| For      the quarter ended September 30,      2008 | Commission      file number 1-13905 |
|----------------------------------------------------|-------------------------------------|

| COMPX      INTERNATIONAL INC.                              |
|------------------------------------------------------------|
| (Exact      name of Registrant as specified in itscharter) |

|                                                                       |   |                                       |
|----------------------------------------------------------------------------|--------|--------------------------------------------|
| 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                        |
|                                                                       |   |                                       |
|                                                                       |   |                                       |

----

| Part      I.    FINANCIAL INFORMATION                                                                                                                                                                                                                             |  Page  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|                                                                                                                                                                                                                                                                             |             |
| Item      1.    Financial Statements                                                                                                                                                                                                                              |             |
|                                                                                                                                                                                                                                                                             |             |
| Condensed      Consolidated Balance Sheets –   December      31, 2007 – September 30, 2008 (unaudited)                                                                                                                                                |  3          |
|                                                                                                                                                                                                                                                                             |             |
| Condensed      Consolidated Statements of Operations -   Three      and nine months ended September 30, 2007 and 2008    (unaudited)                                                                                                                              |  5          |
|                                                                                                                                                                                                                                                                             |             |
| Condensed      Consolidated Statements of Cash Flows -   Nine      months ended September 30, 2007 and 2008 (unaudited)                                                                                                                                           |  6          |
|                                                                                                                                                                                                                                                                             |             |
| Condensed      Consolidated Statement of Stockholders' Equity and   Comprehensive      Loss –    Nine      months ended September 30, 2008 (unaudited)                                                                                  |   7    |
|                                                                                                                                                                                                                                                                             |             |
| Notes      to Condensed Consolidated Financial Statements (unaudited)                                                                                                                                                                                                            | 8                |
|                                                                                                                                                                                                                                                                             |             |
| Item      2.    Management's Discussion and Analysis of      Financial                   Condition      and Results of Operations                                  |  13         |
|                                                                                                                                                                                                                                                                             |             |
| Item      3.    Quantitative and Qualitative Disclosure About Market      Risk                                                                                                                                                                                    | 22               |
|                                                                                                                                                                                                                                                                             |             |
| Item      4.    Controls and Procedures                                                                                                                                                                                                                           | 22               |
|                                                                                                                                                                                                                                                                             |             |
|                                                                                                                                                                                                                                                                             |             |
| Part      II.   OTHER INFORMATION                                                                                                                                                                                                                                      |             |
|                                                                                                                                                                                                                                                                             |             |
| Item      1A. Risk Factors                                                                                                                                                                                                                                                       | 24               |
|                                                                                                                                                                                                                                                                             |             |
| Item      2.     Unregistered sale of Equity Securities and      Use of Proceeds;                        Share      Repurchases | 24               |
|                                                                                                                                                                                                                                                                             |             |
| Item      6.    Exhibits                                                                                                                                                                                                                                          | 24               |
|                                                                                                                                                                                                                                                                             |             |
|                                                                                                                                                                                                                                                                             |             |
| Items      1, 3, 4 and 5 of Part II are omitted because there is no information to      report.                                                                                                                                                                                  |             |
|                                                                                                                                                                                                                                                                             |             |

