UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q


[ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE ACT OF 1934  FOR THE QUARTERLY PERIOD ENDED  June 29, 2003

[   ]     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  1-2451

                        NATIONAL PRESTO INDUSTRIES, INC.
             (Exact name of registrant as specified in its charter)

          WISCONSIN                                         39-0494170
(State or other jurisdiction of                             (I.R.S. Employer
incorporation or organization)                              Identification No.)

3925 NORTH HASTINGS WAY
EAU CLAIRE, WISCONSIN                                       54703-3703
(Address of principal executive offices)                    (Zip Code)


(Registrant's telephone number, including area code)        715-839-2121

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 by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes__X__ No_____


There were 6,816,561 shares of the Issuer's Common Stock outstanding as of the
close of the period covered by this report.


<PAGE>


NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 29, 2003 and December 31, 2002
(Unaudited)
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                                    2003                                    2002
<S>                                                     <C>              <C>                       <C>           <C>
ASSETS
   CURRENT ASSETS:
              Cash and cash equivalents                                  $120,644                                $114,637

              Marketable securities                                        86,567                                  92,578

              Accounts receivable, net                                     12,649                                  27,898

              Inventories:
                 Finished goods                             $ 17,601                                $ 18,656

                 Work in process                               4,586                                   3,355

                 Raw materials                                 1,977       24,164                      2,976       24,987
                                                        -------------                            ------------

              Other Current Assets                                          1,210                                     998
                                                                     -------------                           -------------

                 Total current assets                                     245,234                                 261,098

   PROPERTY,  PLANT AND EQUIPMENT                             22,117                                  22,667

                 Less allowance for depreciation               8,777       13,340                      9,400       13,267
                                                        -------------                            ------------

   OTHER ASSETS                                                            15,645                                  15,629

                                                                     -------------                           -------------
                                                                         $274,219                                $289,994
                                                                     =============                           =============
</TABLE>

The accompanying notes are an integral part of the financial statements.


<PAGE>


NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 29, 2003 and December 31, 2002
(Unaudited)
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                                           2003                                 2002
<S>                                                           <C>              <C>                    <C>           <C>
LIABILITIES
   CURRENT LIABILITIES:
              Accounts payable                                                 $11,172                               $18,753

              Federal and state income taxes                                     1,751                                 3,643

              Accrued liabilities                                               25,977                                29,341

                                                                          -------------                         -------------
                 Total current liabilities                                      38,900                                51,737

COMMITMENTS AND CONTINGENCIES                                                        -                                     -


STOCKHOLDERS' EQUITY

              Common stock, $1 par value:
                 Authorized: 12,000,000 shares
                 Issued: 7,440,518 shares                         $ 7,441                               $ 7,441

              Paid-in capital                                         981                                   998

              Retained earnings                                   247,000                               249,313

              Accumulated other comprehensive income (loss)          (829)                                 (698)
                                                             -------------                          ------------

                                                                  254,593                               257,054

              Treasury stock, at cost                              19,274                                18,797

                                                             -------------                          ------------
                    Total stockholders' equity                                 235,319                               238,257

                                                                          -------------                         -------------
                                                                              $274,219                              $289,994
                                                                          =============                         =============
</TABLE>

The accompanying notes are an integral part of the financial statements.


<PAGE>


NATIONAL PRESTO INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months and Six Months ended June 29, 2003 and June 30, 2002
(Unaudited)
<TABLE>
<CAPTION>
(In thousands except per share data)                             THREE MONTHS ENDED                           SIX MONTHS ENDED
                                                                 -------------------                          ----------------
                                                              2003               2002                       2003              2002
========================================================================================             ==============================
<S>                                                         <C>                 <C>                     <C>               <C>
Net sales                                                   $ 21,452            $20,378                 $ 43,506          $ 42,974

Cost of sales                                                 16,149             16,275                   31,976            35,814

                                                        -------------      -------------             ------------      ------------
      Gross profit                                             5,303              4,103                   11,530             7,160

