 30            Ended September 30
                         -------------------------------------------------------
                              2000           2001           2000           2001
                         -------------------------------------------------------
Net sales                  $ 12,835       $ 19,558       $ 41,131      $ 54,712
Cost of sales                12,096         14,936         36,302        42,210
                         -------------------------------------------------------
Gross profit                    739          4,622          4,829        12,502
Selling, general, and
   administrative
   expenses                   2,249          2,800          6,953         7,607
                         -------------------------------------------------------
Income (loss) from
   operations                (1,510)         1,822         (2,124)        4,895

Interest income
   (expense)                      5           (237)             2          (503)
                         -------------------------------------------------------
Income (loss) before
   income taxes              (1,505)         1,585         (2,122)        4,392
Provision for (benefit
   from) income taxes          (527)           555           (743)        1,537
                         -------------------------------------------------------
Income (loss) before
   cumulative effect
   of change in
   accounting principle        (978)         1,030         (1,379)        2,855
                         =======================================================
Cumulative effect of
   change in accounting
   principle net of
   income tax benefit
   of $88                         -              -           (164)            -
                         =======================================================
Net income (loss)            $ (978)       $ 1,030      $  (1,543)     $  2,855
                         =======================================================
Amounts per common share:
Income (loss) before
   cumulative effect
   of change in
   accounting principle     $ (0.12)        $ 0.13        $ (0.17)       $ 0.35
Cumulative effect
   of change in
   accounting principle           -              -        $ (0.02)            -
                         -------------------------------------------------------
Net income (loss) per
   common share             $ (0.12)        $ 0.13        $ (0.19)       $ 0.35
                         =======================================================
Net income (loss) per
   common share
   - assuming dilution      $ (0.12)        $ 0.13        $ (0.19)       $ 0.35
                         =======================================================
Weighted average
   common shares
   outstanding            8,216,070      8,063,505      8,209,433     8,071,494
                         =======================================================
Weighted average
   dilutive stock
   options outstanding           0         142,156          3,306        88,714
                         =======================================================

See accompanying notes.`

|LMI
Aerospace, Inc.Condensed
Consolidated Statements of Cash Flows(Amounts in thousands)(Unaudited)
|---------------------------------------------------------------------------------------------------

`For the Nine Months
                                                       Ended September 30
                                                   2000               2001
                                              ------------------------------
Operating activities
Net income (loss)                              $  (1,543)          $  2,855
Adjustments to reconcile
   net income (loss) to
   net cash generated from
   operating activities:
     Depreciation and amortization                 2,717              3,085
     Changes in operating assets
       and liabilities:
       Trade accounts receivable                     182               (401
       Inventories                                  (530)              (979
       Prepaid expenses and other assets            (105)              (811
       Income taxes payable                          (31)               455
       Accounts payable                           (1,174)              (400
       Accrued expenses                              587                674
                                             -------------------------------
Net cash generated from
   operating activities                              103              4,478

Investing activities
Additions to property, plant,
   and equipment, net                             (1,395)            (2,423
Proceeds from sale of property,
   plant and equipment                                 -                 90
Purchases of investments                            (954)                 -
Acquisition of company,
   net of cash acquired                                -            (14,926
                                             ------------------------------
Net cash used by
   investing activities                           (2,349)           (17,259

Financing activities
Proceeds from issuance of
   long-term debt                                      -             14,250
Principal payments on
   long-term debt                                    (76)              (129
Treasury stock transactions, net                    (213)              (354
                                             ------------------------------

Net cash (used by) generated
   from financing activities                        (289)            13,767

Net change in cash and
   cash equivalents                               (2,535)               986
Cash and cash equivalents,
   beginning of period                             5,908              1,676
                                             ------------------------------
Cash and cash equivalents,
   end of period                                $  3,373           $  2,662
                                             ==============================


Supplemental Schedule of noncash investing and financing activities:

A capital lease obligation of $151 was incurred on March 22, 2001, when the
Company entered into a lease for equipment.

A note payable obligation of $398 was incurred on June 1, 2001, when the
Company entered into a purchase agreement for equipment.`

|LMI
Aerospace, Inc.Notes to
Condensed Consolidated Financial Statements(Dollar amounts in thousands, except share and per share data)(Unaudited)
September 30, 2001

1.   Accounting
Policies

Basis of
     Presentation
LMI  Aerospace,  Inc. (the  Company)  fabricates,
machines,  and integrates  formed,  close tolerance aluminum and specialty alloy
components for use by the aerospace and laser equipment industries.  The Company
is a Missouri  corporation  with  headquarters  in St.  Charles,  Missouri.  The
Company  maintains  facilities in St. Charles,  Missouri;  Seattle,  Washington;
Tulsa, Oklahoma; Wichita, Kansas; Irving, Texas; and Sun Valley, California.

