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. Yesþ Noo

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yeso Noþ

The number of the Registrant’s Common Shares outstanding at DecemberMarch 31, 20072008 was 5,288,322.5,293,966.

The accompanying unaudited consolidated condensed financial statements included herein include the accounts of SIFCO Industries, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated. The U.S. dollar is the functional currency for all of the Company’s U.S. operations. For these operations, all gains and losses from completed currency transactions are included in income currently. For the Company’s non-U.S. subsidiaries, the functional currency is the local currency. Assets and liabilities are translated into U.S. dollars at the rates of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated condensed financial statements. In the opinion of management, all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows for the periods presented, have been included.

These unaudited consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s fiscal 2007 Annual Report on Form 10-K. The results of operations for any interim period are not necessarily indicative of the results to be expected for other interim periods or the full year. Certain prior period amounts have been reclassified in order to conform to current period classifications.

The Company has awarded stock options under its shareholder approved 1995 Stock Option Plan (“1995 Plan”) and 1998 Long-term Incentive Plan (“1998 Plan”). No further options may be awarded under either the 1995 Plan or the 1998 Plan. Option exercise price is not less than fair market value on date of grant and options are exercisable no later than ten years from date of grant. Options awarded under both plansPlans generally vest at a rate of 25% per year.

Aggregate option activity is as follows:

As of DecemberMarch 31, 2007,2008, there was $13$10 of total unrecognized compensation cost related to the unvested stock options granted under the Plans, and thePlans. The Company expects to recognize thatthis cost over a weighted average period of less than 1.0 year.

In the first quarter of fiscal 2008, the Company adopted the SIFCO Industries, Inc. 2007 Long-Term Incentive Plan (“2007 Plan”) subject to the approval of, which plan was approved by the Company’s shareholders at its 2008 Annual Meeting which shareholder approval was obtained on January 29, 2008. The aggregate number of shares that may be awarded under the 2007 Plan is 250,000, subject to an adjustment for the forfeiture of any issued shares. In addition, shares that may be awarded are subject to individual award limitations. The shares awarded under the 2007 Plan may be made in multiple forms including stock options, stock appreciation rights, restricted or unrestricted stock, and performance related shares. Any such awards are exercisable no later than ten years from date of grant.

Inventories consist of:

The components of accumulated other comprehensive loss are as follows:

Effective October 1, 2007, the Company adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes” –— an interpretation of FASB Statement of Financial Accounting Standards No. 109 (“SFAS No. 109”), “Accounting for Income Taxes”. Previously, the Company had accounted for tax contingencies in accordance with Statement of Financial Accounting StandardsSFAS No. 5, “Accounting for Contingencies.” As required by FIN 48, which clarifies Statement of Financial Accounting StandardsSFAS No. 109, “Accounting for Income Taxes,” the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would, more-likely-than-notmore likely than not, sustain the position following an audit. For tax positions meeting the more-likely-than-notthat threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent50% likelihood of being realized upon ultimate settlement with the relevant tax authority. At the adoption date, the Company applied FIN 48 to all positions for which the statute of limitations remained open. The adoption of FIN 48 did not have a material impact on the Company’s financial position, cash flows and results of operations. The Company has no material unrecognized tax benefits at DecemberMarch 31, 20072008 and October 1, 2007.

The Company is subject to income taxes in the U.S. federal jurisdiction, and various states and foreign jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for the years before September 30, 2001.

It is the Company’s continuing policy to recognize any interest related to uncertain tax positions in interest expense and any penalties related to uncertain tax positions in selling, general and administrative expense. The Company has not recorded any significant interest or penalties related to uncertain tax positions as of DecemberMarch 31, 2007.2008.

