SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                 ---------------

                                    FORM 10-Q

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

                                 ---------------


For the quarter ended March 31, 1998               Commission File No. 0-16452
                      --------------                                   -------

                          A. P. GREEN INDUSTRIES, INC.
                          ----------------------------
             (Exact name of registrant as specified in its charter)


          Delaware                                        43-0899374
          --------                                        ----------
(State or other jurisdiction of                         (I.R.S. Employer
incorporation or organization)                          Identification No.)

  Green Boulevard, Mexico, Missouri                          65265
  ---------------------------------                          -----
(Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code:  (573) 473-3626

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 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
                                      ---   ---
Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of the latest  practicable  date: As of May 14, 1998,  8,070,515
shares of Common Stock, $1 par value, were outstanding.







                                  Page 1 of 22


<PAGE>


A. P. GREEN INDUSTRIES, INC.

PART I.    FINANCIAL INFORMATION

Item 1.    FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

                                                       March 31,   December 31,
                                                         1998          1997
                                                       ---------   -----------
(Dollars in thousands, except per share data)

ASSETS

  Current Assets
    Cash and cash equivalents                           $  3,576     $  3,701
    Receivables (net of allowances -
      1998, $1,509;  1997, $1,448)                        44,519       48,761
    Inventories                                           57,155       53,705
    Deferred income tax asset                              2,255        2,574
    Other                                                  6,000        6,624
                                                         -------      -------
      Total current assets                               113,505      115,365

  Property, plant and equipment, net                     107,073      107,622
  Projected insurance recovery on asbestos claims        154,778      116,314
  Pension assets                                           9,393        9,251
  Intangible assets, net                                   4,108        4,173
  Other assets                                             4,844        4,989
                                                         -------      -------
Total assets                                            $393,701     $357,714
                                                         =======      =======


LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
    Accounts payable                                    $ 17,735     $ 19,879
    Accrued expenses
      Payrolls                                             6,009        6,867
      Taxes other than on income                           2,155        2,145
      Insurance reserves                                   3,627        4,008
      Other                                                5,855        7,381
    Current maturities of long-term debt                   6,006        5,716
    Income taxes                                           1,105          801
                                                         -------      -------
      Total current liabilities                           42,492       46,797

  Deferred income taxes                                    6,799        7,199
  Long-term non-pension benefits                          17,810       17,652
  Long-term pensions                                      11,731       11,615
  Long-term debt                                          31,953       31,034
  Projected asbestos claims                              154,778      116,314
                                                         -------      -------
      Total liabilities                                  265,563      230,611
                                                         -------      -------
  Minority Interests                                       3,403        2,568

  Stockholders' Equity
    Preferred stock - $1 par value;
      authorized:  2,000,000 shares;
      issued and outstanding:  none                            -            -
    Common stock - $1 par value;
      authorized: 10,000,000 shares;
      issued:  9,024,449 in 1998
      and 9,014,599 in 1997                                9,024        9,015
    Additional paid-in capital                            68,587       68,504
    Retained earnings                                     67,599       67,285
    Less: Deferred foreign currency translation           (4,145)      (3,939)
          Treasury stock of 953,934 shares in 1998
             and 1997, at cost                            (9,498)      (9,498)
          Note receivable-ESOT                            (6,323)      (6,323)
          Minimum pension liability adjustment, 
             net of tax                                     (509)        (509)
                                                         -------      -------
      Total stockholders' equity                         124,735      124,535
                                                         -------      -------
Total liabilities and stockholders' equity              $393,701     $357,714
                                                         =======      =======

See accompanying notes to consolidated financial statements.


                                       -2-
<PAGE>

A. P. GREEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)




                                                    Three months ended March 31,
                                                    ----------------------------
(Dollars in thousands, except per share data)           1998           1997
                                                    ------------   -------------
Net sales                                            $   65,762     $   64,816

Cost of sales                                            54,152         54,014
                                                      ---------      ---------
     Gross profit                                        11,610         10,802

Expenses and other income

    Selling & administrative expenses                     9,966          9,222
  
    Interest expense                                        682            834

    Interest income                                        (233)          (247)

    Minority interest in income (loss) of 
        partnerships                                       (226)             4

    Other (income) expense, net                             248            (66)
                                                      ---------      ---------
       Earnings before income taxes                       1,173          1,055

Income tax expense                                          523            358

Equity in net income of affiliates                          (66)           (15)

Minority interest in income of 
    consolidated subsidiaries                                80             69
                                                      ---------      ---------
    Net earnings                                     $      636     $      643
                                                      =========      =========
Net earnings per common share - basic                $     0.08     $     0.08
                                                      =========      =========
Weighted average number of common shares - basic      8,068,563      8,023,220
                                                      =========      =========
Net earnings per common share - diluted              $     0.07     $     0.08
                                                      =========      =========
Weighted average number of common shares - diluted    8,547,241      8,171,034
                                                      =========      =========
Dividends per common share                           $     0.04     $     0.04
                                                      =========      =========

See accompanying notes to consolidated financial statements.