----

|            ASSETS |   | December      31, 2007 |    |   | September      30, 2008 |   |
|--------------------------------------------------------------------------|--------|-----------------------------|---------|--------|------------------------------|--------|
|                                                                     |   |                        |    |   | (unaudited)                  |   |
|                                                                     |   |                        |    |   |                         |   |
| Current      assets:                                                     |   |                        |    |   |                         |   |
|   Cash      and cash equivalents                               |   | $                           | 18,399  |   |                         | $      | 12,637 |   |
|   Accounts      receivable, net                                |   |                        | 20,447  |   |                         |   | 21,019 |   |
|   Receivables      from affiliates                             |   |                        | 223     |   |                         |   | 311 |   |
|   Inventories,      net                                        |   |                        | 24,277  |   |                         |   | 25,441 |   |
|   Prepaid      expenses and other                              |   |                        | 1,392   |   |                         |   | 2,211 |   |
|   Deferred      income taxes                                   |   |                        | 2,123   |   |                         |   | 2,122 |   |
|   Current      portion of note receivable                      |   |                        | 1,306   |   |                         |   | 939 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
|      Total      current assets                  |   |                        | 68,167  |   |                         |   | 64,680 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
| Other      assets:                                                       |   |                        |    |   |                         |   |   |   |
|   Goodwill                                                     |   |                        | 40,784  |   |                         |   | 31,000 |   |
|   Other      intangible assets                                 |   |                        | 2,569   |   |                         |   | 2,137 |   |
|   Assets      held for sale                                    |   |                        | 3,117   |   |                         |   | 3,467 |   |
|   Other      assets                                            |   |                        | 927     |   |                         |   | 77 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
|      Total      other assets                    |   |                        | 47,397  |   |                         |   | 36,681 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
| Property      and equipment:                                             |   |                        |    |   |                         |   |   |   |
|   Land                                                         |   |                        | 11,612  |   |                         |   | 11,703 |   |
|   Buildings                                                    |   |                        | 38,990  |   |                         |   | 38,520 |   |
|   Equipment                                                    |   |                        | 124,238 |   |                         |   | 119,123 |   |
|   Construction      in progress                                |   |                        | 2,659   |   |                         |   | 4,070 |   |
|                                                                     |   |                        | 177,499 |   |                         |   | 173,416 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
|   Less      accumulated depreciation                           |   |                        | 105,348 |   |                         |   | 103,503 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
|      Net      property and equipment            |   |                        | 72,151  |   |                         |   | 69,913 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |
|       Total      assets                    |   | $                           | 187,715 |   |                         | $      | 171,274 |   |
|                                                                     |   |                        |    |   |                         |   |   |   |

----

| LIABILITIES      AND STOCKHOLDERS' EQUITY                        |   | December      31, 2007 |    |   | September      30, 2008 |   |
|------------------------------------------------------------------|--------|-----------------------------|---------|--------|------------------------------|--------|
|                                                             |   |                        |    |   | (unaudited)                  |   |
| Current      liabilities:                                        |   |                        |    |   |                         |   |
|   Current      maturities of note payable to affiliate |   | $                           | 250     |   |                         | $      | 750 |   |
|   Accounts      payable and accrued liabilities        |   |                        | 17,652  |   |                         |   | 18,853 |   |
|   Interest      payable to affiliate                   |   |                        | 559     |   |                         |   | 451 |   |
|   Income      taxes payable to affiliates              |   |                        | 282     |   |                         |   | 215 |   |
|   Income      taxes                                    |   |                        | 170     |   |                         |   | 571 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
|      Total      current liabilities     |   |                        | 18,913  |   |                         |   | 20,840 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
| Noncurrent      liabilities:                                     |   |                        |    |   |                         |   |   |   |
|   Note      payable to affiliate                       |   |                        | 49,730  |   |                         |   | 42,230 |   |
|   Deferred      income taxes and other                 |   |                        | 14,969  |   |                         |   | 13,865 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
|      Total      noncurrent liabilities  |   |                        | 64,699  |   |                         |   | 56,095 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
| Stockholders'      equity:                                       |   |                        |    |   |                         |   |   |   |
|   Preferred      stock                                 |   |                        | -       |   |                         |   | - |   |
|   Class      A common stock                            |   |                        | 25      |   |                         |   | 24 |   |
|   Class      B common stock                            |   |                        | 100     |   |                         |   | 100 |   |
|   Additional      paid-in capital                      |   |                        | 55,824  |   |                         |   | 54,873 |   |
|   Retained      earnings                               |   |                        | 37,080  |   |                         |   | 28,628 |   |
|   Accumulated      other comprehensive income          |   |                        | 11,074  |   |                         |   | 10,714 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
|      Total      stockholders' equity    |   |                        | 104,103 |   |                         |   | 94,339 |   |
|                                                             |   |                        |    |   |                         |   |   |   |
| Total      liabilities and stockholders’ equity            |   | $                           | 187,715 |   |                         | $      | 171,274 |   |