Selling and general expenses                                   4,120              4,497                    8,699             9,626

Plant closing costs                                                -                  -                        -             3,953

                                                        -------------      -------------             ------------      ------------
      Operating profit (loss)                                  1,183               (394)                   2,831            (6,419)

Other income, principally interest                             1,356              1,463                    2,464             2,957

                                                        -------------      -------------             ------------      ------------
  Earnings (loss) before provision for income taxes            2,539              1,069                    5,295            (3,462)

Income tax provision (benefit)                                   621                (14)                   1,324            (2,185)

                                                        -------------      -------------             ------------      ------------
    Net earnings (loss)                                      $ 1,918            $ 1,083                 $  3,971          $ (1,277)
                                                        =============      =============             ============      ============

Weighted average shares outstanding:
              Basic                                            6,817              6,840                    6,824             6,839
                                                        =============      =============             ============      ============
              Diluted                                          6,818              6,841                    6,825             6,839
                                                        =============      =============             ============      ============

Net earnings (loss) per share:
              Basic                                          $  0.28            $  0.16                 $   0.58          $  (0.19)
                                                        =============      =============             ============      ============
              Diluted                                        $  0.28            $  0.16                 $   0.58          $  (0.19)
                                                        =============      =============             ============      ============

Cash dividends declared and paid per common share            $    -             $    -                  $   0.92          $   0.92
                                                        =============      =============             ============      ============
</TABLE>

The accompanying notes are an integral part of the financial statements.


<PAGE>


NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months ended June 29, 2003 and June 30, 2002
(Unaudited) (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                                   2003                  2002
=================================================================================================================
<S>                                                                                <C>                  <C>
Cash flows from operating activities:
              Net earnings (loss)                                                  $ 3,971              $ (1,277)
              Adjustments to reconcile net earnings (loss) to net
                 cash provided by operating activities:
                 Provision for depreciation                                          1,139                   905
                 Deferred tax                                                          (16)                    -
                 Plant closing charges                                                   -                 3,953
                 Other                                                                (100)                  130
                 Changes in:
                    Accounts receivable                                             15,249                19,623
                    Inventories                                                        823                (4,803)
                    Other current assets                                              (212)                 (275)
                    Accounts payable and accrued liabilities                       (10,945)               (5,934)
                    Federal and state income taxes                                  (1,892)               (3,055)
                                                                              -------------         -------------
                          Net cash provided by operating activities                  8,017                 9,267
                                                                              -------------         -------------

Cash flows from investing activities:
              Marketable securities purchased                                       (9,268)              (11,713)
              Marketable securities - maturities and sales                          15,148                38,100
              Acquisition of property, plant and equipment                          (1,656)               (1,224)
              Acquisition of business                                                    -                  (500)
              Sale of property, plant and equipment                                    610                     -
                                                                              -------------         -------------
                          Net cash provided by investing activities                  4,834                24,663
                                                                              -------------         -------------

Cash flows from financing activities:
              Dividends paid                                                        (6,284)               (6,290)
              Purchase of treasury stock                                              (589)                    -
              Sale of treasury stock                                                    29                     -
                                                                              -------------         -------------
                          Net cash used in financing activities                     (6,844)               (6,290)
                                                                              -------------         -------------

Net increase in cash and cash equivalents                                            6,007                27,640
Cash and cash equivalents at beginning of period                                   114,637                83,877
                                                                              -------------         -------------
Cash and cash equivalents at end of period                                        $120,644              $111,517
                                                                              =============         =============
</TABLE>

The accompanying notes are an integral part of the financial statements.


<PAGE>


               NATIONAL PRESTO INDUSTRIES, INC., AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE A - EARNINGS PER SHARE
---------------------------

The Company's basic net earnings (loss) per share amounts have been computed by
dividing net earnings (loss) by the weighted average number of outstanding
common shares. The Company's diluted net earnings per share is computed by
dividing net earnings by the weighted average number of outstanding common
shares and common share equivalents relating to stock options, when dilutive.