The accompanying unaudited
condensed consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the United
States for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair representation have been included. Operating results for the nine months
ended September 30, 2001 are not necessarily indicative of the results that may
be expected for the year ended December 31, 2001. These financial statements
should be read in conjunction with the consolidated financial statements and
accompanying footnotes included in the Companys Annual Report on Form 10-K
for the year ended December 31, 2000 as filed with the SEC.


Use of
Estimates

The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States requires management to make certain estimates and assumptions.
These estimates and assumptions affect the reported amounts in the financial
statements and accompanying notes. Actual results could differ from those
estimates.

Cumulative
Effect of Change in Accounting Principle
In the fourth quarter of
2000, the Company changed its method of accounting for revenue recognition in
accordance with Staff Accounting Bulleting (SAB) No. 101, Revenue Recognition
in Financial Statements. The new accounting method was adopted retroactive
to January 1, 2000. The cumulative effect of the change on prior years resulted
in a charge to income of $164, net of income tax benefit of $88, which is
included in income for the nine months ended September 30, 2000. All 2000
amounts have been restated for this change in accounting principle. The effect
of the change on the three months and nine months ended September 30, 2000 was
as follows:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`For the Three Months      For the Nine Months
                                   Ended September 30        Ended September 30
                              -------------------------------------------------------
                              As Previously              As Previously
                                Reported    As Restated     Reported     As Restated
                              -------------------------------------------------------

Net sales                    $ 12,911        $ 12,835     $ 41,407      $ 41,131
Gross Profit                      707             739        4,756         4,829
Net Loss                         (998)           (978)      (1,427)       (1,543)
Amounts per common share:
Net Loss                        (0.12)          (0.12)       (0.17)        (0.19)
Net Loss - assuming dilution    (0.12)          (0.12)       (0.17)        (0.19)`

|2.  
Acquisitions

On April 1, 2001, the
Company acquired certain assets and liabilities of Tempco Engineering, Inc. and
Hyco Precision, Inc. (together referred to as Tempco), two related
companies in Sun Valley, California, for $14,250, subject to certain purchase
price adjustments, as defined. In addition, the Company may pay additional
contingent consideration of up to $1,250 if Tempcos EBITDA exceeds certain
limits at the end of each quarter beginning June 30, 2001 and ending March 31,
2003. Based on the results of Tempco at September 30, 2001, no additional
consideration was due. This acquisition was accounted for under the purchase
method of accounting and, accordingly, the results of operations of Tempco have
been included in the consolidated financial statements of the Company after
April 1, 2001. The cost to acquire Tempco has been preliminarily allocated to
the assets acquired and liabilities assumed according to their estimated fair
values at the time of the acquisition and are subject to adjustment when
additional information concerning asset and liability valuations and certain
other purchase price adjustments are finalized. The preliminary allocation has
resulted in acquired goodwill of approximately $ 6,056, which is being amortized
on a straight-line basis over 15 years.

3.   FASB 141
& 142 Disclosure

In June 2001, the Financial
Accounting Standards Board issued Statements of Financial Accounting Standards
No. 141, Business Combinations,and No. 142, Goodwill and Other
Intangible Assets,effective for fiscal years beginning after December 15,
2001. Under the new rules, goodwill (and intangible assets deemed to have
indefinite lives) will no longer be amortized but will be subject to annual
impairment tests in accordance with the Statements. Other intangible assets will
continue to be amortized over their useful lives.

The Company will apply the
new rules on accounting for goodwill and other intangible assets beginning in
the first quarter of 2002. Application of the non-amortization provisions of the
Statement is expected to result in an increase in net income after tax of $341
($.04 per share and $.04 per share assuming dilution) per year. During 2002, the
Company will perform the first of the required impairment tests of goodwill and
indefinite lived intangible assets as of January 1, 2002 and has not yet
determined what the effect of these tests will be on the earnings and financial
position of the Company.