----

|                                                                                  |   | Three      months ended |         |   | Nine      months ended |   |
|---------------------------------------------------------------------------------------|--------|-------------------------|--------------|--------|------------------------|--------|
|                                                                                  |   | September 30,           |         |   | September 30,          |   |
|                                                                                  |   | 2007                    |         |   | 2008                   |   |   | 2007 |   |   | 2008 |   |
|                                                                                  |   | (unaudited)             |         |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |
| Net      sales                                                                        |   | $                       | 46,389       |   |                   | $      | 43,909 |   |   | $ | 135,169 |   |   | $ | 128,137 |   |
| Cost      of goods sold                                                               |   |                    | 34,435       |   |                   |   | 32,688 |   |   |   | 99,232 |   |   |   | 95,993 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Gross      margin                                             |   |                    | 11,954       |   |                   |   | 11,221 |   |   |   | 35,937 |   |   |   | 32,144 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expense                                      |   |                    | 6,477        |   |                   |   | 6,316 |   |   |   | 19,714 |   |   |   | 19,224 |   |
| Goodwill      impairment                                                              |   |                    | -            |   |                   |   | 9,881 |   |   |   | - |   |   |   | 9,881 |   |
| Facility      consolidation expense                                                   |   |                    | 808          |   |                   |   | - |   |   |   | 808 |   |   |   | - |   |
| Other      operating income (expense), net                                            |   |                    | (399         | )      |                   |   | 35 |   |   |   | (1,106 | ) |   |   |  16 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Operating      income (loss)                                  |   |                    | 4,270        |   |                   |   | (4,941 | ) |   |   | 14,309 |   |   |   | 3,055 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      non-operating income, net                                                  |   |                    | 272          |   |                   |   | 53 |   |   |   | 929 |   |   |   | 194 |   |
| Interest      expense                                                                 |   |                    | (49          | )      |                   |   | (507 | ) |   |   | (151 | )  |   |   | (1,773 | ) |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Income      (loss) before income taxes                        |   |                    | 4,493        |   |                   |   | (5,395 | ) |   |   | 15,087 |   |   |   | 1,476 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Provision      for income taxes                                                       |   |                    | 1,677        |   |                   |   | 2,094 |   |   |   | 6,604 |   |   |   | 5,280 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Net      income (loss)                                        |   | $                       | 2,816        |   |                   | $      | (7,489 | ) |   | $ | 8,483 |   |   | $ | (3,804 | ) |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and diluted earnings (loss) per common      share                     |   | $                       | .18          |   |                   | $      | (.61 | ) |   | $ | .56 |   |   | $ | (.31 | ) |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends per share                                                         |   | $                       | .125         |   |                   | $      | .125 |   |   | $ | .375 |   |   | $ | .375 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Shares      used in the calculation of basic and      diluted earnings per share |   |                    |  15,277 |   |                   |   |  12,361 |   |   |   |   15,281 |   |   |   |   12,394 |   |
|                                                                                  |   |                    |         |   |                   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                               |   | Nine      months ended September 30, |     |
|------------------------------------------------------------------------------------|--------|-------------------------------------------|----------|
|                                                                               |   | 2007                                      |     |   | 2008 |   |
|                                                                               |   | (unaudited)                               |     |
|                                                                               |   |                                      |     |   |   |   |
| Cash      flows from operating activities:                                         |   |                                      |     |   |   |   |
|   Net      income (loss)                                                 |   | $                                         | 8,483    |   |   | $ | (3,804 | ) |
|   Depreciation      and amortization                                     |   |                                      | 8,227    |   |   |   | 6,977 |   |
|   Goodwill      impairment                                               |   |                                      | -        |   |   |   | 9,881 |   |
|   Deferred      income taxes                                             |   |                                      | (3,769   | )  |   |   | (739 | ) |
|   Other,      net                                                        |   |                                      | 353      |   |   |   | 675 |   |
|   Change      in assets and liabilities:                                 |   |                                      |     |   |   |   |   |   |
|     Accounts      receivable, net                              |   |                                      | 561      |   |   |   | (849 | ) |
|     Inventories,      net                                      |   |                                      | (4,390   | ) |   |   | (1,891 | ) |
|     Accounts      payable and accrued liabilities              |   |                                      | 1,598    |   |   |   | 1,077 |   |
|     Accounts      with affiliates                              |   |                                      | 121      |   |   |   | (156 | ) |
|     Income      taxes                                          |   |                                      | (1,129   | ) |   |   | 412 |   |
|     Other,      net                                            |   |                                      | (552     | ) |   |   | (951 | ) |
|                                                                               |   |                                      |     |   |   |   |   |   |
|       Net      cash provided by operating activities |   |                                      | 9,503    |   |   |   | 10,632 |   |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Cash      flows from investing activities:                                         |   |                                      |     |   |   |   |   |   |
|   Capital      expenditures                                              |   |                                      | (9,836   | ) |   |   | (5,393 | ) |
|   Cash      collected on note receivable                                 |   |                                      | 1,306    |   |   |   | 1,306 |   |
|   Proceeds      on disposal of asset held for sale and      other, net   |   |                                      |  48 |   |   |   |  255 |   |
|                                                                               |   |                                      |     |   |   |   |   |   |
|       Net      cash used in investing activities     |   |                                      | (8,482   | ) |   |   | (3,832 | ) |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Cash      flows from financing activities:                                         |   |                                      |     |   |   |   |   |   |
|   Principal      payments on note payable to affiliate                   |   |                                      | -        |   |   |   | (7,000 | ) |
|   Dividends      paid                                                    |   |                                      | (5,726   | ) |   |   | (4,647 | ) |
|   Treasury      stock acquired                                           |   |                                      | (2,194   | )  |   |   | (1,006 | ) |
|   Issuance      of common stock                                          |   |                                      | 1,372    |   |   |   | - |   |
|   Other,      net                                                        |   |                                      | 73       |   |   |   | (56 | ) |
|                                                                               |   |                                      |     |   |   |   |   |   |
|       Net      cash used in financing activities     |   |                                      | (6,475   | ) |   |   | (12,709 | ) |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Cash      and cash equivalents – net change from:                            |   |                                      |     |   |   |   |   |   |
|   Operating,      investing and financing activities                     |   |                                      | (5,454   | ) |   |   | (5,909 | ) |
|   Currency      translation                                              |   |                                      | 924      |   |   |   | 147 |   |
| Cash      and cash equivalents at beginning of period                              |   |                                      | 29,688   |   |   |   | 18,399 |   |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                    |   | $                                         | 25,158   |   |   | $ | 12,637 |   |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Supplemental      disclosures – cash paid for:                               |   |                                      |     |   |   |   |   |   |
|     Interest                                                   |   | $                                         | 82       |   |   | $ | 1,789 |   |
|     Income      taxes, net                                     |   |                                      | 11,308   |   |   |   | 6,177 |   |
|                                                                               |   |                                      |     |   |   |   |   |   |
| Non-cash      investing activities:                                                |   |                                      |     |   |   |   |   |   |
|     Accrual      for capital expenditures                      |   | $                                         | 1,195    |   |   | $ | 169 |   |

