**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

| **For                the quarter ended June 30, 2007** | **Commission                file number 1-13905** |
|--------------------------------------------------------|---------------------------------------------------|

| **COMPX                INTERNATIONAL INC.**                                          |
|--------------------------------------------------------------------------------------|
| (Exact                name of Registrant as specified in its                charter) |

|                                                                                                   |   |                                                           |
|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|
| **Delaware**                                                                                           |   | **57-0981653**                                                 |
| (State                or other jurisdiction ofIncorporation                or organization)            |   | (IRS                EmployerIdentification                No.) |
|                                                                                                   |   |                                                           |
| **5430                LBJ Freeway, Suite 1700,****Three                Lincoln Centre, Dallas, Texas** |   | **75240-2697**                                                 |
| (Address                of principal executive offices)                                                |   | (Zip                Code)                                      |
|                                                                                                   |   |                                                           |
| Registrant’s                telephone number, including area code                                |   | **(972)                448-1400**                              |
|                                                                                                   |   |                                                           |
|                                                                                                   |   |                                                           |

**Indicate      by checkmark:**

**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      and      (2) has been subject to such filing requirements for the past 90      days.  Yes S  No£**

**Whether      the Registrant is a large accelerated filer, an accelerated filer, or a      non-accelerated filer (as defined in Rule 12b-2 of the Exchange      Act).  Large accelerated filer  £ Accelerated      filer £  Non-accelerated      filer S**

**Whether      the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange      Act).  Yes £  NoS.**

**Number      of shares of common stock outstanding on July 24, 2007:**

**Class      A:   5,285,280**

**Class      B:  10,000,000**

----

**COMPX      INTERNATIONAL INC.**

**Index**

| **Part                I.FINANCIAL INFORMATION**                                                                                                                                                                                                                                      | ** Page ** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
|                                                                                                                                                                                                                                                                                 |                 |
| Item                1.Financial Statements                                                                                                                                                                                                                                           |                 |
|                                                                                                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Balance Sheets –  December                31, 2006 – June 30, 2007 (unaudited)                                                                                                                                           |  3              |
|                                                                                                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statements of Income -  Three                and six months ended June 30, 2006 and 2007 (unaudited)                                                                                                                                 |  5              |
|                                                                                                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statements of Cash Flows -  Six                months ended June 30, 2006 and 2007 (unaudited)                                                                                                                                       |  6              |
|                                                                                                                                                                                                                                                                                 |                 |
| Condensed                Consolidated Statement of Stockholders' Equity and Comprehensive                Income –  Six                months ended June, 2007 (unaudited)                                                                                       |   7        |
|                                                                                                                                                                                                                                                                                 |                 |
| Notes                to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                      | 8                    |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                2.Management's Discussion and Analysis of Financial                                        Condition                and Results of Operations |  12             |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                3.Quantitative and Qualitative Disclosure About Market                Risk                                                                                                                                                                                       | 19                   |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                4.Controls and Procedures                                                                                                                                                                                                                                        | 19                   |
|                                                                                                                                                                                                                                                                                 |                 |
|                                                                                                                                                                                                                                                                                 |                 |
| **Part                II.OTHER INFORMATION**                                                                                                                                                                                                                                         |                 |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                1A.Risk Factors                                                                                                                                                                                                                                                  | 20                   |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                4.  Submission of Matters to a Vote of Security                Holders                                                                                                                                                                                 | 20                   |
|                                                                                                                                                                                                                                                                                 |                 |
| Item                6.Exhibits                                                                                                                                                                                                                                                       | 20                   |
|                                                                                                                                                                                                                                                                                 |                 |
|                                                                                                                                                                                                                                                                                 |                 |
| Items                1,2,3 and 5 of Part II are omitted because there is no information                to                report.                                                                                                                                                     |                 |
|                                                                                                                                                                                                                                                                                 |                 |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

