| For the quarter ended September 30, 2010 | 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                   |
|                                                             |   |                             |

|   | * | The Registrant has not yet been phased into the interactive data requirements. |
|--------|---|--------------------------------------------------------------------------------|

----

| Part I.                                                                               | FINANCIAL INFORMATION                                                                                                                          | Page     |
|---------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                  |                                                                                                                                           |     |
| Item 1.                                                                               | Financial Statements                                                                                                                           |     |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  | Condensed Consolidated Balance Sheets –December 31, 2009 and September 30, 2010 (unaudited)                                              |  3  |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  | Condensed Consolidated Statements of Operations -  Three and nine months ended September 30, 2009 and 2010 (unaudited)               |  5  |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  | Condensed Consolidated Statements of Cash Flows -Nine months ended September 30, 2009 and 2010 (unaudited)                                     |  6  |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  | Condensed Consolidated Statement of Stockholders' Equity andComprehensive Income – Nine months ended September 30, 2010 (unaudited) |  7  |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                               | 8        |
|                                                                                  |                                                                                                                                           |     |
| Item 2.                                                                               | Management's Discussion and Analysis of Financial  Condition and Results of Operations                                               |  14 |
|                                                                                  |                                                                                                                                           |     |
| Item 3.                                                                               | Quantitative and Qualitative Disclosure About Market Risk                                                                                      | 23       |
|                                                                                  |                                                                                                                                           |     |
| Item 4.                                                                               | Controls and Procedures                                                                                                                        | 23       |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  |                                                                                                                                           |     |
| Part II.                                                                              | OTHER INFORMATION                                                                                                                              |     |
|                                                                                  |                                                                                                                                           |     |
| Item 1.                                                                               | Legal Proceedings                                                                                                                              | 24       |
|                                                                                  |                                                                                                                                           |     |
| Item 1A.                                                                              | Risk Factors                                                                                                                                   | 24       |
|                                                                                  |                                                                                                                                           |     |
| Item 6.                                                                               | Exhibits                                                                                                                                       | 24       |
|                                                                                  |                                                                                                                                           |     |
|                                                                                  |                                                                                                                                           |     |
| Items 2, 3, 4 and 5 of Part II are omitted because there is no information to report. |                                                                                                                                           |

----

|            ASSETS |   | December 31, 2009 |    |   | September 30, 2010 |   |
|--------------------------------------------------------------------------|--------|------------------------|---------|--------|-------------------------|--------|
|                                                                     |   |                   |    |   | (unaudited)             |   |
|                                                                     |   |                   |    |   |                    |   |
| Current assets:                                                          |   |                   |    |   |                    |   |
|   Cash and cash equivalents                                    |   | $                      | 20,788  |   |                    | $      | 10,652 |   |
|   Accounts receivable, net                                     |   |                   | 11,690  |   |                    |   | 17,570 |   |
|   Receivables from affiliates                                  |   |                   | 1,487   |   |                    |   | - |   |
|   Inventories, net                                             |   |                   | 16,266  |   |                    |   | 18,033 |   |
|   Refundable income taxes                                      |   |                   | 1,844   |   |                    |   | - |   |
|   Prepaid expenses and other                                   |   |                   | 1,132   |   |                    |   | 2,051 |   |
|   Deferred income taxes                                        |   |                   | 1,928   |   |                    |   |  1,929 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
|   Total current assets                                         |   |                   | 55,135  |   |                    |   | 50,235 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Other assets:                                                            |   |                   |    |   |                    |   |   |   |
|   Goodwill                                                     |   |                   | 30,949  |   |                    |   | 31,094 |   |
|   Other intangible assets                                      |   |                   | 1,408   |   |                    |   | 974 |   |
|   Promissory note receivable                                   |   |                   | -       |   |                    |   | 15,000 |   |
|   Assets held for sale                                         |   |                   | 2,800   |   |                    |   | 2,307 |   |
|   Other assets                                                 |   |                   | 119     |   |                    |   |  92 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
|      Total other assets                         |   |                   | 35,276  |   |                    |   | 49,467 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Property and equipment:                                                  |   |                   |    |   |                    |   |   |   |
|   Land                                                         |   |                   | 12,051  |   |                    |   | 12,247 |   |
|   Buildings                                                    |   |                   | 39,201  |   |                    |   | 39,473 |   |
|   Equipment                                                    |   |                   | 120,574 |   |                    |   | 121,621 |   |
|   Construction in progress                                     |   |                   | 1,180   |   |                    |   |  785 |   |
|                                                                     |   |                   | 173,006 |   |                    |   | 174,126 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
|   Less accumulated depreciation                                |   |                   | 109,370 |   |                    |   | 114,039 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
|   Net property and equipment                                   |   |                   | 63,636  |   |                    |   | 60,087 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |
| Total assets                                                             |   | $                      | 154,047 |   |                    | $      | 159,789 |   |
|                                                                     |   |                   |    |   |                    |   |   |   |

