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 by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  [   ]      No  [X] 

Indicate the number of shares outstanding of the issuer's Common Stock as of November 7, 2003:    1,193,771    

PART I    --    FINANCIAL INFORMATION 

The condensed financial statements included herein have been prepared by the Registrant without audit, pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in the financial statements, prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures are adequate to make the information presented not misleading.  It is suggested that these condensed financial statements be read in connection with the financial statements and the notes thereto included in the Registrant's latest annual report on Form 10-K.  This report reflects all adjustments of a normal recurring nature that are, in the opinion of management, necessary for a fair statement of the results for the interim period. 

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

The following is Management's discussion and analysis of the significant factors that have affected the results and financial condition reflected in the Registrant's accompanying Consolidated Condensed Financial Statements. 

Safe Harbor For Forward-Looking Statements  --  This Management's Discussion and Analysis of Operating Results and Financial Condition contains certain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact.  All statements regarding future performance, growth, sales and earnings projections, conditions, or developments are forward-looking statements.  Words such as "anticipates," "believes," "intends," "expects," "may," "will," "should," "could," "plans," "forecasts," "estimates," "predicts," "projects," "potential," "continue," "outlook," and similar expressions may be intended to identify forward-looking statements. 

Actual future results may differ materially from those described in the forward-looking statements due to a variety of factors, including the fact that the economy generally, and the dairy farm equipment, industrial equipment and field-fabrication markets specifically, are all currently subject to uncertainty, making it difficult to determine if past experience is a good guide to the future.  A downturn in the Registrant's business segments could adversely affect the Registrant's revenues and results of operations.  Other factors affecting forward-looking statements, some of which are identified in the discussion relating to such forward-looking statements, include, but are not limited to, the following: specific economic conditions in the food, dairy, beverage, chemical, pharmaceutical, biotechnological, and other process industries, and the dairy farm equipment market and the impact of such conditions on the Registrant's customers in such markets; the cyclical nature of some of the Registrant's markets; milk prices, feed costs, weather conditions, dairy farm consolidation, and other factors affecting the profitability of dairy farmers; the price of stainless steel; the highly competitive nature of the markets for the Registrant's products, as well as pricing pressures that may result from such competitive conditions; business relationships with major customers and suppliers; the continued operation and viability of the Registrant's major customers; the Registrant's execution of internal performance plans; difficulties or delays in manufacturing; cost-reduction and productivity efforts; competing technologies and difficulties in entering new markets, both domestic and foreign; changes in product mix; future levels of indebtedness and capital spending; claims, including, without limitation, warranty claims, product liability claims, charges or dispute resolutions; ability of suppliers to provide materials as needed and the Registrant's ability to recover any price increases for mate rials and product pricing; the Registrant's ability to attract and retain key technical and other personnel; labor relations; the failure of customers to make timely payment; any inadequacy of the Registrant's intellectual property protection or the potential for third-party claims of infringement; global economic factors, including currency exchange rates; general economic conditions, including interest rates, the rate of inflation, and commercial and consumer confidence; energy prices; governmental laws and regulations affecting domestic and foreign operations, including tax obligations; changes in accounting standards; worldwide political stability; the effects of terrorist activities and resulting political or economic instability, including U.S. military action overseas; and the effect of acquisitions, divestitures, restructurings, product withdrawals, and other unusual events. 

The Registrant cautions the reader that these lists of cautionary statements and risk factors may not be exhaustive.  The Registrant expressly disclaims any obligation or undertaking to release publicly any updates or changes to these forward-looking statements that may be made to reflect any future events or circumstances. 

Although sales were lower during the third quarter of 2003 compared to the third quarter of 2002, net income was slightly higher. Net income for the three months ended September 30, 2003, was $1,017,000 compared to net income of $1,010,000 for the three-month period ended September 30, 2002. 

