==============================================================================



                      SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C. 20549

                                 FORM 10-Q

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


                        For Quarter Ended June 30, 2000


                          Commission File No. 1-3920


                             KINARK CORPORATION
          (Exact name of the registrant as specified in its charter)

          Delaware                                     71-0268502
    (State of Incorporation)               (I.R.S. Employer Identification No.)

                             2250 East 73rd Street
                          Tulsa, Oklahoma 74136-6832
                   (Address of principal executive offices)

            Registrant's telephone number:           (918) 494-0964


     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 and 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 issuer's classes
of common stock, as of June 30, 2000.

               Common Stock $ .10 Par Value . . . . . 6,712,219





                     KINARK CORPORATION AND SUBSIDIARIES

                    Index to Quarterly Report on Form 10-Q

                                                                  Page
                                                                  ----
Part  I.   Financial Information

           Forward Looking Statements or Information                2

           Item 1.  Financial Statements

                    Independent Accountants' Review Report          3

                    Condensed Consolidated Balance Sheets as
                    of June 30, 2000 (unaudited), and
                    December 31, 1999                               4

                    Condensed Consolidated Statements of
                    Operations for the three and six months ended
                    June 30, 2000 and 1999 (unaudited)              5

                    Condensed Consolidated Statements of
                    Cash Flows for the six months ended
                    June 30, 2000 and 1999 (unaudited)              6

                    Notes to Condensed Consolidated Financial
                    Statements for the three and six months ended
                    June 30, 2000 and 1999 (unaudited)             7-11

           Item 2.  Management's Discussion and Analysis of
                    Financial Condition and Results of
                    Operations                                    12-14

           Item 3.  Quantitative and Qualitative Disclosures
                    About Market Risks                             15

Part II.   Other Information                                      16-17

Signatures                                                         18



Forward Looking Statements or Information

     Certain statements in this Form 10-Q, including information set forth
under the caption "Management's Discussion and Analysis of Financial Condition
and Results of Operations", constitute "Forward-Looking Statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.  Such statements are
typically punctuated by words or phrases such as "anticipates," "estimate,"
"should," "may," "management believes," and words or phrases of similar
import.  The Company cautions investors that such forward-looking statements
included in this Form 10-Q, or hereafter included in other publicly available
documents filed with the Securities and Exchange Commission, reports to the
Company's stockholders and other publically available statements issued or
released by the Company involve significant risks, uncertainties, and other
factors which could cause the Company's actual results, performance (financial
or operating) or achievements to differ materially from the future results,
performance (financial or operating) or achievements expressed or implied by
such forward-looking statements.  Factors that could cause or contribute to
such differences could include, but are not limited to, changes in demand,
prices, and the raw materials cost of steel and zinc; changes in economic
conditions of the various markets the Company serves,  as well as the other
risks detailed herein and in the Company's reports filed with the Securities
and Exchange Commission.  The Company believes that the important factors set
forth in the Company's cautionary statements at Exhibit 99 to this Form 10-Q
could cause such a material difference to occur and investors are referred to
Exhibit 99 for such cautionary statements.


                                    -2-


INDEPENDENT ACCOUNTANTS' REVIEW REPORT

To the Board of Directors and Stockholders of
Kinark Corporation:

We have reviewed the accompanying condensed consolidated balance sheet of
Kinark Corporation and subsidiary (the "Company") as of June 30, 2000, and
the related condensed consolidated statements of operations for the three and
six-month periods ended June 30, 2000 and 1999 and the condensed consolidated
statements of cash flows for the six months ended June 30, 2000 and 1999.
These financial statements are the responsibility of the Company's management.

We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants.  A review of interim
financial information consists principally of applying analytical procedures
to financial data and of making inquiries of persons responsible for financial
and accounting matters.  It is substantially less in scope than an audit
conducted in accordance with auditing standards generally accepted in the
United States of America, the objective of which is the expression of an
opinion regarding the financial statements taken as a whole.  Accordingly, we
do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that
should be made to such condensed consolidated financial statements for them to
be in conformity with accounting principles generally accepted in the United
States of America.

We have previously audited, in accordance with auditing standards generally
accepted in the United States of America, the consolidated balance sheet of
Kinark Corporation and subsidiaries as of December 31, 1999, and the related
consolidated statements of earnings, stockholders' equity and comprehensive
income, and cash flows for the year then ended (not presented herein); and in
our report dated February 18, 2000 (Except as to Note 12 for which the date is
March 14, 2000), we expressed an unqualified opinion on those consolidated
financial statements.  In our opinion, the information set forth in the
accompanying condensed consolidated balance sheet as of December 31, 1999 is
fairly stated, in all material respects, in relation to the consolidated
balance sheet from which it has been derived.