----

|                                                   |   |  Common stock |    |   |   Additional      paid-in |   |    | Retained |   |   | Accumulated      other comprehensive income-currency |   |   | Treasury    |    |   | Total      stockholders' |   |    |    Comprehensive |   |
|--------------------------------------------------------|--------|--------------------|---------|--------|-------------------------------------|--------|---------|----------|--------|--------|------------------------------------------------------|--------|--------|-------------|---------|--------|--------------------------|--------|---------|---------------------------------|--------|
|                                                   |   | Class A            |    |   | Class B                             |   |    | capital  |   |   | earnings                                             |   |   | translation |    |   | stock                    |   |    | equity                          |   |   | loss |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |
| Balance      at December 31, 2007                      |   | $                  | 25      |   |                                | $      | 100     |     |   | $      | 55,824                                               |   |   | $           | 37,080  |   |                     | $      | 11,074  |                            |   | $ | - |   |   | $ | 104,103 |   |   |   |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss                                          |   |               | -       |   |                                |   | -       |     |   |   | -                                                    |   |   |        | (3,804  | )      |                     |   | -       |                            |   |   | - |   |   |   | (3,804 | ) |   | $ | (3,804 | ) |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive loss,  net          |   |               |  - |   |                                |   |  - |     |   |   |  -                                              |   |   |        |  - |   |                     |   | (361    | )                               |   |   |  - |   |   |   | (361 | ) |   |   | (361 | ) |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of common stock and other,      net |   |               |  - |   |                                |   |  - |     |   |   | 54                                                   |   |   |        |  - |   |                     |   |  - |                            |   |   |  - |   |   |   | 54 |   |   |   |  - |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury      stock:                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
|   Acquired                                   |   |               | (1      | )      |                                |   | -       |     |   |   | (1,005                                               | )      |   |        | -       |   |                     |   | -       |                            |   |   | 1,006 |   |   |   | - |   |   |   | - |   |
|   Retired                                    |   |               | -       |   |                                |   | -       |     |   |   | -                                                    |   |   |        | -       |   |                     |   | -       |                            |   |   | (1,006 | ) |   |   | (1,006 | ) |   |   | - |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      dividends                                    |   |               | -       |   |                                |   |  - |     |   |   | -                                                    |   |   |        | (4,647  | )      |                     |   | -       |                            |   |   | - |   |   |   | (4,647 | ) |   |   | - |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at September 30, 2008                     |   | $                  | 24      |   |                                | $      | 100     |     |   | $      | 54,873                                               |   |   | $           | 28,629  |   |                     | $      | 10,713  |                            |   | $ | - |   |   | $ | 94,339 |   |   |   |   |   |
|                                                   |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      loss                                |   |               |    |   |                                |   |    |     |   |   |                                                 |   |   |        |    |   |                     |   |    |                            |   |   |   |   |   |   |   |   |   | $ | (4,165 | ) |

