| THE      MONARCH CEMENT COMPANY(Exact      name of registrant as specified in its charter) |
|--------------------------------------------------------------------------------------------|
| KANSAS(state      or other jurisdiction of incorporation or organization)                  | 48-0340590(IRS      employer identification no.) |
|                                                                                       |   |
| P.O.      BOX 1000, HUMBOLDT, KANSAS(address      of principal executive offices)          | 66748-0900(zip      code) |

----

|  Large      accelerated filer       | ___                                      |                                                     |  Accelerated      filer     |   X                                              |
|------------------------------------------------------------------------|-----------------------------------------------|----------------------------------------------------------|--------------------------------------------|-----------------------------------------------------------------|
|  Non-accelerated      filer                   | ___        |  (Do      not check if a smaller reporting company) |  Smaller      reporting company  | ___           |

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| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                                       |                                    |
|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                             |                                    |
| September      30, 2009 and December 31, 2008                                                                          |                                    |
|                                                                                                                        |                                    |   |   |   |   |   |   |
| ASSETS                                                                                                                      |                                    |   | 2 0      0 9 |   |   | 2 0      0 8 |   |
| CURRENT      ASSETS:                                                                                                        |                                    | (Unaudited) |   |   |   |   |
|    Cash      and cash equivalents                                                                            |                                    | $ | 3,155,302 |   |   | $ | 3,111,509 |   |
|    Short-term      investments, at cost which approximates fair value                                        |                                    |   | - |   |   |   | 2,100,000 |   |
|    Receivables,      less allowances of $966,000 in 2009 and                                                 |                                    |   |   |   |   |   |   |   |
|       $788,000      in 2008 for doubtful accounts                                             |                                    |   | 21,445,816 |   |   |   | 15,499,638 |   |
|    Inventories,      priced at cost which is not in excess of market-                                        |                                    |   |   |   |   |   |   |   |
|          Finished      cement                                                  |                                    | $ | 5,354,644 |   |   | $ | 4,507,180 |   |
|          Work      in process                                                  |                                    |   | 2,312,898 |   |   |   | 1,681,765 |   |
|          Building      products                                                |                                    |   | 5,384,679 |   |   |   | 5,069,230 |   |
|          Fuel,      gypsum, paper sacks and other                              |                                    |   | 7,130,811 |   |   |   | 6,312,135 |   |
|          Operating      and maintenance supplies                               |                                    |   | 11,151,473 |   |   |   | 10,943,746 |   |
|                                                                                                                        | Total      inventories                  |   | $ | 31,334,505 |   |   | $ | 28,514,056 |   |
|         Refundable federal and state income taxes                                                                 |                                    |   | - |   |   |   | 27,102 |   |
|    Deferred      income taxes                                                                                |                                    |   | 710,000 |   |   |   | 710,000 |   |
|    Prepaid      expenses                                                                                     |                                    |   | 779,071 |   |   |   | 508,324 |   |
|                                                                                                                        | Total      current assets               |   | $ | 57,424,694 |   |   | $ | 50,470,629 |   |
| PROPERTY,      PLANT AND EQUIPMENT, at cost, less                                                                           |                                    |   |   |   |   |   |   |   |
|    accumulated      depreciation and depletion of $159,557,848                                               |                                    |   |   |   |   |   |   |   |
|    in      2009 and $151,055,752 in 2008                                                                     |                                    |   | 88,903,515 |   |   |   | 90,803,872 |   |
| DEFERRED      INCOME TAXES                                                                                                  |                                    |   | 18,031,540 |   |   |   | 19,473,540 |   |
| INVESTMENTS                                                                                                                 |                                    |   | 18,633,591 |   |   |   | 12,740,244 |   |
| OTHER      ASSETS                                                                                                           |                                    |   | 893,527 |   |   |   | 1,276,364 |   |
|                                                                                                                        |                                    |   | $ | 183,886,867 |   |   | $ | 174,764,649 |   |
|                                                                                                                        |                                    |   |   |   |   |   |   |   |   |
| LIABILITIES      AND EQUITY                                                                                                 |                                    |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                   |                                    |   |   |   |   |   |   |   |