Net sales for the third quarter of 2003 were $6,960,000 lower than the third quarter of 2002, as sales were lower in all segments. The most significant variance occurred in the Field Fabrication segment, where sales were $5,521,000 lower during the third quarter of 2003 compared to the third quarter of 2002. The decrease in sales was due to a backlog that was 94% lower at June 30, 2003, compared to June 30, 2002, and a significant decrease in order entry year-to-date through September 30, 2003 compared to the same period for 2002. Industrial Equipment sales were $2,016,000 less for the third quarter of 2003 compared to the third quarter of 2002. The Industrial Equipment segment backlog was 11% lower at June 30, 2003, compared to June 30, 2002, and was the primary reason for the decrease in sales. Dairy Farm Equipment sales were $616,000 less during the third quarter of 2003 compared to the third quarter of 2002, as the Dairy Farm Equipment backlog at June 30, 2003, was 46% l ower than the backlog at June 30, 2002. Also, the overall decline in sales for the Dairy Farm Equipment segment occurred in the domestic market, as weak milk prices, particularly during the first half of 2003, contributed to lower order entry during the first nine months of 2003 compared to the comparable period of 2002.

The gross profit rate for the third quarter of 2003 was 23.6% compared to a gross profit rate of 18.2% for the third quarter of 2002.  The improvement in the gross profit rate was principally due to a higher gross margin rate (which is a measure of the variable profit margin) and lower net manufacturing burden. Net manufacturing burden expense was lower for the third quarter of 2003, as burden was being absorbed due to the high production level, versus the third quarter of 2002, when the sales volume exceeded the level of production and inventory was reduced. Additionally, during the first nine months of 2002, over 100 new production employees were added to the Springfield facility to handle the workload due to the significant increase in the backlog. Approximately 50 of those employees were added during the third quarter of 2002, and this increased manufacturing burden expense for the third quarter of 2002, as a significant investment was incurred to obtain a sufficient numbe r of employees and to provide them with adequate training. The gross profit rate during the third quarter of 2003 was adversely affected by an increase to the LIFO reserve that was due to the higher stainless steel prices experienced during 2003. The effect of the LIFO provision was to increase cost of sales by $300,000 when comparing the third quarter results of 2003 to the third quarter results of 2002.

Selling, general, and administrative expenses were higher by $404,000 for the three months ended September 30, 2003, versus the three months ended September 30, 2002.  Higher expense levels were recorded for personnel costs, insurance, legal fees, depreciation, and potential uncollectible accounts.

Other income was lower for the third quarter of 2003 compared to the third quarter of 2002, as an increased level of borrowing led to higher interest expense and lower interest income; and miscellaneous income was higher during the third quarter of 2002 compared to the third quarter of 2003.

On a segment basis, income before tax for the third quarter of 2003 for the Industrial Equipment segment was $1,010,000 versus a loss before tax of $436,000 recorded for the third quarter of 2002. Performance improved in spite of lower sales due to an improvement in the gross margin rate and a reduction in net manufacturing burden for the reason discussed above. Sales and the gross margin rate were both higher for the BioPharm product line during the third quarter of 2003 compared to the third quarter of 2002; and this contributed favorably to the overall profitability for the segment. Overall, the other product lines within the segment experienced a decline in sales during the 2003 third quarter versus the 2002 third quarter.

Income before tax for the Dairy Farm Equipment segment was $360,000 for the third quarter of 2003 compared to income before tax of $1,012,000 for the third quarter of 2002. The reduced performance was due to lower sales, coupled with a lower gross margin rate. Also, net manufacturing burden expense was greater for the third quarter of 2003 compared to the third quarter of 2002 due to the lower production and sales level, which resulted in fewer units to absorb the fixed costs. The lower sales level and production activity were due to the decrease in order entry and a decrease in backlog mentioned above.

The Field Fabrication segment incurred a loss of $235,000 before tax for the third quarter of 2003 compared to income before tax of $747,000 for the third quarter of 2002. The variance in results was due to significantly lower sales during the third quarter of 2003 compared to the third quarter of 2002, as the backlog at June 30, 2003, was 94% lower than the backlog at June 30, 2002.

The effective tax rate for the three months ended September 30, 2003, was 31.5% versus 38.1% for the three months ended September 30, 2002. The effective tax rate varied from the statutory tax rate (34%) for 2003 principally as a result of tax credits. The effective tax rate varied from the statutory tax rate for 2002 primarily as a result of the effect of state income taxes and the nondeductible portion of meals and entertainment expenses.