**(In      thousands)**

| **           ASSETS** |   | **December                31,**** 2006** |    |   | **June                30,**** 2007** |       |
|------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|-------------------------------------------|------------|
|                                                                         |   |                                          |    |   | **(unaudited)**                           |       |
|                                                                         |   |                                          |    |   |                                      |       |
| Current                assets:                                               |   |                                          |    |   |                                      |       |
|   Cash                and cash equivalents                         |   | $                                             | 29,688  |   |                                      | **$**      | **27,978** |   |
|   Accounts                receivable, net                          |   |                                          | 19,986  |   |                                      | ** ** | **21,636** |   |
|   Receivables                from affiliates                       |   |                                          | 259     |   |                                      | ** ** | **291** |   |
|   Inventories,                net                                  |   |                                          | 21,733  |   |                                      | ** ** | **25,526** |   |
|   Prepaid                expenses and other                        |   |                                          | 1,172   |   |                                      | ** ** | **689** |   |
|   Deferred                income taxes                             |   |                                          | 2,050   |   |                                      | ** ** | **2,058** |   |
|   Current                portion of note receivable                |   |                                          | 1,306   |   |                                      | ** ** | **1,306** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
|      Total                current assets            |   |                                          | 76,194  |   |                                      | ** ** | **79,484** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
| Other                assets:                                                 |   |                                          |    |   |                                      |       |   |   |
|   Goodwill                                                         |   |                                          | 40,759  |   |                                      | ** ** | **40,742** |   |
|   Other                intangible assets                           |   |                                          | 3,174   |   |                                      | ** ** | **2,864** |   |
|   Note                receivable                                   |   |                                          | 1,567   |   |                                      | ** ** | **261** |   |
|   Other                                                            |   |                                          | 644     |   |                                      | ** ** | **696** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
|      Total                other assets              |   |                                          | 46,144  |   |                                      | ** ** | **44,563** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
| Property                and equipment:                                       |   |                                          |    |   |                                      |       |   |   |
|   Land                                                             |   |                                          | 8,826   |   |                                      | ** ** | **8,841** |   |
|   Buildings                                                        |   |                                          | 35,284  |   |                                      | ** ** | **36,070** |   |
|   Equipment                                                        |   |                                          | 114,207 |   |                                      | ** ** | **118,609** |   |
|   Construction                in progress                          |   |                                          | 2,559   |   |                                      | ** ** | **8,302** |   |
|                                                                         |   |                                          | 160,876 |   |                                      | ** ** | **171,822** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
|   Less                accumulated depreciation                     |   |                                          | 91,188  |   |                                      | ** ** | **99,503** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
|      Net                property and equipment      |   |                                          | 69,688  |   |                                      | ** ** | **72,319** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |
|       Total                assets              |   | $                                             | 192,026 |   |                                      | **$**      | **196,366** |   |
|                                                                         |   |                                          |    |   |                                      |       |   |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS (CONTINUED)**

**(In      thousands)**

| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                       |   | **December                31,**** 2006** |    |   | **June                30,**** 2007** |       |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|-------------------------------------------|------------|
|                                                                                          |   |                                          |    |   | **(unaudited)**                           |       |
|                                                                                          |   |                                          |    |   |                                      |       |
| Current                liabilities:                                                           |   |                                          |    |   |                                      |       |
|   Accounts                payable and accrued liabilities                           |   | $                                             | 16,842  |   |                                      | **$**      | **18,940** |   |
|   Income                taxes payable to affiliates                                 |   |                                          | 136     |   |                                      | ** ** | **266** |   |
|   Income                taxes                                                       |   |                                          | 836     |   |                                      | ** ** | **573** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
|       Total                current liabilities                  |   |                                          | 17,814  |   |                                      | ** ** | **19,779** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
| Noncurrent                liabilities - deferred income taxes                                 |   |                                          | 20,522  |   |                                      | ** ** | **19,152** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
| Stockholders'                equity:                                                          |   |                                          |    |   |                                      |       |   |   |
|   Preferred                stock                                                    |   |                                          | -       |   |                                      | ** ** | **-** |   |
|   Class                A common stock                                               |   |                                          | 53      |   |                                      | ** ** | **53** |   |
|   Class                B common stock                                               |   |                                          | 100     |   |                                      | ** ** | **100** |   |
|   Additional                paid-in capital                                         |   |                                          | 110,106 |   |                                      | ** ** | **110,418** |   |
|   Retained                earnings                                                  |   |                                          | 35,353  |   |                                      | ** ** | **37,241** |   |
|   Accumulated                other comprehensive income                             |   |                                          | 8,078   |   |                                      | ** ** | **9,623** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
|       Total                stockholders' equity                 |   |                                          | 153,690 |   |                                      | ** ** | **157,435** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |
|       Total                liabilities and stockholders' equity |   | $                                             | 192,026 |   |                                      | **$**      | **196,366** |   |
|                                                                                          |   |                                          |    |   |                                      |       |   |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