----

|  LIABILITIES AND STOCKHOLDERS' EQUITY                  |   | December 31, 2009 |    |   | September 30, 2010 |   |
|-------------------------------------------------------------|--------|------------------------|---------|--------|-------------------------|--------|
|                                                        |   |                   |    |   | (unaudited)             |   |
| Current liabilities:                                        |   |                   |    |   |                    |   |
|   Accounts payable and accrued liabilities        |   | $                      | 14,567  |   |                    | $      | 14,580 |   |
|   Current maturities of note payable to affiliate |   |                   |  - |   |                    |   | 750 |   |
|   Interest payable to affiliate                   |   |                   | -       |   |                    |   | 740 |   |
|   Income taxes payable to affiliate               |   |                   | -       |   |                    |   | 1,603 |   |
|   Income taxes                                    |   |                   | 15      |   |                    |   |  533 |   |
|                                                        |   |                   |    |   |                    |   |   |   |
|      Total current liabilities     |   |                   | 14,582  |   |                    |   | 18,206 |   |
|                                                        |   |                   |    |   |                    |   |   |   |
| Noncurrent liabilities:                                     |   |                   |    |   |                    |   |   |   |
|   Long-term debt                                  |   |                   | 42,230  |   |                    |   | 46,480 |   |
|   Deferred income taxes and other                 |   |                   | 11,897  |   |                    |   | 11,584 |   |
|   Interest payable to affiliate                   |   |                   | 311     |   |                    |   |  - |   |
|                                                        |   |                   |    |   |                    |   |   |   |
|      Total noncurrent liabilities  |   |                   | 54,438  |   |                    |   | 58,064 |   |
|                                                        |   |                   |    |   |                    |   |   |   |
| Stockholders' equity:                                       |   |                   |    |   |                    |   |   |   |
|   Preferred stock                                 |   |                   | -       |   |                    |   | - |   |
|   Class A common stock                            |   |                   | 24      |   |                    |   | 24 |   |
|   Class B common stock                            |   |                   | 100     |   |                    |   | 100 |   |
|   Additional paid-in capital                      |   |                   | 54,928  |   |                    |   | 54,982 |   |
|   Retained earnings                               |   |                   | 19,621  |   |                    |   | 17,408 |   |
|   Accumulated other comprehensive income          |   |                   | 10,354  |   |                    |   | 11,005 |   |
|                                                        |   |                   |    |   |                    |   |   |   |
|      Total stockholders' equity    |   |                   | 85,027  |   |                    |   | 83,519 |   |
|                                                        |   |                   |    |   |                    |   |   |   |
| Total liabilities and stockholders’ equity            |   | $                      | 154,047 |   |                    | $      | 159,789 |   |