                                       -3-
<PAGE>

A. P. GREEN INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


                                                    Three months ended March 31,
                                                    ----------------------------
(Dollars in thousands)                                  1998           1997
                                                    ------------   -------------
Cash flows from operating activities

  Net earnings                                         $   636        $   643

  Adjustments for items not requiring 
    (providing) cash
    Depreciation, depletion and amortization             3,002          2,999
    Stock compensation to directors                         51             29
    Provision for losses on accounts receivable             34            195
    Loss (gain) on sale of assets                          308            (58)
    Equity in earnings of affiliates,
      net of dividends received                            (66)           (15)
    Minority interest in income (losses) of 
      consolidated subsidiaries and partnerships          (146)            73
  Decrease (increase) in assets
    Trade receivables                                    4,208         (1,058)
    Asbestos claim and fee reimbursements received       5,070          5,236
    Inventories                                         (3,450)        (2,639)
    Receivable and prepaid taxes                            32             45
    Other current assets                                   593             (6)

  Increase (decrease) in liabilities
    Accounts payable and accrued expenses               (4,899)          (447)
    Asbestos claims paid                                (5,070)        (3,607)
    Pensions                                               116            277
    Income taxes                                           304            (65)
    Deferred income taxes                                  (82)          (246)
    Long-term non-pension benefits                         158            249
                                                        ------         ------ 
  Net cash provided by operating activities                799          1,605
                                                        ------         ------ 
Cash flows from investing activities

  Capital expenditures                                  (2,657)        (1,589)
  Decrease (increase) in other long-term assets            100            (24)
  Increase in pension assets                              (142)           (17)
  Proceeds from sales of assets                             72            106
                                                        ------         ------ 
  Net cash used in investing activities                 (2,627)        (1,524)
                                                        ------         ------ 
Cash flows from financing activities

  Repayments of debt                                    (1,512)        (6,100)
  Proceeds from borrowings                               2,721              -
  Exercised stock options                                   42              -
  Dividends paid                                          (323)          (321)
  Capital contributions from minority partner              980            490
  Tax benefit on dividends paid to ESOT                      -              7
                                                        ------         ------ 
  Net cash provided by (used in) financing activities    1,908         (5,924)
                                                        ------         ------ 
Effect of exchange rate changes                           (205)          (311)
                                                        ------         ------ 
Net decrease in cash and cash equivalents                 (125)        (6,154)
Cash and cash equivalents at beginning of year           3,701          9,477
                                                        ------         ------ 
Cash and cash equivalents at end of period             $ 3,576        $ 3,323
                                                        ======         ======
See accompanying notes to consolidated financial statements.


                                       -4-
<PAGE>

A. P. GREEN INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.       MANAGEMENT'S COMMENTS REGARDING ADJUSTMENTS AND RESULTS OF OPERATIONS
         ---------------------------------------------------------------------

         In the opinion of management,  the accompanying  consolidated financial
         statements  include all  adjustments  of a normal and recurring  nature
         necessary for a fair presentation of the financial position and results
         of operations for the periods  presented.  These  financial  statements
         should be read in conjunction  with the Company's Annual Report on Form
         10- K for the year ended December 31, 1997. The results for the quarter
         ended  March 31,  1998 are not  necessarily  indicative  of the results
         which may occur for the full year. Certain prior year amounts have been
         reclassified to conform to the 1998 presentation.

2.       RESERVES FOR PLANT CLOSINGS
         ---------------------------

         The Company  has  reserves  for  estimated  exit costs and  termination
         benefits in connection  with the shutdown of certain  facilities in the
         U.S. and Canada.  Three of the plants acquired in the 1994  acquisition
         of the  refractories  assets of General  Refractories  Company  and its
         affiliated  companies (General) were closed during 1994, a $3.6 million
         reserve  for  which  was  established  at the time of  acquisition  and
         included on the opening  balance  sheet.  During 1995 this  reserve was
         increased by  approximately  $700,000 due to the closing of the Weston,
         Ontario plant,  which was sold in December 1995, and revised  estimates
         of U. S. employee termination benefits resulting from the sale of these
         facilities taking longer than anticipated.  Substantially all employees
         at these facilities have been terminated and approximately $3.2 million
         of  termination  benefits  and plant  closing  costs have been  charged
         against the  reserves  to date.  Two of the U.S.  facilities  were sold
         during  1997  and the  third  is held  for  sale at its  estimated  net
         realizable value.

3.       EARNINGS PER SHARE
         ------------------

         The following is a  reconciliation  of shares  outstanding  used in the
         computation  of basic  and  diluted  earnings  per  share for the three
         months       ended       March       31,       1998      and      1997:
         -----------------------------------------------------------------------
                                                       1998           1997
         -----------------------------------------------------------------------

         Weighted average number of
           common shares - basic                     8,068,563      8,023,220
         Effect of dilutive securities
           Employee stock options                      470,303        147,814
           Other                                         8,375              -
         -----------------------------------------------------------------------
         Weighted average number of
           common shares - diluted                   8,547,241      8,171,034
         =======================================================================



                                       -5-

<PAGE>



         Net  earnings  used in both  earnings per share  calculations  were the
         same,  as there  would be no income  effects  related  to the  dilutive
         securities.  Options to purchase  184,500  shares and 30,000  shares at
         $9.17 and $9.32 per share,  respectively,  were excluded from the March
         31, 1997 diluted  earnings  per share  computation  as their  inclusion
         would have been  antidilutive.  Options to  purchase  82,500  shares at
         $6.17 per share were not  included  in the  computation  of the diluted
         earnings  per  share for March  31,  1997 as the  options  were not yet
         exercisable  under the terms of the February 1993 option  grant.  These
         options became  exercisable  during the fourth quarter of 1997 when the
         last  transaction  price  of the  Company's  common  stock  equaled  or
         exceeded $11.00 for 30 consecutive  trading days. In addition,  options
         to purchase  120,428  shares at $8.75 per share were  excluded from the
         March 31, 1997 diluted earnings per share  computation as they were not
         exercisable  under the terms of the  February  1997 option  grant until
         August 1997.