**(In      thousands, except per share data)**

|                                                                                                             |   | **Three                months ended** |   |   | **Six                months ended** |       |       |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|------------|------------|
|                                                                                                             |   | ** June                30,**     |   |   | ** June                30,**   |       |       |
|                                                                                                             |   | **2006**                              |   |   | **2007**                            |       |       | **2006** |   |   | **2007** |   |   |
|                                                                                                             |   | **(unaudited)**                       |   |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |
| Net                sales                                                                                         |   | $                                     | 50,143 |   |                                | **$**      | **45,229** |   |   | $ | 97,172 |   |   | **$** | **88,780** |   |
| Cost                of goods sold                                                                                |   |                                  | 37,794 |   |                                | ** ** | **33,366** |   |   |   | 73,195 |   |   | ** ** | **64,796** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|     Gross                margin                                                              |   |                                  | 12,349 |   |                                | ** ** | **11,863** |   |   |   | 23,977 |   |   | ** ** | **23,984** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Selling,                general and administrative expense                                                       |   |                                  | 6,441  |   |                                | ** ** | **6,571**  |   |   |   | 13,159 |   |   | ** ** | **13,237** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Other                operating expense, net                                                                      |   |                                  | 87     |   |                                | ** ** | **688**    |   |   |   | 202 |   |   | ** ** | **706** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|     Operating                income                                                          |   |                                  | 5,821  |   |                                | ** ** | **4,604**  |   |   |   | 10,616 |   |   | ** ** | **10,041** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Other                non-operating income, net                                                                   |   |                                  | 253    |   |                                | ** ** | **306**    |   |   |   | 574 |   |   | ** ** | **553** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|     Income                from continuing operations before                income taxes |   |                                  | 6,074  |   |                                | ** ** | **4,910**  |   |   |   | 11,190 |   |   | ** ** | **10,594** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Provision                for income taxes                                                                        |   |                                  | 2,284  |   |                                | ** ** | **2,261**  |   |   |   | 4,927 |   |   | ** ** | **4,927** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|   Income                from continuing operations                                                     |   |                                  | 3,790  |   |                                | ** ** | **2,649**  |   |   |   | 6,263 |   |   | ** ** | **5,667** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Discontinued                operations, net of tax                                                               |   |                                  | (500   | )      |                                | ** ** | **-**      |   |   |   | (500 | ) |   | ** ** | **-** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|     Net                income                                                                |   | $                                     | 3,290  |   |                                | **$**      | **2,649**  |   |   | $ | 5,763 |   |   | **$** | **5,667** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Basic                and diluted earnings (loss) per  common                share:                     |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|     Continuing                operations                                                     |   | $                                     | .25    |   |                                | **$**      | **.17**    |   |   | $ | .41 |   |   | **$** | **.37** |   |
|     Discontinued                operations                                                   |   |                                  | (.03   | )      |                                | ** ** | **-**      |   |   |   | (.03 | ) |   | ** ** | **-** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|                                                                                                             |   |                                  | .22    |   |                                | ** ** | **.17**    |   |   | $ | .38 |   |   | **$** | **.37** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Cash                dividends per share                                                                          |   | $                                     | .125   |   |                                | **$**      | **.125**   |   |   | $ | .25 |   |   | **$** | **.25** |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
|                                                                                                             |   |                                  |   |   |                                |       |       |   |   |   |   |   |   |   |
| Shares                used in the calculation of basic and                diluted earnings per share        |   |                                  | 15,250 |   |                                | ** ** | **15,279** |   |   |   | 15,249 |   |   | ** ** | **15,284** |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(In      thousands)**