/s/Deloitte & Touche LLP
Tulsa, Oklahoma
August 18, 2000


                                     -3-


                       KINARK CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                           Unaudited
                                            June 30          Dec 31
(Dollars in Thousands)                       2000             1999
==============================================================================
ASSETS
Current Assets
  Cash and cash equivalents                $     50        $     168
  Trade receivables, net                      6,921            5,317
  Inventories                                 4,528            4,771
  Prepaid expenses and other assets             289              534
  Deferred tax asset, net                       603              693
  Net assets of discontinued operations         ---            1,092
                                             ------           ------
    Total Current Assets                     12,391           12,575
                                             ------           ------
Funds held by bond trustee                    5,945              ---
Property, Plant and Equipment, at Cost
Land                                          1,571            1,571
Galvanizing plants and equipment             24,905           23,357
Construction in progress                      3,022            1,073
Other                                           146              146
                                             ------           ------
                                             29,644           26,147
  Less:  Allowance for depreciation          10,767            9,475
                                             ------           ------
    Total Property, Plant & Equipment, Net   18,877           16,672
                                             ------           ------
Goodwill, net of accumulated amortization     3,671            3,765
Other Assets                                     97              105
Net Assets of Discontinued Operations           ---            1,092
                                             ------           ------
TOTAL ASSETS                               $ 40,981         $ 33,117
                                             ======           ======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
  Trade accounts payable                   $  1,335         $  1,190
  Accrued payroll and employee benefits         752              820
  Other taxes                                   247              286
  Other accrued liabilities                     638              553
  Current maturities of long-term
    obligations                               1,074            1,119
  Current portion of bonds payable              277              ---
                                             ------           ------
     Total Current Liabilities                4,323            3,968
                                             ------           ------
Deferred Tax Liability, Net                     640              458
Pension and Related Liabilities                 135              153
Long-Term Obligations                        10,372            9,985
Bonds Payable                                 8,773              ---
                                             ------           ------
   Total Liabilities                         24,243           14,564
                                             ------           ------
Commitments and Contingencies (Note 7)          ---              ---
Stockholders' Equity
Common stock                                    819              819
Additional paid-in capital                   17,364           17,364
Retained earnings                             4,535            6,350
Less:  Treasury stock at cost                (5,980)          (5,980)
                                             ------           ------
 Total Stockholders' Equity                  16,738           18,553
                                             ------           ------
TOTAL LIABILITIES &
  STOCKHOLDERS' EQUITY                     $ 40,981         $ 33,117
                                             ======           ======

See notes to condensed consolidated financial statements.


                                     -4-



                        KINARK CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   Unaudited


                                        Three Months Ended    Six Months Ended
                                             June 30              June 30
                                        ------------------    ----------------
(Dollars in Thousands                     2000     1999         2000     1999
   Except per Share Amounts)
===============================================================================
Sales                                    $10,628  $10,050     $19,798  $19,330

   Cost of sales                           7,509    7,478      14,199   14,110
   Selling, general &
     administrative expenses               1,436    1,439       2,886    3,105
     Depreciation and amortization           710      623       1,419    1,235
                                          ------   ------      ------   ------
Total Costs and Expenses                   9,655    9,540      18,504   18,450
                                          ------   ------      ------   ------
Operating Income before Casualty Loss        973      510       1,294      880
   Casualty (income) loss (Note 6)           ---      ---         313      ---
                                          ------   ------      ------   ------
Operating Income                             973      510         981      880
   Interest expense, net                     249      176         461      350
                                          ------   ------      ------   ------
Income before Income Taxes                   724      334         520      530

   Income tax expense                        318      144         228      228
                                          ------   ------      ------   ------
Income from Continuing Operations            406      190         292      302

Income (Loss) from Discontinued
  Operations, net of income taxes           (398)      87        (444)     216

Loss on Disposal of Discontinued
   Operations                             (1,663)     ---      (1,663)     ---
                                          ------   ------      ------   ------
Net Income (Loss)                         (1,655)     277      (1,815)     518
                                          ======   ======      ======   ======

Net Income (Loss) Per Common Share
Continuing Operations:
  Basic and Diluted                      $   .06  $   .03     $   .04  $   .05
Discontinued Operations:
  Basic and Diluted                      $  (.31) $   .01     $  (.31) $   .03
Net Income (Loss):
  Basic and Diluted                      $  (.25) $   .04     $  (.27) $   .08

See notes to condensed consolidated financial statements.