----

|                                                                               |   | Three months ended |      |   | Nine months ended |   |
|------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                               |   | September 30,      |      |   | September 30,     |   |
|                                                                               |   | 2009               |      |   | 2010              |   |   | 2009 |   |   | 2010 |   |
|                                                                               |   | (unaudited)        |      |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |
| Net sales                                                                          |   | $                  | 29,411    |   |              | $      | 35,740 |   |   | $ | 87,126 |   |   | $ | 102,924 |   |
| Cost of goods sold                                                                 |   |               | 22,447    |   |              |   | 26,042 |   |   |   | 69,141 |   |   |   | 75,272 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Gross margin                                               |   |               | 6,964     |   |              |   | 9,698 |   |   |   | 17,985 |   |   |   | 27,652 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expense                                        |   |               | 6,910     |   |              |   | 5,936 |   |   |   | 19,041 |   |   |   | 19,278 |   |
| Assets held for sale write-down                                                    |   |               | -         |   |              |   | 500 |   |   |   | 717 |   |   |   | 500 |   |
| Other operating expense, net                                                       |   |               | (213      | )      |              |   | (123 | ) |   |   |  (273 | ) |   |   | (61 | ) |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Operating income (loss)                                    |   |               | (159      | )      |              |   | 3,139 |   |   |   | (2,046 | ) |   |   | 7,813 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other non-operating income, net                                                    |   |               | 8         |   |              |   | 119 |   |   |   | 32 |   |   |   | 221 |   |
| Interest expense                                                                   |   |               | (230      | )      |              |   | (263 | ) |   |   | (845 | ) |   |   | (683 | ) |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Income (loss) before income taxes                          |   |               | (381      | )      |              |   | 2,995 |   |   |   | (2,859 | ) |   |   | 7,351 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Provision (benefit) for income taxes                                               |   |               | (892      | )      |              |   | 1,325 |   |   |   | (1,203 | ) |   |   | 4,924 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Net income (loss)                                          |   | $                  | 511       |   |              | $      | 1,670 |   |   | $ | (1,656 | ) |   | $ | 2,427 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted earnings (loss) per common share                            |   | $                  |  .04 |   |              | $      | .13 |   |   | $ | (.13 | ) |   | $ | .20 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends per share                                                           |   | $                  | .125      |   |              | $      | .125 |   |   | $ | .375 |   |   | $ | .375 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in the calculation of basic and diluted earnings (loss) per share |   |               | 12,370    |   |              |   | 12,375 |   |   |   | 12,365 |   |   |   | 12,373 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                    |   | Nine months ended September 30, |   |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                                    |   | 2009                                 |   |   | 2010 |   |
|                                                                                    |   | (unaudited)                          |   |
|                                                                                    |   |                                 |   |   |   |   |
| Cash flows from operating activities:                                                   |   |                                 |   |   |   |   |
|   Net income (loss)                                                           |   | $                                    | (1,656 | ) |   | $ | 2,427 |   |
|   Depreciation and amortization                                               |   |                                 | 6,223  |   |   |   | 5,871 |   |
|   Assets held for sale write-down                                             |   |                                 | 717    |   |   |   | 500 |   |
|   Deferred income taxes                                                       |   |                                 | (1,484 | ) |   |   | (421 | ) |
|   Other, net                                                                  |   |                                 | 1,058  |   |   |   | 560 |   |
|   Change in assets and liabilities:                                           |   |                                 |   |   |   |   |   |   |
|     Accounts receivable, net                                        |   |                                 | 2,925  |   |   |   | (5,784 | ) |
|     Inventories, net                                                |   |                                 | 5,131  |   |   |   | (2,144 | ) |
|     Accounts payable and accrued liabilities                        |   |                                 | (1,603 | ) |   |   | 270 |   |
|     Accounts with affiliates                                        |   |                                 | (296   | ) |   |   | 3,090 |   |
|     Income taxes                                                    |   |                                 | (1,231 | ) |   |   | 2,360 |   |
|     Other, net                                                      |   |                                 | 883    |   |   |   | (910 | ) |
|                                                                                    |   |                                 |   |   |   |   |   |   |
|       Net cash provided by operating activities           |   |                                 | 10,667 |   |   |   |  5,819 |   |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Cash flows from investing activities:                                                   |   |                                 |   |   |   |   |   |   |
|   Capital expenditures                                                        |   |                                 | (1,783 | ) |   |   | (1,472 | ) |
|   Cash collected on note receivable                                           |   |                                 | 261    |   |   |   | - |   |
|   Note receivable from affiliate:                                             |   |                                 |   |   |   |   |   |   |
|     Advances                                                        |   |                                 | -      |   |   |   | (9,000 | ) |
|     Collections                                                     |   |                                 | -      |   |   |   | 9,000 |   |
|   Purchase of promissory note receivable                                      |   |                                 | -      |   |   |   | (15,000 | ) |
|                                                                                    |   |                                 |   |   |   |   |   |   |
|       Net cash used in investing activities               |   |                                 | (1,522 | ) |   |   | (16,472 | ) |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Cash flows from financing activities:                                                   |   |                                 |   |   |   |   |   |   |
|   Borrowings under long-term debt                                             |   |                                 | -      |   |   |   | 5,000 |   |
|   Dividends paid                                                              |   |                                 | (4,637 | ) |   |   | (4,640 | ) |
|   Principal payments on note payable to affiliate                             |   |                                 | (750   | ) |   |   | - |   |
|   Other, net                                                                  |   |                                 | (134   | ) |   |   | (28 | ) |
|                                                                                    |   |                                 |   |   |   |   |   |   |
|       Net cash provided by (used in) financing activities |   |                                 | (5,521 | ) |   |   | 332 |   |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Cash and cash equivalents – net change from:                                      |   |                                 |   |   |   |   |   |   |
|   Operating, investing and financing activities                               |   |                                 | 3,624  |   |   |   | (10,321 | ) |
|   Currency translation                                                        |   |                                 | 208    |   |   |   | 185 |   |
| Cash and cash equivalents at beginning of period                                        |   |                                 | 14,411 |   |   |   | 20,788 |   |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                              |   | $                                    | 18,243 |   |   | $ | 10,652 |   |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Supplemental disclosures – cash paid (received) for:                              |   |                                 |   |   |   |   |   |   |
|     Interest                                                        |   | $                                    | 1,149  |   |   | $ | 194 |   |
|     Income taxes, net                                               |   |                                 | 1,807  |   |   |   | (98 | ) |
|                                                                                    |   |                                 |   |   |   |   |   |   |
| Non-cash investing activities:                                                          |   |                                 |   |   |   |   |   |   |
|     Accrual for capital expenditures                                |   | $                                    | 143    |   |   | $ | 54 |   |
|                                                                                    |   |                                 |   |   |   |   |   |   |

----

|                               |   |         |   |   |   Additional |   |   |     |   |   | Accumulated other comprehensive income- |   |   |   Total   |   |   |          |   |
|------------------------------------|--------|--------------|--------|--------|------------------------|--------|--------|----------|--------|--------|-----------------------------------------|--------|--------|---------------------|--------|--------|---------------|--------|
|                               |   | Common Stock |   |   | paid-in                |   |   | Retained |   |   | currency                                |   |   | stockholders’ |   |   | Comprehensive |   |
|                               |   | Class A      |   |   | Class B                |   |   | capital  |   |   | earnings                                |   |   | translation         |   |   | equity        |   |   | income |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |
|  Balance at December 31, 2009 |   | $            | 24     |   |                   | $      | 100    |     |   | $      | 54,928                                  |   |   | $                   | 19,621 |   |          | $      | 10,354 |   |   | $ | 85,027 |   |   |   |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Net income                         |   |         | -      |   |                   |   | -      |     |   |   | -                                       |   |   |                | 2,427  |   |          |   | - |   |   |   | 2,427 |   |   | $ | 2,427 |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net    |   |         | -      |   |                   |   | -      |     |   |   | -                                       |   |   |                | -      |   |          |   | 651 |   |   |   | 651 |   |   |   | 651 |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of common stock           |   |         | -      |   |                   |   | -      |     |   |   | 54                                      |   |   |                | -      |   |          |   | - |   |   |   | 54 |   |   |   | - |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Cash dividends                     |   |         | -      |   |                   |   | -      |     |   |   | -                                       |   |   |                | (4,640 | )      |          |   | - |   |   |   | (4,640 | ) |   |   | - |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2010      |   | $            | 24     |   |                   | $      | 100    |     |   | $      | 54,982                                  |   |   | $                   | 17,408 |   |          | $      | 11,005 |   |   | $ | 83,519 |   |   |   |   |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   | $ | 3,078 |   |
|                               |   |         |   |   |                   |   |   |     |   |   |                                    |   |   |                |   |   |          |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                  |   | Three months ended |   |   | Nine months ended |   |
|-------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                  |   | September 30,      |   |   | September 30,     |   |
|                                                  |   | 2009               |   |   | 2010              |   |   | 2009 |   |   | 2010 |   |
|                                                  |   | (In thousands)     |   |
| Net sales:                                            |   |               |   |   |              |   |   |   |   |   |   |   |
|   Security Products                         |   | $                  | 16,150 |   |              | $      | 17,723 |   |   | $ | 46,863 |   |   | $ | 51,740 |   |
|   Furniture Components                      |   |               | 11,583 |   |              |   | 16,119 |   |   |   | 35,172 |   |   |   | 44,504 |   |
|   Marine Components                         |   |               | 1,678  |   |              |   | 1,898 |   |   |   | 5,091 |   |   |   |  6,680 |   |
|                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Total net sales               |   | $                  | 29,411 |   |              | $      | 35,740 |   |   | $ | 87,126 |   |   | $ | 102,924 |   |
|                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):                              |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Security Products                         |   | $                  | 3,282  |   |              | $      | 3,680 |   |   | $ | 7,386 |   |   | $ | 10,261 |   |
|   Furniture Components                      |   |               | (1,574 | )      |              |   | 1,630 |   |   |   | (2,575 | ) |   |   | 2,715 |   |
|   Marine Components                         |   |               | (539   | )      |              |   | (393 | ) |   |   | (2,129 | ) |   |   | (840 | ) |
|   Corporate operating expense *             |   |               | (1,328 | )      |              |   | (1,778 | ) |   |   | (4,728 | ) |   |   | (4,323 | ) |
|                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|     Total operating income (loss) |   |               | (159   | )      |              |   | 3,139 |   |   |   | (2,046 | ) |   |   | 7,813 |   |
|                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other non-operating income, net                       |   |               | 8      |   |              |   | 119 |   |   |   | 32 |   |   |   | 221 |   |
| Interest expense                                      |   |               | (230   | )      |              |   | (263 | ) |   |   | (845 | ) |   |   | (683 | ) |
|                                                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   Income (loss) before income taxes         |   | $                  | (381   | )      |              | $      | 2,995 |   |   | $ | (2,859 | ) |   | $ | 7,351 |   |

