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  September 28, 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 6,817,268 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
September 28, 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                       $124,524              $114,637

                Marketable securities                             74,024                92,578

                Accounts receivable, net                          17,307                27,898

                Inventories:
                   Finished goods                    $ 27,026              $ 18,656

                   Work in process                      5,468                 3,355

                   Raw materials                        2,490     34,984      2,976     24,987
                                                     --------              --------

                Other current assets                               1,063                   998
                                                                --------              --------

                   Total current assets                          251,902               261,098

     PROPERTY,  PLANT AND EQUIPMENT                    20,989                22,667

                   Less allowance for depreciation      9,554     11,435      9,400     13,267
                                                     --------              --------

     ASSETS HELD FOR SALE                                          1,515                    --

     OTHER ASSETS                                                 15,911                15,629

                                                                --------              --------
                                                                $280,763              $289,994
                                                                ========              ========
</TABLE>


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

<PAGE>

NATIONAL PRESTO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 28, 2003 and December 31, 2002
(Unaudited)
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                                           2003                   2002
<S>                                                                <C>          <C>         <C>          <C>
LIABILITIES
        CURRENT LIABILITIES:
                   Accounts payable                                             $  12,998                $  18,753

                   Federal and state income taxes                                   2,485                    3,643

                   Accrued liabilities                                             27,846                   29,341
                                                                                ---------                ---------
                      Total current liabilities                                    43,329                   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                                       982                      998

                   Retained earnings                                 249,079                  249,313

                   Accumulated other comprehensive income (loss)        (815)                    (698)
                                                                   ---------                ---------
                                                                     256,687                  257,054

                   Treasury stock, at cost                            19,253                   18,797
                                                                   ---------                ---------

                         Total stockholders' equity                               237,434                  238,257

                                                                                ---------                ---------
                                                                                $ 280,763                $ 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 Nine Months ended September 28, 2003 and September 29, 2002
(Unaudited)
(In thousands except per share data)

<TABLE>
<CAPTION>
                                                       THREE MONTHS ENDED     NINE MONTHS ENDED
                                                      -------------------    -------------------
                                                        2003       2002        2003       2002
------------------------------------------------------------------------------------------------
<S>                                                   <C>        <C>         <C>        <C>
Net sales                                             $ 26,849   $ 28,447    $ 70,355   $ 71,421

Cost of sales                                           17,979     22,791      49,955     58,605

                                                      --------   --------    --------   --------
      Gross profit                                       8,870      5,656      20,400     12,816

Selling and general expenses                             5,586      5,980      14,285     15,606

Pension plan termination expense                         1,200         --       1,200         --

Plant closing costs                                         --         --          --      3,953

                                                      --------   --------    --------   --------
      Operating profit (loss)                            2,084       (324)      4,915     (6,743)

Other income, principally interest                         778      1,201       3,242      4,158

                                                      --------   --------    --------   --------
  Earnings (loss) before provision for income taxes      2,862        877       8,157     (2,585)

Income tax provision (benefit)                             784        (16)      2,108     (2,201)

                                                      --------   --------    --------   --------
    Net earnings (loss)                               $  2,078   $    893    $  6,049   $   (384)
                                                      ========   ========    ========   ========

Weighted average shares outstanding:
              Basic                                      6,817      6,841       6,821      6,839
                                                      ========   ========    ========   ========
              Diluted                                    6,818      6,842       6,822      6,839
                                                      ========   ========    ========   ========

Net earnings (loss) per share:
              Basic                                   $   0.30   $   0.13    $   0.88   $  (0.06)
                                                      ========   ========    ========   ========
              Diluted                                 $   0.30   $   0.13    $   0.88   $  (0.06)
                                                      ========   ========    ========   ========

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
Nine Months ended September 28, 2003 and September 29, 2002
(Unaudited)
(Dollars in thousands)

<TABLE>
<CAPTION>
                                                                         2003         2002
---------------------------------------------------------------------------------------------
<S>                                                                   <C>          <C>
Cash flows from operating activities:
              Net earnings (loss)                                     $   6,049    $    (384)
              Adjustments to reconcile net earnings (loss) to net
                 cash used in operating activities:
                 Provision for depreciation                               1,598        1,419
                 Deferred tax                                                (8)          --
                 Plant closing charges                                       --        2,900
                 Other                                                     (149)         169
                 Changes in:
                    Accounts receivable                                  10,591       11,161
                    Inventories                                          (9,997)     (11,080)
                    Other current assets                                    (65)        (195)
                    Accounts payable and accrued liabilities             (7,250)      (2,447)
                    Federal and state income taxes                       (1,158)      (3,055)
                                                                      ---------    ---------
                          Net cash used by operating activities            (389)      (1,512)
                                                                      ---------    ---------

Cash flows from investing activities:
              Marketable securities purchased                           (13,575)     (28,149)
              Marketable securities - maturities and sales               32,012       45,242
              Acquisition of property, plant and equipment               (2,006)      (1,978)
              Acquisition of business                                        --         (500)
              Sale of property, plant and equipment                         725           --
                                                                      ---------    ---------
                          Net cash provided by investing activities      17,156       14,615
                                                                      ---------    ---------

Cash flows from financing activities:
              Dividends paid                                             (6,284)      (6,290)
              Purchase of treasury stock                                   (596)          --
                                                                      ---------    ---------
                          Net cash used in financing activities          (6,880)      (6,290)
                                                                      ---------    ---------

Net increase in cash and cash equivalents                                 9,887        6,813
Cash and cash equivalents at beginning of period                        114,637       83,877
                                                                      ---------    ---------
Cash and cash equivalents at end of period                            $ 124,524    $  90,690
                                                                      =========    =========
</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 (loss) 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 SEPTEMBER 28, 2003
External net sales                 $  23,468    $   1,796   $   1,585    $  26,849
Gross profit (loss)                    8,552          570        (252)       8,870
Operating profit (loss)                2,153           82        (151)       2,084
Total assets                         257,845       14,083       8,835      280,763
Depreciation and amortization            205           45         209          459
Capital expenditures                      74          132         144          350

QUARTER ENDED SEPTEMBER 29, 2002
External net sales                 $  24,815    $   2,091   $   1,541    $  28,447
Gross profit                           4,655          718         283        5,656
Operating profit (loss)                 (995)         565         106         (324)
Total assets                         257,350       12,183       7,177      276,710
Depreciation and amortization            289           25         200          514
Capital expenditures                     301          437          16          754
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                         (IN THOUSANDS)
                                       --------------------------------------------------
                                       HOUSEWARES/
                                          SMALL        DEFENSE   ABSORBENT
                                       APPLIANCES     PRODUCTS    PRODUCTS       TOTAL
                                       -----------   ---------   ---------    -----------
<S>                                    <C>           <C>         <C>          <C>
NINE MONTHS ENDED SEPTEMBER 28, 2003
External net sales                     $  57,561     $   5,518   $   7,276    $  70,355
Gross profit                              18,420         1,570         410       20,400
Operating profit                           4,084           524         307        4,915
Total assets                             257,845        14,083       8,835      280,763
Depreciation and amortization                887            97         614        1,598
Capital expenditures                         331         1,166         509        2,006

NINE MONTHS ENDED SEPTEMBER 29, 2002
External net sales                     $  61,125     $   6,278   $   4,018    $  71,421
Gross profit                              10,510         2,014         292       12,816
Operating profit (loss)                   (7,967)*       1,537        (313)      (6,743)
Total assets                             257,350        12,183       7,177      276,710
Depreciation and amortization                752            73         594        1,419
Capital expenditures                       1,252           648          78        1,978
</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      1,737      1,842
     Charges / payments made
        under the warranties        (2,024)    (1,961)
                                   -------    -------
     Balance end of period         $ 1,178    $ 1,373
                                   =======    =======

<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 the first half of 2004. The Company has
the Alamogordo plant for sale and it is anticipated that most of the
manufacturing equipment at Alamogordo and Jackson will be sold in the fourth
quarter.

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 nine months of 2002 was the accrual of $3,953,000 of
employee termination benefits. The principal plant closing activity during the
first nine 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      (390,000)            --       390,000             --
Charges in 2003                      (1,088,000)            --      (883,000)    (1,971,000)
                                    -----------    -----------   -----------    -----------
Balance September 28, 2003          $   670,000    $        --   $    28,000    $   698,000
                                    ===========    ===========   ===========    ===========

Balance January 1, 2002             $   637,000    $   880,000   $   519,000    $ 2,036,000
Additions to accrual                  3,953,000             --            --      3,953,000
Charges in 2002                      (1,050,000)            --        (3,000)    (1,053,000)
                                    -----------    -----------   -----------    -----------
Balance September 29, 2002          $ 3,540,000    $   880,000   $   516,000    $ 4,936,000
                                    ===========    ===========   ===========    ===========
</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 nine months ended
September 28, 2003, the Company recognized a $924,000 and $3,239,000 (or $.08
and $.29 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 $2,484,000 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 $815,000 of accumulated comprehensive loss at September 28, 2003, reflects
the fair value gain adjustment of $550,000, 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
$2,092,000 and $1,062,000 for the three month periods ended September 28, 2003
and September 29, 2002, respectively, and $5,932,000 and $463,000 for the nine
months ended September 28, 2003 and September 29, 2002, respectively.


NOTE G - PENSION PLAN TERMINATION EXPENSE

During the third quarter, the Company announced its decision to terminate its
defined benefit pension plan and provide enhancements to the 401(k) plan. As a
result, a $1,200,000 curtailment charge was recorded in the third quarter. This
curtailment charge is subject to further refinement during the fourth quarter
when the Company completes its annual year end actuarial valuation. An
additional estimated $3,000,000 settlement charge is expected in the third
quarter of 2004.