|                                                                                                   |   | **Six                months ended**** June                30** |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|
|                                                                                                   |   | **2006**                                                            |   |   | **2007** |
|                                                                                                   |   | **(unaudited)**                                                     |
|                                                                                                   |   |                                                                |   |   |   |
| Cash                flows from operating activities:                                                   |   |                                                                |   |   |   |
|   Net                income                                                                  |   | $                                                                   | 5,763 |   |   | **$** | **5,667** |   |
|   Depreciation                and amortization                                               |   |                                                                | 5,540 |   |   | ** ** | **5,480** |   |
|   Deferred                income taxes                                                       |   |                                                                | 1,115 |   |   | ** ** | **(1,537** | **)** |
|   Other,                net                                                                  |   |                                                                | 413 |   |   | ** ** | **235** |   |
|   Change                in assets and liabilities (exclusive of                acquisition): |   |                                                                |   |   |   |   |
|     Accounts                receivable, net                                        |   |                                                                | (1,173 | ) |   | ** ** | **(1,106** | **)** |
|     Inventories,                net                                                |   |                                                                | 1,050 |   |   | ** ** | **(3,565** | **)** |
|     Accounts                payable and accrued liabilities                        |   |                                                                | (303 | ) |   | ** ** | **246** |   |
|     Accounts                with affiliates                                        |   |                                                                | 405 |   |   | ** ** | **99** |   |
|     Income                taxes                                                    |   |                                                                | (1,539 | ) |   | ** ** | **(579** | **)** |
|     Other,                net                                                      |   |                                                                | 4 |   |   | ** ** | **400** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
|       Net                cash provided by operating activities           |   |                                                                | 11,275 |   |   | ** ** | **5,340** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
| Cash                flows from investing activities:                                                   |   |                                                                |   |   |   |   |
|   Capital                expenditures                                                        |   |                                                                | (5,383 | ) |   | ** ** | **(5,477** | **)** |
|   Acquisitions,                net of cash acquired                                          |   |                                                                | (9,832 | ) |   | ** ** | **-** |   |
|   Cash                collected on note receivable                                           |   |                                                                | 1,306 |   |   | ** ** | **1,306** |   |
|   Proceeds                from sale of fixed assets                                          |   |                                                                | 37 |   |   | ** ** | **42** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
|       Net                cash used in investing activities               |   |                                                                | (13,872 | ) |   | ** ** | **(4,129** | **)** |
|                                                                                                   |   |                                                                |   |   |   |   |
| Cash                flows from financing activities:                                                   |   |                                                                |   |   |   |   |
|   Principal                payments                                                          |   |                                                                | (1,490 | ) |   | ** ** | **-** |   |
|   Dividends                                                                                  |   |                                                                | (3,809 | ) |   | ** ** | **(3,820** | **)** |
|   Issuance                of common stock and other, net                                     |   |                                                                | (105 | ) |   | ** ** | **204** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
|       Net                cash used in financing activities               |   |                                                                | (5,404 | ) |   | ** ** | **(3,616** | **)** |
|                                                                                                   |   |                                                                |   |   |   |   |
| Cash                and cash equivalents – net change from:                                      |   |                                                                |   |   |   |   |   |   |
|   Operating,                investing and financing activities                               |   |                                                                | (8,001 | ) |   | ** ** | **(2,405** | **)** |
|   Currency                translation                                                        |   |                                                                | 249 |   |   | ** ** | **695** |   |
| Cash                and cash equivalents at beginning of period                                        |   |                                                                | 30,592 |   |   | ** ** | **29,688** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
| Cash                and cash equivalents at end of period                                              |   | $                                                                   | 22,840 |   |   | **$** | **27,978** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
| Supplemental                disclosures – cash paid for:                                         |   |                                                                |   |   |   |   |   |   |
|     Interest                                                                       |   | $                                                                   | 181 |   |   | **$** | **56** |   |
|     Income                taxes, net                                               |   |                                                                | 4,949 |   |   | ** ** | **6,938** |   |
|                                                                                                   |   |                                                                |   |   |   |   |
| Non-cash                investing activities:                                                          |   |                                                                |   |   |   |   |
|     Accrual                for capital expenditures                                |   | $                                                                   | - |   |   | **$** | **1,232** |   |

----

**COMPX      INTERNATIONAL INC.**

**CONDENSED      CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE      INCOME**

**Six      months ended June 30, 2007**

**(In      thousands)**

|                                                                              |   | ** Common                Stock** |   |   | **Additional                paid-in** |   |   | **Retained** |   |   | **Accumulated                other comprehensive income-currency** |   |   | **Total                stockholders'** |   |   | **Comprehensive** |   |
|-----------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|--------|--------------|--------|--------|--------------------------------------------------------------------|--------|--------|----------------------------------------|--------|--------|-------------------|--------|
|                                                                              |   | **Class                A**            |   |   | **Class                B**            |   |   | **capital**  |   |   | **earnings**                                                       |   |   | **translation**                        |   |   | **equity**        |   |   | **income** |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   | **(unaudited)**                                                    |   |   |                                   |   |   |              |   |   |   |   |
|  Balance                at December 31, 2006                                 |   | $                                     | 53     |   |                                  | $      | 100    |         |   | $      | 110,106                                                            |   |   | $                                      | 35,353 |   |              | $      | 8,078 |   |   | $ | 153,690 |   |   |   |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                         |   |                                  | -      |   |                                  |   | -      |         |   |   | -                                                                  |   |   |                                   | 5,667  |   |              |   | - |   |   |   | 5,667 |   |   | $ | 5,667 |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income, net                                    |   |                                  | -      |   |                                  |   | -      |         |   |   | -                                                                  |   |   |                                   | -      |   |              |   | 1,545 |   |   |   | 1,545 |   |   |   | 1,545 |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Change                in accounting principle –   FIN No. 48 |   |                                  | -      |   |                                  |   | -      |         |   |   | -                                                                  |   |   |                                   | 41     |   |              |   | - |   |   |   | 41 |   |   |   | - |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Issuance                of common stock and other,                net        |   |                                  | -      |   |                                  |   | -      |         |   |   | 312                                                                |   |   |                                   | -      |   |              |   | - |   |   |   | 312 |   |   |   | - |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cash                dividends                                                     |   |                                  | -      |   |                                  |   | -      |         |   |   | -                                                                  |   |   |                                   | (3,820 | )      |              |   | - |   |   |   | (3,820 | ) |   |   | - |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Balance                at June 30, 2007                                           |   | $                                     | 53     |   |                                  | $      | 100    |         |   | $      | 110,418                                                            |   |   | $                                      | 37,241 |   |              | $      | 9,623 |   |   | $ | 157,435 |   |   |   |   |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                               |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   | $ | 7,212 |   |
|                                                                              |   |                                  |   |   |                                  |   |   |         |   |   |                                                               |   |   |                                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