In June 2007, the Company and its Irish subsidiary, SIFCO Turbine Components Limited (“SIFCO Turbine”), completed the sale of its industrial turbine engine component repair business to PAS Turbines Ireland (“PAS”). The industrial turbine engine component repair business operated in SIFCO Turbine’s Cork, Ireland facility. Upon completion of this transaction, the Company no longer maintains a turbine engine component repair operation in Ireland. SIFCO Turbine retained ownership of the Cork, Ireland facility (subject to a long-term lease arrangement with PAS). This facility is presented as an asset held for sale on the consolidated condensed balance sheets. In May 2006, the Company and SIFCO Turbine completed the sale of the large aerospace portion of its turbine engine component repair business and certain related assets to SR Technics. The large aerospace portion of SIFCO Turbine’s turbine engine component repair business was operated in portions of two facilities located in Cork, Ireland, one of which was sold as part of this transaction.

In accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”, the financial results of both the large aerospace and industrial turbine engine component repair businesses, which together make up essentially all of SIFCO Turbine’s operations, are reported as discontinued operations for all periods presented in the consolidated condensed statements of operations. The financial results included in discontinued operations were as follows:

Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain various forward-looking statements and includes assumptions concerning the Company’s operations, future results and prospects. These forward-looking statements are based on current expectations and are subject to risk and uncertainties. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, the Company provides this cautionary statement identifying important economic, political and technological factors, among others, the absence or effect of which could cause the actual results or events to differ materially from those set forth in or implied by the forward-looking statements and related assumptions. Such factors include the following: (1) future business environment, including capital and consumer spending; (2) competitive factors, including the ability to replace business which may be lost due to increased direct involvement by the turbine engine manufacturers in turbine component service and repair markets;lost; (3) successful development of turbine repair processes and/or the procurement of certain repair materials and new repair process licenses from turbine engine manufacturers and/or the Federal Aviation Administration; (4) metals and commodities price increases and the Company’s ability to recover such price increases; (5) successful development and market introductions of new products including the continued development of turbine repair processes;and services; (6) regressive pricing pressures on the Company’s products and services, with productivity improvements as the primary means to maintain margins; (7) success with the further development of strategic alliances with certain turbine engine manufacturers for turbine component repair services; (8) the impact on business conditions, and on the aerospace industry in particular, of the global terrorism threat; (9)(8) continued reliance on consumer acceptance of regional and business aircraft powered by more fuel efficient turboprop engines vs. regional and business aircraft powered by turbofan engines; (10)(9) continued reliance on several major customers for revenues; (11)(10) the Company’s ability to continue to have access to its revolving credit facility and to comply with the terms of its credit agreements, including financial covenants; (12)(11) the impact of changes in defined benefit pension plan actuarial assumptions on future contributions; and (13)(12) stable governments, business conditions, laws, regulations and taxes in economies where business is conducted.

SIFCO Industries, Inc. and its subsidiaries engage in the production and sale of a variety of metalworking processes, services and products produced primarily to the specific design requirements of its customers. The processes and services include forging, heat-treating, coating, welding, precision component machining and selective electrochemical metal finishing. The products include forged components, machined forged other metal components, remanufactured component parts for turbine engines, and selective electrochemical finishing solutions and equipment. The Company endeavors to plan and evaluate its businesses’ operations while taking into consideration certain factors including the following –— (i) the projected build rate for commercial, business and military aircraft as well as the engines that power such aircraft, (ii) the projected maintenance, repair and overhaul schedules for commercial, business and military aircraft as well as the engines that power such aircraft, and (iii) anticipated exploration and production activities relative to oil and gas products, etc.

turbine engine components for large aircraft increased $0.4$1.1 million to $0.7$1.7 million in the first quartersix months of fiscal 2008, compared with $0.3$0.6 million in the comparable period in fiscal 2007. Commercial product sales and non-product salesother revenues were $0.9$1.9 million and $0.6$1.5 million in the first quarterssix months of fiscal 2008 and 2007, respectively.

The ACM Group’s airframe and turbine engine component products have both military and commercial applications. Net sales of airframe and turbine engine components that solely have military applications were $7.1$14.7 million in the first quartersix months of fiscal 2008, compared with $5.6$11.6 million in the comparable period in fiscal 2007. This increase is attributable in part to increased military spending due to ongoing wartime demand such as for additional military helicopters and related replacement components.