4.       INVENTORIES
         -----------
                                             March 31, 1998   December 31, 1997
                                             --------------   -----------------

         Finished goods & work-in-process 
           Valued at LIFO:
             FIFO cost                           $33,925           $31,621
             Less LIFO reserve                   (13,991)          (13,947)
                                                  ------            ------    
                  LIFO cost                       19,934            17,674
         Valued at FIFO                           12,159            10,683
                                                  ------            ------    
         TOTAL                                    32,093            28,357
                                                  ------            ------    
         Raw materials and supplies
           Valued at LIFO:
             FIFO cost                            18,226            18,408
             Less LIFO reserve                    (5,476)           (5,698)
                                                  ------            ------    
                  LIFO cost                       12,750            12,710
         Valued at FIFO                           12,312            12,638
                                                  ------            ------    
         TOTAL                                    25,062            25,348
                                                  ------            ------
                                                 $57,155           $53,705
                                                  ======            ======







                                       -6-

<PAGE>



5.       LITIGATION
         ----------

         Asbestos-related claims - Personal Injury
         -----------------------------------------

         A. P. Green is among  numerous  defendants  in  lawsuits  pending as of
         March 31,  1998 that seek to recover  compensatory  and, in many cases,
         punitive damages for personal injury allegedly  resulting from exposure
         to asbestos-containing products.

         A. P.  Green is a member  of the  Center  for  Claims  Resolution  (the
         Center),  an  organization  of  twenty  companies  (Members)  who  were
         formerly distributors or manufacturers of asbestos-containing products.
         The Center administers, evaluates, settles, pays and defends all of the
         asbestos-related  personal injury lawsuits involving its Members. Under
         the  terms  of the  Center  Agreement,  each  Member's  portion  of the
         liability  payments  and  defense  costs are based  upon,  among  other
         things, the numbers and types of claims brought against it.

Claims  activity for the Company for each of the years ended  December 31, 1997,
1996 and 1995, based upon information provided by the Center, was as follows:
--------------------------------------------------------------------------------
                                          1997           1996           1995
--------------------------------------------------------------------------------

Claims pending at January 1              58,885         48,367         50,920
Claims filed                             24,024         29,702         12,560
Cases settled, dismissed or
   otherwise resolved                   (10,709)       (19,184)       (15,113)
                                        -------        -------        -------
   Claims pending at December 31         72,200         58,885         48,367
                                        =======        =======        =======
Average settlement amount per claim(1)  $ 1,611        $ 1,582        $ 1,778
================================================================================
(1)Substantially all settlements are covered by the Company's insurance program.

         On January 15, 1993,  the Members were named as  defendants  in a class
         action  lawsuit  brought  on  behalf  of  all  persons  who  have  been
         occupationally exposed to  asbestos-containing  products of the Members
         and who have  unasserted  claims for such exposure (the Class) pursuant
         to Federal  Rule of Civil  Procedure  23(b)(3) in the Federal  District
         Court for the Eastern  District of  Pennsylvania.  At the same time,  a
         settlement (the Settlement) between the Members and the Class was filed
         with the  Court.  On June 25,  1997,  after a  favorable  ruling in the
         Federal  District Court for the Eastern  District of Pennsylvania and a
         reversal of that  ruling by the Third  Circuit  Court of  Appeals,  the
         United States Supreme Court upheld the ruling of the Third Circuit. The
         result  of such  ruling  is  that  the  class  action  lawsuit  and the
         Settlement are of no effect.

                                       -7-

<PAGE>



         As the  Settlement  established a numerical cap on the number of claims
         that  could  be  processed  each  year  during  the  ten  years  of the
         Settlement and because the Settlement  provided for a range of payments
         for  different  disease  categories,  it was  possible to estimate  the
         aggregate  amount of liability for the Company through 2004 and related
         insurance  recoveries.  Without  the  Settlement  the  Company can only
         estimate the liability and related insurance recoveries associated with
         known claims.  As such,  the amounts  reported for  projected  asbestos
         claims and projected  insurance recovery on asbestos claims as of March
         31, 1998 and  December 31, 1997 reflect only those claims known to have
         been  filed as of that  date.  In order to  arrive  at these  projected
         amounts,   the  Company  also  reviewed  its  insurance   policies  and
         historical  settlement  amounts.  This  resulted in an increase in both
         projected asbestos claims and projected  insurance recovery on asbestos
         claims of $43.5 million during the first quarter of 1998.  There was no
         effect on the consolidated earnings of the Company.  These balances are
         expected to  fluctuate  from quarter to quarter as claims are filed and
         settled.  The volume of claims  settled  by the  Center on a  quarterly
         basis  can  vary  considerably.   The  projected  asbestos  claims  and
         projected  insurance recovery on asbestos claims are reduced each month
         by  claim  payments  made  directly  to the  Center  by  the  Company's
         insurance carriers, which totaled $5.1 million during the first quarter
         of 1998.

         Management  anticipates that the Company's insurance carriers will make
         all required  payments for these claims.  While management  understands
         the inherent uncertainty in litigation of this type and the possibility
         that past costs may not be indicative of future costs,  management does
         not  believe  that  these  claims  and cases  will have any  additional
         material  adverse  effect  on  the  Company's   consolidated  financial
         position or results of operations.