4.   Inventories

Inventories consist of the following:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

`December 31,         September 30,
                                         2000                  2001
                                 --------------------------------------------
Raw materials                           $ 3,842             $ 3,766
Work in process                           3,380               7,042
Finished goods                            8,687               9,928
                                 --------------------------------------------
                                       $ 15,909            $ 20,736
                                 ============================================`

|5.   Long-Term
Debt
Long-term debt consists of the
following:
|-------------------------------------------------------------

`December 31,        September 30,
                                            2000                 2001
                                     --------------------------------------

Term loan                                     $  -            $ 14,250

Notes payable, principal and
   interest payable monthly, at
   fixed rates, ranging from
   4.98% to 9.00%                              225                 536
Capital lease obligations                        -                 126
                                     --------------------------------------
                                               225              14,912
Less current installments                      104               2,248
                                     --------------------------------------
                                              $121             $12,664
                                     ======================================`

|In order to facilitate the
acquisition of Tempco, the Company amended its current loan agreement with Union
Planters entering into a three-year Borrowing Agreement (Borrowing
Agreement) on April 1, 2001. This Borrowing Agreement provides financing
up to $15,500 and bears interest at ninety day LIBOR plus 3%, subject to a cap
of 8.5% and a floor of 7.0%. The interest rate was 7.0% at September 30, 2001.
The Company drew $14,250 on this Borrowing Agreement on April 1, 2001. Interest
payments are due monthly. Principal is due monthly beginning in October, 2001,
using a seven year amortization. The Borrowing Agreement is secured by all
assets of the Company, excluding real property, and contains financial covenants
requiring minimum levels of cash flow coverage, EBITDA, and tangible net worth.
Under the Borrowing Agreement, the Company has $1,250 available to fund any
additional contingent consideration. Additionally, the Company has a Revolving
Credit Agreement (Revolving Credit Agreement) for up to $7,000 which
expires November 30, 2001. The Company is currently in negotiations with its
lender to extend the Revolving Credit Agreement for a minimum of one additional
year. No amounts were owed on the Revolving Credit Agreement at September 30,
2001.

Item 2.  
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL      
        CONDITION AND RESULTS OF OPERATIONS

Except for the
historical information contained herein, the following report contains
forward-looking statements based on the beliefs of the Company and are subject
to certain risks and uncertainties. These statements can be identified by
forward-looking words such as expect, believe,
anticipate, goal, plan, intend,
estimate, may, will, or similar words. The
Companys actual results could differ materially from those discussed here.
Factors that could cause or contribute to such differences include, but are not
limited to, those discussed below as well as those factors set forth in the
Companys other filings with the Securities and Exchange Commission.

Overview

LMI Aerospace, Inc. is a
leader in fabricating, machining and integrating formed close tolerance aluminum
and specialty alloy components for use by the aerospace and laser cutting
industries. The Company has been engaged in manufacturing components for a wide
variety of applications. Aerospace components manufactured by the Company
include leading edge wing slats, flaps and lens assemblies; cockpit window frame
assemblies; fuselage skins and supports, and passenger and cargo door frames and
supports. Non-aerospace components are critical components in the chamber
section of lasers used in the production of semiconductors and cutting equipment
used in preparation for Lasik surgery. The Company maintains multi-year
contracts with leading original equipment manufacturers and primary
subcontractors of commercial, corporate, regional and military aircraft. Such
contracts, which govern the majority of the Companys sales, designate the
Company as the sole supplier of the aerospace components sold under the
contracts. Customers include Boeing, Lockheed Martin, Northrop Grumman,
Gulfstream, Learjet, Canadair, DeHavilland, PPG, Litton, Cymer, and IntraLase.
The Company manufactures more than 15,000 parts for integration into
Boeings 737, 747, 757, 767 and 777 commercial aircraft and F-15, F/A-18,
C-17 military aircraft, Canadairs RJ regional aircraft, Gulfstreams
G-IV and G-V corporate aircraft, Lockheed Martins F-16, T50 trainer, and
C-130 military aircraft, Litton Industries guidance control systems, Cymer
lasers for cutting silicon wafers, and IntraLase lasers used in Lasik surgery

Results of
Operations

Quarter Ended
September 30, 2001 versus September 30, 2000

Net Sales. Net sales
for the quarter ended September 30, 2001 were $19.6 million compared to $12.8
million in the same quarter of the prior year, an increase of 52.4%. Net sales
for the current quarter were aided by the acquisition of Tempco, which added
$4.4 million (22.4% of net sales). Excluding the acquisition, net sales were
$15.2 million in the quarter, an increase of 18.0%.

