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<SEC-DOCUMENT>0000950152-06-005949.txt : 20061124
<SEC-HEADER>0000950152-06-005949.hdr.sgml : 20061123
<ACCEPTANCE-DATETIME>20060720111710
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950152-06-005949
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20060720

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SIFCO INDUSTRIES INC
		CENTRAL INDEX KEY:			0000090168
		STANDARD INDUSTRIAL CLASSIFICATION:	AIRCRAFT ENGINES & ENGINE PARTS [3724]
		IRS NUMBER:				340553950
		STATE OF INCORPORATION:			OH
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		970 E 64TH ST
		CITY:			CLEVELAND
		STATE:			OH
		ZIP:			44103
		BUSINESS PHONE:		2168818600

	MAIL ADDRESS:	
		STREET 1:		970 EAST 64TH STREET
		CITY:			CLEVELAND
		STATE:			OH
		ZIP:			44103

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	STEEL IMPROVEMENT & FORGE CO
		DATE OF NAME CHANGE:	19690520
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>SIFCO Industries, Inc.    Correspondence</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">July&nbsp;19, 2006
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Michael Fay<BR>
Branch Chief<BR>
U.S. Securities and Exchange Commission<BR>
Division of Corporate Finance<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549-3561

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD>&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Re:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>SIFCO Industries, Inc.<BR>
File No.&nbsp;001-05978<BR>
Form&nbsp;10-K: For the Fiscal Year Ended September&nbsp;30, 2005<BR>
Form&nbsp;10-Q: For the Quarterly Period Ended March&nbsp;31, 2006<BR>
Form&nbsp;8-K: May&nbsp;10, 2006</B></TD>
</TR>
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</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;Fay:
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">This letter is written in response to the Staff&#146;s letter to SIFCO Industries, Inc. dated July&nbsp;11,
2006.</DIV>


<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In response to the Staff&#146;s comments, SIFCO responds as follows:</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-K: For the Fiscal Year Ended September&nbsp;30, 2005</B></U>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Management&#146;s Discussion and Analysis (&#147;MD&#038;A&#148;):</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 1</I></B></U> &#151; SIFCO believes that a portion of the recommended
disclosure is already set forth in (i) &#147;Item&nbsp;1. Business, B. Principal Products and
Services&#148; on page 1 and (ii) &#147;Item&nbsp;7. Management&#146;s Discussion and Analysis..., subsection
H. Forward Looking Statement&#148; on page 18 of its Form 10-K for the fiscal year ended
September&nbsp;30, 2005. In connection with the preparation of its Annual Report and Form 10-K
for the fiscal year ending September&nbsp;30, 2006 (&#147;2006 10-K&#148;), SIFCO will review its
disclosure relative to the Staff&#146;s Comment #1 and in the context of FR-72 (Release No.
33-8350), and determine whether there is appropriate relevant additional disclosure to be
made in the MD&#038;A section of such filing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 2</I></B></U> &#151; In connection with the preparation of its 2006
10-K, SIFCO will review its disclosure relative to the Staff&#146;s Comment #2 and in the
context of FR-72 (Release No.&nbsp;33-8350), and determine the appropriate relevant additional
disclosure to be made in the MD&#038;A section of such filing relative to each of its business
segments. SIFCO respectfully submits that such detailed narrative discussion on a
<U>consolidated basis,</U> as proposed by the Staff, would not prove beneficial to a
reader&#146;s understanding of SIFCO&#146;s results of operations and would have the potential to
be misleading or confusing without adding to the reader&#146;s understanding of SIFCO&#146;s
operations. Because SIFCO is managed in three (3)&nbsp;distinct business segments, management
believes that a separate MD&#038;A discussion of SIFCO&#146;s results of operations for each of
these distinct business segments is the most appropriate presentation and will provide a
better understanding of SIFCO for the reader.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 3</I></B></U> <B>&#151; </B>SIFCO endeavors to provide such analysis (e.g.
reasons underlying factors contributing to fluctuations) to the extent it is known and/or
reasonably determinable. In connection with the preparation of its 2006 10-K, SIFCO will
review its analysis of the disclosures provided relative to the Staff&#146;s Comment #3 and in
the context of FR-72 (Release No.&nbsp;33-8350) and, to the extent known and/or reasonably
determinable,</TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<TR valign="top" style="font-size: 10pt; margin-left: 6%; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provide the appropriate relevant additional analysis of the disclosures made in the MD&#038;A
section of such filing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 4</I></B></U> &#151; The primary reason for the non-US income in 2005
was an isolated gain (equal to approximately $6.2&nbsp;million) from the sale of a building
and related land in Europe, which sale transaction was discussed in SIFCO&#146;s MD&#038;A, and
which building and land was classified in assets held for sale at September&nbsp;30, 2004. On
a recurring basis, SIFCO does not experience material variability between domestic and
foreign operating results. Instead, SIFCO is managed in three (3)&nbsp;distinct business
segments, two of which have foreign operations whose operating results tend to trend
together with their respective domestic operating results. Therefore, SIFCO management
does not believe that such disclosure at this time, on a <U>geographic basis,</U> would
prove beneficial to a reader&#146;s understanding of SIFCO&#146;s results of operations. If,
however, future operating results for a non-US operation vary materially from the
operating results of its domestic operation in the corresponding segment, SIFCO will
provide supplemental disclosure on a geographic basis.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other/General:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 5</I></B></U> &#151; SIFCO concurs with the Staff&#146;s suggestion to
classify the gain on sale of excess raw material to income from operations and SIFCO will
classify such transactions accordingly in its future filings and reclassify earlier
presented periods for comparability.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>However, SIFCO believes including the gain on this particular sale of land and building
in income from operations would not be appropriate in the context of (i)&nbsp;certain facts
that SIFCO believes are unique to this particular transaction and (ii)&nbsp;SIFCO&#146;s
interpretation of the Staff&#146;s reference to Statement of Financial Accounting Standards
(&#147;SFAS&#148;) Nos. 144 and 146 as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 6%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paragraph&nbsp;18 of SFAS No.&nbsp;146 &#151; SIFCO believes this paragraph
refers to the reporting and disclosure of <U>costs associated with an exit or
disposal activity</U> on long-lived assets &#151; not the gain or loss on the sale
of such assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Paragraph&nbsp;45 of SFAS No.&nbsp;144 &#151; SIFCO concurs that this
reference indicates the need to classify the gain on sale of operating assets
within income from operations. However, SIFCO submits that the background
information relative to this particular sale transaction, as outlined in item 3
below, suggest that the assets sold were, in reality, not true operating
assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To put the gain on sale transaction into appropriate context,
SIFCO provides the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 9%">