         In  December  1996,  the  Company  and a former  subsidiary,  The E. J.
         Bartells Company, reached a comprehensive settlement agreement with all
         insurance  carriers  except  one.  Under the  terms of this  settlement
         agreement,  such  carriers  have agreed to pay  (subject to  applicable
         policy  limits) on behalf of the insureds,  liabilities  arising out of
         asbestos personal injury claims.  The Company is pursuing its claim for
         coverage against the non-settling carrier.

         In addition to asbestos-related personal injury claims asserted against
         A.  P.  Green,   a  number  of  claims  have  been   asserted   against
         Bigelow-Liptak Corporation (now known as A. P. Green Services, Inc.), a
         subsidiary  of the Company.  These  claims have been and are  currently
         being handled by several of such subsidiary's  insurance  carriers.  On
         January  29,  1998,  Great  American  Insurance  Company  and  American
         National Fire Insurance Company, two of such carriers,  filed a lawsuit
         in the United States  District Court for the Southern  District of Ohio
         against  certain  of such  subsidiary's  insurance  carriers  and  such
         subsidiary seeking (1) a determination of the rights and obligations of
         all of the parties under such policies and (2) contribution for amounts
         of indemnity costs previously paid. While it is not possible to predict
         the outcome of such suit, management believes that such

                                       -8-

<PAGE>



         subsidiary  will prevail in its position  that all of such carriers are
         obligated  to pay (subject to  applicable  policy  limits)  liabilities
         arising  out of  asbestos  personal  injury  claims  on  behalf  of the
         insured.

         Asbestos-related Claims - Property Damage
         -----------------------------------------

         A. P.  Green is also among  numerous  defendants  in a property  damage
         class action suit pending in South Carolina. A. P. Green previously has
         been dismissed from a number of property damage cases and believes that
         it should be dismissed  from the South  Carolina  case based on the end
         uses of its  products.  A similar  suit  pending in the State of Oregon
         involves a former  wholly owned  subsidiary of the Company and is being
         defended by the Company's  insurance carrier.  Based upon the Company's
         history in these  asbestos-related  property damage claims,  management
         does not believe that the  ultimate  resolution  of these  matters will
         have a material adverse effect on the Company's  consolidated financial
         position or results of operations.

         Environmental
         -------------

         The EPA or other  private  parties have named the Company or one of its
         subsidiaries as a potentially  responsible party in connection with two
         superfund sites in the United States. The Company is a de minimis party
         with  respect to one of the sites and expects to arrive at a settlement
         agreement and consent  decree with respect to it for an amount which is
         not  expected to be material.  With respect to the second,  involving a
         wholly owned subsidiary of the Company, there does not appear to be any
         evidence  of  delivery  to  the  site  of  hazardous  material  by  the
         subsidiary.  An  estimate  has been made of the costs to be incurred in
         these matters and the Company has recorded a reserve  respecting  those
         costs.

         Tender Offer
         ------------

         On March 6, 1998,  a lawsuit  was filed in the Court of Chancery in the
         State of  Delaware  seeking  to  enjoin  the  tender  offer  by  Global
         Industrial  Technologies,  Inc.  (Global) and BGN Acquisition  Corp. to
         purchase all outstanding shares of the Company's common stock. See Note
         7 for further discussion of the tender offer and lawsuit.

         Other
         -----

         From time to time, A. P. Green is subject to claims and other  lawsuits
         that arise in the ordinary  course of business,  some of which may seek
         damages in substantial  amounts,  including  punitive or  extraordinary
         damages.  Reserves  for these  claims and  lawsuits are recorded to the
         extent  that  losses  are deemed  probable  and are  estimable.  In the
         opinion  of  management,  the  disposition  of all  current  claims and
         lawsuits will not have a material  adverse  effect on the  consolidated
         financial position or results of operations of A. P. Green.

                                       -9-

<PAGE>



6.       COMPREHENSIVE INCOME
         --------------------

         Total  comprehensive  income for the three  months ended March 31, 1998
         and 1997 was $430,000 and  $332,000,  respectively.  In addition to net
         income,  comprehensive  income for 1998 and 1997 included  $206,000 and
         $311,000,  respectively,  of foreign currency translation  adjustments.
         The Company also maintains a minimum pension liability  adjustment as a
         component of stockholders'  equity, the balance of which did not change
         during the first quarter of 1998 or 1997.

7.       PENDING ACQUISITION OF THE COMPANY
         ----------------------------------

         On March 3, 1998,  the Company  entered into an  Agreement  and Plan of
         Merger with Global  Industrial  Technologies,  Inc. and BGN Acquisition
         Corp.  The Agreement and Plan of Merger calls for,  among other things,
         Global to purchase  for cash all  outstanding  shares of the Company at
         $22.00 per share, or approximately $195.0 million,  plus the assumption
         of $23.0 million of net debt. The  transaction,  which will be effected
         by means of a tender offer, followed by a merger, if required, has been
         approved by the Boards of Directors of both companies  and,  subject to
         regulatory  approval,  is  expected to be  completed  during the second
         quarter of 1998. Global is a manufacturer of  technologically  advanced
         industrial  products that support high-growth markets around the world.
         Its  subsidiary,  Harbison-Walker  Refractories  Company,  operates  15
         refractory  plants in five  countries,  including  the  United  States,
         Canada, Mexico, Chile and Germany.

