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:      November 30, 1997


[  ]     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 December 31, 1997,  the
issuer had  1,950,717  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>


                          AMERICAN METALS SERVICE, INC.
                                  BALANCE SHEET
                                   (Unaudited)

<CAPTION>

                                                               November 30,
                                                                  1997
                                                             ($000 Omitted)
                                                            ----------------
<S>                                                             <C>
ASSETS

    Current assets:
        Cash and cash equivalents, including
          U.S. treasury bills of $2,024,000                      $2,118
                                                                 ------
               Total current assets                              $2,118
                                                                 ======


LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities:
        Accounts payable and accrued liabilities                 $    4
                                                                 ------
               Total current liabilities                              4
                                                                 ------

    Stockholders' equity:
        Common stock, $.01 par value, 6,000,000
           shares authorized, 1,950,860
           shares outstanding                                        20
        Additional capital in excess of par value                 3,054
        Accumulated deficit                                     (   960)
                                                                 ------

               Total stockholders' equity                         2,114
                                                                 ------
               Total liabilities and stockholders'
                  equity                                         $2,118
                                                                 ======

</TABLE>


                 See accompanying note to financial statements.





<PAGE>


<TABLE>



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



<CAPTION>

                                                         For the three months
                                                          ended November 30,
                                                        ---------------------
                                                         1997          1996
                                                        ------       -------
                                                            ($000 Omitted,
                                                        Except Per Share Data)


<S>                                                     <C>          <C>
Interest income                                         $   27       $   26

General and administrative expenses                         16           22
                                                        ------       ------

Income before income taxes                                  11            4

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

Net income                                              $   11       $    4
                                                        ======       ======

Net income per common share                             $  .01       $    -
                                                        ======       ======

Weighted average number of shares
    outstanding (in 000's)                               1,951        1,959
                                                        ======       ======



</TABLE>



                 See accompanying note to financial statements.



<PAGE>



<TABLE>


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


                                                           For the three months
                                                            ended November 30,
                                                          ----------------------
                                                           1997           1996
                                                          -------        -------
                                                              ($000 Omitted)

<S>                                                       <C>            <C>
Cash flows from operating activities:
    Net cash provided by
      operating activities                                $    7        $    4
                                                          ------        ------

Net increase in cash and cash
    equivalents                                                7             4
Cash and cash equivalents at beginning
    of the period                                          2,111         2,090
                                                          ------        ------
Cash and cash equivalents at end of
    the period                                            $2,118        $2,094
                                                          ======        ======

Reconciliation of net income 
  to net cash provided by 
  operating activities:
    Net income                                            $   11        $    4
        Adjustments to reconcile net income
               to net cash provided by
               operating activities:
        Change in accounts payable
           and accrued liabilities                       (     4)            -
                                                          ------        ------
    Net cash provided by operating
        activities                                        $    7        $    4
                                                          ======        ======


</TABLE>


                 See accompanying note to financial statements.



<PAGE>




                          AMERICAN METALS SERVICE, INC.

                          NOTE TO FINANCIAL STATEMENTS

                                   (Unaudited)



     The accompanying unaudited financial statements of American Metals Service,
Inc. (the "Company") as of November 30, 1997 and for the quarters ended November
30, 1997 and 1996  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 quarter ended  November 30, 1997 are not
necessarily  indicative of the results to be expected for the entire fiscal year
or for any other period.




<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 November 30, 1997, was  approximately  $27,000 compared to
$26,000 in the comparable quarter of the prior fiscal year.

     General  and  administrative  expenses  were  $16,000  and  $22,000 for the
quarters ended November 30, 1997 and 1996, respectively. The decrease in general
and administrative expenses of $6,000 was due to expenses incurred in the search
for  an  operating  business  in  the  prior  fiscal  year  and a  reduction  in
professional  fees.  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
expense for the three month periods ended November 30, 1997 and 1996 consists of
stockholder, insurance and other miscellaneous expenses.


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

     At November 30, 1997,  cash and cash  equivalents  and net working  capital
were approximately $2,118,000 and $2,114,000,  respectively. U.S. Treasury bills
of  approximately  $2,024,000  mature at various dates through February 12, 1998
and bear  interest  rates ranging from 5.04% to 5.30%.  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 November  30, 1997 is
approximately $1.08 per share.



<PAGE>



PART II - OTHER INFORMATION

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

        (a)       Exhibits

           (27).    Financial Data Schedule for the three months ended
                    November 30, 1997.

        (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: January 13, 1998                          By:/s/ Mark Koscinski
                                                    ----------------------------
                                                    Mark Koscinski
                                                    Vice President and Secretary