                                     -5-



                      KINARK CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                    Unaudited
                                                          Six Months Ended
                                                              June 30
                                                         -------------------
(Dollars in Thousands)                                    2000          1999
==============================================================================
Operating Activities
Net income (loss)                                       $(1,815)      $   518
Loss (income) from discontinued operations                2,107          (257)
Depreciation and amortization                             1,418         1,234
Gain on disposal of assets                                   (7)           (5)
Gain on sale of securities                                  ---           (12)
Deferred income taxes                                       272           172
Change in assets and liabilities:
  Accounts receivable, net                               (1,604)         (505)
  Inventories and other                                     496           332
  Accounts payable, accrued liabilities and other           105           378
                                                         ------        ------
     Net cash provided by continuing operations             972         1,855
     Net cash provided by (used in)
       discontinued operations                           (1,212)          225
                                                         ------        ------
Cash Provided by (Used In) Operating Activities            (240)        2,080

Investing Activities
  Net proceeds from sale of discontinued operations         371           ---
  Sale of securities                                        ---           402
  Capital expenditures                                   (3,531)       (1,949)
  Proceeds from sale of assets                                9             5
                                                         ------        ------
    Net cash used in continuing operations               (9,096)       (1,542)
    Net cash used in discontinued operations               (254)         (123)
                                                         ------        ------
Cash Used in Investing Activities                        (3,405)       (1,665)
                                                         ------        ------
Financing Activities
  Proceeds from tax exempt bonds                          9,050           ---
  Tax exempt bond funds held by bond trustee             (5,945)          ---
  Purchase of common stock for treasury                     ---          (139)
  Proceeds from long-term obligations                     8,060         7,530
  Payments on long-term obligations                      (7,718)       (7,575)
                                                         ------        ------
    Net cash provided by (used in) continuing operations  3,447          (184)
    Net cash used in discontinued operations                 (5)          (31)
                                                         ------        ------
Cash Provided by (Used in) Financing Activities           3,442          (215)
                                                         ------        ------
Increase (Decrease) in Cash and Cash Equivalents           (203)          200
Cash and Cash Equivalents at Beginning of Period            253           189
                                                         ------       -------
Cash at End of Period                                   $    50      $    389
                                                         ======        ======

See notes to condensed consolidated financial statements.


                                    -6-



                      KINARK CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999
                                 UNAUDITED


Note 1.  Basis of Presentation
         ---------------------
         The condensed consolidated financial statements included in this
         report have been prepared by Kinark Corporation (the "Company")
         pursuant to the rules and regulations of the Securities and Exchange
         Commission for interim reporting and include all normal and
         recurring adjustments which are, in the opinion of management,
         necessary for a fair presentation.  These financial statements
         have not been audited by an independent accountant.  The condensed
         consolidated financial statements include the accounts of the
         Company and its subsidiaries.

         Certain information and footnote disclosures normally included
         in financial statements prepared in accordance with accounting
         principles generally accepted in the United States of America
         have been condensed or omitted pursuant to such rules and
         regulations for interim reporting.  The Company believes that
         the disclosures are adequate to make the information presented
         not misleading.  However, these financial statements should be
         read in conjunction with the financial statements and notes
         thereto included in the Company's Annual Report on Form 10-K,
         for the year ended December 31, 1999.  The financial data for
         the interim periods presented may not necessarily reflect the
         results to be anticipated for the complete year.

         The preparation of financial statements in conformity with accounting
         principles generally accepted in the United States of America requires
         management to make estimates and assumptions that affect the
         reported amounts of assets and liabilities and disclosure of
         contingent assets and liabilities at the balance sheet dates and
         the reported amounts of revenues and expenses for each of the
         years.  Actual results will be determined based on the outcome
         of future events and could differ from the estimates.

         The Company will be required to adopt Statement of Financial
         Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
         Instruments and Hedging Activities", effective January 1, 2001,
         and is in the process of evaluating the effect of this standard on
         its financial reporting.  SFAS No. 133 requires fair value
         accounting for all stand-alone derivatives, and for many
         derivatives embedded in other instruments and contracts.

Note 2.  Earnings Per Common Share
         -------------------------

         Basic and diluted earnings per common share for the periods
         presented have been computed based upon the weighted average
         number of shares outstanding of 6,712,211 and 6,720,034 for the
         three months ended June 30, 2000 and 1999 respectively, and
         6,712,215 and 6,735,810 for the six months ended June 30, 2000
         and 1999 respectively.  Due to the option price being higher than the
         share value, the outstanding stock options have no dilutive effect
         on the calculation of earnings per share.  The number of options

                                     -7-

         excluded from the calculation of diluted earnings per share are
         380,500 and 407,125 at June 30, 2000 and 1999, respectively.