| * | The corporate operating expense for the nine month period ended September 30, 2009 includes a second quarter write-down of assets held for sale of approximately $717,000.  See Note 9 in our 2009 Annual Report.  The corporate operating expense for the 2010 periods includes a third quarter write-down of assets held for sale of $500,000.  See Note 4. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | December 31, 2009 |   |   | September 30, 2010 |   |
|-----------------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                          |   | (In thousands)         |   |
| Raw materials:                                |   |                   |   |   |                    |   |
|   Security Products                 |   | $                      | 2,037  |   |                    | $      | 2,235 |   |
|   Furniture Components              |   |                   | 1,964  |   |                    |   | 3,196 |   |
|   Marine Components                 |   |                   | 829    |   |                    |   |  993 |   |
|                                          |   |                   |   |   |                    |   |   |   |
|     Total raw materials   |   |                   | 4,830  |   |                    |   | 6,424 |   |
|                                          |   |                   |   |   |                    |   |   |   |
| Work-in-process:                              |   |                   |   |   |                    |   |   |   |
|   Security Products                 |   |                   | 4,917  |   |                    |   | 5,142 |   |
|   Furniture Components              |   |                   | 948    |   |                    |   | 1,303 |   |
|   Marine Components                 |   |                   | 286    |   |                    |   | 321 |   |
|                                          |   |                   |   |   |                    |   |   |   |
|     Total work-in-process |   |                   | 6,151  |   |                    |   | 6,766 |   |
|                                          |   |                   |   |   |                    |   |   |   |
| Finished goods:                               |   |                   |   |   |                    |   |   |   |
|   Security Products                 |   |                   | 1,747  |   |                    |   | 1,567 |   |
|   Furniture Components              |   |                   | 2,601  |   |                    |   | 2,342 |   |
|   Marine Components                 |   |                   | 937    |   |                    |   | 934 |   |
|                                          |   |                   |   |   |                    |   |   |   |
|     Total finished goods  |   |                   | 5,285  |   |                    |   | 4,843 |   |
|                                          |   |                   |   |   |                    |   |   |   |
| Total inventories, net                        |   | $                      | 16,266 |   |                    | $      | 18,033 |   |

----

|                                           |   | December 31, 2009 |   |   | September 30, 2010 |   |
|------------------------------------------------|--------|------------------------|--------|--------|-------------------------|--------|
|                                           |   | (In thousands)         |   |
|                                           |   |                   |   |   |                    |   |
| Accounts payable                               |   | $                      | 4,309  |   |                    | $      | 4,304 |   |
| Accrued liabilities:                           |   |                   |   |   |                    |   |   |   |
|   Employee benefits                  |   |                   | 6,003  |   |                    |   | 7,184 |   |
|   Professional fees                  |   |                   | 1,805  |   |                    |   | 383 |   |
|   Customer tooling                   |   |                   | 761    |   |                    |   | 645 |   |
|   Insurance                          |   |                   | 601    |   |                    |   | 561 |   |
|   Taxes other than on income         |   |                   | 422    |   |                    |   | 648 |   |
|   Other                              |   |                   | 666    |   |                    |   |  855 |   |
|                                           |   |                   |   |   |                    |   |   |   |
| Total accounts payable and accrued liabilities |   | $                      | 14,567 |   |                    | $      | 14,580 |   |

|                      |   | December 31, 2009 |    |   | September 30, 2010 |   |
|---------------------------|--------|------------------------|---------|--------|-------------------------|--------|
|                      |   | (In thousands)         |    |
|                      |   |                   |    |   |                    |   |
| Long-term debt            |   | $                      | -       |   |                    | $      | 5,000 |   |
| Note payable to affiliate |   |                   | 42,230  |   |                    |   | 42,230 |   |
|                      |   |                   |    |   |                    |   |   |   |
| Total debt                |   |                   | 42,230  |   |                    |   | 47,230 |   |
| Less current maturities   |   |                   |  - |   |                    |   | 750 |   |
|                      |   |                   |    |   |                    |   |   |   |
| Total long-term debt      |   | $                      | 42,230  |   |                    | $      | 46,480 |   |