NOTE B - BUSINESS SEGMENTS
--------------------------

In the following summary, operating profit (loss) represents earnings (loss)
before other income, principally interest income and income taxes.

The Company's segments operate discretely from each other with no shared
manufacturing facilities. Costs associated with corporate activities (such as
cash and marketable securities management) are included within housewares/small
appliances for all periods presented.

<TABLE>
<CAPTION>
                                                                    (IN THOUSANDS)
                                             -----------------------------------------------------------
                                             HOUSEWARES/
                                               SMALL             DEFENSE      ABSORBENT
                                             APPLIANCES          PRODUCTS      PRODUCTS            TOTAL
                                             ----------          --------      --------            -----
<S>                                           <C>                <C>            <C>              <C>
QUARTER ENDED JUNE 29, 2003
External net sales                            $ 16,616           $ 1,862        $ 2,974          $ 21,452
Gross profit                                     4,579               444            280             5,303
Operating profit                                   818               159            206             1,183
Total assets                                   253,163            12,191          8,865           274,219
Depreciation and amortization                      363                25            208               596
Capital expenditures                               152               178            291               621

QUARTER ENDED JUNE 30, 2002
External net sales                            $ 17,176           $ 2,040        $ 1,162          $ 20,378
Gross profit                                     3,370               794            (61)            4,103
Operating profit (loss)                           (767)              628           (255)             (394)
Total assets                                   271,521            11,250          7,223           289,994
Depreciation and amortization                      250                25            198               473
Capital expenditures                               500                77             43               620
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                                                                    (IN THOUSANDS)
                                             -----------------------------------------------------------
                                             HOUSEWARES/
                                               SMALL             DEFENSE      ABSORBENT
                                             APPLIANCES          PRODUCTS      PRODUCTS            TOTAL
                                             ----------          --------      --------            -----
<S>                                           <C>                <C>            <C>              <C>
SIX MONTHS ENDED JUNE 29, 2003
External net sales                            $ 34,093           $ 3,722        $ 5,691          $ 43,506
Gross profit                                     9,868             1,000            662            11,530
Operating profit                                 1,932               441            458             2,831
Total assets                                   253,163            12,191          8,865           274,219
Depreciation and amortization                      682                52            405             1,139
Capital expenditures                               257             1,034            365             1,656

SIX MONTHS ENDED JUNE 30, 2002
External net sales                            $ 36,310           $ 4,187        $ 2,477          $ 42,974
Gross profit                                     5,854             1,296             10             7,160
Operating profit (loss)                         (6,972) *            972           (419)           (6,419)
Total assets                                   271,521            11,250          7,223           289,994
Depreciation and amortization                      463                48            394               905
Capital expenditures                               951               211             62             1,224
</TABLE>

          *    The operating loss of the Housewares/small appliance division is
               after recording a charge for plant closing costs of $3,953,000
               more fully described in Note D.


NOTE C - PRODUCT WARRANTY
-------------------------

Company housewares/small appliance products are generally warranted to the
original owner to be free from defects in material and workmanship for a period
of 2 to 12 years from date of purchase. The Company allows a 60-day
over-the-counter initial return privilege through cooperating dealers. The
Company services its products through independent service providers throughout
the United States and a corporate service repair operation. The Company's
service and warranty programs are competitive with those offered by other
manufacturers in the industry. The Company determines its product warranty
liability based on historical percentages.

The following table shows the changes in product warranty liability for the
period:

                                                   2003              2002
                                                   ----              ----
         Beginning balance January 1              $ 1,465          $ 1,492
         Accruals during the period                 1,038            1,097
         Charges / payments made
            under the warranties                   (1,409)          (1,172)
                                           --------------   --------------
         Balance end of period                    $ 1,094          $ 1,417
                                           ==============   ==============