For the nine months ended September 30, 2003, net income was $2,719,000 compared to a net loss for the nine months ended September 30, 2002, of $328,000. The primary factor contributing to the improved performance was higher sales for 2003 compared to 2002.

Sales for the nine months ended September 30, 2003, were $9,469,000 greater than sales for the nine months ended September 30, 2002. The increase occurred solely within the Industrial Equipment segment, as sales declined for both the Dairy Farm Equipment and Field Fabrication segments. Sales for the Industrial Equipment segment were $15,040,000 higher for the first nine months of 2003 compared to the first nine months of 2002. The increase in sales was solely attributable to the BioPharm product line, as all other product lines within the Industrial Equipment segment had lower sales for 2003 compared to 2002 for the comparable period. The improvement in sales was due to a backlog that was 89% greater at December 31, 2002, versus December 31, 2001; and the increase in the backlog was attributable to the BioPharm product line. Sales for the Dairy Farm Equipment segment declined by $4,218,000 when comparing the first nine months of 2003 to the first nine months of 2002. The reduced leve l of sales was attributable to a beginning backlog for 2003, which was $1,954,000 less than the backlog at the beginning of 2002, coupled with a significantly lower level of order entry for the first nine months of 2003 versus the first nine months of 2002. Field Fabrication sales were $1,926,000 less for the first nine months of 2003 versus the first nine months of 2002. The reduction in sales was the result of the significantly lower order entry level during the first nine months of 2003 versus the first nine months of 2002.

The gross profit rate for the nine months ended September 30, 2003, was 22.4% compared to a gross profit rate of 18.4% for the comparable period of 2002. The improvement in the gross profit rate was primarily attributable to the increase in sales and an increase in the gross margin rate, which is a measure of the variable profit margin. The gross profit rate for 2003 was adversely affected by higher net manufacturing burden primarily due to the higher sales volume. Additionally, as a result of the increase in stainless steel pricing during 2003, the LIFO reserve was increased, which increased the cost of sales by $434,000 when comparing the first nine months of 2003 to the first nine months of 2002.

Selling, general, and administrative expenses were $563,000 higher for the first nine months of 2003 versus the first nine months of 2002. Higher expenses were recorded for personnel costs, trade shows, legal fees, insurance, and provisions for potentially uncollectible accounts.

Other income for the nine months ended September 30, 2003, was $68,000 lower than the nine months ended September 30, 2002, as increased borrowing needs led to higher interest expense and a decrease in interest income.

The effective tax rates for the nine months ended September 30, 2003 and 2002, were 35.6% and 21.7%, respectively. These rates varied from the statutory rate (34%) primarily due to the effect of state income taxes and nondeductible meals and entertainment expenses.

On a segment basis, income before tax for the nine months ended September 30, 2003, was $2,736,000 for the Industrial Equipment segment compared to a loss of $4,074,000 for the comparable period of 2002. The improvement in results primarily related to an increase in sales of $15,040,000, coupled with an increase in the gross margin rate. For the Dairy Farm Equipment segment, income before income tax was $675,000 for the nine months ended September 30, 2003, compared to income before tax of $2,719,000 for the comparable period of 2002. The primary reason for the decrease in results was a decrease in sales of $4,218,000 for 2003 compared to 2002. Field Fabrication recorded income before income tax of $166,000 for the nine months ended September 30, 2003, compared to income before tax of $329,000 for the comparable period of 2002. A reduction in sales of $1,926,000 for 2003 compared to 2002 was the primary reason for the lower level of income before tax.

Market risks relating to the Registrant's operations result primarily from changes in foreign-exchange rates and stainless steel prices.  The Registrant periodically enters into foreign-exchange forward or spot contracts to hedge the exposure to foreign-currency-denominated purchase transactions.  Forward contracts generally have durations of less than three months.  Foreign-currency-denominated purchases were $316,000 and $1,054,000 for the nine months ended September 30, 2003 and 2002, respectively.  There were no foreign-exchange forward contracts outstanding at September 30, 2003 and 2002.  There was approximately $94,000 in foreign currencies held at September 30, 2003, and $19,000 held at September 30, 2002.  The risk of an increase in stainless steel prices, which can significantly impact large Industrial Equipment and Field Fabrication segment projects that extend over several months, is managed by contracting for stainles s steel at the time the project is obtained. 