**COMPX      INTERNATIONAL INC.**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**June      30, 2007**

**(unaudited)**

**Note      1 –  Organization and basis of presentation:**

*Organization*

*Basis      of presentation*

----

**Note      2 –  Business segment information:**

|                                                                                                             |   | **Three                months ended** |   |   | **Six                months ended** |       |
|------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------|------------|
|                                                                                                             |   | **June                30,**           |   |   | **June                30,**         |       |
|                                                                                                             |   | **2006**                              |   |   | **2007**                            |       |   | **2006** |   |   | **2007** |   |
|                                                                                                             |   | **(In                thousands)**     |   |
| Net                sales:                                                                                        |   |                                  |   |   |                                |       |   |   |   |   |   |   |
|   Security                Products                                                                     |   | $                                     | 20,448 |   |                                | **$**      | **20,169** |   |   | $ | 40,866 |   |   | **$** | **39,947** |   |
|   Furniture                Components                                                                  |   |                                  | 24,285 |   |                                | ** ** | **19,861** |   |   |   | 48,029 |   |   | ** ** | **39,295** |   |
|   Marine                Components                                                                     |   |                                  | 5,410  |   |                                | ** ** | **5,199** |   |   |   | 8,277 |   |   | ** ** | **9,538** |   |
|                                                                                                             |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
|     Total                net sales                                                           |   | $                                     | 50,143 |   |                                | **$**      | **45,229** |   |   | $ | 97,172 |   |   | **$** | **88,780** |   |
|                                                                                                             |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Operating                income:                                                                                 |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
|   Security                Products                                                                     |   | $                                     | 3,724  |   |                                | **$**      | **3,899** |   |   | $ | 7,582 |   |   | **$** | **8,010** |   |
|   Furniture                Components                                                                  |   |                                  | 2,348  |   |                                | ** ** | **1,680** |   |   |   | 4,542 |   |   | ** ** | **3,943** |   |
|   Marine                Components                                                                     |   |                                  | 873    |   |                                | ** ** | **722** |   |   |   | 1,219 |   |   | ** ** | **1,117** |   |
|   Corporate                operating expense                                                           |   |                                  | (1,124 | )      |                                | ** ** | **(1,697** | **)** |   |   | (2,727 | ) |   | ** ** | **(3,029** | **)** |
|                                                                                                             |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
|     Total                operating income                                                    |   |                                  | 5,821  |   |                                | ** ** | **4,604** |   |   |   | 10,616 |   |   | ** ** | **10,041** |   |
|                                                                                                             |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
| Other                non-operating income, net                                                                   |   |                                  | 253    |   |                                | ** ** | **306** |   |   |   | 574 |   |   | ** ** | **553** |   |
|                                                                                                             |   |                                  |   |   |                                |       |   |   |   |   |   |   |   |   |   |   |
|   Income                from continuing operations   before                income taxes |   | $                                     | 6,074  |   |                                | **$**      | **4,910** |   |   | $ | 11,190 |   |   | **$** | **10,594** |   |

**Note      3 –  Inventories, net:**

|                             |   | **December                31,**** 2006** |   |   | **June                30,**** 2007** |       |
|----------------------------------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|------------|
|                             |   | **(In                thousands)**             |   |
|                             |   |                                          |   |   |                                      |       |
| Raw                materials     |   | $                                             | 5,892  |   |                                      | **$**      | **7,330** |   |
| Work                in progress  |   |                                          | 8,744  |   |                                      | ** ** | **10,471** |   |
| Finished                products |   |                                          | 7,097  |   |                                      | ** ** | **7,725** |   |
|                             |   |                                          |   |   |                                      |       |   |   |
|     Total    |   | $                                             | 21,733 |   |                                      | **$**      | **25,526** |   |

