SECURITIES AND EXCHANGE COMMISSION
                        WASHINGTON, D.C.
                                
                                
                                
                            FORM 8-K
                                
                                
                                
                         CURRENT REPORT
                                
                                
                                
                                
             Pursuant to Section 13 of 15(d) of the
                 Securities Exchange Act of 1934



                         January 5, 1999
----------------------------------------------------------------
        Date of Report (date of earliest event reported)


                     TEMTEX INDUSTRIES, INC.
----------------------------------------------------------------
      Exact name of Registrant as Specified in its Charter


          Delaware                  0-5940             75-1321869
----------------------------------------------- ---------------------
 State or Other Jurisdiction    Commission File       IRS Employer
      of Incorporation         Number       Identification Number


       5400 LBJ Freeway, Suite 1375, Dallas, Texas  75240
----------------------------------------------------------------
   Address of Principal Executive Offices, Including Zip Code


                         (972) 726-7175
----------------------------------------------------------------
       Registrant's Telephone Number, Including Area Code


                               N/A
----------------------------------------------------------------
  (Former Name or Former Address, if Changed Since Last Report)


<PAGE>

Item 2.   Acquisition or Disposition of Assets
          ------------------------------------

     On January 5, 1999, Temtex Industries, Inc. (the "Company")
completed the sale of substantially all of the assets and
specified liabilities of Texas Clay Industries, a division of the
Company (the "Brick Business"), to Acme Brick Company (the
"Sale").  Texas Clay Industries manufactures and markets clay
face brick products. The Sale was consummated in accordance with
the terms of that certain Asset Purchase Agreement between Acme
Brick Company and Temtex Industries, Inc. dated October 22, 1998
(the "Sale Agreement") which has been attached hereto and
incorporated herein by reference.
     
     The consideration paid to the Company in connection with the
Sale was as follows:  (i) $12.97 million, of which $0.9 million
is being withheld pending final calculation of certain post-
closing balance sheet items as set forth in detail in the Sale
Agreement; and (ii) assumption of accounts payable and other debt
of Texas Clay Industries totaling approximately $0.9 million.

     The total consideration paid in the Sale was determined
through arm's length negotiations between the parties.  Neither
the Company nor any of its affiliates had, nor to the knowledge
of the Company did any director or officer or any associate of
any such director or officer of the Company, have any material
relationship with Acme Brick Company prior to the Sale.


Item 7.   Financial Statements and Exhibits

(a)  FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED

     Not Applicable.

(b)  UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

     The following unaudited pro forma consolidated balance sheet
as of November 30, 1998 reflects the historical accounts of the
Company as of that date adjusted to give pro forma effect to the
Sale as if the transaction had occurred as of the date presented.

     The following unaudited pro forma consolidated statements of
operations for the fiscal quarter ended November 30, 1998 and the
three fiscal years ended August 31, 1998 reflect the historical
accounts of the Company for those periods, adjusted to give pro
forma effect to the Sale as if the transaction had occurred at
the beginning of each period presented.

     The pro forma financial data and accompanying notes should
be read in conjunction with the description of the Sale contained
in this Current Report on Form 8-K and the Consolidated Financial
Statements and related notes included in the Company's 1998
Annual Report on Form 10-K and the Quarterly Report on Form 10-Q
relating to the fiscal quarter ended November 30, 1998, in each
case, previously filed with the Commission.  The Company believes
that the assumptions used in the following statements provide a
reasonable basis on which to present the pro forma financial
data.  The pro forma financial data is provided for informational
purposes only and should not be construed to be indicative of the
Company's financial condition or results of operations had the
Sale been consummated on the dates assumed and are not intended
to project the Company's financial condition on any future date
or results of operations for any future period.