----

|                                                                                             |   | Nine months ended  September 30,    |   |
|--------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------|--------|
|                                                                                             |   | 2009                                                         |   |   | 2010 |   |
|                                                                                             |   | (In thousands)                                               |   |
|                                                                                             |   |                                                         |   |   |   |   |
| Expected tax expense (benefit), at the U.S. federal   statutory income tax rate of 35% |   | $                                                            | (1,001 | ) |   | $ | 2,573 |   |
| Non–U.S. tax rates                                                                         |   |                                                         | 38     |   |   |   | (358 | ) |
| Incremental U.S. tax on earnings of non-U.S. subsidiaries                                        |   |                                                         | (129   | ) |   |   | 2,864 |   |
| Canadian government research and development credit                                              |   |                                                         | (149   | ) |   |   | (23 | ) |
| Domestic production activity deduction                                                           |   |                                                         | (33    | ) |   |   | (323 | ) |
| State income taxes and other, net                                                                |   |                                                         | 71     |   |   |   | 191 |   |
|                                                                                             |   |                                                         |   |   |   |   |   |   |
| Total income tax expense (benefit)                                                               |   | $                                                            | (1,203 | ) |   | $ | 4,924 |   |

----

|                       |   | December 31, |   |   | September 30, |   |
|----------------------------|--------|--------------|--------|--------|---------------|--------|
|                       |   | 2009         |   |   | 2010          |   |
|                       |   | Carrying     |   |   | Fair          |   |   | Carrying |   |   | Fair |   |
|                       |   | amount       |   |   | value         |   |   | amount |   |   | value |   |
|                       |   |         |   |   |          |   |   |   |   |   |   |   |
| Cash and cash equivalents  |   | $            | 20,788 |   |          | $      | 20,788 |   |   | $ | 10,652 |   |   | $ | 10,652 |   |
| Accounts receivable, net   |   |         | 11,690 |   |          |   | 11,690 |   |   |   | 17,570 |   |   |   | 17,570 |   |
| Promissory note receivable |   |         | -      |   |          |   | - |   |   |   | 15,000 |   |   |   | 15,000 |   |
|                       |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable           |   |         | 4,309  |   |          |   | 4,309 |   |   |   | 4,304 |   |   |   | 4,304 |   |
| Long-term debt             |   |         | 42,230 |   |          |   | 42,230 |   |   |   | 46,480 |   |   |   | 46,480 |   |
|                       |   |         |   |   |          |   |   |   |   |   |   |   |   |   |   |   |

----

----

| §   | The positive impact of higher sales in 2010 from an increase in customer order rates across all business segments due to improved economic conditions in North America; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Improved margins in 2010 due to an increase in utilization of production capacity and improved coverage of fixed manufacturing costs from the above noted higher sales; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The positive impact of lower litigation expense in 2010; and |
|--------------------|--------------------------------------------------------------|

| §   | The negative impact of relative changes in foreign currency exchange rates in 2010. |
|--------------------|-------------------------------------------------------------------------------------|

|                                |   | Three months endedSeptember 30, |   |
|-------------------------------------|--------|---------------------------------|--------|
|                                |   | 2009                            |   |   | % |   |   | 2010 |   |   | % |   |
|                                |   | (Dollars in thousands)          |   |
|                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Net sales                           |   | $                               | 29,411 |   |   |   | 100 | % |   | $ | 35,740 |   |   |   | 100 | % |
| Cost of goods sold                  |   |                            | 22,447 |   |   |   | 76 |   |   |   | 26,042 |   |   |   | 73 |   |
|                                |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross margin            |   |                            | 6,964  |   |   |   | 24 |   |   |   | 9,698 |   |   |   | 27 |   |
|                                |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses        |   |                            | 5,597  |   |   |   | 19 |   |   |   | 5,901 |   |   |   | 17 |   |
| Litigation expense                  |   |                            | 1,526  |   |   |   | 5 |   |   |   | 158 |   |   |   | - |   |
| Assets held for sale write-down     |   |                            | -      |   |   |   | - |   |   |   | 500 |   |   |   | 1 |   |
|                                |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating income (loss) |   | $                               | (159   | ) |   |   | - | % |   | $ | 3,139 |   |   |   | 9 | % |

----

|                                |   | Nine months ended September 30, |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | 2009                                 |   |   | % |   |   | 2010 |   |   |  % |   |
|                                |   | (Dollars in thousands)               |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |
| Net sales                           |   | $                                    | 87,126 |   |   |   | 100 | % |   | $ | 102,924 |   |   |   | 100 | % |
| Cost of goods sold                  |   |                                 | 69,141 |   |   |   | 79 |   |   |   | 75,273 |   |   |   | 73 |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross margin            |   |                                 | 17,985 |   |   |   | 21 |   |   |   | 27,651 |   |   |   | 27 |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses   |   |                                 | 16,818 |   |   |   | 19 |   |   |   | 17,239 |   |   |   | 17 |   |
| Litigation expense                  |   |                                 | 2,496  |   |   |   | 3 |   |   |   | 2,100 |   |   |   | 2 |   |
| Assets held for sale write-down     |   |                                 | 717    |   |   |   | 1 |   |   |   | 500 |   |   |   | - |   |
|                                |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating income (loss) |   | $                                    | (2,046 | ) |   |   | (2 | )% |   | $ | 7,812 |   |   |   | 8 | % |