**Note      4 –  Accounts payable and accrued liabilities:**

|                                                           |   | **December                31,**** 2006** |   |   | **June                30,**** 2007** |       |
|----------------------------------------------------------------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|------------|
|                                                           |   | **(In                thousands)**             |   |
|                                                           |   |                                          |   |   |                                      |       |
| Accounts                payable                                |   | $                                             | 6,151  |   |                                      | **$**      | **7,884** |   |
| Accrued                liabilities:                            |   |                                          |   |   |                                      |       |   |   |
|   Employee                benefits                   |   |                                          | 7,549  |   |                                      | ** ** | **7,151** |   |
|   Customer                tooling                    |   |                                          | 617    |   |                                      | ** ** | **749** |   |
|   Insurance                                          |   |                                          | 621    |   |                                      | ** ** | **622** |   |
|   Taxes                other than on income          |   |                                          | 302    |   |                                      | ** ** | **581** |   |
|   Professional                fees                   |   |                                          | 334    |   |                                      | ** ** | **378** |   |
|   Reserve                for uncertain tax positions |   |                                          | -      |   |                                      | ** ** | **345** |   |
|   Other                                              |   |                                          | 1,268  |   |                                      | ** ** | **1,230** |   |
|                                                           |   |                                          |   |   |                                      |       |   |   |
|     Total                                  |   | $                                             | 16,842 |   |                                      | **$**      | **18,940** |   |

----

**Note      5 – Provision for income taxes:**

|                                                                                                          |   | **Six                months ended**** June                30,** |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------|
|                                                                                                          |   | **2006**                                                             |   |   | **2007** |   |
|                                                                                                          |   | **(In                thousands)**                                    |   |
|                                                                                                          |   |                                                                 |   |   |   |   |
| Expected                tax expense, at the U.S. federal statutory income tax                rate of 35% |   | $                                                                    | 3,917  |   |   | **$** | **3,708** |   |
| Non–U.S.                tax rates                                                                       |   |                                                                 | (151   | ) |   | ** ** | **(108** | **)** |
| Incremental                U.S. tax on earnings of non-U.S. subsidiaries                                      |   |                                                                 | 1,066  |   |   | ** ** | **1,094** |   |
| Canadian                tax rate change                                                                       |   |                                                                 | (159   | ) |   | ** ** | **-** |   |
| State                income taxes and other, net                                                              |   |                                                                 | 254    |   |   | ** ** | **233** |   |
|                                                                                                          |   |                                                                 |   |   |   |   |   |   |
|      Total                                                                           |   | $                                                                    | 4,927  |   |   | **$** | **4,927** |   |

**Note      6 – Currency forward exchange contracts:**

**Note      7 – Recent accounting pronouncements:**

*Uncertain        tax positions - *
**  **
*Accounting for Uncertain Tax Positions*
*Accounting for Income        Taxes, *
*.*

----

----

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

**Overview**

**Results      of Operations**

|                                        |   | **Three                months ended**** June                30,** |   |   | **Six                months ended**** June                30,** |   |
|---------------------------------------------|--------|------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                        |   | **2006**                                                               |   |   | **%**                                                                |   |   | **2007** |   |   | **%** |   |   | **2006** |   |   | **%** |   |   | **2007** |   |   | **%** |   |
|                                        |   | **(Dollars                in thousands)**                              |   |
| Net                sales                    |   | $                                                                      | 50,143 |   |                                                                 |   | 100.0 | % |   | $ | 45,229 |   |   |   | 100.0 | % |   | $ | 97,172 |   |   |   | 100.0 | % |   | $ | 88,780 |   |   |   | 100.0 | % |
| Cost                of goods sold           |   |                                                                   | 37,794 |   |                                                                 |   | 75.4 |   |   |   | 33,366 |   |   |   | 73.8 |   |   |   | 73,195 |   |   |   | 75.3 |   |   |   | 64,796 |   |   |   | 73.0 |   |
|   Gross                margin     |   |                                                                   | 12,349 |   |                                                                 |   | 24.6 |   |   |   | 11,863 |   |   |   | 26.2 |   |   |   | 23,977 |   |   |   | 24.7 |   |   |   | 23,984 |   |   |   | 27.0 |   |
| Operating                costs and expenses |   |                                                                   | 6,528  |   |                                                                 |   | 13.0 |   |   |   | 7,259 |   |   |   | 16.0 |   |   |   | 13,361 |   |   |   | 13.8 |   |   |   | 13,943 |   |   |   | 15.7 |   |
|   Operating                income |   | $                                                                      | 5,821  |   |                                                                 |   | 11.6 | % |   | $ | 4,604 |   |   |   | 10.2 | % |   | $ | 10,616 |   |   |   | 10.9 | % |   | $ | 10,041 |   |   |   | 11.3 | % |
|                                        |   |                                                                   |   |   |                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