                               -2-

<PAGE>


UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars)





<TABLE>
<CAPTION>
                                                                  As of November 30, 1998
                                                   ----------------------------------------------------
                                                                        Pro Forma      
                                                      Historical       Adjustments         Pro Forma
                                                   ----------------  ----------------  ----------------
<S>                                                  <C>               <C>               <C>
CURRENT ASSETS                                                                         
  Cash and cash equivalents                          $      540        $   11,124[2]     $   11,664
  Accounts receivable - net                               5,694            (1,088)[1]         4,606
  Inventories                                            10,845            (1,445)[1]         9,400
  Prepaid expenses                                          323               (11)[1]           312
  Deferred taxes                                            607               294[3]            901
                                                   ----------------  ----------------  ----------------
     TOTAL CURRENT ASSETS                                18,009             8,874            26,883
                                                                                       
DEFERRED TAXES                                              138               116[3]            254
                                                                                       
OTHER ASSETS                                                463                --               463
                                                                                       
PROPERTY, PLANT AND EQUIPMENT                                                          
  Land and clay deposits                                    566              (566)[1]            --
  Buildings and improvements                              3,491              (876)[1]         2,615
  Machinery, equipment, furniture and fixtures           25,037            (7,789)[1]        17,248
  Leasehold improvements                                  1,077                --             1,077
                                                   ----------------  ----------------  ----------------
                                                         30,171            (9,231)           20,940
  Less allowance for depreciation,                                                     
    depletion and amortization                           23,076            (7,315)[1]        15,761
                                                   ----------------  ----------------  ----------------
                                                          7,095            (1,916)            5,179
                                                   ----------------  ----------------  ----------------
                                                     $   25,705        $    7,074        $   32,779
                                                   ================  ================  ================


</TABLE>
                               -3-


<PAGE>

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars)


<TABLE>
<CAPTION>

                                                                           As of November 30, 1998
                                                              ---------------------------------------------------
                                                                                   Pro Forma             
                                                                 Historical       Adjustments        Pro Forma
                                                              ---------------- ----------------  ----------------
<S>                                                             <C>              <C>               <C>
CURRENT LIABILITIES                                                                              
  Notes payable                                                 $    1,600       $       --        $    1,600
  Accounts payable                                                   4,038             (595)[1]         3,443
  Accrued expenses                                                   1,129               --             1,129
  Income taxes payable                                                  99            2,872[3]          2,971
  Current maturities of indebtedness to related parties                 11               --                11
  Current maturities of long-term obligations                          118              (82)[1]            36
                                                              ---------------- ----------------- ----------------
     TOTAL CURRENT LIABILITIES                                       6,995            2,195             9,190
                                                                                                 
INDEBTEDNESS TO RELATED PARTIES,                                                                 
  less current maturities                                            1,590               --             1,590
                                                                                                 
LONG-TERM OBLIGATIONS, less current                                                              
  maturities                                                           631             (204)[1]           427
                                                                                                 
STOCKHOLDERS' EQUITY                                                                             
  Common stock                                                         718               --               718
  Additional capital                                                 9,246               --             9,246
  Retained earnings                                                  6,852            5,083[3]         11,935
                                                              ---------------- ----------------- ----------------
                                                                    16,816            5,083            21,899
                                                                                                 
  Less: Cost of treasury stock                                         327               --               327
                                                              ---------------- ----------------- ----------------
                                                                    16,489            5,083            21,572

                                                              ---------------- ----------------- ----------------
                                                                $   25,705       $    7,074        $   32,779
                                                              ================ ================= ================

</TABLE>

                               -4-


<PAGE>


   Footnotes to Unaudited Pro Forma Consolidated Balance Sheet
                    (In thousands of dollars)


(1)  To reflect the elimination of assets and liabilities
     relating to and resulting from the operations of the Brick
     Business sold in connection with the Sale.


(2)  To reflect the net proceeds resulting from and related to
     the Sale of the Brick Business calculated as follows:

      Gross proceeds from sale of net assets        $ 12,970
                                                  
    Purchase price adjustments based on assumed   
      net assets, as defined                            (746)
                                                  
    Payment of estimated fees and transaction     
      costs                                             (820)
                                                  
      Payment of estimated severance costs              (280)
                                                  -----------
                                                  
      Net proceeds                                  $ 11,124
                                                  ===========
                                                  


(3)  To reflect the estimated gain for financial statement
     purposes resulting from the Sale of the Brick Business
     calculated as follows:

                                                  
      Gross proceeds from sale of net assets      
                                                    $ 12,970
                                                  
      Purchase price adjustments                        (746)
                                                  
      Net book value of assets and liabilities    
      related to and resulting from the           
      operations of the Brick Business            
                                                      (3,579)
                                                  
      Taxes, estimated fees and transaction       
      costs, and estimated severance costs        
                                                      (3,562)
                                                  -----------
                                                  
      Estimated gain                                $  5,083
                                                  ===========

                               -5-


<PAGE>

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars except per share amounts)


<TABLE>
<CAPTION>


                                                         Three Months Ended November 30, 1998
                                                   -----------------------------------------------------
                                                                         Pro Forma              
                                                      Historical        Adjustments        Pro Forma
                                                   -----------------  ----------------  ----------------
<S>                                                  <C>                <C>               <C>
Net sales                                            $  10,317          $   (2,642)[1]    $   7,675
Cost of goods sold                                       7,539              (1,457)[1]        6,082
                                                   -----------------  ----------------  ----------------
                                                         2,778              (1,185)           1,593
                                                                                        
Costs and expenses:                                                                     
  Selling, general and administrative                    2,345                (310)[1]        2,035
  Interest                                                 121                  (9)[2]          112
                                                                                        
Other expense / (income)                                   (23)                 25[1]             2
                                                   -----------------  ----------------  ----------------
                                                         2,443                (294)           2,149
     INCOME/(LOSS) FROM OPERATIONS                 -----------------  ----------------  ----------------
       BEFORE INCOME TAXES                                 335                (891)            (556)
                                                                                        
Income tax provision (benefit)                             134                (285)[1]         (151)
                                                   -----------------  ----------------  ----------------
     NET INCOME/(LOSS)                               $     201          $     (606)       $    (405)
                                                   =================  ================  ================
                                                                                        
Basic and diluted income (loss) from operations                                         
  per common share                                       $0.06                               $(0.12)
                                                                                        
                                                                                        
Weighted average common shares outstanding           3,477,141                            3,477,141


</TABLE>

                               -6-


<PAGE>


UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars except per share amounts)


<TABLE>
<CAPTION>

                                                             Year ended August 31, 1998
                                                     ----------------------------------------------------
                                                                           Pro Forma             
                                                        Historical        Adjustments        Pro Forma
                                                     ----------------- ----------------  ----------------
<S>                                                    <C>               <C>               <C>
Net sales                                              $   37,183        $  (11,021)[1]    $   26,162
Cost of goods sold                                         27,045            (6,393)[1]        20,652
                                                     ----------------- ----------------  ----------------
                                                           10,138            (4,628)            5,510
                                                                                         
Costs and expenses:                                                                      
  Selling, general and administrative                       8,912            (1,302)[1]         7,610
  Interest                                                    464               (42)[2]           422
                                                                                         
Other expense / (income)                                      (68)               12[1]            (56)
                                                                                         
                                                     ----------------- ----------------  ----------------
                                                            9,308            (1,332)            7,976
     INCOME (LOSS) BEFORE                                                                
                                                     ----------------- ----------------  ----------------
     INCOME TAXES                                             830            (3,296)           (2,466)
                                                                                         
Income tax provision (benefit)                                323            (1,154)[1]          (831)
                                                                                         
                                                     ----------------- ----------------  ----------------
     NET INCOME (LOSS)                                 $      507        $   (2,142)       $   (1,635)
                                                     ================= ================  ================
                                                                                         
                                                                                         
Basic income (loss) per common share                        $0.15                              $(0.47)
Diluted income (loss) per common share                      $0.14                              $(0.47)
                                                                                         
                                                                                         
Basic weighted average common shares outstanding        3,477,141                           3,477,141
Diluted weighted average common and common equivalent                                      
shares outstanding                                      3,531,414                           3,477,141

</TABLE>



                               -7-


<PAGE>



UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars except per share amounts)



<TABLE>
<CAPTION>


                                                               Year Ended August 31, 1997
                                                 -----------------------------------------------------
                                                                      Pro Forma              
                                                    Historical       Adjustments         Pro Forma
                                                 ---------------- -----------------  -----------------
<S>                                                <C>              <C>                <C>
Net sales                                          $   39,208       $   (9,010)[1]     $   30,198
Cost of goods sold                                     29,317           (5,971)[1]         23,346
                                                 ---------------- -----------------  -----------------
                                                        9,891           (3,039)             6,852
                                                                                     
Costs and expenses:                                                                  
  Selling, general and administrative                   9,831           (1,431)[1]          8,400
  Interest                                                519              (48)[2]            471
                                                                                     