|    Accounts      payable                                                                                     |                                    | $ | 6,762,473 |   |   | $ | 6,308,873 |   |
|    Line      of credit payable                                                                               |                                    |   | 5,253,788 |   |   |   | - |   |
|    Current      portion of advancing term loan                                                               |                                    |   | 2,715,022 |   |   |   | 2,643,913 |   |
|    Accrued      liabilities                                                                                  |                                    |   | 7,348,804 |   |   |   | 8,553,694 |   |
|                                                                                                                        | Total      current liabilities          |   | $ | 22,080,087 |   |   | $ | 17,506,480 |   |
| LONG-TERM      DEBT                                                                                                         |                                    |   | 12,843,755 |   |   |   | 15,108,016 |   |
| ACCRUED      POSTRETIREMENT BENEFITS                                                                                        |                                    |   | 27,408,899 |   |   |   | 26,210,409 |   |
| ACCRUED      PENSION EXPENSE                                                                                                |                                    |   | 15,363,826 |   |   |   | 14,720,952 |   |
| EQUITY:                                                                                                                     |                                    |   |   |   |   |   |   |   |   |
|    COMPANY      STOCKHOLDERS' EQUITY:                                                                        |                                    |   |   |   |   |   |   |   |
|       Capital      stock, par value $2.50 per share, one vote per share -                     |                                    |   |   |   |   |   |   |   |
|          Authorized      10,000,000 shares, Issued 2,532,463 shares            |                                    |   |   |   |   |   |   |   |
|          at      9/30/2009 and 2,518,658 shares at 12/31/2008                  |                                    | $ | 6,331,158 |   |   | $ | 6,296,645 |   |
|       Class      B capital stock, par value $2.50 per share, supervoting                      |                                    |   |   |   |   |   |   |   |
|          rights      of ten votes per share, restricted transferability,       |                                    |   |   |   |   |   |   |   |
|          convertible      at all times into Capital Stock on a share-for-share |                                    |   |   |   |   |   |   |   |
|               basis - Authorized 10,000,000 shares, Issued    1,491,735             |                                    |   |   |   |   |
|          shares      at 9/30/2009 and 1,505,540 shares at 12/31/2008           |                                    |   | 3,729,337 |   |   |   | 3,763,850 |   |
|       Retained      earnings                                                                  |                                    |   | 108,418,928 |   |   |   | 104,958,556 |   |
|       Accumulated      other comprehensive loss                                               |                                    |   | (12,289,123 | ) |   |   | (14,509,123 | ) |
|                                                                                                                        | Total      Company stockholders' equity |   |   | 106,190,300 |   |   |   | 100,509,928 |   |
|    NONCONTROLLING      INTEREST                                                                              |                                    |   | - |   |   |   | 708,864 |   |
|                                                                                                                        | Total      equity                       |   | $ | 106,190,300 |   |   | $ | 101,218,792 |   |
|                                                                                                                        |                                    |   | $ | 183,886,867 |   |   | $ | 174,764,649 |   |
| See      notes to condensed consolidated financial statements                                                               |                                    |   |   |   |   |   |   |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                  |   |
|--------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS                                 |   |
| For      the Three Months and the Nine Months Ended September 30, 2009 and 2008      (Unaudited)  |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | For      the Three Months Ended |   |   | For      the Nine Months Ended |   |
|                                                                                                   |   | Sept.      30,2009 |   |   | Sept.      30,2008 |   |   | Sept.      30,2009 |   | Sept.      30,2008 |   |
| NET      SALES                                                                                         |   | $ | 42,410,390 |   |   | $ | 48,876,781 |   |   | $ | 103,905,194 |   |   | $ | 116,962,489 |   |
| COST      OF SALES                                                                                     |   |   | 31,761,671 |   |   |   | 36,074,978 |   |   |   | 84,553,938 |   |   |   | 93,876,580 |   |
|        Gross      profit from operations                            |   | $ | 10,648,719 |   |   | $ | 12,801,803 |   |   | $ | 19,351,256 |   |   | $ | 23,085,909 |   |
| SELLING,      GENERAL AND                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   ADMINISTRATIVE      EXPENSES                                                               |   |   | 4,015,605 |   |   |   | 3,973,522 |   |   |   | 12,170,135 |   |   |   | 11,867,519 |   |
|        Income      from operations                                  |   | $ | 6,633,114 |   |   | $ | 8,828,281 |   |   | $ | 7,181,121 |   |   | $ | 11,218,390 |   |
| OTHER      INCOME (EXPENSE):                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest      income                                                                 |   | $ | 52,062 |   |   | $ | 53,413 |   |   | $ | 139,699 |   |   | $ | 191,149 |   |
|    Interest      expense                                                                |   |   | (157,277 | ) |   |   | (236,550 | ) |   |   | (487,742 | ) |   |   | (771,220 | ) |