The ACM Group’s selling, general and administrative expenses increased $0.6$0.8 million to $1.5$2.6 million, or 9.5%7.7% of net sales, in the first quartersix months of fiscal 2008, compared with $0.9$1.8 million, or 6.7%6.6% of net sales, in the comparable period in fiscal 2007. The $0.6$0.8 million increase in selling, general and administrative expenses in the first quartersix months of fiscal 2008 was principally due to a $0.6 million payment to a customer that (i) was made to achieve an amicable settlement related to a product dispute that originated in fiscal 2007, of which $0.1 million was expensed in fiscal 2007, and (ii) the Company agreed to make as a business gesture of good faith and cooperation without admission of liability. The remaining selling, general and administrative expenses in the first quarterssix months of fiscal 2008 and 2007 were $1.0$2.1 million, or 6.3%6.2% of net sales, and $0.9$1.8 million, or 6.7%6.6% of net sales, respectively. In addition, variable selling expenses increased by $0.1$0.2 million in the first quartersix months of fiscal 2008, compared to the same period in fiscal 2007, principally due to the increase in net sales.

The ACM Group’s operating income in the first quartersix months of fiscal 2008 was $2.3$5.7 million, compared with $1.6$4.6 million in the comparable period in fiscal 2007. Operating results improved principally due to the positive impact on margins resulting from significantly higher production and sales volumes in the first quartersix months of fiscal 2008, which allowed the ACM Group to further leverage its fixed operating cost structure over more units of production and sales. In addition, there was a $0.1$0.4 million reduction in the LIFO provision in the first quartersix months of fiscal 2008, compared to the same period in fiscal 2007. These margin improvements were partially offset by (i) the negative impact of the aforementioned $0.5 million settlement expense and (ii) higher variable labor costs recognized in the first quartersix months of fiscal 2008.2008, compared to the same period in fiscal 2007.

The ACM Group’s backlog as of DecemberMarch 31, 20072008 was $81.8$86.3 million, compared with $82.8 million as of September 30, 2007. At DecemberMarch 31, 2007, $64.82008, $66.9 million of the total backlog was scheduled for delivery over the next twelve months and $19.4 million was scheduled for delivery beyond the next twelve months. All orders are subject to modification or cancellation by the customer with limited charges. It is important to note that certain raw material (e.g. aerospace grade steel and titanium alloys) delivery lead times have shortened, and such lead time improvement may result in a fundamental shift in the ordering pattern of the ACM Group’s customers. A potential consequence of such an ordering pattern shift may be that customers will not place orders as far in advance as they previously

The Repair Group’s backlog from continuing operations as of DecemberMarch 31, 20072008 was $3.7$4.4 million, compared with $4.2 million as of September 30, 2007. At DecemberMarch 31, 2007, $1.82008, $2.7 million of the total backlog was scheduled for delivery over the next twelve months.

Net sales of the ASC Group were $3.4$7.3 million in both of the first quarterssix months of both fiscal 2008 and 2007. In the first quartersix months of fiscal 2008, product net sales, consisting of selective electrochemical metal finishing equipment and solutions, increased 8.9%decreased $0.1 million to $1.6$3.4 million, compared with $1.4$3.5 million in the same period in fiscal 2007. Product net sales were favorably impacted in the first quarter of fiscal 2008, compared to the same period in fiscal 2007, by price increases in response to higher precious metals raw material costs, a portion of which was passed through to customers. In the first quartersix months of fiscal 2008, customized selective electrochemical metal finishing contract service net sales decreased 4.7%increased $0.1 million to $1.8$3.9 million, compared with $1.9$3.8 million in the same period in fiscal 2007. The decrease in contract service net sales in the first quarter of fiscal 2008, compared to the same period in fiscal 2007, is primarily attributable to a decrease in net sales to the exploration and production sectors of the oil and gas industry. A portion of the ASC Group’s business is conducted in Europe and is denominated in local European currencies, which have strengthened in relation to the US dollar resulting in a favorable currency impact on net sales in the first quartersix months of fiscal 2008 of approximately $0.1$0.2 million.

