8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    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): FEBRUARY 1, 2001

                       STEWART & STEVENSON SERVICES, INC.
             (Exact name of registrant as specified in its charter)

TEXAS                        0-8493                       74-1051605
(State or other       (Commission File Number)           (I.R.S.  Employer
jurisdiction                                              Identification No.)
of incorporation)

2707 NORTH LOOP WEST
HOUSTON, TEXAS                                            77008
(Address of principal executive offices)                 (Zip code)

       Registrant's telephone number, including area code: (713) 868-7700



Item 5.  Other Events.
        ------------

On February 1, 2001, Stewart & Stevenson Services, Inc. (the "Company") issued
the press release attached hereto as Exhibit 99.1 announcing the Company's
partnership with Mercury MerCruiser on Regional Power Centers.

Item 7.  Exhibits.
         ---------

Exhibit 99.1   Company Press Release dated February 1, 2001 titled Stewart &
               Stevenson Partners with Mercury MerCruiser on Regional Power
               Centers.



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 hereto duly authorized.

                                    STEWART & STEVENSON SERVICES, INC.

Date:  February 1, 2001             By:  /s/ JOHN H. DOSTER
                                        Name:     John H. Doster
                                        Title:    Senior Vice President and
                                                  Chief Financial officer

EX-99.1

EXHIBIT INDEX

Company Press Release February 1, 2001 titled Stewart & Stevenson Partners with
Mercury MerCruiser on Regional Power Centers.


                                   CLIENT:   STEWART & STEVENSON SERVICES, INC.

                                 Contact :   David Wollard
                                             Stewart & Stevenson
                                             954-392-6332
                                             d.wollard@ssss.com

                                             Lisa Elliott / lisae@easterly.com
                                             Easterly Investor Relations
                                             713-529-6600

 STEWART & STEVENSON PARTNERS WITH MERCURY MERCRUISER ON REGIONAL POWER CENTERS

     HOUSTON, TX - FEBRUARY 1, 2001- STEWART & STEVENSON SERVICES, INC.
(NASDAQ:SSSS), a leading manufacturer, distributor and provider of service for
industrial and energy related equipment, and a manufacturer of medium tactical
vehicles for the U.S. Army, announced that it has signed agreements with
Mercury(R) MerCruiser(R) to create regional power centers. Under the agreements,
MerCruiser Diesel Power Centers (DPCs) will serve customers in 26 states within
the Pacific Northwest, Southeast and South Central United States and MerCruiser
Engine Power Centers (EPCs), which deal with gasoline products, will service 19
states within the South Central United States and the Pacific Northwest.

     The Stewart & Stevenson MerCruiser DPCs will primarily serve the diesel
repower market as well as boat builders, focusing on sales, service, inventory
of parts and accessories and application engineering of diesel engines.
Additionally, the line of engine products will be expanded to provide a complete
line of inboard and stern drive engines with 100 - 500 horsepower. The DPCs will
also provide after-market support for diesel products sold by MerCruiser
directly to key original equipment manufacturers (OEMs) and large customers.

     The Stewart & Stevenson MerCruiser EPCs will service the gas repower
markets selling engines and drives to retail marine dealers, marinas and boat
dealers. The centers will also service the OEM markets targeting select boat
builders.

     "This partnership with MerCruiser demonstrates our commitment to remain a
leader in the marine pleasure craft industry and allows us to significantly
expand our markets" said David Wollard, Stewart & Stevenson's Southeast Regional
Manager and Mercury Products Manager. "By adding more regional full-service
dealer locations we will be able to greatly increase our customer service to the
markets we serve."

     Stewart & Stevenson will offer a number of benefits to OEMs, dealers and,
ultimately, the consumer. The DPC will have staff trained on all MerCruiser
Diesel products and will be able to offer applications-engineering support for
OEMs. It will offer value-added component supplies for MerCruiser Diesel
inboards and stern drives, provide excellence in service including mobile
service capabilities, and deliver diesel marketing expertise and support.


     Stewart & Stevenson Services, Inc., founded in 1902, is a billion-dollar
company that manufactures, distributes, and provides service for a wide range of
industrial products and diesel-powered equipment to key industries worldwide,
including petroleum, power generation, defense, airline, marine and
transportation. For more information on Stewart & Stevenson visit www.ssss.com.

     Mercury MerCruiser manufactures stern drive and inboard engines from its
650,000-square-foot facility in Stillwater, Oklahoma. Its 1000-plus employees
design, market, test, produce, sell, and service a broad range of products that
are some of the most respected and reliable in the marine power industry. For
more information on MerCruiser and its product lines, visit their Website at
www.mercurymarine.com.

This press release contains forward-looking statements that are based on
management's current expectations, estimates, and projections. These statements
are not guarantees of future performance and involve a number of risks,
uncertainties and assumptions and are made pursuant to the Safe Harbor
Provisions of the Private Securities Litigation Reform Act of 1995. Many
factors, including those discussed more fully elsewhere in this release and in
the Company's filings with the Securities and Exchange Commission, particularly
its latest annual report on Form 10-K, as well as others, could cause results to
differ materially from those stated. These factors include, but are not limited
to, risks associated with newly acquired businesses; increasing price and
product/service competition by foreign and domestic competitors; rapid
technological developments and changes; the ability to continue to introduce
competitive new products and services on a timely, cost effective basis; the mix
of products/services; the achievement of lower costs and expenses; reliance on
large customers; technological, implementation and cost/financial risks in use
of large, multi-year contracts; the cyclical nature of the markets served; the
outcome of pending and future litigation and governmental proceedings; the
continued availability of financing, financial instruments and financial
resources in the amount, at the times and on the terms required to support the
Company's business; the assessment of unanticipated taxes by foreign or domestic
governmental authorities; and the risk of cancellation or adjustment of specific
orders and termination of significant government programs. In addition, such
forward-looking statements could be affected by general industry and market
conditions and growth rates, general domestic and international conditions
including interest rates, inflation and currency exchange rates and other future
factors. Actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements.