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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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                                    FORM 8-K

                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

         Date of report (date of earliest event reported): July 21, 2006


                             ACME UNITED CORPORATION
             (Exact name of registrant as specified in its charter)

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          Connecticut                    001-07698              06-0236700
(State or other jurisdiction of         (Commission          (I.R.S. Employer
 incorporation or organization)         file number)        Identification No.)


60 Round Hill Road, Fairfield, Connecticut                        06824
 (Address of principal executive offices)                       (Zip Code)


       Registrant's telephone number, including area code: (203) 254-6060

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:

[_]  Written communications pursuant to Rule 425 under the Securities Act
     (17 CFR 230.425)

[_]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
     (17 CFR 240.14a-12)

[_]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
     Exchange Act (17 CFR 240.14d-2(b))

[_]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
     Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 21, 2006, Acme United Corporation (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2006. A copy of the press release is attached as Exhibit 99.1 to this current report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits Exhibit Number Description -------------- ----------- 99.1 Press release dated July 21, 2006. SIGNATURES 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 hereunto duly authorized. ACME UNITED CORPORATION By /s/ WALTER C. JOHNSEN ------------------------------ Walter C. Johnsen President and Chief Executive Officer Dated: July 21, 2006 By /s/ PAUL G. DRISCOLL ------------------------------ Paul G. Driscoll Vice President and Chief Financial Officer Dated: July 21, 2006

EXHIBIT INDEX Exhibit Number Description -------------- ----------- 99.1 Press release dated July 21, 2006.

EXHIBIT 99.1

ACME UNITED CORPORATION            NEWS RELEASE
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                            CONTACT: Paul G. Driscoll
                             Acme United Corporation
                   60 Round Hill Road    Fairfield, CT  06824
                  Phone: (203) 254-6060    FAX: (203) 254-6521
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                       FOR IMMEDIATE RELEASE  July 21, 2006
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ACME UNITED CORPORATION REPORTS 14% SALES GROWTH

FAIRFIELD, CONN. - July 21, 2006 - Acme United Corporation (AMEX:ACU) today
announced that net sales for the quarter ended June 30, 2006 were $17.0 million,
compared to $14.9 million in the comparable period of 2005, an increase of 14%.
Net sales for the six months ended June 30, 2006 were $29.2 million, compared to
$25.5 million in the same period in 2005, an increase of 15% (14% at constant
currency).

         Net income was $1,506,000 or $.40 per diluted share for the second
quarter ended June 30, 2006 compared, to $1,314,000 or $.34 per diluted share
for the comparable period last year, an increase of 15% in net income and 18% in
diluted earnings per share. Net income for the six months ended June 30, 2006
was $2,265,000, or $.61 per diluted share compared to $1,964,000, or $.52 per
diluted share in the comparable period last year, a 15% increase in net income
and 18% in diluted earnings per share.

         Net sales for the six months ended June 30, 2006 in the U.S. segment
increased 15% as the result of sales initiatives with several major retailers
and superstores. Sales in Europe and Canada increased by 12% in U.S. dollars and
8% in local currency. This sales growth was principally driven by new sales to a
large pan-European superstore and an expanded product line with a major European
retailer.

         Gross margins were 43.7% in the second quarter of 2006 versus 45.2% in
the comparable period last year. For the first six months of 2006 gross margins
were 44.4% compared to 45.5% in the same period in 2005. The lower margins in
2006 were primarily the result of one time expenses associated with filling
large orders on an expedited basis for the new business in Europe. These
expenses lay the foundation for future revenues to large multinational customers
in Europe.

                                      (1)

Walter C. Johnsen, President and CEO said, "Acme United had an excellent quarter. We reported the highest quarterly sales and earnings in the Company's history. We expanded our distribution channels, developed new products and continued to gain market share. Acme has been selected for a second consecutive year by Fortune Small Business as one of the top 100 fastest growing public companies in the U.S." The Company's bank debt on June 30, 2006 was $10.2 million compared to $5.0 million on June 30, 2005. The increase in bank debt during the twelve month period was used to buy additional inventory of $3.8 million, repurchase $1.4 million of Acme stock, demolish a former manufacturing site for $1.5 million and make dividend payments to shareholders of $.4 million. Based on anticipated cash flow, the debt level is expected to decline during the second half of the year. ACME UNITED CORPORATION is a leading worldwide supplier of innovative cutting, measuring and safety products to the school, home, office and industrial markets. Forward-looking statements in this earnings release, include without limitation, statements related to the Company's plans, strategies, objectives, expectations, intentions and adequacy of resources. Investors are cautioned that such forward-looking statements involve risks and uncertainties including without limitation the following: (i) the Company's plans, strategies, objectives, expectations and intentions are subject to change at any time at the discretion of the Company; (ii) the Company's plans and results of operations will be affected by the Company's ability to manage its growth, and (iii) other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission. # # # (2)

ACME UNITED CORPORATION CONSOLIDATED STATEMENT OF INCOME SECOND QUARTER REPORT 2006 Quarter Ended Quarter Ended June 30, 2006 June 30, 2005 Amounts in $000's except per share data (Unaudited) (Unaudited) - ----------------------------------------------------------------------------------------------- Net sales $ 16,984 $ 14,904 Gross profit 7,428 6,731 Selling, general, and administrative expenses 4,995 4,577 Interest expense 130 43 Other (income) expense (38) 97 Pre-tax income 2,341 2,014 Income tax expense 835 700 Net income 1,506 1,314 Earnings per share basic 0.43 0.37 Earnings per share diluted 0.40 0.34 Six Months Ended Six Months Ended June 30, 2006 June 30, 2005 Amounts in $000's except per share data (Unaudited) (Unaudited) - ----------------------------------------------------------------------------------------------- Net sales $ 29,241 $ 25,487 Gross profit 12,980 11,592 Selling, general, and administrative expenses 9,254 8,296 Interest expense 255 56 Other (income) expense (114) 146 Pre-tax income 3,585 3,094 Income tax expense 1,320 1,130 Net income 2,265 1,964 Earnings per share basic 0.65 0.56 Earnings per share diluted 0.61 0.52 (3)

ACME UNITED CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET SECOND QUARTER REPORT 2006 (Unaudited) Amounts in $000's June 30, 2006 June 30, 2005 - ----------------------------------------------------------------------------------------------- Assets: Current assets: Cash $ 1,053 $ 602 Accounts receivable, net 14,960 12,625 Inventories 14,990 11,141 Prepaid and other current assets 1,222 818 ------------------------------------------------- Total current assets 32,225 25,186 Property and equipment, net 2,566 2,203 Other assets 1,591 809 ------------------------------------------------- Total assets $ 36,382 $ 28,198 ================================================= Liabilities and stockholders' equity: Current liabilities Accounts payable 3,715 3,770 Other current liabilities 4,768 4,559 ------------------------------------------------- Total current liabilities 8,483 8,329 Long-term debt 10,256 5,022 Other non current liabilities 1,084 541 ------------------------------------------------- 19,823 13,892 Total stockholders' equity 16,559 14,306 ------------------------------------------------- Total liabilities and stockholders' equity $ 36,382 $ 28,198 ================================================= (4)