*Net        sales*

*Cost        of goods sold and*
*gross margin.  *

----

*Operating        costs and expenses.  *

*Operating        income.*

*Currency.  *

|                                               |   | **Three                months ended****June                30, 2006**** vs.                2007** |   |   | **Six                months ended****June                30, 2006**** vs.                2007** |   |
|----------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                               |   | **(In                thousands)**                                                                      |   |
|                                               |   |                                                                                                   |   |   |                                                                                                 |   |
| Currency                impact on net sales        |   | $                                                                                                      | 77     |   |                                                                                                 | $      | 16 |   |
|                                               |   |                                                                                                   |   |   |                                                                                                 |   |   |   |
| Currency                impact on operating income |   |                                                                                                   | (652   | )      |                                                                                                 |   | (502 | ) |

----

*Provision      for income taxes.  *

**Segment      Results**

**.**

|                                                          |   | **Three                months ended**** June                30,** |   |   | **%**    |   | **Six                months ended**** June                30,** |       |   | **%**      |      |
|---------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|--------|----------|--------|----------------------------------------------------------------------|------------|--------|------------|-----------|
|                                                          |   | **2006**                                                               |   |   | **2007** |   |                                                                 | **Change** |   | **2006**   |      |   | **2007** |   |   | **Change** |   |
|                                                          |   | **(Dollars                in thousands)**                              |   |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |
| Net                sales:                                     |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |
|   Security                Products                  |   | $                                                                      | 20,448 |   |     | $      | 20,169                                                               |       |   | ** ** | **(1%)**  |   | $ | 40,866 |   |   | $ | 39,947 |   |   | ** ** | **(2%)** |   |
|   Furniture                Components               |   |                                                                   | 24,285 |   |     |   | 19,861                                                               |       |   | ** ** | **(18%)** |   |   | 48,029 |   |   |   | 39,295 |   |   | ** ** | **(18%)** |   |
|   Marine                Components                  |   |                                                                   | 5,410  |   |     |   | 5,199                                                                |       |   | ** ** | **(4%)**  |   |   | 8,277 |   |   |   | 9,538 |   |   | ** ** | **15%** |   |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                net sales        |   | $                                                                      | 50,143 |   |     | $      | 45,229                                                               |       |   | ** ** | **(10%)** |   | $ | 97,172 |   |   | $ | 88,780 |   |   | ** ** | **(9%)** |  |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross                margin:                                  |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security                Products                  |   | $                                                                      | 6,058  |   |     | $      | 6,193                                                                |       |   | ** ** | **2%**    |   |   | 12,181 |   |   |   | 12,728 |   |   | ** ** | **4%** |   |
|   Furniture                Components               |   |                                                                   | 4,661  |   |     |   | 4,060                                                                |       |   | ** ** | **(13%)** |   |   | 9,427 |   |   |   | 8,357 |   |   | ** ** | **(11%)** |  |
|   Marine                Components                  |   |                                                                   | 1,630  |   |     |   | 1,610                                                                |       |   | ** ** | **(1%)**  |   |   | 2,369 |   |   |   | 2,899 |   |   | ** ** | **22%** |   |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                gross margin     |   | $                                                                      | 12,349 |   |     | $      | 11,863                                                               |       |   | ** ** | **(4%)**  |   | $ | 23,977 |   |   | $ | 23,984 |   |   | ** ** | **-** |   |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                income:                              |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security                Products                  |   | $                                                                      | 3,724  |   |     | $      | 3,899                                                                |       |   | ** ** | **5%**    |   | $ | 7,582 |   |   | $ | 8,010 |   |   | ** ** | **6%** |   |
|   Furniture                Components               |   |                                                                   | 2,348  |   |     |   | 1,680                                                                |       |   | ** ** | **(28%)** |   |   | 4,542 |   |   |   | 3,943 |   |   | ** ** | **(13%)** |   |
|   Marine                Components                  |   |                                                                   | 873    |   |     |   | 722                                                                  |       |   | ** ** | **(17%)** |   |   | 1,219 |   |   |   | 1,117 |   |   | ** ** | **(8%)** |   |
|   Corporate                operating expense        |   |                                                                   | (1,124 | )      |     |   | (1,697                                                               | )          |   | ** ** | **51%**   |   |   | (2,727 | ) |   |   | (3,029 | ) |   | ** ** | **11%** |   |
|                                                          |   |                                                                   |   |   |     |   |                                                                 |       |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                operating income |   | $                                                                      | 5,821  |   |     | $      | 4,604                                                                |       |   | ** ** | **(21%)** |   | $ | 10,616 |   |   | $ | 10,041 |   |   | ** ** | **(5%)** |  |