<TABLE width="90%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The land and building that SIFCO sold became available for sale as a
result of the downturn in SIFCO&#146;s business and the related decision by
SIFCO to consolidate its operations in Ireland from three (3)&nbsp;to two (2)
operating facilities. It was into the remaining two facilities that the
appropriate machinery and equipment (i.e. operating assets) were relocated.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The real value in the sale transaction was the land, not the building,
due to the recent robust real estate market for commercial land in Ireland
in general, and the Cork site (adjacent to significant recent retail
development) in particular. It is SIFCO&#146;s understanding that the building
on this property either has been or eventually will be removed from the
property.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 6%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">SIFCO submits that, in reality, this transaction did not involve true operating assets
and, therefore, it would not be meaningful to investors, and perhaps instead be
misleading, to classify the gain on sale within income from operations.</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liquidity and Capital Resources</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 6</I></B></U> &#151; SIFCO believes that it has endeavored to provide the
more material factors (eg. operating losses, increased levels of inventory required to
support its ACM business, etc.) impacting operating cash flows. In connection with the
preparation of its 2006 10-K, SIFCO will review its disclosure relative to the Staff&#146;s
Comment #6 and in the context of FR-72 (Release No.&nbsp;33-8350) and determine whether there
is appropriate relevant additional disclosure to be made in the MD&#038;A section of such
filing.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Other Contractual Obligations</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 7</I></B></U> &#151; In connection with the preparation of its 2006 10-K,
SIFCO will review its disclosure relative to the Staff&#146;s Comment #7 and in the context of
Regulation&nbsp;S-K (Item&nbsp;303 (a)(5)) and determine whether there is appropriate relevant
additional disclosure to be made in the MD&#038;A section of such filing</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Schedule&nbsp;II, page 41</TD>
</TR>