         On March 6, 1998, a lawsuit was filed against the Company,  Global, BGN
         Acquisition  Corp.  and the  directors  of the  Company in the Court of
         Chancery  in the State of Delaware  seeking to enjoin the tender  offer
         and alleging,  among other things, that the stockholders of the Company
         are not receiving fair and adequate consideration for their shares. The
         Company  has  entered  into an  agreement  in  principle  to settle the
         lawsuit whereby, subject to the negotiation and execution of definitive
         agreements,  including mutually  acceptable  releases,  (i) the Company
         mailed  to  the  stockholders  of  the  Company  on  March  24,  1998 a
         supplemental  disclosure statement on Schedule 14D-9 containing certain
         additional  financial  information and projections and (ii) Global will
         reimburse  the  plaintiff  in  the  lawsuit  for  attorneys'  fees  and
         expenses,  as  awarded  by the  Court,  up to an  aggregate  amount  of
         $180,000. The lawsuit and/or settlement thereof is not expected to have
         any impact on the  transactions  contemplated by the Agreement and Plan
         of Merger.


                                      -10-

<PAGE>



A. P. GREEN INDUSTRIES, INC.

PART I. FINANCIAL INFORMATION

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
          FINANCIAL CONDITION

RESULTS OF OPERATIONS
---------------------

         Total sales  increased 1.5% to $65.8 million for the three months ended
         March 31, 1998 from $64.8 million for the comparable  1997  three-month
         period. Gross profit increased 7.5% to $11.6 million from $10.8 million
         for the comparable periods.

         Refractory Products and Services
         --------------------------------

         Refractory  products  and  services  sales  declined  slightly to $53.1
         million  for the  three-month  period  ended  March 31, 1998 from $53.5
         million for the three-month  period ended March 31, 1997. United States
         refractory  sales declined 2.9% to $44.2 million from $45.5 million for
         the comparable  three-month  periods.  Declines in brick,  specialties,
         INTOGREEN  products and precast shapes volumes were partially offset by
         increases in ceramic  fiber and Lanxide  ThermoComposites,  Inc.  (LTI)
         products for a net volume decline of 10.8%. Prices increased an average
         of 3.9% across all product lines except specialties.  U.S. export sales
         declined  8.8% to $4.0  million  from $4.4  million,  primarily  due to
         reduced sales to the Far East as a result of the economic  difficulties
         being experienced in that region.

         Sales of the Canadian  subsidiary  increased  21.5% to $6.5 million for
         the three  months  ended  March 31,  1998  from  $5.4  million  for the
         comparable 1997 period. Increases in brick and specialties volumes were
         partially  offset by decreases in ceramic  fiber,  crucible and precast
         shape volumes,  resulting in an overall volume increase of 9.2%.  Price
         increases for specialties  and ceramic fibers were partially  offset by
         price reductions for brick,  crucibles and pre-cast shapes resulting in
         an overall price increase of 2.4%.

         Gross profit at the Canadian  subsidiary  declined 28.4% primarily as a
         result  of  lower   production   volumes  causing  reduced   production
         efficiencies. This lower gross profit was offset by reduced selling and
         administrative expenses, resulting in a pre-tax loss of $35,000 for the
         first quarter of 1998 compared to $74,000 in 1997.

         Sales in the United  Kingdom  increased  13.2% to $2.5  million for the
         three months ended March 31, 1998 from $2.2 million for the  comparable
         1997 quarter.  The sales increase  contributed  to pre-tax  earnings of
         $67,000 for the first  quarter of 1998  compared  to a pre-tax  loss of
         $31,000 in the comparable 1997 period.


                                      -11-

<PAGE>

         Sales at A. P. Green de Mexico for the first quarter of 1998  decreased
         4.9% to $2.3 million from $2.4 million for the comparable  1997 period.
         Reduced raw material, freight and royalty costs and improved production
         efficiencies  resulted in an improvement in the gross profit percentage
         to 31.7%  from  22.4%,  which  contributed  to an  increase  in pre-tax
         earnings to $258,000 from $218,000.

         Sales at PT AP Green  Indonesia were up 51.7% to $179,000 for the first
         quarter of 1998  compared to $118,000 for the  comparable  1997 period.
         The pre-tax  loss of $417,000  for 1998  compared to $238,000 for 1997,
         reflecting  higher  administrative  costs  as a  percentage  of  sales,
         increased financing costs and higher currency translation costs in 1998
         compared to 1997.  Utilizing  the U.S.  dollar as its  primary  trading
         currency  has  limited  the  currency   translation   exposure  of  the
         Indonesian  subsidiary.   However,  the  significant  deterioration  of
         economic  conditions  in Indonesia and the Far East region has resulted
         in sales growth being slower than  planned,  extending  the time period
         anticipated for the operation to achieve profitability.

         Refractory  cost of sales as a  percentage  of sales  declined to 82.5%
         from  83.6%  for the  three  months  ended  March  31,  1998 and  1997,
         respectively.  This reduction was primarily due to reduced raw material
         and workers'  compensation costs and improved production  efficiencies,
         partially offset by higher group health insurance expenses.  Refractory
         operating  profits  improved  6.7% to $2.0 million from $1.9 million in
         1998  and  1997,  respectively,  primarily  due  to  the  gross  profit
         improvement.