----

----

|                                                       |   | Three      months ended |   |   | Nine      months ended |   |
|------------------------------------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                                                       |   | September 30,           |   |   | September 30,          |   |
|                                                       |   | 2007                    |   |   | 2008                   |   |   | 2007 |   |   | 2008 |   |
|                                                       |   | (In      thousands)     |   |
| Net      sales:                                            |   |                    |   |   |                   |   |   |   |   |   |   |   |
|   Security      Products                         |   | $                       | 20,869 |   |                   | $      | 20,189 |   |   | $ | 60,816 |   |   | $ | 59,454 |   |
|   Furniture      Components                      |   |                    | 21,725 |   |                   |   | 20,915 |   |   |   | 61,019 |   |   |   | 58,399 |   |
|   Marine      Components                         |   |                    | 3,795  |   |                   |   | 2,805 |   |   |   | 13,334 |   |   |   | 10,284 |   |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      net sales               |   | $                       | 46,389 |   |                   | $      | 43,909 |   |   | $ | 135,169 |   |   | $ | 128,137 |   |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):                              |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Security      Products                         |   | $                       | 3,175  |   |                   | $      | 3,557 |   |   | $ | 11,184 |   |   | $ | 10,153 |   |
|   Furniture      Components                      |   |                    | 2,296  |   |                   |   | 2,944 |   |   |   | 6,238 |   |   |   | 6,739 |   |
|   Marine      Components                         |   |                    | 73     |   |                   |   | (10,101 | ) |   |   | 1,190 |   |   |   | (9,834 | ) |
|   Corporate      operating expense               |   |                    | (1,274 | )      |                   |   | (1,341 | ) |   |   | (4,303 | ) |   |   | (4,003 | ) |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      operating income (loss) |   |                    | 4,270  |   |                   |   | (4,941 | ) |   |   | 14,309 |   |   |   | 3,055 |   |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Other      non-operating income, net                       |   |                    | 272    |   |                   |   | 53 |   |   |   | 929 |   |   |   | 194 |   |
| Interest      expense                                      |   |                    | (49    | )      |                   |   | (507 | ) |   |   | (151 | ) |   |   | (1,773 | ) |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
|   Income      (loss) before income taxes         |   | $                       | 4,493  |   |                   | $      | (5,395 | ) |   | $ | 15,087 |   |   | $ | 1,476 |   |
|                                                       |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |

|                          |   | December      31, 2007 |   |   | September      30, 2008 |   |
|-------------------------------|--------|-----------------------------|--------|--------|------------------------------|--------|
|                          |   | (In      thousands)         |   |
|                          |   |                        |   |   |                         |   |
| Raw      materials            |   | $                           | 6,341  |   |                         | $      | 8,477 |   |
| Work      in progress         |   |                        | 9,783  |   |                         |   | 9,061 |   |
| Finished      products        |   |                        | 8,153  |   |                         |   | 7,903 |   |
|                          |   |                        |   |   |                         |   |   |   |
|     Total |   | $                           | 24,277 |   |                         | $      | 25,441 |   |

----

|                                                 |   | December      31, 2007 |   |   | September      30, 2008 |   |
|------------------------------------------------------|--------|-----------------------------|--------|--------|------------------------------|--------|
|                                                 |   | (In      thousands)         |   |
|                                                 |   |                        |   |   |                         |   |
| Accounts      payable                                |   | $                           | 7,139  |   |                         | $      | 8,083 |   |
| Accrued      liabilities:                            |   |                        |   |   |                         |   |   |   |
|   Employee      benefits                   |   |                        | 7,196  |   |                         |   | 7,518 |   |
|   Customer      tooling                    |   |                        | 736    |   |                         |   | 602 |   |
|   Taxes      other than on income          |   |                        | 572    |   |                         |   | 825 |   |
|   Insurance                                |   |                        | 502    |   |                         |   | 434 |   |
|   Professional      fees                   |   |                        | 252    |   |                         |   | 331 |   |
|   Reserve      for uncertain tax positions |   |                        | 237    |   |                         |   | - |   |
|   Other                                    |   |                        | 1,018  |   |                         |   | 1,060 |   |
|                                                 |   |                        |   |   |                         |   |   |   |
|     Total                        |   | $                           | 17,652 |   |                         | $      | 18,853 |   |

|                                                                                      |   | Nine      months ended September 30, |   |
|-------------------------------------------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                                                      |   | 2007                                      |   |   | 2008 |   |
|                                                                                      |   | (In      thousands)                       |   |
|                                                                                      |   |                                      |   |   |   |   |
| Expected      tax expense, at the U.S. federal statutory income tax      rate of 35% |   | $                                         | 5,280  |   |   | $ | 517 |   |
| No      income tax benefit on goodwill impairment                                         |   |                                      | -      |   |   |   | 3,458 |   |
| Non–U.S.      tax rates                                                             |   |                                      | (169   | ) |   |   | (199 | ) |
| Incremental      U.S. tax on earnings of non-U.S. subsidiaries                            |   |                                      | 1,198  |   |   |   | 1,385 |   |
| Reserve      for uncertain tax positions                                                  |   |                                      | -      |   |   |   | (221 | ) |
| State      income taxes, net                                                              |   |                                      | 517    |   |   |   | 564 |   |
| Other,      net                                                                           |   |                                      | (222   | ) |   |   | (224 | ) |
|                                                                                      |   |                                      |   |   |   |   |   |   |
|      Total                                                       |   | $                                         | 6,604  |   |   | $ | 5,280 |   |

----

----

----

|                                                        |   | Operating      income (loss)                                |   |
|-------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                                        |   | Including      the effect of the goodwill impairment charge |   |   |   Goodwill      impairment |   |   | Excluding      the effect of the goodwill impairment charge |   |
|                                                        |   | (GAAP)                                                      |   |   | charge |   |   | (Non-GAAP) |   |
|                                                        |   | (Dollars      in thousands)                                 |   |
| Three      months ended  September      30, 2008: |   |                                                        |   |   |   |   |   |   |   |
| Operating      income (loss)                                |   | $                                                           | (4,941 | ) |   | $ | 9,881 |   |   | $ | 4,940 |   |
|                                                        |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Nine      months ended  September      30, 2008:  |   |                                                        |   |   |   |   |   |   |   |   |   |   |
| Operating      income                                       |   | $                                                           | 3,055  |   |   | $ | 9,881 |   |   | $ | 12,936 |   |

----

|                                     |   | Three      months ended September 30, |   |
|------------------------------------------|--------|--------------------------------------------|--------|
|                                     |   | 2007                                       |   |   | % |   |   | 2008 |   |   | % |   |
|                                     |   | (Dollars      in thousands)                |   |
| Net      sales                           |   | $                                          | 46,389 |   |   |   | 100.0 | % |   | $ | 43,909 |   |   |   | 100.0 | % |
| Cost      of goods sold                  |   |                                       | 34,435 |   |   |   | 74.2 |   |   |   | 32,688 |   |   |   | 74.4 |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross      margin            |   |                                       | 11,954 |   |   |   | 25.8 |   |   |   | 11,221 |   |   |   | 25.6 |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses        |   |                                       | 7,684  |   |   |   | 16.6 |   |   |   | 6,281 |   |   |   | 14.3 |   |
| Goodwill      impairment                 |   |                                       | -      |   |   |   | - |   |   |   | 9,881 |   |   |   | 22.5 |   |
|                                     |   |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating      income (loss) |   | $                                          | 4,270  |   |   |   | 9.2 | % |   | $ | (4,941 | ) |   |   | (11.2 | )% |