The ASC Group’s selling, general and administrative expenses were $1.0decreased $0.2 million to $2.0 million, or 30.1%27.1% of net sales, in the first quartersix months of fiscal 2008, compared with $1.0$2.2 million, or 30.7%30.0% of net sales in the comparable fiscal 2007 period. The $0.2 million decrease in selling, general and administrative expenses in the first six months of fiscal 2008 was principally due to a $0.2 million reduction in compensation and benefit related expenses attributable to the elimination of certain salaried support positions.

The ASC Group’s operating income in the first quartersix months of fiscal 2008 was $0.1$0.7 million, compared with $0.4$0.8 million in the same period in fiscal 2007. This $0.3$0.1 million decrease in operating income is principally due to (i) a change in product sales mix resulting in a larger portion of the first quartersix months of fiscal 2008 sales being lower margin products and services and (ii) higher precious metals raw material pricescompensation expense due to the hiring of additional operations personnel. These higher costs were partially offset by the decrease in selling, general and usage, only a portion of which was passed through to customers, and (iii) the cost of relocating the ASC Group’s operation in the United Kingdom to a single, larger facility.administrative expenses discussed above.

The Applied Surface ConceptsASC Group backlog at DecemberMarch 31, 20072008 was not material.

Corporate unallocated expenses, consisting of corporate salaries and benefits, legal and professional and other corporate expenses, were $0.5$1.0 million in the first quartersix months of fiscal 2008, compared with $0.3$0.6 million in the same period in fiscal 2007. The $0.2$0.4 million increase in the first quartersix months of fiscal 2008 is principally due to an increase in legal and professional expenses related to (i) the Company’s long-term strategic planning efforts, including its incentive compensation planning, and (ii) its efforts required to achieve initial Sarbanes-Oxley compliance in fiscal 2008.2008, and (iii) professional tax consulting services.

Interest expense from continuing operations was nominal in the second quarters of both fiscal 2008 and 2007. The following table sets forth the weighted average interest rates and weighted average outstanding balances under the Company’s revolving credit agreement in the second quarter of fiscal years 2008 and 2007.

Cash and cash equivalents decreased to $5.4remained comparable at $5.5 million at DecemberMarch 31, 2007 from $5.5 million at2008 compared with September 30, 2007. At present, essentially all of the Company’s cash and cash equivalents are in the possession of its non-U.S. subsidiaries. Distributions from the Company’s non-U.S. subsidiaries to the Company may be subject to statutory restriction, adverse tax consequences or other limitations.

The Company’s operating activities provided $0.9$1.3 million of cash (of which $1.3$2.0 million was provided by continuing operations) in the first quartersix months of fiscal 2008 compared with $0.8$2.3 million of cash used by operating activities (of which $0.4$1.4 million was provided byused for continuing operations) in the first quartersix months of fiscal 2007. The $1.3$2.0 million of cash provided by operating activities of continuing operations in first quartersix months of fiscal 2008 was primarily due to (i) income from continuing operations, before depreciation expense and deferred taxes, of $1.5 million;$4.2 million and (ii) a $1.8$1.3 million decreaseincrease in accounts payable offset by (i) a $1.9 million increase in accounts receivable and (ii) a $1.7 million decrease in inventory; offset by (iii) a $2.4 million decrease in accounts payable and accrued liabilities and a $1.4$1.3 million decrease in other long-term liabilities. These changes in the components of working capital were due to factors resulting from normal business conditions of the Company, including (i) the ACM Group’s response to the increased demand in its business as measured by its sales levels, (ii) collections from customers, and (iii) the relative timing of payments to suppliers. Net cash provided by operating activities of continuing operations in the first six months of fiscal 2008 reflects $1.4 million of contributions to defined benefit pension plans, compared with contributions to defined benefit pension plans of $0.6 in the comparable period in fiscal 2007.

Capital expenditures, all of which were from continuing operations, were $0.5$1.2 million in the first quartersix months of fiscal 2008 compared to $0.5 million (of whichwith $0.3 million was from continuing operations) in the comparable fiscal 2007 period. FiscalCapital expenditures during the first six months of fiscal 2008 capital expenditures consist of $0.2$0.6 million by the ACM Group, $0.1$0.3 million by the ASC Group and $0.2$0.3 million by the Repair Group. The Company anticipates that total fiscal 2008 capital expenditures towill be within the range of $2.5$2.0 to $3.5$2.5 million, of which $0.5$0.9 million has been committed as of DecemberMarch 31, 2007.2008.