Note 3.  Inventories
         -----------
         Inventories consist primarily of raw zinc "pigs," molten zinc in
         galvanizing kettles and other chemicals and materials used in the
         hot dip galvanizing process.  Such inventories are stated at the
         lower of cost or market with market value based on ultimate
         realizable value from the galvanizing process.  Zinc cost is
         determined on a last-in-first-out (LIFO) basis.  Other
         inventories are valued primarily on an average cost basis.

Note 4.  Bonds Payable
         -------------
         During the first quarter of 2000, the Company issued $9,050,000
         of Harris County Industrial Development Corporation Adjustable Rate
         Industrial Development Bonds, Series 2000 (the "Bond").  The Bonds
         are senior to other debt of the Company.  Proceeds from the bond
         issue are to be used for specified capital expenditures and were
         transferred to Bank One Trust Company, N.A. (the "Trustee").  The
         Trustee holds the unexpended bond funds and delivers funds to the
         Company as requested for appropriate expenditures.

         The Bonds bear interest at a variable rate (4.22% at June 30,
         2000) that can be converted to a fixed rate upon certain conditions
         outlined in the bond agreement.  The Bonds are subject to annual
         sinking fund redemption of $230,000 commencing on June 15, 2001,
         which increases annually thereafter to a maximum redemption of
         $960,000 on June 15, 2012.  The final maturity date of the Bonds is
         June 15, 2013.  The Company has the option of early redemption of
         the Bonds at par unless the bonds are converted to a fixed interest
         rate, in which case they are redeemable at a premium during a
         period specified in the bond agreement.  The Company's obligation
         under the bond agreement is secured through a letter of credit
         with a bank which must remain in effect as long as any Bonds are
         outstanding.  The letter of credit is collateralized by
         substantially all the assets of the Company.

Note 5.  Long-Term Obligations
         ---------------------

                                                  June 30,         December 31,
                (Dollars in Thousands)              2000               1999
                --------------------------------------------------------------
                Revolving lines of credit        $ 7,373             $ 5,913
                Term loan                          3,688               4,033
                Advancing bridge loan due 2000       ---                 735
                10.0% note due 2000                  317                 339
                95% note due 2015                     23                  24
                Capital leases                        45                  60
                --------------------------------------------------------------
                                                  11,446              11,104
                Less current portion              (1,074)              1,119
                --------------------------------------------------------------
                                                 $10,372             $ 9,985
                ==============================================================

                                       -8-

         In September 1999, the Company entered into a new three-year bank
         credit agreement with total credit facilities of $23,700,00 that
         replaced a previous loan agreement of $13,250,000 scheduled to
         expire in May 2000.  The new agreement provides (i) a $9,000,000
         maximum revolving line of credit for working capital and general
         corporate purposes, (ii) a $1,500,000 revolving capital
         expenditures facility, (iii) a $4,200,000 term loan, (iv) a
         $2,000,000 advancing bridge loan which expired March 2000 and (v)
         a $9,000,000 maximum bridge loan replacement facility.  The bridge
         loan replacement facility was fully funded in the first quarter of
         2000 from the proceeds of the Bonds, Series 2000.  The new bank
         credit agreement matures September 30, 2002.

         At June 30, 2000, the Company had additional borrowing capacity
         of $353,000, net of outstanding letters of credit totaling $275,000,
         under its revolving line of credit that reflected the underlying
         value of its accounts receivable and inventories.  In addition,
         the Company had $1,500,000 under the term loan available for
         capital expenditures. At the end of the second quarter 2000, the
         Company also had outstanding an irrevocable letter of credit
         totaling $1,980,000 for commitments related to the construction of
         a new galvanizing plant, which it expects to fund by the end
         of 2000 from the Bond proceeds.

         Substantially all of the Company's accounts receivable,
         inventories, fixed assets and the stock of its subsidiary, North
         American Galvanizing Company ("NAG") are pledged as collateral
         under the agreement, and the credit agreement is secured by a
         guaranty from NAG.  Amounts borrowed under the agreement bear
         interest at the prime rate of Bank One, Oklahoma or the LIBOR
         rate, at the option of the Company, subject to a rate margin
         adjustment determined by the Company's consolidated debt service
         ratio.  The prime rate margin adjustment ranges from minus 50
         basis points (0.50%) to plus 25 basis points (0.25%).  The LIBOR
         rate margin adjustment ranges from plus 225 basis points (2.25%)
         to plus 300 basis points (3.00%).