*Security      Products.  *

----

*Furniture        Components.  *

*Marine      Components*

*Outlook.  *

**Liquidity      and Capital Resources**

*Consolidated      cash flows.*

*Operating      activities. *

| ·   | lower                operating income of $.6 million, |
|--------------------|-------------------------------------------------------|

| ·   | higher                cash paid for income taxes in 2007 of $2.0                million, |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | and                a $2.9 million increase in 2007 in cash used from relative changes                in                assets and liabilities. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Investing      activities*

*Financing      activities*

*Other.  *

----

*Future      cash requirements.*

*Off-balance      sheet financing arrangements*

*Recent      accounting pronouncements.*

*Critical      Accounting Policies.*

**Forward-Looking      Information**

----

| ·   | Future                supply and demand for our products, |
|--------------------|-----------------------------------------------------------|

| ·   | Changes                in costs of raw materials and other operating costs (such as energy                costs), |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | General                global economic and political                conditions, |
|--------------------|---------------------------------------------------------------------------------|

| ·   | Demand                for office furniture, |
|--------------------|---------------------------------------------|

| ·   | Service                industry employment levels, |
|--------------------|----------------------------------------------------|

| ·   | The                possibility of labor disruptions, |
|--------------------|------------------------------------------------------|

| ·   | Competitive                products and prices, including increased competition from low-cost                manufacturing sources (such as                China), |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Substitute                products, |
|--------------------|-------------------------------------|

| ·   | Customer                and competitor strategies, |
|--------------------|----------------------------------------------------|

| ·   | Costs                and expenses associated with compliance with certain requirements                of the                Sarbanes-Oxley Act of 2002 relating to the evaluation of our internal                control over financial reporting, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                introduction of trade barriers, |
|--------------------|----------------------------------------------------|

| ·   | The                impact of pricing and production                decisions, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Fluctuations                in the value of the U.S. dollar relative to other currencies (such                as the                Canadian dollar and New Taiwan                dollar), |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Potential                difficulties in integrating completed or future                acquisitions, |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | Decisions                to sell operating assets other than in the ordinary course of                business, |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Uncertainties                associated with new product                development, |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | Environmental                matters (such as those requiring emission and discharge standards                for                existing and new facilities), |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our                ability to comply with covenants contained in our revolving bank                credit                facility, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                ultimate outcome of income tax audits, tax settlement initiatives                or other                tax matters, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                impact of current or future government                regulations, |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | Possible                future litigation, |
|--------------------|--------------------------------------------|

| ·   | Possible                disruption of our business or increases in the cost of doing business                resulting from terrorist activities or global                conflicts, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Operating                interruptions (including, but not limited to labor disputes, leaks,                natural disasters, fires, explosions, unscheduled, or unplanned downtime                and transportation interruptions);                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Government                laws and regulations and possible changes                therein. |
|--------------------|---------------------------------------------------------------------------------------------|

----

**ITEM      3.                      QUANTITATIVE      AND QUALITATITVE DISCLOSURE ABOUT MARKET RISK.**

**ITEM      4.                      Controls      and Procedures.**

**Evaluation      of Disclosure Controls and Procedures.**

**Internal      Control Over Financial Reporting**

| ·   | Pertain                to the maintenance of records that in reasonable detail accurately                and                fairly reflect the transactions and dispositions of our                assets, |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance that transactions are recorded as necessary                to permit                preparation of financial statements in accordance with GAAP, and                that our                receipts and expenditures are being made only in accordance with                authorizations of our management and directors,                and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide                reasonable assurance regarding prevention or timely detection of                unauthorized acquisition, use or disposition of our assets that could                have                a material effect on our Condensed Consolidated Financial                Statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Changes      in Internal Control Over Financial Reporting**

----

**Part      II. OTHER INFORMATION**

**ITEM      1A.                           Risk      Factors.**

**ITEM      4.                           Submission      of Matter to a Vote of Security Holders**

**ITEM      6.                           Exhibits.**

|   | 31.1 | Certification |
|--------|------|---------------|

|   | 31.2 | Certification |
|--------|------|---------------|

|   | 32.1 | Certification |
|--------|------|---------------|

----

**SIGNATURES**

**COMPX      INTERNATIONAL INC.**

**(Registrant)**

----