|                                   |   | Nine      months ended September 30, |    |
|----------------------------------------|--------|-------------------------------------------|---------|
|                                   |   | 2007                                      |    |   | % |   |   | 2008 |   |   | % |   |
|                                   |   | (Dollars      in thousands)               |    |
| Net      sales                         |   | $                                         | 135,169 |   |   |   | 100.0 | % |   | $ | 128,137 |   |   |   | 100.0 | % |
| Cost      of goods sold                |   |                                      | 99,232  |   |   |   | 73.4 |   |   |   | 95,993 |   |   |   | 74.9 |   |
|                                   |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross      margin          |   |                                      | 35,937  |   |   |   | 26.6 |   |   |   | 32,144 |   |   |   | 25.0 |   |
|                                   |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      costs and expenses |   |                                      | 21,628  |   |   |   | 16.0 |   |   |   | 19,208 |   |   |   | 15.0 |   |
| Goodwill      impairment               |   |                                      | -       |   |   |   | - |   |   |   | 9,881 |   |   |   | 7.7 |   |
|                                   |   |                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating      income      |   | $                                         | 14,309  |   |   |   | 10.6 | % |   | $ | 3,055 |   |   |   | 2.4 | % |

----

|                            |   | Increase (decrease)                                          |   |
|---------------------------------|--------|--------------------------------------------------------------|--------|
|                            |   | Three      months endedSeptember      30, 2008 vs. 2007 |   |   | Nine      months endedSeptember      30, 2008 vs. 2007 |   |
|                            |   | (In      thousands)                                          |   |
|                            |   |                                                         |   |   |   |   |
| Impact      on net sales        |   | $                                                            | 34     |   |   | $ | 1,045 |   |
|                            |   |                                                         |   |   |   |   |   |   |
| Impact      on operating income |   |                                                         | 300    |   |   |   | (60 | ) |

----

----

|                                                                                     |   | Three      months ended September 30, |   |   |   |   |    | Nine      months ended September 30, |   |   |   |   |
|------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|--------|--------|--------|---------|-------------------------------------------|--------|--------|--------|--------|
|                                                                                     |   | 2007                                       |   |   | 2008   |   |    | % Change                                  |   |   | 2007   |   |   | 2008 |   |   | % Change |   |
|                                                                                     |   | (Dollars      in thousands)                |   |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |
| Net      sales:                                                                          |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |
|   Security      Products                                                       |   | $                                          | 20,869 |   |   | $      | 20,189  |                                      |   |   | (3.3   | %)     |   | $ | 60,816 |   |   | $ | 59,454 |   |   |   | (2.2 | %) |
|   Furniture      Components                                                    |   |                                       | 21,725 |   |   |   | 20,915  |                                      |   |   | (3.7   | %)     |   |   | 61,019 |   |   |   | 58,399 |   |   |   | (4.3 | %) |
|   Marine      Components                                                       |   |                                       | 3,795  |   |   |   | 2,805   |                                      |   |   | (26.1  | %)     |   |   | 13,334 |   |   |   | 10,284 |   |   |   | (22.9 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      net sales                                             |   | $                                          | 46,389 |   |   | $      | 43,909  |                                      |   |   | (5.3   | %)     |   | $ | 135,169 |   |   | $ | 128,137 |   |   |   | (5.2 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      margin:                                                                       |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security      Products                                                       |   | $                                          | 5,750  |   |   | $      | 5,790   |                                      |   |   | 0.7    | %      |   | $ | 18,477 |   |   | $ | 16,991 |   |   |   | (8.0 | %) |
|   Furniture      Components                                                    |   |                                       | 4,565  |   |   |   | 4,901   |                                      |   |   | 7.4    | %      |   |   | 12,921 |   |   |   | 12,719 |   |   |   | (1.6 | %) |
|   Marine      Components                                                       |   |                                       | 950    |   |   |   | 530     |                                      |   |   | (44.2  | %)     |   |   | 3,850 |   |   |   | 2,435 |   |   |   | (36.8 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      gross margin                                          |   | $                                          | 11,265 |   |   | $      | 11,221  |                                      |   |   | 0.4    | %      |   | $ | 35,248 |   |   | $ | 32,145 |   |   |   | (8.8 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income:                                                                   |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security      Products                                                       |   | $                                          | 3,175  |   |   | $      | 3,557   |                                      |   |   | 12.0   | %      |   | $ | 11,184 |   |   | $ | 10,153 |   |   |   | (9.2 | %) |
|   Furniture      Components                                                    |   |                                       | 2,296  |   |   |   | 2,944   |                                      |   |   | 28.2   | %      |   |   | 6,238 |   |   |   | 6,739 |   |   |   | 8.0 | % |
|   Marine      Components                                                       |   |                                       | 73     |   |   |   | (10,101 | )                                         |   | n.m.   |   |   |   | 1,190 |   |   |   | (9,834 | ) |   | n.m. |   |
|   Corporate      operating expense                                             |   |                                       | (1,274 | )      |   |   | (1,341  | )                                         |   |   | 5.3    | %      |   |   | (4,303 | ) |   |   | (4,003 | ) |   |   | (7.0 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total      operating income      (loss) |   | $                                          | 4,270  |   |   | $      | (4,941  | )                                         |   |   | (215.7 | %)     |   | $ | 14,309 |   |   | $ | 3,055 |   |   |   | (78.6 | %) |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross      margin as a percentage   of net sales:                              |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Security      Products                                           |   |                                       | 27.6   | %      |   |   | 28.7    | %                                         |   |   |   |   |   |   | 30.4 | % |   |   | 28.6 | % |   |   |   |   |
|     Furniture      Components                                        |   |                                       | 21.0   | %      |   |   | 23.4    | %                                         |   |   |   |   |   |   | 21.2 | % |   |   | 21.8 | % |   |   |   |   |
|     Marine      Components                                           |   |                                       | 25.0   | %      |   |   | 18.9    | %                                         |   |   |   |   |   |   | 28.9 | % |   |   | 23.7 | % |   |   |   |   |
|                                                                                     |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      income as a   percentage of net sales:                          |   |                                       |   |   |   |   |    |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Security      Products                                           |   |                                       | 15.2   | %      |   |   | 17.6    | %                                         |   |   |   |   |   |   | 18.4 | % |   |   | 17.1 | % |   |   |   |   |
|     Furniture      Components                                        |   |                                       | 10.6   | %      |   |   | 14.1    | %                                         |   |   |   |   |   |   | 10.2 | % |   |   | 11.5 | % |   |   |   |   |
|     Marine      Components                                           |   |                                       | 1.9    | %      |   | n.m.   |    |                                      |   |   |   |   |   | 8.9 | % |   | n.m. |   |   |   |   |   |