         Term loan payments are based on a five year amortization schedule
         with equal monthly payments of principal and interest, and the loan
         may be prepaid without penalty.  The revolving line of credit may
         be paid down without penalty, or additional funds may be borrowed
         up to the revolver limit. The credit agreement requires the Company
         to maintain compliance with covenant limits for current ratio, debt
         to tangible net worth ratio, debt service coverage ratio and
         capital expenditures ratio.  The Company was in compliance with the
         covenants at June 30, 2000.

Note 6.  Casualty Losses
         ---------------
         At June 30, 2000, NAG had an unresolved insurance claim arising
         from the failure of a galvanizing kettle during 1999.  A major part of
         the claim resulted from additional costs incurred to galvanize
         product at an alternate NAG location in order to meet delivery
         commitments.  NAG recorded a casualty loss of $176,000 in
         the fourth quarter of 1999 representing the estimated loss, net of
         interim insurance proceeds.  NAG recorded an additional casualty
         loss of $313,000 during the first quarter of 2000, primarily
         representing costs incurred during that period to transport
         product to an alternative galvanizing location.

                                    -9-

Note 7.  Commitments and Contingencies
         -----------------------------
         As previously reported, North American Galvanizing Company ("NAG") was
         notified in 1996 by the Illinois Environmental Protection Agency
         (IEPA") that it was a potentially responsible party under the
         Comprehensive Environmental Response, Compensation, and Liability
         Information System (CERCLIS) in connection with cleanup of an
         abandoned site formerly owned by Sandoval Zinc Co.  The IEPA notice
         includes NAG as one of 59 organizations which arranged for the
         treatment and disposal of hazardous substances at Sandoval.  Based
         on current information and the preliminary state of investigation,
         NAG's share of any probable future costs cannot be estimated at this
         time.

         The Company will continue to have additional environmental
         compliance costs associated with operations in the galvanizing
         business.  The Company is committed to complying with the
         environmental legislation and regulations affecting its operations.
         Due to the uncertainties associated with future environmental
         technologies, regulatory interpretations, and prospective
         legislative activity, management cannot reasonably attempt to
         quantify potential costs in this area.

         The Company expenses or capitalizes, where appropriate, environmental
         expenditures that relate to current operations as they are incurred.
         Such expenditures are expensed when they are attributable to past
         operations and are not expected to contribute to current or future
         revenue generation.  The Company records liabilities when
         remediation or other environmental assessment or clean-up efforts
         are probable and the cost can be reasonably estimated.

         NAG enters into purchase commitments with domestic and foreign
         zinc producers to purchase certain of its zinc requirements for its
         hot dip galvanizing operations.  Commitments for the future
         delivery of zinc reflect rates quoted on the London Metals Exchange
         which are not subject to future price adjustment.  At June 30, 2000,
         the aggregate commitments for the procurement of zinc were
         approximately $4.5 million in 2000, which represents all of the
         estimated operating requirements for the remainder of 2000.
         Management believes this zinc procurement program ensures adequate
         supplies of zinc and stable gross margins from its galvanizing
         operations.

         In the first quarter of 2000, NAG began construction on a new
         galvanizing plant in Harris County, Texas and, in connection with
         this project, entered into contract commitments of approximately
         $6,100,000.  Project expenditures through June 30, 2000 were
         $3,105,000.

         Various litigation arising in the ordinary course of business is
         pending against the Company.

         Management believes that resolution of the Company's contingencies
         should not materially affect the Company's consolidated financial
         position or liquidity.  Should future developments cause the
         Company to record an additional liability for customer claims,
         environmental evaluation, clean-up or litigation, the
         recording of such a liability could have a material impact on the
         results of operations for the period involved.

                                    -10-


Note 8.  Labor Agreement
         ---------------
         On April 1, 2000, NAG concluded negotiations of a one-year
         labor agreement with the United Steel Workers Union covering
         approximately 110 production workers at its Tulsa galvanizing
         plant.  The new agreement is not materially changed from the
         previous agreement which expired in the first quarter of 2000.

Note 9.  Discontinued Operations
         -----------------------
         During the second quarter of 2000, the Company elected to sell its
         Lake River Corporation ("Lake River") and North American Warehousing
         Company ("North American") subsidiaries, comprising the Company's
         bulk liquids terminal and public warehousing businesses.  On
         June 26, 2000, the Company sold all of the common stock of Lake
         River and North American for $371,000 cash and other considerations,
         including assumption of all financial liabilities.