Concentration of credit risk, with respect to receivables, is limited due to the large number of customers and their dispersion across a wide geographic area.  The Registrant performs credit evaluations on new customers and periodically reviews the financial condition of existing customers.  For Industrial Equipment orders and Field Fabrication segment projects, down payments and/or progress payments are generally required based on the dollar value of the order and customer creditworthiness.  Foreign receivables generally are secured by irrevocable letters of credit confirmed by major U.S. banks. 

Looking to the balance of 2003, there are factors that could affect the results of operations.  Although the average price of milk domestically has increased over the last four months and feed costs are expected to remain favorable for the balance of the year, demand for Dairy Farm Equipment products is not expected to increase in the near term as dairy farmers are still recovering from the effects of the very low milk prices during the last twelve months ended June 30, 2003.  Any further decline in milk prices could have an adverse effect on order entry, sales, and profitability for the Dairy Farm Equipment segment. 

Current economic conditions and the weak capital expenditure level in the United States have had an adverse effect on order entry for the Industrial Equipment and Field Fabrication segments; and for the first nine months of 2003, new orders entered are down 21% and 89%, respectively, compared to the comparable period of 2002.  Within the Industrial Equipment segment, the biopharm product line has also been affected and has experienced a 24% decline in order entry for the first nine months of 2003 versus the first nine months of 2002. A continuing low rate of capital expenditures may have an adverse effect on order entry and sales and on profitability for the segments for the balance of the year and into the next year.  Also, as a result of the low level of capital expenditures, pricing continues to be very competitive for the projects that are available.  The aggressive pricing environment may adversely affect the number of projects that can be obtained and the pr ofitability of the projects that are obtained.

The price of stainless steel has increased since the beginning of 2003 due to increased surcharges.  Surcharges, which are assessed at the time of shipment from the vendor, have been implemented due to the increase in and the volatility of the market prices of nickel, chromium, and molybdenum (materials used in the production of stainless steel).  The effect of surcharges on stainless steel prices may delay projects or reduce profitability if the increases cannot be passed along in the form of higher prices.  The effect of higher stainless steel prices may also adversely affect the results of operations, as additional increases may be required to the LIFO reserve. 

In general, the Registrant's business is not subject to seasonal variation in demand for its products.  However, because orders for certain projects can be large in terms of sales dollars, a small number of large orders can have a significant impact on the Registrant's sales in any one particular quarter.  As a result, a relatively small reduction or delay in the number of orders shipped or delivered or the percentage of completion achieved can have a material effect on the Registrant's results for any particular quarter.  Gross margins may vary from quarter to quarter due to the variations in the profitability of large orders, as well as the mix of the various products manufactured or fabricated by the Registrant.  Accordingly, the results of operations for the Registrant for any one particular quarter are not necessarily indicative of the results that may be expected for any subsequent quarter of the calendar year. 

The backlog was $46,461,000 at September 30, 2003, compared to a backlog of $71,074,000 at September 30, 2002. The reduction in the backlog level was due to the high level of sales of $123,618,000 for the twelve months ended September 30, 2003, and a decrease in order entry of 30% during the twelve months ended September 30, 2003, compared to the comparable period of 2002. .

The backlog for the Industrial Equipment segment (exclusive of shop work for the Field Fabrication segment) was $44,204,000 and $58,368,000 at September 30, 2003 and 2002, respectively. The decrease in the Industrial Equipment segment backlog related primarily to the biopharm product line, as its backlog decreased by $11,557,000 between September 30, 2003, and September 30, 2002. The backlog for the Dairy Farm Equipment segment was $1,654,000 and $2,919,000 at September 30, 2003 and 2002, respectively. The Field Fabrication segment backlog was $603,000 at September 30, 2003, versus $9,787,000 as of September 30, 2002. Virtually all of the September 30, 2003, backlog is scheduled to be recognized as sales over the next twelve months.