<PAGE>


NOTE D - PLANT CLOSING
----------------------

In November 2001, the Company announced that continued erosion of product
pricing resulted in its decision to cease manufacturing housewares/small
appliances in its U.S. plants, close those facilities, and purchase products
from the Orient. This transition from U.S. plant production to the Orient was
completed during late 2002. The Company closed its manufacturing facilities in
Alamogordo, New Mexico, during the third quarter of 2002 and explored
alternative uses for the facility. During the second quarter 2003, a decision
was made to dispose of the Alamogordo facility. The Company closed its Jackson,
Mississippi, plant during the fourth quarter of 2002 and has decided to modify
this plant to serve as a warehousing and shipping facility. Modification to the
Jackson plant should be completed during 2003. The Company plans to have the
Alamogordo plant and manufacturing equipment and the Jackson manufacturing
equipment available for sale in the third quarter of 2003.

As a result of the Company's transition from U.S. plant production to Orient
sourcing, the Company recorded charges in both 2002 and 2001. The principal
activity during the first six months of 2002 was the accrual of $3,953,000 of
employee termination benefits. The principal plant closing activity during the
first six months of 2003 was the payment of employee termination benefits and
other exit related costs. There may be additional charges later in the year.

The following table summarizes the plant closing accrual activities for the
periods presented:

<TABLE>
<CAPTION>
                                      Employee                      Other
                                    Termination    Inventory        Exit
                                      Benefits     Write-Down       Costs          Total
                                    -----------    -----------   -----------    -----------
<S>                                 <C>            <C>           <C>            <C>
Balance January 1, 2003             $ 2,148,000    $         -   $   521,000    $ 2,669,000
Additions (reductions) to accrual      (261,000)             -       261,000              -
Charges in 2003                        (725,000)             -      (604,000)    (1,329,000)
                                    -----------    -----------   -----------    -----------
Balance June 29, 2003               $ 1,162,000    $         -   $   178,000    $ 1,340,000
                                    ===========    ===========   ===========    ===========

Balance January 1, 2002             $   637,000    $   880,000   $   519,000    $ 2,036,000
Additions to accrual                  3,953,000              -             -      3,953,000
                                    -----------    -----------   -----------    -----------
Balance June 30, 2002               $ 4,590,000    $   880,000   $   519,000    $ 5,989,000
                                    ===========    ===========   ===========    ===========
</TABLE>

The total outsourcing of all Company housewares/small appliance product
manufacturing results in the creation of a new LIFO inventory category for the
outsourced products. The previous LIFO inventory reserve of approximately
$11,000,000 (Manufactured LIFO Reserve) as of January 1, 2002, which is
associated with the manufactured housewares/small appliance inventories prior to
plant closings, will be realized as this inventory category is sold. During the
second half of 2002 the Company recognized a $5,300,000 (or $.48 per share, net
of tax) reduction in cost of goods sold resulting from the partial liquidation
of the Manufactured LIFO Reserve. During the three and six months ended June 29,
2003, the Company recognized a $1,067,000 and $2,314,000 (or $.10 and $.21 per
share, net of tax), respectively, partial liquidation of the Manufactured LIFO
Reserve. The Company expects to largely liquidate the remainder of the
Manufactured LIFO Reserve of approximately $3,408,000 during the balance of
2003.


<PAGE>


NOTE E - COMMITMENTS AND CONTINGENCIES
--------------------------------------

On July 16, 2002, the Securities and Exchange Commission filed a lawsuit against
National Presto Industries, Inc. alleging the company operated as an
unregistered investment company. The case does not involve fraud, deceptive
practices or accounting methods, and the Company plans to vigorously defend
itself (see Form 8-K filed on July 15, 2002). If unsuccessful the Company may
have to reallocate invested assets which will result in reduced yields or it
might be required to register as an investment company. The obligations upon
registration are many and could include: 1) possible imposition of significant
additional reporting requirements (a burden which would not be imposed upon its
competitors); 2) potential regard in the market as a closed end mutual fund
which could result in a trading price sharply discounted from net asset value;
3) possible limitations on the use of capital and earnings which could inhibit
or terminate commercial business growth.

In addition, the Company is involved in other routine litigation incidental to
its business. Management believes the ultimate outcome of these matters will not
have a material affect on the Company's consolidated financial position.


NOTE F - ACCUMULATED OTHER COMPREHENSIVE INCOME
-----------------------------------------------

The $829,000 of accumulated comprehensive loss at June 29, 2003, reflects the
fair value gain adjustment of $536,000, net of tax, related to
available-for-sale marketable security investments offset by the additional net
periodic pension liability related to the Company's defined benefit pension plan
in the amount of $1,365,000, net of tax. Total comprehensive income was
$1,939,000 and $1,129,000 for the three month periods ended June 29, 2003 and
June 30, 2002, respectively, and $3,840,000 and a loss of $599,000 for the six
months ended June 29, 2003 and June 30, 2002, respectively.


NOTE G - RECLASSIFICATIONS
--------------------------

Certain reclassifications have been made to the 2002 financial statements to
conform with the 2003 financial statement presentation. These reclassifications
did not effect net earnings or stockholders' equity as previously reported.


<PAGE>


NOTE H - ADOPTION OF NEW ACCOUNTING STANDARDS
---------------------------------------------

In November 2002, the Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 45 (FIN 45), "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others. "FIN 45 addresses accounting for guarantees and the disclosure
requirements of a guarantor in its interim and annual financial statements. The
disclosure requirements of FIN 45 related to the Company's warranty program for
the period ending June 29, 2003, are contained in Note C. The liability
recognition requirements of FIN 45 apply to guarantees issued or modified after
December 31, 2002. The adoption of this pronouncement did not have a material
affect on the Company's consolidated financial position or results of
operations.

In January 2003, the FASB issued Interpretation No. 46 (FIN 46), "Consolidation
of Variable Interest Entities" (VIE), which requires consolidation of variable
interest entities by holders of variable interests that meet certain conditions.
FIN 46 establishes accounting for variable interests in a VIE created after
January 31, 2003. FIN 46 clarifies how an enterprise should determine if it
should consolidate a VIE. The adoption of FIN 46 has not had a material affect
on the Company's consolidated financial position or results of operation.

In June 2002, the FASB issued SFAS 146, "Accounting for Costs Associated with
Exit or Disposal Activities," which addresses accounting and processing for
costs associated with exit or disposal activities. SFAS 146 requires the
recognition of a liability, measured at fair value, for a cost associated with
an exit or disposal activity when the liability is incurred versus the date the
Company commits to an exit plan. The requirements of SFAS 146 are effective for
exit or disposal activities that are initiated after December 31, 2002. The
adoption of SFAS 146 has not had a material affect on the Company's consolidated
financial position or results of operation.

In December 2002, the FASB issued SFAS 148, "Accounting for Stock-Based
Compensation- Transition and Disclosure." SFAS 148 amends the disclosure and
certain transition provisions of SFAS 123, "Accounting for Stock-Based
Compensation." New interim and annual disclosures related to stock options are
required in financial statements prepared after December 15, 2002. The pro forma
effect of accounting for the minor number of stock options issued by the Company
using the fair value method is not material. Accordingly, this pronouncement did
not have a material affect on the Company's consolidated financial position or
results of operations.

In May 2003, the FASB issued Statement 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity". This statement
changes the classification of certain common financial instruments from either
equity or mezzanine presentation to liabilities in the balance sheet and
requires an issuer of those financial instruments to recognize changes in fair
value or redemption amount, as applicable, in earnings. This statement is
effective for financial instruments entered into or modified after May 31, 2003
and, with one exception, is effective for the quarter beginning July 1, 2003 for
public companies. As the Company has not issued any financial instruments
addressed by this new pronouncement its adoption is not anticipated to have a
material effect on the Company's financial statements.


<PAGE>


The foregoing information for the periods ended June 29, 2003, and June 30,
2002, is unaudited; however, in the opinion of management of the Company, it
reflects all the adjustments, which were of a normal recurring nature, necessary
for a fair presentation of the results for the interim periods. The condensed
consolidated balance sheet as of December 31, 2002, is summarized from audited
consolidated financial statements, but does not include all the disclosures
contained therein and should be read in conjunction with the 2002 Annual Report.
Interim results for the period are not indicative of those for the year.


<PAGE>


            ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AN RESULTS OF OPERATIONS

     Forward-looking statements in this Management's Discussion and Analysis of
Financial Condition and Results of Operations, elsewhere in this Form 10-Q, in
the Company's 2002 Annual Report to Shareholders, in the Proxy Statement for the
annual meeting held May 20, 2003, and in the Company's press releases and oral
statements made with the approval of an authorized executive officer are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. There are certain important factors that could cause results
to differ materially from those anticipated by some of the statements made
herein. Investors are cautioned that all forward-looking statements involve
risks and uncertainty. In addition to the factors discussed herein and in the
notes to consolidated financial statements, among the other factors that could
cause actual results to differ materially are the following: consumer spending
and debt levels; interest rates; continuity of relationships with and purchases
by major customers; product mix; the benefit and risk of business acquisitions;
competitive pressure on sales and pricing; increases in material, freight /
shipping, or production cost which cannot be recouped in product pricing, and
the impact of closing certain U.S. production facilities. Additional information
concerning these and other factors is contained in the Company's Securities and
Exchange Commission filings, including but not limited to the Form 10-K, copies
of which are available from the Company without charge.


Comparison Second Quarter 2003 and 2002
---------------------------------------
     Readers are directed to Note B, "Business Segments" for data on the
financial results of the Company's three business segments for the Quarters
ended June 29, 2003 and June 30, 2002.

     Net sales increased by $1,074,000 from $20,378,000 to $21,452,000 or 5%.
The Housewares / Small Appliance Division decrease was a combination of reduced
unit volume and pricing. Defense Products Division net sales decreased primarily
from reduced unit volume. The Absorbent Products Division net sales increase
largely reflected increased unit volume flowing from a production contract
entered into late 2002 with another manufacturer in temporary need of additional
capacity. That contract was completed during the 2003 quarter.

     Gross profit for 2003 increased $1,200,000 from $4,103,000 to $5,303,000.
For Housewares / Small Appliance Division the increase in gross margins in part
reflected reduced product costs from offshore sourcing along with a $1,067,000
partial liquidation of the Manufactured LIFO reserve (see Note D). For the
Defense Products Division the gross profit decrease was the result of reduced
volume and less favorable product mix. The increased gross margin for the
Absorbent Products Division primarily reflects increased volume of sales.


<PAGE>


     Housewares/Small Appliance selling and general expenses decreased largely
because of the corporate restructuring completed during 2002. The Company
accrues for unexpended advertising cost, primarily for housewares / small
appliances, budgeted for the year against each quarter's sales. Major
advertising commitments are incurred in advance of the expenditures, and the
timing of sales through dealers and distributors to the ultimate customer does
not permit specific identification of the customers' purchase to the actual time
an advertisement appears. Advertising charges included in selling expense in
each quarter represent that percentage of the annual advertising budget
associated with that quarter's shipments. Revisions to this budget result in
periodic changes to the accrued liability for committed advertising
expenditures.

     Other income, principally interest, decreased $107,000 from $1,463,000 to
$1,356,000 primarily as a result of a lower rate of return on invested funds.

     Earnings before provision for income taxes increased $1,470,000 from
$1,069,000 to $2,539,000. The income tax provision increased from a benefit of
$14,000 to a provision of $621,000, which resulted in an effective income tax
benefit rate of 1% in 2002 and an effective income tax provision of 24% in 2003.
Net earnings increased $835,000 from $1,083,000 to $1,918,000, or 77%.


Comparison First Six Months 2003 and 2002
-----------------------------------------
     Readers are directed to Note B, "Business Segments" for data on the
financial results of the Company's three business segments for the Six Months
ended June 29, 2003 and June 30, 2002.