         These transactions resulted in a net loss on the disposal of
         business segments of approximately $1,246,000 and $417,000 for
         Lake River Corporation and North American Warehousing Company,
         respectively.  The Lake River and North American segments are
         accounted for as discontinued operations, and accordingly, amounts
         in the financial statements and related notes for all periods
         shown have been restated to reflect discontinued operations
         accounting.

         Lake River Corporation and North American Warehousing Company,
         both located in the Chicago area, represented approximately 16% of
         the Company's 1999 sales.  Lake River Corporation conducts business
         primarily in the storage and trans-shipment of bulk liquid
         chemicals.  North American Warehousing Company is involved in the
         warehousing and trans-shipment of drummed and dry chemicals.  Both
         of the acquiring corporations are controlled by members of the
         existing management of Lake River Corporation and North American
         Warehousing Company.

Note 10.  Segment Disclosures
          -------------------
          Subsequent to the sale of Lake River Corporation and North American
          Warehousing Company, the Company's sole business is hot dip
          galvanizing which is conducted through its wholly owned subsidiary,
          North American Galvanizing Company.

                                     -11-


                      Kinark Corporation and Subsidiaries
                    Management's Discussion and Analysis of
                 Financial Condition and Results of Operations


     During the second quarter of 2000, Kinark (the "Company") exited the
chemical storage and warehousing business with the sale of its wholly-owned
subsidiaries, Lake River Corporation and North American Warehousing Company.
As a result, these subsidiaries have been classified as discontinued
operations for accounting purposes and their revenues and expenses are not
included in the results of continuing operations analyzed below.  These
subsidiaries accounted for approximately 16% of the Company's consolidated
sales for 1999.  Currently, the Company's sole line of business is hot dip
galvanizing.

Results of Continuing Operations

     Kinark's consolidated sales for the second quarter of 2000 were
$10,628,000, an increase of 5.8% from $10,050,000 for the second quarter of
1999, due to higher revenues from galvanizing.
Galvanizing tonnage for the second quarter of 2000 established a four-year
high, rising 9.2% over the prior year.  Business activity accelerated in the
second quarter as the demand for galvanizing customer's fabricated steel
products generated a tonnage increase of 10.1% over the first quarter of
2000.  This increase was broadly spread over the multi-state regions serviced
by the Company's galvanizing segment.

     For the first six months of 2000, sales increased 2.4% to $19,798,000
from $19,330,000 for the comparable period a year ago.  Galvanizing tonnage
was up 8.2% over the same period of 1999.   The increase in sales reflects a
general improvement in a number of markets served by the galvanizing segment,
with particular strength continuing from transportation and communications
sectors.

     Net income from continuing operations for the second quarter of 2000 was
$406,000, or $.06 per share, compared to net income of $190,000, or $.03 per
share for the second quarter of 1999.  For the first six months of 2000, net
income from continuing operations was $292,000, or $.04 per share, compared to
net income of $302,000, or $.05 for the same period a year ago.

     During the second quarter of 2000, gross profit margin as a percent of
sales continued to rise over 1999, due to improvements in both labor
productivity and zinc consumption.  For the second quarter of 2000, the gross
profit margin rate was 29.4% compared to 25.6% for the second quarter of
1999.  Year-to-date through June 30, 2000, the gross profit margin rate was
28.3% compared to 27.0% for the first half of 1999.  This improvement reflects
implementation of the Company's planned capital expenditures program to
upgrade material handling and processing systems at all of its galvanizing
plants, and improved labor and zinc operating practices.  The increase in
tonnage in 2000 provided an opportunity for greater utilization of processing
capacity and is an added factor contributing to the improved gross margin.

     Selling, general and administrative expenses ("SG&A") of $1,436,000 for
the second quarter of 2000 were unchanged from the comparable period of 1999.
For the first six months of 2000, SG&A expenses were $2,886,000, down 7.0%
from the comparable period of 1999, reflecting reductions in corporate staff
and improved collections of accounts receivable.

                                    -12-


     During the first quarter of 2000, the Company recorded charges to income
of $313,000 for the expenses associated with a galvanizing kettle failure.
While the Company believes this casualty loss is covered by insurance, a final
settlement has not been determined and there can be no assurance that the
Company will recover any portion of  this loss.

     Net interest expense for the second quarter of 2000 rose to $249,000 from
$176,000 for the second quarter of 1999.  Interest expense for the first half
of 2000 was $461,000 compared to $350,000 for the first half of 1999.  The
increases in interest expense for the respective periods of 2000 is due
primarily to increased borrowings for current working capital requirements and
capital expenditures.  The Company's effective income tax rate for the first
half of 2000 was 43.8% compared to 43.0% for the same period in 1999.  The
rates were higher than federal statutory rates primarily due to non-deductible
amortization of goodwill and state income taxes.