</TABLE>
</DIV>

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<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 8 </I></B></U>&#151; The $1.35&nbsp;million asset impairment reserve relates
to machinery and equipment associated with SIFCO&#146;s Turbine Component Services and Repair
Group. The reserves were established in connection with the restructuring of the Repair
Group&#146;s operations in 2002 and 2003 and relate principally to the Repair Group&#146;s Cork,
Ireland and Tampa, Florida (closed in 2003) operating facilities.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form&nbsp;8-K, May&nbsp;10, 2006</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 9</I></B></U> &#151; SIFCO believes that it would be impractical, as
partially described in the subject 8-K filing, to prepare pro forma financial information
relative to the sale of the large aerospace portion of its turbine engine component
repair business (&#147;Large Aero Asset Sale&#148;) that would be meaningful to investors and not
be inherently misleading.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>SIFCO did not divest itself of a discrete and self-contained business unit, but instead
sold certain assets that represented a &#147;carved-out&#148; portion (i.e. large aero only) of
its financially distressed turbine engine component repair business. To that point, as
was disclosed in the subject 8-K, &#147;Historically, the large aero <U>portion</U> of
SIFCO&#146;s turbine engine component repair business was operated in portions of two
facilities...&#148; As indicated by this disclosure, the costs (such as labor, machinery and
equipment, supplies, etc.) associated with the divested large aero portion of its
turbine engine component repair business were commingled with the costs of the remaining
industrial portion of its turbine engine component repair business. SIFCO does not
believe it would be practicable to meaningfully separate those divested costs (of the
large aero portion) from the corresponding retained costs (of the industrial portion)
for purposes of preparing pro forma financial information. Likewise, certain of the
retained liabilities represented commingled obligations of both portions of the
business, and SIFCO does not believe it would be practicable to meaningfully separate
those divested liabilities (of the large aero portion) from the corresponding retained
liabilities (of the industrial portion) for purposes of preparing pro forma financial
information.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Given those facts and circumstances, SIFCO does not believe that it would be practicable
to prepare pro forma financial information related to the Large Aero Asset Sale that
would be meaningful to investors and not be inherently misleading because preparation of
such pro forma financial information would require inherently arbitrary allocation of
commingled costs and liabilities. SIFCO respectfully submits that, in this circumstance,
any pro forma financial information that might be prepared relating to the Large Aero
Asset Sale would, in its view, not provide meaningful disclosure regarding the effects
of the Large Aero Asset Sale</TD>
</TR>

</TABLE>
</DIV>
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    <TD width="1%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>on SIFCO&#146;s continuing operations, given the inherently arbitrary nature of the
assumptions and allocations that necessarily would underlie any such pro forma
presentation.</TD>
</TR>

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</DIV>

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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Form&nbsp;10-Q &#151; for the Period Ending June&nbsp;30, 2006</TD>
</TR>

</TABLE>
</DIV>

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<TABLE width="95%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B><I>Response to Comment # 10</I></B></U> &#151;SIFCO will incorporate the above comments/responses
into its future filings on Form 10-Q.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">At the Staff&#146;s request, SIFCO (&#147;Company&#148;) makes the following statements acknowledging its
understanding that:</DIV>


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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company is responsible for the adequacy and accuracy of the disclosure in the
filings;</TD>
</TR>

</TABLE>
</DIV>

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    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Staff comments or changes to disclosure in response to Staff comments do not foreclose
the Commission from taking any actions with respect to the filing; and</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 3%">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Company may not assert Staff comments as a defense in any proceeding initiated by
the Commission or any person under the federal securities laws of the United States.</TD>
</TR>

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</DIV>

<DIV align="left" style="margin-left: 0%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">SIFCO will be pleased to discuss these matters further with you, and to provide additional
information in response to specific questions that may arise upon the Staff&#146;s review of this
response. If you have any questions regarding this response, please feel free to contact me
directly at (216)&nbsp;432-6278 at your convenience.</DIV>


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<TR>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="1" align="left">Sincerely,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="1" style="border-bottom: 1px solid #000000" align="left">/s/ Frank A. Cappello
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="1" align="left">Frank A. Cappello&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD colspan="1" align="left">Vice President &#151; Finance
and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Cc:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">K. Schaffner (Grant Thornton)<BR>
M. Lipscomb (SIFCO Audit Committee)<BR>
D. Berick (SS&#038;D)</TD>
</TR>
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</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
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