Other expense / (income)                                 (114)              25[1]             (89)
                                                                                     
                                                 ---------------- -----------------  -----------------
                                                       10,236           (1,454)             8,782
                                                                                     
     LOSS BEFORE                                 ---------------- -----------------  -----------------
     INCOME TAXES                                        (345)          (1,585)            (1,930)
                                                                                     
Income tax benefit                                       (144)            (541)[1]           (685)
                                                                                     
                                                 ---------------- -----------------  -----------------
     NET LOSS                                      $     (201)      $   (1,044)        $   (1,245)
                                                 ================ =================  =================
                                                                                     
Basic and diluted loss per common share                $(0.06)                             $(0.36)
                                                                                     
Weighted average common shares outstanding          3,474,155                           3,474,155
                                                                                     

</TABLE>


                               -8-


<PAGE>


UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
TEMTEX INDUSTRIES, INC. AND SUBSIDIARIES
     (in thousands of dollars except per share amounts)


<TABLE>
<CAPTION>


                                                                    Year Ended August 31, 1996
                                                    ----------------------------------------------------------
                                                                            Pro Forma                
                                                        Historical         Adjustments          Pro Forma
                                                    ------------------  ------------------  ------------------
<S>                                                   <C>                 <C>                 <C>
Net sales                                             $   41,972          $   (8,862)[1]      $   33,110
Cost of goods sold                                        30,977              (5,970)[1]          25,007
                                                    ------------------  ------------------  ------------------
                                                          10,995              (2,892)              8,103
                                                                                            
Costs and expenses:                                                                         
  Selling, general and administrative                      9,548              (1,491)[1]           8,057
  Interest                                                   583                 (45)[2]             538
                                                                                            
Other expense / (income)                                      (2)                 15[1]               13
                                                                                            
                                                          10,129              (1,521)              8,608
                                                                                            
     INCOME (LOSS) BEFORE                           ------------------  ------------------  ------------------
     INCOME TAXES                                            866              (1,371)               (505)
                                                                                            
Income tax provision (benefit)                               324                (462)[1]            (138)
                                                                                            
                                                    ------------------  ------------------  ------------------
     NET INCOME (LOSS)                                $      542          $     (909)         $     (367)
                                                    ==================  ==================  ==================
                                                                                            
Basic income (loss) per common share                       $0.16                                  $(0.11)
Diluted income (loss) per common share                     $0.15                                  $(0.11)
                                                                                            
Basic weighted average common shares outstanding       3,465,739                               3,465,739
Diluted weighted average common and common                                                  
  equivalent shares outstanding                        3,531,631                               3,465,739


</TABLE>



                               -9-


<PAGE>


   Footnotes to Unaudited Pro Forma Consolidated Statements of
                           Operations
                    (In thousands of dollars)

(1)  To reflect the elimination of net sales, costs of goods
     sold, costs and expenses, and income taxes of the Brick
     Business.

(2)  To reflect the elimination of interest expense which
     includes $3, $18, $21 and $13 for long-term obligations
     directly related to the Brick Business and $6, $24, $27 and
     $32 of interest expense associated with the Company's line
     of credit allocated to the Brick Business based upon total
     current assets for the fiscal quarter ended November 30,
     1998 and the fiscal years ended August 31, 1998, 1997, and
     1996, respectively.








                              -10-



<PAGE>


(c)  EXHIBITS


  Exhibit      
  Number       Description
-----------    -----------
    2.1        Asset Purchase Agreement dated October 22, 1998
               between Acme Brick Company and Temtex Industries, Inc.
               
               
               
               










                              -11-


<PAGE>



                           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.
     
     
                                   TEMTEX INDUSTRIES, INC.

Dated:    January 19, 1999
                                   By:   /s/ Roger N. Stivers
                                      ---------------------------
                                      Roger N. Stivers
                                      Vice President-Finance, Chief
                                      Financial Officer and Chief
                                      Accounting Officer








                              -12-


<PAGE>


                        INDEX TO EXHIBITS
                        -----------------



  Exhibit      
  Number       Description
-----------    -----------
    2.1        Asset Purchase Agreement dated October 22, 1998
               between Acme Brick Company and Temtex Industries, Inc.