     Net sales increased by $532,000 from $42,974,000 to $43,506,000 or 1%. The
Housewares / Small Appliance Division and Defense Products Division net sales
decreased primarily from reduced unit volume. The Absorbent Products Division
net sales increased, reflecting increased unit volume.

     Gross profit for 2003 increased $4,370,000 from $7,160,000 to $11,530,000.
For Housewares / Small Appliance Division the increase in gross margins in part
reflected reduced product costs from offshore sourcing along with a $2,314,000
partial liquidation of the Manufactured LIFO reserve (see Note D). For the
Defense Products Division the gross profit decrease was the result of reduced
unit volume and less favorable product mix. The increased gross margin for the
Absorbent Products Division primarily reflects increased volume of sales.

     The accrual for unexpended advertising costs discussed in the Second
Quarter comparison also applies to the first six months. Readers are also
directed to Note D, Plant Closing for a comparison of the first six months.


<PAGE>


     Other income, principally interest, decreased $493,000 from $2,957,000 to
$2,464,000 primarily as a result of a lower rate of return on invested funds.

     Earnings before provision for income taxes increased $8,757,000 from a loss
of $3,462,000 to a profit of $5,295,000. The income tax provision increased from
a benefit of $2,185,000 to a provision of $1,324,000, which resulted in an
effective income tax benefit rate of 63% in 2002 and an effective income tax
provision of 25% in 2003. Net earnings increased $5,248,000 from a loss of
$1,277,000 to a profit of $3,971,000, or 411%.


Liquidity and Capital Resources
-------------------------------
     Cash and cash equivalents rose by $6,007,000 to $120,644,000. The various
changes that make up the increase can be found in the Consolidated Statement of
Cash Flows. See Note D for information on 2002 plant closing charges.

     The Company expects to continue to evaluate acquisition opportunities and
will make further acquisitions if the appropriate return on investment is
projected.

     The Company has substantial liquidity in the form of cash and marketable
securities to meet all of its anticipated capital requirements, to make dividend
payments, and to fund growth through acquisitions and other means. As of June
29, 2003, there were no material capital commitments outstanding.

     In connection with the Company's plant closing activity during 2003, the
Company could incur additional losses upon the disposition of property, plant,
and equipment associated with the operations being closed. In addition, the
Company may have additional plant closing costs. The Company is not aware of any
such costs; however, plant closing activities of this nature are unique and
infrequent for the Company, therefore, these activities possess inherent risk
that errors in the estimation process could occur. Subject to the foregoing
estimation risk, no major plant closing related expenses are expected in 2003.


NEW ACCOUNTING PRONOUNCEMENTS

Please refer to Note H for information related to the effect of adopting new
accounting pronouncements on the Company's consolidated financial statements.

<PAGE>

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     The Company's interest income on cash equivalents and marketable securities
is affected by changes in interest rates in the United States. Cash equivalents
include money market funds and 7-day variable rate demand notes which are highly
liquid instruments with interest rates set every 7 days that can be tendered to
the remarketer upon 7 days notice for payment of principal and accrued interest.
The 7 day tender feature of these variable rate demand notes are further
supported by an irrevocable letter of credit from highly rated U.S. banks. To
the extent a bond is not remarketed at par plus accrued interest, the difference
is drawn from the bank's letter of credit. The Company's investments are held
primarily in fixed and variable rate municipal bonds with an average life of
less than one year. Accordingly, changes in interest rates have not had a
material affect on the Company, and the Company does not anticipate that future
exposure to interest rate market risk will be material. The Company uses
sensitivity analysis to determine its exposure to changes in interest rates.

     The Company has no history of, and does not anticipate in the future,
investing in derivative financial instruments. Most transactions with
international customers are entered into in U.S. dollars, precluding the need
for foreign currency cash flow hedges. Any transactions that are currently
entered into for settlement in foreign currency are not deemed material to the
financial statements.


ITEM 4. CONTROLS AND PROCEDURES

     The Company's management, including the Chief Executive Officer and Chief
Financial Officer, have conducted an evaluation of the effectiveness of the
design and operation of the Company's disclosure controls and procedures
pursuant to Rule 13a-15 under the Securities Exchange Act of 1934 (the 1934 Act)
within 90 days prior to the filing date of this quarterly report. Based on that
evaluation, the Company's Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
ensuring that information required to be disclosed by the Company in the reports
it files or submits under the 1934 Act is recorded, processed, summarized, and
reported within the time periods specified in the SEC's rules and forms.

     There have been no significant changes in internal controls, or in other
factors that could significantly affect internal controls, subsequent to the
date the Chief Executive Officer and Chief Financial Officer completed their
evaluation.


<PAGE>


                           PART II - OTHER INFORMATION
                           ---------------------------

Item 1. Legal Proceedings

              See Note E in the Notes to Consolidated Financial Statements set
              forth under Part I - Item 1 above.

Item 6. Exhibits and Reports on Form 8-K

          (a) Exhibits:

              Exhibit 3 (i) - Restated Articles of Incorporation - incorporated
                              by reference from Exhibit 3 (i) of the Company's
                              quarterly report on Form 10-Q for the quarter
                              ended July 6, 1997

                       (ii) - By-Laws - incorporated byreference from Exhibit 3
                              (ii) of the Company's quarterly report on Form
                              10-Q for the quarter ended October 3, 1999

              Exhibit 9 -     Voting Trust Agreement - incorporated by reference
                              from Exhibit 9 of the Company's quarterly report
                              on Form 10-Q for the quarter ended July 6, 1997

              Exhibit 10.1 -  1988 Stock Option Plan - incorporated by
                              reference from Exhibit 10.1 of the Company's
                              quarterly report on Form 10-Q for the quarter
                              ended July 6, 1997

              Exhibit 10.2 -  Form of Incentive Stock Option Agreement under
                              the 1988 Stock Option Plan - incorporated by
                              reference from Exhibit 10.2 of the Company's
                              quarterly report on Form 10-Q for the quarter
                              ended July 6, 1997

              Exhibit 11 -    Statement regarding computation of per share
                              earnings

              Exhibit 31.1 -  Chief Executive  Officer Certification
                              pursuant to Section 302 of the Sarbanes-Oxley Act
                              of 2002

              Exhibit 31.2 -  Chief Financial Officer Certification pursuant to
                              Section 302 of the Sarbanes-Oxley Act of  2002

              Exhibit 32.1 -  Chief Executive Officer Certification pursuant to
                              Section 906 of the Sarbanes-Oxley Act of 2002

              Exhibit 32.2 -  Chief Financial Officer Certification pursuant to
                              Section 906 of the Sarbanes-Oxley Act of 2002


          (b) Reports on Form 8-K:
              On April 29, 2003, the registrant filed a current report under
              Item 12 (filed under item 9 pursuant to SEC guidance) for its
              earnings press release issued on April 25, 2003.



                                   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.


                                        NATIONAL PRESTO INDUSTRIES, INC.
                                        --------------------------------

Date: August 11, 2003                                            /S/ M. J. Cohen
                                        ----------------------------------------
                                        M. J. Cohen, Chair of the Board and
                                        President (Principal operating officer)


Date: August 11, 2003                                           /S/ R. F. Lieble
                                        ----------------------------------------
                                        R. F. Lieble, Chief Financial Officer
                                        and Treasurer (Principal accounting
                                        officer)


<PAGE>


                        National Presto Industries, Inc.
                                 Exhibit Index

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

   11            Computation of Earnings per Share

  31.1           Chief Executive Officer Certification pursuant to Section
                      302 of the Sarbanes-Oxley Act of 2002

  31.2           Chief Financial Officer Certification pursuant to Section
                      302 of the Sarvanes-Oxley Act of 2002

  32.1           Chief Executive Officer Certification pursuant to Section
                     906 of the Sarbanes-Oxley Act of 2002

  32.2           Chief Financial Officer Certification pursuant to Section
                     906 of the Sarbanes-Oxley Act of 2002