At DecemberMarch 31, 2007,2008, the Company has a $6.0an $8.0 million revolving credit agreement with a bank, subject to sufficiency of collateral, which expires on OctoberJuly 1, 20082009 and bears interest at the bank’s base rate plus 0.50%.rate. The interest rate was 7.75%5.25% at DecemberMarch 31, 2007.2008. A 0.38%0.35% commitment fee is incurred on the unused balance of the revolving credit agreement. At DecemberMarch 31, 2007,2008, $2.0 million was outstanding and the Company had $3.9$5.9 million available under its $6.0$8.0 million revolving credit agreement. The Company’s revolving credit agreement is secured by substantially all of the Company’s assets located in the U.S. and a guarantee by its U.S. subsidiaries.

In February 2008, the Company entered into an agreement with its bank to (i) increase the maximum availability under its revolving credit agreement from $6.0 million to $8.0 million, (ii) reduce the interest rate from the bank’s base rate plus 0.50% to the bank’s base rate flat, (iii) reduce the commitment fee on the unused balance of the revolving credit agreement from 0.38% to 0.35%, (iv) revise its financial covenants and (v) extend the maturity date of its revolving credit agreement from October 1, 2008 to July 1, 2009.

The Company believes that cash flows from its operations together with existing cash reserves and the funds available under its revolving credit agreement will be sufficient to meet its working capital requirements through the end of fiscal year 2008.

organizations or the acquisition of a for-profit business by a not-for-profit organization. This Statement applies prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.

In the ordinary course of business, the Company is subject to foreign currency and interest rate risk. The risks primarily relate to the sale of the Company’s products and services in transactions denominated in non-U.S. dollar currencies; the payment in local currency of wages and other costs related to the Company’s non-U.S. operations; and changes in interest rates on the Company’s long-term debt obligations. The Company does not hold or issue financial instruments for trading purposes.

The Company believes that inflation has not materially affected its results of operations during the first quartersix months of fiscal 2008, and does not expect inflation to be a significant factor in the balance of fiscal 2008.

The U.S. dollar is the functional currency for all of the Company’s U.S. operations. For these operations, all gains and losses from completed currency transactions are included in income currently. For the Company’s non-U.S. subsidiaries, the functional currency is the local currency. Assets and liabilities are translated into U.S. dollars at the rate of exchange at the end of the period, and revenues and expenses are translated using average rates of exchange.exchange for the reporting period. Foreign currency translation adjustments are reported as a component of accumulated other comprehensive loss in the consolidated condensed financial statements.

Historically, the Company has been able to mitigate the impact of foreign currency risk by means of hedging such risk through the use of foreign currency exchange contracts, which typically expire within one year. However, such risk is mitigated only for the periods for which the Company has foreign currency exchange contracts in effect, and only to the extent of the U.S. dollar amounts of such contracts. At DecemberMarch 31, 2007,2008, the Company had no forward exchange contracts outstanding. The Company will continue to evaluate its foreign currency risk, if any, and the effectiveness of using similar hedges in the future to mitigate such risk.

The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Chairman and Chief Executive Officer of the Company and Chief Financial Officer of the Company, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15(e) as of DecemberMarch 31, 20072008 (the “Evaluation Date”). Based upon that evaluation, the Chairman and Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e)) were effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings. Management has concluded that the unaudited consolidated condensed financial statements included in this Form 10-Q fairly present, in all material respects, the Company’s financial position, results of operations and cash flows for the periods presented.

There has been no significant change in ourthe Company’s internal control over financial reporting that occurred during the firstsecond fiscal quarter ended DecemberMarch 31, 20072008 that has materially affected, or that is reasonably likely to materially affect the Company’s internal control over financial reporting.

No change

No change

None

The following exhibits are filed with this report or are incorporated herby reference to a prior filing in accordance with Rule 12b-32 under the Securities and Exchange Act of 1934 (Asterisk denotes exhibits filed with this report.).

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, thereto duly authorized.