Net sales on Boeing
commercial aircraft were $9.1 million (46.3% of net sales) in the current
quarter, up from $7.7 million in the prior year. Net sales of components during
the quarter for the 737 were $4.1 million, an increase from $3.5 million in the
prior year. Additionally, the Company generated net sales increases on all
Boeing models on which it participates.

Net sales for military
programs were $3.4 million (17.4% of net sales) in the quarter, an increase from
$1.3 million in the prior year. The acquisition of Tempco added $1.5 million to
the current quarter in addition to an increase in net sales on the Lockheed
Martin F-16 and T-50 programs.

The Companys net
sales during the quarter on corporate and regional aircraft platforms totaled
$2.8 million (14.3% of net sales), unchanged from the prior year.

Tempco generated net sales
of $2.2 million (11.3% of net sales) for components used by laser equipment
manufactures serving the technology and medical markets.

Gross Profit. Gross
profit for the quarter ended September 30, 2001 was $4.6 million (23.6% of net
sales), up from $0.7 million (5.6% of net sales) in the prior year. The improved
performance is primarily due to improved labor efficiency. The Company was able
to support the 52.4% increase in net sales with a 34.0% increase in
manufacturing labor ($6.3 million in labor costs in the current quarter compared
to $4.7 million in the prior year.) Also, the quarter benefited by the increased
revenue, which afforded better coverage of the fixed costs. The quarter was
adversely affected by lost production hours resulting from downtime on certain
pieces of critical equipment and employee meetings required as the Company
successfully defended itself against a union organizing campaign. Additionally,
the Company incurred start up and development costs related to the initial
deliveries of components for a wing seal program on the T-50 aircraft for
Lockheed Martin.

Selling, General, and
Administrative Expenses. Selling, general, and administrative expenses
increased to $2.8 million (14.3% of net sales) in the quarter ended September
30, 2001 from $2.2 million (17.5% of net sales) in the prior year. Approximately
$0.3 million was attributable to the additional expenses at Tempco.

Interest Expense.
  Interest  expense was $0.2 million in the third quarter of 2001.  This interest is attributable
to the debt incurred to acquire Tempco.

Nine Months
Ended September 30, 2001 versus September 30, 2000

Net Sales.Net sales
for the nine months ended September 30, 2001 were $54.7 million compared to
$41.1 million for the prior year, an increase of 33.1%. The acquisition of
Tempco contributed $7.8 million of the increase. Excluding the acquisition, net
sales were $46.9 million, up 14.1% from 2000.

Net sales for Boeing
commercial aircraft were $28.7 million (52.5% of net sales) for 2001 compared to
$23.4 million (57.1% of net sales) in 2000. Net sales for the 737 were $12.5
million in 2001, up from $11.0 million in 2000. Additionally, sales for the 747
were $7.1 million in 2001, up $1.9 million from 2000.

Net sales for corporate and
regional aircraft were down in 2001, contributing $9.0 million (16.2% of net
sales) in 2001 compared to $9.4 million (22.8% of net sales) in 2000. This
reduction is primarily attributable to a slowdown in deliveries of components
used on Gulfstreams G-IV and G-V aircraft.

Military sales were $8.9
million (16.0% of net sales) in 2001 compared to $5.2 million (12.6% of net
sales) in 2000. The addition of Tempco contributed $2.7 million of the increase.
Additionally, sales on the F-16 and T-50 programs for Lockheed Martin generated
$3.9 million in 2001, up from $2.0 million in 2000.

Net sales to laser
equipment manufacturers by Tempco totaled $3.9 million (7.0% of net sales) in
2001.

Gross Profit. Gross
profit for the nine months ended September 30, 2001 was $12.5 million (22.9% of
net sales), up from $4.8 million (11.7% of net sales). The increase in
performance is attributable to improved labor efficiencies and better coverage
of fixed costs afforded by the increased sales.

Selling, General and
Administrative Expenses. Selling, general and administrative expenses were
$7.6 million (13.9% of net sales) in 2001 compared to $7.0 million (16.9% of net
sales) in 2000. The acquisition of Tempco added $0.6 million in 2001.

Interest  Expense.
 Interest  expense was $0.5 million in 2001.  This interest is principally  attributable  to the
debt incurred to acquire Tempco.