<PAGE>

NOTE H - BUSINESS ACQUISITION

Subsequent to the quarter end (October 17, 2003) the Company purchased the
assets of NCN Hygienic Products, Inc., a small Marietta, Georgia manufacturer of
adult incontinence products and training pads for pets. The products of the
purchased company are sold to private label and institutional customers. In its
most recently completed fiscal year, NCN recorded sales of approximately
$10,000,000.


NOTE I - 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.


NOTE J - 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 September 28, 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.

<PAGE>

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.

The foregoing information for the periods ended September 28, 2003, and
September 29, 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>

                           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 by reference 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 July 25, 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 July 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: November 7, 2003                           /S/ M. J. Cohen
                                       -----------------------------------------
                                       M. J. Cohen, Chair of the Board and
                                       President (Principal operating officer)


Date: November 7, 2003                           /S/ R. F. Lieble
                                       -----------------------------------------
                                       R. F. Lieble, Chief Financial Officer and
                                       Treasurer (Principal accounting officer)

<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 Third 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 September 28, 2003 and September 29, 2002.

             Net sales decreased by $1,598,000 from $28,447,000 to $26,849,000
or 6%. 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
were flat with the same period of the prior year.

             Gross profit for 2003 increased $3,214,000 from $5,656,000 to
$8,870,000. For Housewares / Small Appliance Division the increase in gross
margins in part reflected reduced product costs from offshore sourcing along
with a $924,000 partial liquidation of the Manufactured LIFO reserve (see Note
D) compared to $1,177,000 in the same quarter of the prior year. For the Defense
Products Division the gross profit decrease was the result of reduced volume and
less favorable product mix. The decreased gross margin for the Absorbent
Products Division primarily reflects unfavorable manufacturing efficiencies.

             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.

<PAGE>

             The Company announced its decision to terminate its defined benefit
pension plan and provide enhancements to the 401(k) plan. As a result, a
$1,200,000 (after tax $731,000) curtailment charge was recorded in the third
quarter. This curtailment charge is subject to further refinement during the
fourth quarter when the Company completes its annual year end actuarial
valuation. An additional estimated $3,000,000 (after tax $1,900,000) settlement
charge is expected in the third quarter of 2004.

             Other income, principally interest, decreased $423,000 from
$1,201,000 to $778,000 primarily as a result of a lower rate of return on
invested funds.

             Earnings before provision for income taxes increased $1,985,000
from $877,000 to $2,862,000. The income tax provision increased from a benefit
of $16,000 to a provision of $784,000, which resulted in an effective income tax
benefit rate of 2% in 2002 and an effective income tax provision of 27% in 2003.
Net earnings increased $1,185,000 from $893,000 to $2,078,000, or 133%.


Comparison First Nine 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 Nine Months
ended September 28, 2003 and September 29, 2002.

             Net sales decreased by $1,066,000 from $71,421,000 to $70,355,000
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 $7,584,000 from $12,816,000 to
$20,400,000. For Housewares / Small Appliance Division the increase in gross
margins in part reflected reduced product costs from offshore sourcing along
with a $3,239,000 partial liquidation of the Manufactured LIFO reserve (see Note
D) compared to $1,177,000 in the first nine months of the prior year. 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 Third
Quarter comparison also applies to the first nine months. Readers are also
directed to Note D, Plant Closing for a comparison of the first nine months.

             During the third quarter, the Company announced its decision to
terminate its defined benefit pension plan and provide enhancements to the
401(k) plan. As a result, a $1,200,000 (after tax $731,000) curtailment charge
was recorded in the third quarter. This curtailment charge is subject to further
refinement during the fourth quarter when the Company completes its annual year
end actuarial valuation. An additional estimated $3,000,000 (after tax
$1,900,000) settlement charge is expected in the third quarter of 2004.

             Other income, principally interest, decreased $916,000 from
$4,158,000 to $3,242,000 primarily as a result of a lower rate of return on
invested funds.

<PAGE>

             Earnings before provision for income taxes increased $10,742,000
from a loss of $2,585,000 to a profit of $8,157,000. The income tax provision
increased from a benefit of $2,201,000 to a provision of $2,108,000, which
resulted in an effective income tax benefit rate of 85% in 2002 and an effective
income tax provision of 26% in 2003. Net earnings increased $6,433,000 from a
loss of $384,000 to a profit of $6,049,000.


Liquidity and Capital Resources
             Cash and cash equivalents rose by $9,887,000 to $124,524,000. 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 completed a small acquisition in October 2003 (see Note
H). 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 September 28, 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.


Item 3
QUANTITIVE 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.

<PAGE>

             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)
as of the end of the period covered by 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 over
financial reporting during the quarter ended September 28, 2003 that have
materially affected, or are reasonably likely to materially affect, the Companys
internal control over financial reporting.

<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