----

| ·   | Our      Security Products segment is the least affected by the softness in      consumer demand, because we sell products to a diverse number of business      customers across a wide range of markets, most of which are not directly      impacted by changes in consumer demand.  While demand within      this segment is not as affected by softness in the overall economy, we      expect sales to be lower in the shortterm. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      Furniture Components segment sales are primarily concentrated in the      office furniture, toolbox, home appliance and a number of other      industries.  Several of these industries are more directly      affected by consumer demand than those served by our Security Products      segment.  We expect many of the markets served by Furniture      Components to continue to experience low demand in the short      term. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      Marine segment has been affected the most by the slowing economy as the      decrease in consumer confidence, the decline in home values, a tighter      credit market and higher fuel costs have resulted in a significant      reduction in consumer spending in the marine market.  The marine      market is not currently expected to recover until consumer confidence      returns and home values stabilize. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Lower      operating income in 2008 of $1.4 million (exclusive of the $9.9 million      goodwill impairment charge); |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

| ·   | Lower      depreciation and amortization in 2008 of $1.3  million; |
|--------------------|--------------------------------------------------------------------|

| ·   | Lower      net cash used from relative changes in our inventories, receivables,      payables and accruals of $1.4 million in 2008 due primarily to relative      changes in our inventory levels and income tax  accruals; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Lower      cash paid for income taxes in 2008 of $5.1 million due to lower earnings      in 2008; and |
|--------------------|-------------------------------------------------------------------------------------------------------|

| ·   | Higher      cash paid for interest in 2008 of $1.7 million due to the October issuance      of our promissory note to anaffiliate. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------|

----

----

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

| ·   | Changes      in our raw material and other operating costs (such as steel and energy      costs), |
|--------------------|---------------------------------------------------------------------------------------------------|

| ·   | General      global economic and political conditions,  (such as changes in      the level of gross domestic product in various regions of the      world), |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| ·   | Demand      for high performance marinecomponents, |
|--------------------|----------------------------------------------------|

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

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

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

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

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

| ·   | The      impact of pricing and productiondecisions, |
|--------------------|-----------------------------------------------------|

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

| ·   | 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 productdevelopment, |
|--------------------|------------------------------------------------------------|

| ·   | 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. |
|--------------------|---------------------------------------------------------------------|

----

----

| ·   | 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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

----

----