Liquidity and Capital Resources

     For the first half of 2000, the Company's continuing operating
activities generated cash of $972,000 compared to cash generated of
$1,855,000 in the first half of 1999.  The reduction in cash generated by
year 2000 operating activities is primarily due to an increase in accounts
receivable in the galvanizing segment related to increased sales.

     In March 2000, the Company obtained $9,050,000 from the issuance of
tax-exempt industrial revenue bonds, the use of which is restricted for a new
galvanizing plant currently under construction.  Capital expenditures for the
first half of 2000 were $3,531,000, of which $1,948,000 was for the new
galvanizing plant.  The Company's other financing activities in the first half
of 2000 included making payments of $7,718,000 on long-term obligations and
receiving proceeds of $8,060,000 from long-term obligations, for a net
increase of $342,000 in long-term obligations.  The Company's current credit
facility includes a $9,000,000 revolving line of credit under a bank credit
agreement that expires September 30, 2002.  The Company's availability under
the revolver was $353,000 at June 30, 2000.  The Company believes it has the
ability to generate cash and/or has available credit facilities to meet its
foreseeable needs for working capital and planned capital expenditures.

Environmental Matters and Other Contingencies

     As previously reported, NAG was notified in 1997 by  the Illinois
Environmental Protection Agency ("IEPA") that it was a potentially responsible
party under the Comprehensive Environmental Response, Compensation, and
Liability Information System (CERCLIS) in connection with cleanup of an
abandoned site formerly owned by Sandoval Zinc Co.  The IEPA notice includes
NAG as one of 59 organizations which arranged for the treatment and disposal
of hazardous substances at Sandoval.  Based on current information and the
preliminary stage of investigation, NAG's share of any probable future costs
cannot be estimated at this time.

     At June 30, 2000, NAG had an unresolved insurance claim arising from the
failure of a galvanizing kettle during 1999.  A major part of the claim
resulted from additional costs incurred to galvanize product at an alternate
NAG location in order to meet delivery commitments.  NAG recorded a casualty
loss of $176,000 in the fourth quarter of 1999 representing the estimated
loss, net of interim insurance proceeds.  NAG recorded an additional casualty

                                    -13-

loss of $313,000 during the first quarter of 2000, primarily representing
costs incurred during that period to transport product to an alternative
galvanizing location.

     The Company's facilities are subject to extensive environmental
legislation and regulations affecting their operations and the discharge of
wastes.  The cost of compliance with such regulations was approximately
$524,000 in the first half of 2000 and $421,000 for the same period in 1999,
for the disposal and recycling of waste acids generated by the galvanizing
operations.  NAG operates on-site sulphuric acid recovery systems at three of
its galvanizing plants, and plans to continue using hydrochloric acid at its
other galvanizing plants.

     The Company is committed to complying with all federal, state and local
environmental laws and regulations and using its best management practices to
anticipate and satisfy future requirements.  As is typical in the galvanizing
and chemicals businesses, the Company will have additional environmental
compliance costs associated with past, present, and future operations.
Management has committed resources to discovering and eliminating
environmental issues as they arise.  Because of the frequent changes in
environmental technology, laws and regulations management cannot reasonably
attempt to quantify the Company's potential costs in this
area.

Discontinued Operations

     During the second quarter of 2000, the Company elected to sell its Lake
River Corporation ("Lake River") and North American Warehousing Company
("North American") subsidiaries, comprising the Company's bulk liquids
terminal and public warehousing businesses.  On June 26, 2000,
the Company sold all of the common stock of Lake River and North American
for $371,000 cash and other considerations, including assumption of all
financial liabilities.  (see Note 9 to Condensed Consolidated Financial
Statements).

     The transactions resulted in a loss on disposal of $1,663,000 for the net
value of assets sold.  The combined revenues of Lake River and North American
were $3,403,000 and $3,708,000 for the six-month periods ended June 30, 2000
and 1999, respectively.  Their combined operating results were a net loss of
$444,000 and a net profit of $216,000 for the six-month periods ended June 30,
2000 and 1999, respectively.  The combined income tax expense (benefit) on the
operating results of Lake River and North American were $(268,000) and
$163,000 for the six-month periods ended June 30, 2000 and 1999, respectively.

                                   -14-



Quantitative and Qualitative Disclosures About Market Risk

     Kinark's current operations include managing market risks related to
changes in interest rates and zinc commodity prices.