The level of backlog at any quarter end is not necessarily indicative of the Registrant's future level of sales for a subsequent quarter due to extensive engineering time and the long manufacturing or fabrication cycle that is required for certain projects. Orders in backlog can be subject to delays during the fabrication process due to the complex nature of many projects. Also, orders in backlog are subject to delays in completion and/or shipment dates requested by customers. The Registrant may be unable to recognize sales for orders in backlog when initially scheduled due to delays and contingencies; and this could have a significant impact on the level of sales and the results for a subsequent quarter.

The consolidated financial condition and the liquidity of the Registrant as of September 30, 2003, have not changed significantly since December 31, 2002.  There were no major commitments for capital expenditures as of September 30, 2003. 

The Registrant used internally generated funds and its borrowing facility to fund operations, capital expenditures, and dividends during the nine months ended September 30, 2003. Net cash provided by operations for the first nine months of 2003 was $4,590,000 compared to $2,832,000 for the same period for 2002. The 2003 cash flow was primarily attributable to increases in advance billings, accrued expenses, depreciation, and net income for the first nine months of 2003 compared to the first nine months of 2002. Capital expenditures for the nine months ended September 30, 2003 and 2002, were $2,475,000 and $3,775,000, respectively. Dividends paid for the first nine months of 2003 were $2,144,000 compared to $2,130,000 for the comparable period of 2002.

Management believes that its cash flow from operations and its credit facility will continue to be sufficient to satisfy the Registrant's working capital requirements, normal capital expenditure levels, and anticipated dividends. A policy requiring down payments and/or progress payments on large projects provides a favorable effect on cash flow. Management believes the bank borrowing facility can be increased, if necessary, to provide additional liquidity.

A significant economic downturn or reduction in the number of long-term contracts acquired in the biopharm systems product line or in the Field Fabrication segment could lead to contraction of the business, which would have an adverse impact on liquidity. If that occurred, the Registrant would restructure its operations to insure that cash flow from operations would be sufficient to maintain an appropriate level of liquidity.

The Registrant has a $7,000,000 bank borrowing facility that expires on May 31, 2004; and $5,088,000 had been borrowed under the facility as of September 30, 2003.  Additionally, the Registrant has a facility of $2,750,000 to support standby letters of credit.  As of September 30, 2003, there was $582,800 of standby letters of credit issued and outstanding under the facility; and all are set to expire within one year.  The Registrant also has an $834,000 note outstanding (repayable in quarterly installments of $104,250 through August 2, 2005) that is secured by equipment. 

NONAUDIT SERVICES OF INDEPENDENT AUDITORS -- Pursuant to Section 10A(i)(2) of the Securities Exchange Act of 1934, as added by Section 202 of the Sarbanes-Oxley Act of 2002, we are responsible for disclosing to investors the nonaudit services approved by our Audit Committee to be performed by KPMG LLP, our independent auditors.  Nonaudit services are defined in the law as services other than those provided in connection with an audit or review of the financial statements of the Registrant.  The Audit Committee approved nonaudit (a) tax compliance services in connection with preparation of the Registrant's tax returns, (b) research and consultation on various federal, state, and local tax issues, (c) services to assist in documentation of accounting processes and procedures, and (d) tax consulting services relative to a research and development credit review during the nine months ended September 30, 2003 

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

Certain information concerning market risk is set forth in Item 2 on page 13 and is incorporated herein by reference.  Other disclosure requirements are not submitted because they were not applicable or they were not material. 

ITEM 4.   CONTROLS AND PROCEDURES 

The Registrant carried out an evaluation, under the supervision and with the participation of the Registrant's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Registrant's disclosure controls and procedures as of September 30, 2003 (the evaluation date).  Based on such evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, as of the evaluation date, the Registrant's disclosure controls and procedures are effective in alerting them, on a timely basis, to material information relating to the Registrant required to be included in the Registrant's reports filed or submitted under the Exchange Act.  There have been no significant changes in the Registrant's internal control over financial reporting during the Registrant's quarter ended September 30, 2003, which has materially affected, or is reasonably likely to materially affect, such internal control over financial reporting. 

PART II    --    OTHER INFORMATION

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

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.