----

| Three months ended September 30, 2010 vs. 2009 (in thousands) |   |
|---------------------------------------------------------------|--------|
|                                                          |   |
|                                                          |   |  Transaction gains/(losses) |   |   | Translation gain/loss-impact of rate |   |   | Total currency |   |
|                                                          |   | 2009 |   |   | 2010 |   |   | Change |   |   | changes |   |   | Impact |   |
| Impact on:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Sales                                                     |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 150 |   |   | $ | 150 |   |
| Operating income                                              |   |   | (175 | ) |   |   | (126 | ) |   |   | 49 |   |   |   | (252 | ) |   |   | (203 | ) |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                          |   |
| Nine months ended September 30, 2010 vs. 2009 (in thousands)  |   |
|                                                          |   |
|                                                          |   |  Transaction gains/(losses) |   |   | Translation gain/loss-impact of rate |   |   | Total currency |   |
|                                                          |   |   | 2009 |   |   |   | 2010 |   |   | Change |   |   | changes |   |   | impact |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impact on:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Sales                                                     |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 893 |   |   | $ | 893 |   |
| Operating income                                              |   |   | (189 | ) |   |   | (59 | ) |   |   | 130 |   |   |   | (1,385 | ) |   |   | (1,255 | ) |

----

|                                                       |   | Three months ended September 30, |   |   |   |   |   | Nine months ended September 30, |   |   |   |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|--------|-------------------------------------------|--------|--------|--------|--------|
|                                                       |   | 2009                                  |   |   | 2010   |   |   | % Change                                  |   |   | 2009   |   |   | 2010 |   |   | % Change |   |
|                                                       |   | (Dollars in thousands)                |   |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net sales:                                                 |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |
|   Security Products                              |   | $                                     | 16,150 |   |   | $      | 17,723 |                                      |   |   | 10     | %      |   | $ | 46,863 |   |   | $ | 51,740 |   |   |   | 10 | % |
|   Furniture Components                           |   |                                  | 11,583 |   |   |   | 16,119 |                                      |   |   | 39     | %      |   |   | 35,172 |   |   |   | 44,504 |   |   |   | 27 | % |
|   Marine Components                              |   |                                  | 1,678  |   |   |   | 1,898  |                                      |   |   | 13     | %      |   |   | 5,091 |   |   |   |  6,680 |   |   |   | 31 | % |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total net sales                    |   | $                                     | 29,411 |   |   | $      | 35,740 |                                      |   |   | 22     | %      |   | $ | 87,126 |   |   | $ | 102,924 |   |   |   | 18 | % |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross margin:                                              |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security Products                              |   | $                                     | 5,240  |   |   | $      | 5,770  |                                      |   |   | 10     | %      |   | $ | 13,515 |   |   | $ | 16,616 |   |   |   | 23 | % |
|   Furniture Components                           |   |                                  | 1,676  |   |   |   | 3,753  |                                      |   |   | 124    | %      |   |   | 4,734 |   |   |   | 10,136 |   |   |   | 114 | % |
|   Marine Components                              |   |                                  | 48     |   |   |   | 175    |                                      |   |   | 265    | %      |   |   | (264 | ) |   |   | 899 |   |   |   | 441 | % |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total gross margin                 |   | $                                     | 6,964  |   |   | $      | 9,698  |                                      |   |   | 39     | %      |   | $ | 17,985 |   |   | $ | 27,651 |   |   |   | 54 | % |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income (loss):                                   |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Security Products                              |   | $                                     | 3,282  |   |   | $      | 3,680  |                                      |   |   | 12     | %      |   | $ | 7,386 |   |   | $ | 10,261 |   |   |   | 39 | % |
|   Furniture Components                           |   |                                  | (1,574 | )      |   |   | 1,630  |                                      |   |   | 204    | %      |   |   | (2,575 | ) |   |   | 2,715 |   |   |   | 205 | % |
|   Marine Components                              |   |                                  | (539   | )      |   |   | (393   | )                                         |   |   | 27     | %      |   |   | (2,129 | ) |   |   | (840 | ) |   |   | 61 | % |
|   Corporate operating expense                    |   |                                  | (1,328 | )      |   |   | (1,778 | )                                         |   |   | (34    | )%     |   |   | (4,728 | ) |   |   | (4,323 | ) |   |   | 9 | % |
|                                                       |   |                                  |   |   |   |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total operating income (loss) |   | $                                     | (159   | )      |   | $      | 3,139  |                                      |   |   |   |   |   | $ | (2,046 | ) |   | $ | 7,813 |   |   |   |   |   |

----

|                                                       |   | Three months ended September 30, |   |   | Nine months ended September 30, |   |
|------------------------------------------------------------|--------|---------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                       |   | 2009                                  |   |   | 2010                                      |   |   | 2009 |   |   | 2010 |   |
| Gross margin as a percentage of net sales:                 |   |                                  |   |   |                                      |   |   |   |   |   |   |   |
| Security Products                                          |   |                                  | 32     | %      |                                      |   | 33 | % |   |   | 29 | % |   |   | 32 | % |
| Furniture Components                                       |   |                                  | 14     | %      |                                      |   | 23 | % |   |   | 13 | % |   |   | 23 | % |
| Marine Components                                          |   |                                  | 3      | %      |                                      |   | 9 | % |   |   | (5 | )% |   |   | 13 | % |
|                                                       |   |                                  |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|     Total gross margin            |   |                                  | 24     | %      |                                      |   | 27 | % |   |   | 21 | % |   |   | 27 | % |
|                                                       |   |                                  |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating income margin:                                   |   |                                  |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
| Security Products                                          |   |                                  | 20     | %      |                                      |   | 21 | % |   |   | 16 | % |   |   | 20 | % |
| Furniture Components                                       |   |                                  | (14    | )%     |                                      |   | 10 | % |   |   | (7 | )% |   |   | 6 | % |
| Marine Components                                          |   |                                  | (32    | )%     |                                      |   | (21 | )% |   |   | (42 | )% |   |   | (13 | )% |
|                                                       |   |                                  |   |   |                                      |   |   |   |   |   |   |   |   |   |   |   |
|     Total operating income margin |   |                                  | (1     | )%     |                                      |   | 9 | % |   |   | (2 | )% |   |   | 8 | % |

----

----

| ·   | Higher operating income in the first nine months of 2010 of $9.9 million; |
|--------------------|---------------------------------------------------------------------------|

| ·   | Lower net cash of $14.1 million in 2010 from relative changes in our inventories, receivables, payables and non-tax related accruals primarily due to the impact of the increase in sales on accounts receivable and inventories; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Reduced cash paid for income taxes in the first nine months of 2010 of approximately $1.9 million due to the timing of tax payments and refunds. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|                             | December 31, | September 30, | December 31, | September 30 |
|----------------------------------|--------------|---------------|--------------|--------------|
| Days Sales Outstanding:          | 2008         | 2009          | 2009         | 2010         |
|                             |         |          |         |         |
|   Security Products    | 39 Days      | 43 Days       | 34 Days      | 42 Days      |
|   Furniture Components | 43 Days      | 47 Days       | 40 Days      | 50 Days      |
|   Marine Components    | 43 Days      | 29 Days       | 33 Days      | 29 Days      |
|   Consolidated CompX   | 41 Days      | 43 Days       | 37 Days      | 45 Days      |

|                             | December 31,   | September 30, | December 31,  | September 30,  |
|----------------------------------|----------------|---------------|---------------|----------------|
| Days in Inventory:               | 2008           | 2009          | 2009          | 2010           |
|                             |           |          |          |           |
|   Security Products    |  77 Days  |  75 Days |  77 Days |  68 Days  |
|   Furniture Components |  53 Days  |  54 Days |  44 Days |  50 Days  |
|   Marine Components    |  180 Days | 135 Days      | 109 Days      |  119 Days |
|   Consolidated CompX   |  70 Days  |  70 Days |  64 Days |  63 Days  |

----

----

| ·   | 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 marine components, |
|--------------------|------------------------------------------------|

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

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

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

| ·   | 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 future acquisitions, |
|--------------------|------------------------------------------------------------|

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

| ·   | Uncertainties associated with the development of new product features, |
|--------------------|------------------------------------------------------------------------|

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

| ·   | Current and future litigation, |
|--------------------|--------------------------------|

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

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

----

----

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

| ITEM 1A. | Risk Factors. |
|----------|---------------|

| ITEM 6. | Exhibits |
|---------|----------|

|   | Item No. | Exhibit Index |
|--------|----------|---------------|
|   |     |          |
|   | 31.1*    | Certification |
|   |     |          |
|   | 31.2*    | Certification |
|   |     |          |
|   | 32.1*    | Certification |

----

----