FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

         For the quarterly period ended:      February 28, 1998


[  ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

                          Commission File No.: 0-10093


                          AMERICAN METALS SERVICE, INC.
       (Exact name of small business issuer as specified in its charter)


         Florida                                                59-1224913
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)


           376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
              (Address of principal executive offices) (Zip Code)


                                 (908) 234-0078
                           (Issuer's telephone number)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing requirements for the past 90 days.

                          Yes   X       No _____

     State the number of shares  outstanding of each of the issuer's  classes of
common equity as of the latest  practicable  date: As of February 28, 1998,  the
issuer had  1,970,210  shares of its common  stock,  par value $.01,  per share,
outstanding.

     Transitional Small Business Disclosure Format (check one):
                          Yes            No   X



<PAGE>




PART I  -  FINANCIAL INFORMATION
------     ---------------------

Item 1. -  Financial Statements
-------    --------------------

<TABLE>
<CAPTION>



                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)


                                                           February 28,
                                                               1998
                                                          --------------
                                                          ($000 Omitted)

ASSETS
------
     <S>                                                     <C>
     Current assets:
       Cash and cash equivalents, including
         U.S. treasury bills of $2,029,000                    $2,145
                                                              ------
          Total current assets                                $2,145
                                                              ======


LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

     Current liabilities:
       Accounts payable and accrued liabilities               $    5
                                                              ------
          Total current liabilities                                5
                                                              ------

     Stockholders' equity:
       Common stock, $.01 par value, 6,000,000
         shares authorized, 1,970,210
         shares outstanding                                       20
       Additional capital in excess of par value               3,070
       Accumulated deficit                                   (   950)
                                                              ------

          Total stockholders' equity                           2,140
                                                              ------
          Total liabilities and stockholders'
            equity                                            $2,145
                                                              ======



                 See accompanying notes to financial statements.


</TABLE>
                                                               


<PAGE>

<TABLE>
<CAPTION>

                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)



                                                        For the three months
                                                          ended February 28,
                                                          1998         1997
                                                        --------     --------
                                                            ($000 Omitted,
                                                        Except Per Share Data)


<S>                                                     <C>          <C>
Interest income                                         $   26       $   25

General and administrative expenses                         16            7
                                                        ------       ------

Income before income taxes                                  10           18

Provision for income taxes                                   -            -
                                                        ------       ------
Net income                                              $   10       $   18
                                                        ======       ======

Basic and diluted net income per share                  $  .01       $  .01
                                                        ======       ======
Weighted average number of shares
    outstanding (in 000's)                               1,957        1,959
                                                        ======       ======




                 See accompanying notes to financial statements.


</TABLE>

                                                               




<PAGE>

<TABLE>
<CAPTION>


                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF OPERATIONS
                                   (Unaudited)



                                                      For the six months ended
                                                             February 28,
                                                      ------------------------
                                                        1998            1997
                                                      --------        --------
                                                            ($000 Omitted,
                                                        Except Per Share Data)

<S>                                                   <C>            <C>
Revenues:

    Interest                                          $   53         $   50
    Other income                                           -              1
                                                      ------         ------
                                                          53             51

General and administrative expenses                       32             28
                                                      ------         ------

Income before income taxes                                21             23

Provision for income taxes                                 -              -
                                                      ------         ------

Net income                                            $   21         $   23
                                                      ======         ======

Basic and diluted income per share                    $  .01         $  .01
                                                      ======         ======
Weighted average number of shares
    outstanding (in 000's)                             1,957          1,959
                                                      ======         ======




                 See accompanying notes to financial statements.


</TABLE>

                                                              



<PAGE>


<TABLE>
<CAPTION>

                          AMERICAN METALS SERVICE, INC.
                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)


                                                         For the six months
                                                          ended February 28,
                                                       -----------------------
                                                         1998           1997
                                                       --------       --------
                                                           ($000 Omitted)
<S>                                                    <C>            <C>
Cash flows from operating activities:
     Net cash provided by
       operating activities                             $   18         $   14

Cash flows from financing activities:
     Issuance of common stock upon
       exercise of stock options                            16              -
                                                        ------         ------
Net increase in cash and cash
  equivalents                                               34             14
Cash and cash equivalents at beginning
  of the period                                          2,111          2,090
                                                        ------         ------
Cash and cash equivalents at end of
  the period                                            $2,145         $2,104
                                                        ======         ======

Reconciliation of net income 
  to net cash provided by operating activities:
     Net income                                         $   21         $   23
       Adjustments to reconcile net income
         to net cash provided by
         operating activities:
       Change in accounts payable
         and accrued liabilities                       (     3)       (     9)
                                                        ------         ------     
Net cash provided by operating
       activities                                       $   18         $   14
                                                        ======         ======



                 See accompanying notes to financial statements.


</TABLE>


<PAGE>



                          AMERICAN METALS SERVICE, INC.

                          NOTE TO FINANCIAL STATEMENTS

                                   (Unaudited)


1.   Basis of Presentation
     ---------------------

     The accompanying unaudited financial statements of American Metals Service,
Inc. (the "Company") as of February 28, 1998 and for the quarters ended February
28, 1998 and 1997  reflect all  material  adjustments  which,  in the opinion of
management,  are  necessary for a fair  presentation  of results for the interim
periods.  Certain information and footnote  disclosures required under generally
accepted  accounting  principles have been condensed or omitted  pursuant to the
rules and  regulations of the Securities and Exchange  Commission,  although the
Company  believes  that the  disclosures  are  adequate to make the  information
presented  not  misleading.   These  financial  statements  should  be  read  in
conjunction with the year-end financial statements and notes thereto included in
the  Company's  Annual Report on Form 10-KSB for the year ended August 31, 1997,
as filed with the Securities and Exchange Commission.

     The  results  of  operations  for the  three and six  month  periods  ended
February 28, 1998 are not  necessarily  indicative of the results to be expected
for the entire fiscal year or for any other period.


2.   Income Per Share
     ----------------

     Income (loss) per common share is calculated in accordance  with  Statement
of Financial  Accounting Standards No. 128 "Earnings Per Share" ("SFAS No. 128")
and is based on the  weighted  average  number  of shares  outstanding.  Diluted
earnings  per share  includes the assumed  conversion  of shares  issuable  upon
exercise  of  options  where  appropriate.   Prior  years'  earnings  per  share
information has been restated to comply with the requirements of SFAS No. 128.




<PAGE>


Item 2. -  Management's Discussion and Analysis or Plan of
           -----------------------------------------------
           Operations
           ----------


Results of Operations
---------------------

     Until the fourth  quarter of fiscal  1992,  the  Company was engaged in the
wholesale distribution of aluminum alloys, steel and other specialty metals. The
Company has liquidated the assets of its former business and is actively seeking
an acquisition with the goal of becoming an operating  company.  In the interim,
available cash is being invested in U.S.  Treasury  securities.  Interest income
for the quarter ended February 28, 1998, was approximately $26,000,  compared to
$25,000 in the  comparable  quarter of the prior fiscal year.  For the six month
period ended February 28, 1998,  interest income was $53,000 compared to $50,000
for the  comparable  period of the prior fiscal  year.  The increase in interest
income during the current  fiscal year compared to the prior fiscal year was due
to higher available  interest rates and invested  balances on the Company's cash
equivalents. Collections of previously written-off accounts receivable of $1,000
accounted for the other income in the six month period ended February 28, 1997.

     General  and  administrative  expenses  were  $16,000  and  $7,000  for the
quarters ended February 28, 1998 and 1997, respectively, and $32,000 and $28,000
for the six month periods ended  February 28, 1998 and 1997,  respectively.  The
increase in general and administrative  expenses was due to expenses incurred in
the search for an  operating  business in the current  fiscal year. A management
fee of $12,500 per  quarter is paid to an  affiliated  company  for  accounting,
financial and  administrative  management.  This fee is based on the affiliate's
estimated  costs,  and  management   believes  that  the  allocation  method  is
reasonable.  The remaining general and administrative expenses for the six month
periods ended February 28, 1998 and 1997 consist of  stockholder,  insurance and
other miscellaneous expenses.


Liquidity and Capital Resources
-------------------------------

     At February 28, 1998,  cash and cash  equivalents  and net working  capital
were  approximately  $2,145,000  and  $2,140,000,  respectively.  U.S.  Treasury
securities of approximately  $2,029,000  mature at various dates through May 14,
1998 and bear interest  rates ranging from 5.00% to 5.29%.  Management  believes
the Company's cash and cash equivalents and net working capital are adequate for
its remaining business activities and for the costs of seeking an acquisition of
an operating business. The net book value of the Company at February 28, 1998 is
approximately $1.09 per share.


<PAGE>


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

Item 6. -  Exhibits and Reports on Form 8-K
------     --------------------------------

        (a)    Exhibits
               --------

           (27).    Financial Data Schedule for the six months ended
                    February 28, 1998.


        (b)    Reports on Form 8-K
               -------------------

               No reports on Form 8-K were filed during the quarter for which
               this Form 10-QSB is filed.





<PAGE>




                                    SIGNATURE



     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.


                                                AMERICAN METALS SERVICE, INC.




Dated: April 13, 1998                            By: /s/ Mark Koscinski
                                                    ----------------------------
                                                    Mark Koscinski
                                                    Vice President and Secretary