Cumulative Effect of
Change in Accounting Principle.In the fourth quarter of 2000, the Company
changed its method of accounting for revenue recognition in accordance with
Staff Accounting Bulleting (SAB) No. 101, Revenue recognition in Financial
Statements.The new accounting method was adopted retroactive to January 1,
2000. The cumulative effect of the change on prior years resulted in a charge to
income of $0.2 million, net of income tax benefit of $0.1 million, which
is included in income for the nine months ended September 30, 2000. All 2000
amounts have been restated for this change in accounting principle. Refer to
note 1 to the financial statements for further information on this change.

Liquidity and
Capital Resources

Cash flow from operations was
$5.0 million in 2001 compared to $0.1 million in 2000. This improvement is
attributable to the improved earnings of the Company. The Company entered into a
debt arrangement of $14.3 million to finance the purchase of Tempco in the
second quarter of 2001. Payments on this debt begin in the fourth quarter of
2001. Additionally, the Company continues to invest in property, plant, and
equipment, spending $2.4 million in the first nine months of 2001. The Company
expects to spend approximately $3.0 million in capital expenditures for the full
year 2001. Cash was $2.7 million and the Company has no outstanding balance on
its a revolving line of credit of $7.0 million at September 30, 2001.

The terrorist attacks of
September 11, 2001 have had an adverse impact on the airline industry as well as
producers and subcontractors of commercial aircraft, which will affect the
Company. At this time, the Company believes that it will see declines in its
sales to the commercial aircraft industry and is working with its customers to
assess how significant the impact will be and what actions the Company will need
to take to manage this reduction. Also, management has begun an assessment of
the impact of these events on the business prospects of its available for sale
investments.

PART IIOTHER INFORMATION
Item 5.   OTHER INFORMATION

The Companys
Revolving Credit Agreement with Union Planters expired, pursuant to its terms,
on October 30, 2001. On such date, Union Planters and the Company executed the
Sixth Amendment to Loan Agreement, extending the Companys ability to draw
down on its $7,000,000 line of credit with Union Planters until November 30,
2001. No amounts are owed on the Revolving Credit Agreement at this time. The
Company anticipates executing an agreement in the near future to extend the
Revolving Credit Agreement for a minimum of one year.


Item 6.  
 EXHIBITS AND REPORTS ON FORM 8-K
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) | Exhibit No. | Description
|--- | ----------- | -----------

| | 10.1 | Leonard's  Metal Inc./ Lockheed  Martin  Aeronautics  Company  Business
                  Reformation Agreement
| | ---- | ---------------------------------------------------------------------------------------------------------------

| | 10.2 | Sixth Amendment to Loan Agreement
| | ---- | ---------------------------------

|(b) |  | The Company filed the following Reports on Form 8-K:
|--- |  | ----------------------------------------------------

| |  | (i) | On August 7, 2001, the Company filed a Report on Form 8-K relating to the
issuance of a press release announcing second quarter earnings;
| |  | --- | -----------------------------------------------------------------------------------------------------------------------------------------

| |  | (ii) | On August 8, 2001, the Company filed a Report on Form 8-K disclosing certain
events relating to a union organizing campaign;
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------------

| |  | (iii) | On August 9, 2001, the Company filed a report on Form 8-K relating to the
issuance of a press release announcing revised earnings estimates;
| |  | ----- | --------------------------------------------------------------------------------------------------------------------------------------------

| |  | (iv) | On September 13, 2001, the Company filed a Report on Form 8-K announcing an
employee vote relating to a union organizing campaign; and
| |  | ---- | --------------------------------------------------------------------------------------------------------------------------------------

| |  | (v) | On September 26, 2001, the Company filed a Report on Form 8-K announcing the
certification of an employee vote relating to a union organizing campaign.
| |  | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

|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.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | LMI AEROSPACE, INC.
| | -------------------

|Date:    November 13, 2001 | By:  /s/ Lawrence E. Dickinson
                                      Lawrence E. Dickinson
                                            Chief Financial Officer and 
                                      Secretary
|-------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|EXHIBIT INDEX
|-------------

|Exhibit Number | Description
|-------------- | -----------

|10.1 | Leonard's  Metal Inc./ Lockheed  Martin  Aeronautics  Company  Business
                  Reformation Agreement
|---- | ---------------------------------------------------------------------------------------------------------------

|10.2 | Sixth Amendment to Loan Agreement
|---- | ---------------------------------

---