     Interest Rate Risk.  Kinark is exposed to financial market risk related
to changing interest rates.  Changing interest rates will affect interest paid
on Kinark's variable rate debt.  At June 30, 2000, $10,325,000 was outstanding
under the credit agreement with an effective rate of 9.5% and $9,050,000 was
outstanding under the bond agreement with an effective rate of 4.22% (see Note
5 to Condensed Consolidated Financial Statements).  The borrowings are due as
follows: $347,000 in 2000, $1,279,000 in 2001, $9,849,000 in 2002 and
$7,900,000 in years 2003 through 2012.  Each increase of 10 basis points in
the effective interest rate would result in an annual increase in interest
charges of approximately $19,400 based on June 30, 2000 outstanding
borrowings.  The actual effect of changes in interest rates is dependent on
actual amounts outstanding which vary under the revolving credit facility.
The Company monitors interest rates and has sufficient flexibility to
renegotiate the loan agreement, without penalty, in the event market
conditions and interest rates change.

     Zinc Price Risk.  NAG enters into purchase commitments with domestic and
foreign zinc producers to purchase zinc for its hot dip galvanizing
operations.  Commitments for the future delivery of zinc reflect rates quoted
on the London Metals Exchange which are not subject to future price
adjustment.  At June 30, 2000, the aggregate commitments for the procurement
of zinc were approximately $4.5 million, to cover all of NAG's estimated
operating requirements for the remainder of 2000.  Management believes this
zinc procurement program ensures adequate supplies of zinc and stable gross
margins from its galvanizing operations.  With respect to the zinc purchase
commitments, a potential decrease of 10% in the market price of zinc from the
June 30, 2000 level would cause a lost gross margin opportunity of
approximately $450,000.

                                   -15-


                                  PART II

                             OTHER INFORMATION


Item 1.   Legal Proceedings
          -------------------
          Not applicable.

Item 2.   Changes in Securities
          ---------------------
          Not applicable.

Item 3.   Defaults Upon Senior Securities
          -------------------------------
          Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders
          ---------------------------------------------------
          The 2000 Annual Meeting of the Company's stockholders was
          held on Monday, May 15, 2000 in New York City, NY.
          At the  meeting, the stockholders elected six directors.

          The votes for the election of directors were as follows:

                                      For              Withheld
                                   ---------           --------
           Linwood J. Bundy        5,375,247            57,946

           Paul R. Chastain        5,368,599            64,589

           Ronald J. Evans         5,368,208            64,980

           Joseph J. Morrow        5,378,257            54,931

           John H. Sununu          5,372,794            60,394

           Mark E. Walker          5,374,187            59,001


Item 5.   Other Information
          -----------------
          Not applicable.

Item 6.   Exhibits and Reports on Form 8-K
          --------------------------------
          (a) Exhibits

                                    -16-

               3.1  The Company's Restated Certificate of Incorporation
                    (incorporated by reference to Exhibit 3.1 to the
                    Company's Pre-Effective Amendment No. 1 to
                    Registration Statement on Form S-3
                    (Reg. No. 333-4937) filed on June 7, 1996).

               3.2  The Company's Amended and Restated Bylaws
                    (incorporated by reference to Exhibit 3.2 to the
                    Company's Quarterly Report on Form 10-Q dated
                    March 31, 1996).

               27   Financial Data Schedule

               99   Cautionary Statements by the Company Related
                    to Forward-Looking Statements

          (b)  Reports on Form 8-K

               The Company filed a Form 8-K Current Report on July 12, 2000
               regarding the sale of the common stock of its subsidiaries,
               Lake River Corporation and North American Warehousing Company,
               on June 26, 2000.


                                    -17-


                                 SIGNATURES


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



                                         KINARK CORPORATION
                                        -------------------
                                            Registrant



                                           /S/Paul R. Chastain
                                          --------------------
                                            Paul R. Chastain
                                           Vice President and
                                         Chief Financial Officer
                                      (Principal Financial Officer)


Date:   August 21, 2000
        ---------------

                                     -18-


                                 EXHIBIT INDEX


Ex. No.     Description

 3.1        The Company's Restated Certificate of Incorporation
            (incorporated by reference to Exhibit 3.1 to the Company's
            Pre-Effective Amendment No. 1 to Registration Statement on
            Form S-3 (Reg. No. 333-4937) filed on June 7, 1996).

 3.2        The Company's Amended and Restated Bylaws (incorporated by
            reference to Exhibit 3.2 to the Company's Quarterly Report on
            Form 10-Q dated March 31, 1996).

 27         Financial Data Schedule

 99         Cautionary Statements by the Company Related to Forward-Looking
            Statements.