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, 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 December 31, 1998,  the
issuer  had  1,966,748  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)


                                                            November 30,
                                                               1998    
                                                            ------------
                                                           ($000 Omitted)
<S>                                                            <C>
ASSETS

    Current assets:
        Cash and cash equivalents, including
          U.S. treasury bills of $2,037,000                    $2,158
                                                               ------
               Total current assets                            $2,158
                                                               ======


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, 1,966,767 outstanding                20
        Additional capital in excess of par value               3,067
        Accumulated deficit                                   (   933)
                                                               ------

               Total stockholders' equity                       2,154
                                                               ------
               Total liabilities and stockholders'
                  equity                                       $2,158
                                                               ======


                 See accompanying note to financial statements.

                                          
</TABLE>

<PAGE>
<TABLE>
<CAPTION>



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



                                                       For the three months 
                                                        ended November 30,    
                                                        1998         1997  
                                                       ------       ------
                                                          ($000 Omitted,
                                                       Except Per Share Data)

<S>                                                     <C>          <C>                                     
          
Interest income                                         $   25       $   27

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

Income before income taxes                                   9           11

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

Net income                                              $    9       $   11
                                                        ======       ======

Basic and diluted net income per share                  $  .01       $  .01
                                                        ======       ======

Weighted average number of shares
    outstanding (in 000's)                               1,969        1,951
                                                        ======       ======




                 See accompanying note to financial statements.

</TABLE>



<PAGE>
<TABLE>
<CAPTION>


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



                                                  For the three months ended
                                                       November 30, 1998                 
                                                  ---------------------------
                                                     1998             1997   
                                                    ------           ------
                                                        ($000 Omitted)

<S>                                               <C>              <C>  
Cash flows from operating activities:
        Net cash provided by
           operating activities                    $   10           $    7

Cash flows from financing activities:
        Purchase of common stock                  (     3)               -
                                                   ------           ------

Net increase in cash and cash
    equivalents                                         7                7
Cash and cash equivalents at beginning
    of the period                                   2,151            2,111
                                                   ------           ------
Cash and cash equivalents at end of
    the period                                     $2,158           $2,118
                                                   ======           ======


Reconciliation of net income to net
 cash provided by operating activities:
    Net income                                     $    9           $   11
        Adjustments to reconcile net income
               to net cash provided by
               operating activities:
        Change in accounts payable
             and accrued liabilities                    1          (     4)
                                                   ------           ------
    Net cash provided by operating
        activities                                 $   10           $    7
                                                   ======           ======



                 See accompanying note 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 November 30, 1998 and for the three months
ended November 30, 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, 1998,
as filed with the Securities and Exchange Commission.

        The results of operations  for the three months ended  November 30, 1998
and 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 quarters ended November 30, 1998 and 1997, was approximately $25,000 and
$ 27,000  respectively.  This  decrease was due to lower  interest  rates on the
Company's U.S. Treasury Securities.

        For the three  months  ended  November  30,  1998 and 1997,  general and
administrative expenses were $16,000. 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  quarters  ended  November  30,  1998 and 1997
consist of stockholder, insurance and other miscellaneous expenses.


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

        At November 30, 1998, cash and cash  equivalents and net working capital
were  approximately  $2,158,000  and  $2,154,000,  respectively.  U.S.  Treasury
Securities of approximately  $2,037,000 mature at various dates through February
11,  1999 and bear  interest  rates  ranging  from  3.96% to  4.92%.  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, 1998 is approximately $1.10 per share.



<PAGE>



Year 2000 Matters
-----------------

        The Year 2000 Issue is the result of  computer  programs  being  written
using two digits  rather  than four to define the  applicable  year.  Any of the
Company's  computer programs that have time- sensitive  software may recognize a
date using  "00" as the year 1900  rather  than the year  2000.  Miscalculations
could  cause  disruptions  of  operations,  including,  among  other  things,  a
temporary inability to process transactions or engage in similar normal business
activities.

        Management  has  determined  that  the  Year  2000  Issue  will not pose
significant  operational problems for its internal computer systems. The Company
uses "off the shelf" accounting  software to maintain its accounting system. All
of these  software  applications  are already Year 2000  compliant.  The cost of
being Year 2000 compliant was nominal. All costs associated with this conversion
have been expensed as incurred.




<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, 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: January 14, 1999                           By:/s/ Mark Koscinski        
                                                  ------------------------------
                                                  Mark Koscinski
                                                  Vice President and Secretary
                                                  (Principal Accounting Officer)