         Industrial Lime
         ---------------

         Industrial  lime sales  increased  11.7% to $12.8 million for the first
         quarter  of 1998 from  $11.4  million  for the first  quarter  of 1997.
         Volumes  at the New  Braunfels,  Texas  plant  increased  an average of
         10.1%, with increases in road stabilization and building lime partially
         offset with reduced volume of industrial lime.  Prices were 1.1% higher
         at New  Braunfels  for the  comparable  quarters,  with an  increase in
         industrial  lime prices and flat  pricing for building  lime  partially
         offset with  reduced  road  stabilization  prices.  At the  Kimballton,
         Virginia plant a decline in quicklime volume was partially offset by an
         improvement in Cal-Dol  volume,  while hydrate  volumes were unchanged,
         for an overall  decline of 0.9%.  Average  selling prices were flat for
         the  comparable  periods  at  the  Kimballton  plant.   Volume  at  the
         Ripplemead plant increased 36.5%, with the largest increase coming from
         quicklime, while prices increased an average of 2.7% across all product
         lines.

         Industrial  lime gross profit was $2.3 million for the first quarter of
         1998  compared  to $2.0  million  for the  first  quarter  of 1997,  an
         increase of 12.5%, with the gross profit percentage increasing slightly
         to 18.0% of sales in 1998 from 17.9% of sales in 1997.  The improvement
         in gross profit percentage was due to improved production  efficiencies
         and reduced workers'  compensation  expense at the New Braunfels plant.
         Operating  profit  increased to $1.9  million in 1998  compared to $1.8
         million in 1997 as a result of the improvement in gross profit,

                                      -12-

<PAGE>

         partially  offset by  professional  fees  associated with Palmetto Lime
         which did not qualify for capitalization.

         Expenses and Other Income
         -------------------------

         Selling and administrative expenses increased 8.1% to $10.0 million for
         the  three-month  period ended March 31, 1998 from $9.2 million for the
         comparable  1997 period.  The increase was  primarily  due to a general
         increase in salary levels and increased  professional  fees, travel and
         group insurance costs,  partially offset by reductions in the provision
         for losses on accounts receivable and LTI research expenditures.

         Interest  expense  decreased 18.3% to $682,000 in 1998 from $834,000 in
         1997,  primarily due to a reduction in the debt outstanding  associated
         with the General  acquisition.  Daily average bank line borrowings were
         approximately  $3.5 million during the first quarter of 1998,  compared
         to $4.2 million during the first quarter of 1997.  Interest  income for
         the first  quarter of 1998 was  $233,000  compared to $247,000  for the
         first quarter of 1997. The reduction was due primarily to reduced funds
         available for investing. Other expense of $248,000 for the three months
         ended  March 31,  1998  compared  to other  income of  $66,000  for the
         comparable  1997 period,  primarily  due to  acquisition  due diligence
         expenditures and costs associated with the pending sale of the Company.

         The Company and its Canadian and U.K.  subsidiaries  typically transact
         business in their own  currencies  and  accordingly  are not subject to
         significant  currency  transaction  gains and  losses.  A. P.  Green de
         Mexico  and PT AP Green  Indonesia  transact a  significant  portion of
         their  business in U.S.  dollars and, as such,  use the dollar as their
         functional  currency.  This  results in currency  conversion  gains and
         losses  on  Mexican  peso and  Indonesian  rupiah  transactions,  A. P.
         Green's  portion  of  which  was not  significant  to the  consolidated
         results.  The decline in value of the Indonesian rupiah is not expected
         to  significantly   increase  the  Indonesian   subsidiary's   currency
         exposure.

         Income Taxes
         ------------

         The  effective  tax rate for the three  months ended March 31, 1998 was
         44.5% compared to 33.9% for the comparable 1997 period. The increase in
         the  effective  tax  rate  was  due  primarily  to  establishment  of a
         valuation   allowance  for  part  of  the  1996  net   operating   loss
         carryforward  from  Indonesia  due  to  a  relatively  short  five-year
         carryforward  period. Also contributing to the higher effective rate in
         1998 were non-deductible  travel and entertainment  expenses which were
         higher  during the first  quarter of 1998 than in the  comparable  1997
         period.





                                      -13-

<PAGE>



         Equity in Net Income of Affiliates
         ----------------------------------

         The  Company's  share of income from its two Colombian  affiliates  was
         $66,000 in the first  quarter of 1998 compared to $15,000 for the first
         quarter of 1997. The income  recorded  during the first quarter of 1997
         does not include  adjustments  necessary  to  translate  the  Colombian
         financial statements to U.S. accounting principles and, as such, is not
         comparable to the income recorded during the first quarter of 1998. Had
         the full year  adjustment  for  1997,  which  could  not be  reasonably
         estimated or recorded until December 1997,  been recorded evenly during
         1997,  the  Company's  share of  Colombian  earnings  during  the first
         quarter of 1997 would have been approximately $85,000.

         Accounting Standards Not Yet Implemented
         ----------------------------------------

         In June 1997 the Financial  Accounting Standards Board issued Statement
         No.  131,  "Disclosures  about  Segments of an  Enterprise  and Related
         Information,"  which the Company is required to implement  for the year
         ended December 31, 1998.  Although the implementation of this statement
         is not  required  for  interim  periods  and will have no impact on the
         financial  results of the Company,  it is  assessing  the impact on the
         disclosures provided in the annual report.

         Forward-Looking Information
         ---------------------------

         The  statements  contained  in  Management's  Discussion  and  Analysis
         concerning  the Company's  future  revenues,  profitability,  financial
         resources,  product  mix,  market  demand and product  development  are
         forward-looking  statements made pursuant to the safe harbor provisions
         of the Private Securities  Litigation Reform Act of 1995. The Company's
         actual results in the future may differ materially from those projected
         in the  forward-looking  statements due to risks and uncertainties that
         exist in the Company's operations and business  environment  including,
         but not limited to: delivery delays or defaults by customers;  domestic
         and  international  market  conditions;  performance  issues  with  key
         suppliers  and  contractors;  the  Company's  successful  execution  of
         internal operating plans; and collective bargaining labor disputes.

                                      -14-

<PAGE>



                                INDUSTRY SEGMENTS
                                 (In thousands)

                                                   Three Months Ended March 31,
                                                   ----------------------------
                                                       1998            1997
                                                       ----            ----
Net Sales

Refractory products and services                    $  53,072        $  53,497
Industrial lime                                        12,760           11,429
Intersegment eliminations                                 (70)            (110)
                                                    ---------        ---------
                                                    $  65,762        $  64,816
                                                    =========        =========
Gross Profit

Refractory products and services                    $   9,312        $   8,759
Industrial lime                                         2,298            2,043
                                                    ---------        ---------
                                                    $  11,610        $  10,802
                                                    =========        =========
Gross Profit Percentage

Refractory products and services                         17.5%            16.4%
Industrial lime                                          18.0%            17.9%

                                                         17.7%            16.7%
                                                    =========        =========
Operating Profit

Refractory products and services                    $   2,044        $   2,039
Industrial lime                                         1,872            1,766
                                                    ---------        ---------
                                                        3,916            3,681
                                                    ---------        ---------
Other Charges to Income

General corporate expenses, net                         2,294            2,039
Interest expense                                          682              834
Interest income                                          (233)            (247)
                                                    ---------        ---------
  Total other charges                                   2,743            2,626
                                                    ---------        ---------
Earnings Before Income Taxes                        $   1,173        $   1,055
                                                    =========        =========

Identifiable Assets (at period end)

Refractory products and services                    $ 327,172        $ 292,461
Industrial lime                                        61,223           59,021
Corporate                                               5,306            4,484
                                                    ---------        ---------
                                                    $ 393,701        $ 355,966
                                                    =========        =========

                                      -15-

<PAGE>


                                                   Three Months Ended March 31,
                                                   ----------------------------
                                                       1998            1997
                                                       ----            ----
Depreciation, Depletion and Amortization

Refractory products and services                     $1,823          $1,770
Industrial lime                                       1,026           1,074
Corporate                                               153             155
                                                     ------          ------
                                                     $3,002          $2,999
                                                     ======          ======

Capital Expenditures

Refractory products and services                     $1,388          $1,116
Industrial lime                                       1,224             347
Corporate                                                45             126
                                                     ------          ------
                                                     $2,657          $1,589
                                                     ======          ======



                               GEOGRAPHIC SEGMENTS
                                 (In thousands)

                                                   Three Months Ended March 31,
                                                   ----------------------------
                                                       1998            1997
                                                       ----            ----
Net Sales

United States                                       $ 56,915        $ 56,939
Canada                                                 6,530           5,375
United Kingdom                                         2,501           2,210
Mexico                                                 2,286           2,404
Far East                                                 179             118
Intersegment transfers (primarily U.S.)               (2,649)         (2,230)
                                                    --------        --------
                                                    $ 65,762        $ 64,816
                                                    ========        ========
Earnings (Loss) Before Income Taxes

United States                                       $  1,300        $  1,180
Canada                                                   (35)            (74)
United Kingdom                                            67             (31)
Mexico                                                   258             218
Far East                                                (417)           (238)
                                                    --------        --------
                                                    $  1,173        $  1,055
                                                    ========        ========


                                      -16-

<PAGE>


                                                   Three Months Ended March 31,
                                                   ----------------------------
                                                       1998            1997
                                                       ----            ----
Identifiable Assets (at period end)

United States                                       $348,266        $315,349
Canada                                                17,254          16,961
United Kingdom                                         4,487           4,694
Mexico                                                 6,440           6,949
Far East                                              11,948           7,346
Corporate                                              5,306           4,667
                                                    --------        --------
                                                    $393,701        $355,966
                                                    ========        ========





                              PRICE/VOLUME SUMMARY
                            1998 AS COMPARED TO 1997
                           PERCENT INCREASE (DECREASE)

                                                            Three
                                                            Months
                                                            Ended
                                                        March 31, 1998
                                                        --------------

         U. S. Refractory Products Sales

           Volume                                           (10.8)%

           Price                                              3.9

         Industrial Lime Sales

           Volume                                            10.4

           Price                                              1.1


                                      -17-

<PAGE>



         FINANCIAL CONDITION
         -------------------

         The Company continues to maintain a strong balance sheet.

                               Summary Information
                             (Dollars in thousands)

                                          March 31,                 
                                ----------------------------        December 31,
                                  1998                1997              1997
                                --------            --------          --------

         Working capital        $ 71,013            $ 69,591          $ 68,568

         Current ratio             2.7:1               2.6:1             2.5:1

         Total assets           $393,701            $355,966          $357,714

         Current maturities of
          long-term debt           6,006               4,145             5,716

         Long-term debt           31,953              34,736            31,034

         Stockholders' equity   $124,735            $117,758          $124,535

         Debt to total
          capitalization(1)        23.3%               24.8%             22.8%

         (1)  Calculated  as  total  Debt  (long-term  debt  including   current
              maturities) divided by total stockholders' equity plus total Debt.

         Working capital  increased $2.4 million from December 31, 1997 to March
         31,  1998,  while the ratio of current  assets to  current  liabilities
         increased to 2.7 to 1 from 2.5 to 1 during the same period. The working
         capital  increase  was  primarily  due to a $3.5  million  increase  in
         inventories and a $3.6 million  reduction in accounts payable and other
         accrued  expenses,  partially  offset by a $4.2  million  reduction  in
         accounts  receivable  as a  result  of lower  sales  in  March  1998 as
         compared to December 1997.  Working  capital  increased $1.4 million as
         compared to March 31, 1997, primarily due to a $3.9 million decrease in
         accounts payable and other accrued expenses, partially offset by a $1.9
         million increase in current maturities of long-term debt.

         The  increase  in  inventories  during  the first  quarter  of 1998 was
         primarily due to market conditions being slower than anticipated in the
         U.S. and Canada, as well as an increase in raw materials inventories in
         the U.K.  as a result of  favorable  pricing.  The  decline in accounts
         payable and other accrued  expenses  since  December 31, 1997 and March
         31,

                                      -18-

<PAGE>



         1997 was primarily  due to reduced  purchases of materials and supplies
         and reductions in stockholder  reporting and similar reserves  required
         as a public company but which will no longer be required  subsequent to
         the  pending  acquisition  of the  Company.  The  increase  in  current
         maturities of long-term  debt since March 31, 1997 was primarily due to
         a $2.5 million  reclassification  from  long-term  debt for a scheduled
         increase  in the  payment due  against  the  unsecured  notes  payable,
         partially  offset by a $1.0  million  final  payment  on an  industrial
         development  revenue bond at the  Bessemer,  Alabama  plant in December
         1997.

         Projected asbestos claims and projected  insurance recovery on asbestos
         claims both  increased  $38.5 million since December 31, 1997 and $36.4
         million  since  March 31, 1997 as a result of revised  estimates  based
         upon  information  provided by the Center,  net of payments made by the
         Company's insurance  carriers.  All payments of asbestos claims are now
         and will  continue to be made  directly to the Center by the  insurance
         carriers.

         Capital expenditures for the first quarter of 1998 totaled $2.7 million
         compared to $1.6 million during the first quarter of 1997, with capital
         expenditures for the industrial lime business increasing  approximately
         $900,000 due to breaking  ground on the new Palmetto  Lime  facility in
         Charleston, South Carolina.

         PENDING ACQUISITION OF THE COMPANY
         ----------------------------------

         On March 3, 1998,  the Company  entered into an  Agreement  and Plan of
         Merger with Global  Industrial  Technologies,  Inc. and BGN Acquisition
         Corp.  The Agreement and Plan of Merger calls for,  among other things,
         Global to purchase  for cash all  outstanding  shares of the Company at
         $22.00 per share, or approximately $195.0 million,  plus the assumption
         of $23.0 million of net debt. The  transaction,  which will be effected
         by means of a tender offer, followed by a merger, if required, has been
         approved by the Boards of Directors of both companies  and,  subject to
         regulatory  approval,  is  expected to be  completed  during the second
         quarter of 1998. Global is a manufacturer of  technologically  advanced
         industrial  products that support high-growth markets around the world.
         Its  subsidiary,  Harbison-Walker  Refractories  Company,  operates  15
         refractory  plants in five  countries,  including  the  United  States,
         Canada, Mexico, Chile and Germany.

         On March 6, 1998, a lawsuit was filed against the Company,  Global, BGN
         Acquisition  Corp.  and the  directors  of the  Company in the Court of
         Chancery  in the State of Delaware  seeking to enjoin the tender  offer
         and alleging,  among other things, that the stockholders of the Company
         are not receiving fair and adequate consideration for their shares. The
         Company  has  entered  into an  agreement  in  principle  to settle the
         lawsuit whereby, subject to the negotiation and execution of definitive
         agreements,  including mutually  acceptable  releases,  (i) the Company
         mailed  to  the  stockholders  of  the  Company  on  March  24,  1998 a
         supplemental  disclosure statement on Schedule 14D-9 containing certain
         additional  financial  information and projections and (ii) Global will
         reimburse  the  plaintiff  in  the  lawsuit  for  attorneys'  fees  and
         expenses, as awarded by the Court, up to an aggregate amount of

                                      -19-

<PAGE>



         $180,000. The lawsuit and/or settlement thereof is not expected to have
         any impact on the  transactions  contemplated by the Agreement and Plan
         of Merger.




                                      -20-

<PAGE>



A. P. GREEN INDUSTRIES, INC.

PART II. OTHER INFORMATION


Item 6.      EXHIBITS AND REPORTS ON FORM 8-K
             --------------------------------

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

             Exhibit No.
             -----------

             27   Financial  Data  Schedule as of and for the Three Months Ended
                  March 31, 1998

       (b)   Reports on Form 8-K: On January 6, 1998 the Company  filed Form 8-K
             to report,  under Item 5,a dividend  distribution  of one Preferred
             Stock Purchase Right for each outstanding  share of common stock of
             the  Company,  payable  to  shareholders  of record at the close of
             business on January 7, 1998.

             On March 17, 1998 the Company filed Form 8-K to report,  under Item
             5, that it had entered  into an  Agreement  and Plan of Merger with
             Global Industrial Technologies, Inc. and BGN Acquisition Corp.





                                      -21-

<PAGE>


                                    SIGNATURE
                                    ---------

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                 A. P. Green Industries, Inc.
                                                        (Registrant)


                                                 By: /s/ Gary L. Roberts
                                                     -------------------
                                                         Gary L. Roberts

                                                 Vice President, Chief Financial
                                                 Officer and Treasurer


Date:  May 13, 1998
       ------------

























                                      -22-

<PAGE>