|    Gains      on equity investments                                                     |   |   | 53,568 |   |   |   | - |   |   |   | 123,133 |   |   |   | - |   |
|    Dividend      income                                                                 |   |   | 40,021 |   |   |   | 75,869 |   |   |   | 130,780 |   |   |   | 177,382 |   |
|    Other,      net                                                                      |   |   | 200,645 |   |   |   | 153,925 |   |   |   | 175,713 |   |   |   | 591,359 |   |
|                                                                                                   |   | $ | 189,019 |   |   | $ | 46,657 |   |   | $ | 81,583 |   |   | $ | 188,670 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Income      before taxes on income                           |   | $ | 6,822,133 |   |   | $ | 8,874,938 |   |   | $ | 7,262,704 |   |   | $ | 11,407,060 |   |
| PROVISION      FOR INCOME TAXES                                                                        |   |   | 1,875,000 |   |   |   | 2,470,000 |   |   |   | 2,000,000 |   |   |   | 3,200,000 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NET      INCOME                                                                                        |   | $ | 4,947,133 |   |   | $ | 6,404,938 |   |   | $ | 5,262,704 |   |   | $ | 8,207,060 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:      Net Loss attributable to noncontrolling interest                                            |   |   | - |   |   |   | - |   |   |   | (48,799 | ) |   |   | (174 | ) |
| NET      INCOME ATTRIB. TO COMPANY                                                                     |   | $ | 4,947,133 |   |   | $ | 6,404,938 |   |   | $ | 5,311,503 |   |   | $ | 8,207,234 |   |
| RETAINED      EARNINGS, beg. of period                                                                 |   |   | 104,397,360 |   |   |   | 99,364,723 |   |   |   | 104,958,556 |   |   |   | 98,488,627 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less      cash dividends                                                                               |   |   | 925,565 |   |   |   | 926,201 |   |   |   | 1,851,131 |   |   |   | 1,852,401 |   |
| RETAINED      EARNINGS, end of period                                                                  |   | $ | 108,418,928 |   |   | $ | 104,843,460 |   |   | $ | 108,418,928 |   |   | $ | 104,843,460 |   |
| Basic      earnings per share                                                                          |   | $ | 1.23 |   |   | $ | 1.59 |   |   | $ | 1.32 |   |   | $ | 2.04 |   |
| Cash      dividends per share                                                                          |   | $ | 0.23 |   |   | $ | 0.23 |   |   | $ | 0.46 |   |   | $ | 0.46 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                         |   |   |   |   |   |
| For      the Three Months and the Nine Months Ended September 30, 2009 and 2008      (Unaudited)       |   |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                   |   | For      the Three Months Ended |   |   | For      the Nine Months Ended |   |
|                                                                                                   |   | Sept.      30,2009 |   |   | Sept.      30,2008 |   |   | Sept.      30,2009 |   | Sept.      30,2008 |   |
| NET      INCOME                                                                                        |   | $ | 4,947,133 |   |   | $ | 6,404,938 |   |   | $ | 5,262,704 |   |   | $ | 8,207,060 |   |
| UNREALIZED      APPRECIATION (DEPRECIATION)                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     ON      AVAILABLE FOR SALE SECURITIES                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     (Net      of deferred tax expense (benefit) of $1,276,000,                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     $(524,000),      $1,528,000 and $(2,044,000), respectively)                    |   |   | 1,917,568 |   |   |   | (786,000 | ) |   |   | 2,295,133 |   |   |   | (3,066,000 | ) |
|                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LESS: RECLASSIFICATION      ADJUSTMENT FOR                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     REALIZED      GAINS INCLUDED IN                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     NET      INCOME (net of deferred tax expense                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     of      $20,000, $-0-, $48,000, and $-0-, respectively)                        |   |   | 33,568 |   |   |   | - |   |   |   | 75,133 |   |   |   | - |   |
| COMPREHENSIVE      INCOME                                                                              |   | $ | 6,831,133 |   |   | $ | 5,618,938 |   |   | $ | 7,482,704 |   |   | $ | 5,141,060 |   |
| See      notes to condensed consolidated financial statements                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                          |   |   |       |    |
|-----------------------------------------------------------------------------------------------------------|--------|--------|------------|---------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                                      |   |   |       |    |
| For      the Nine Months Ended September 30, 2009 and 2008 (Unaudited)                               |   |
|                                                                                                      |   |   |       |    |   |   |
|                                                                                                      |   | 2009   |       |    | 2008 |   |
| OPERATING      ACTIVITIES:                                                                                |   |   |       |    |   |   |
|   Net      income                                                                               |   | $      | 5,262,704  |    |   | $ | 8,207,060 |   |
|   Adjustments      to reconcile net income to                                                   |   |   |       |    |   |   |   |   |
|     net      cash provided by operating activities:                                   |   |   |       |    |   |   |   |   |
|       Depreciation,      depletion and amortization                         |   |   | 9,136,307  |    |   |   | 8,830,955 |   |
|       Deferred      income taxes, long-term                                 |   |   | (38,000    | )       |   |   | (42,000 | ) |
|       Gain      on disposal of assets                                       |   |   | (66,087    | )       |   |   | (216,899 | ) |
|       Realized      gain on sale of equity investments                      |   |   | (123,133   | )       |   |   | - |   |
|       Change      in assets and liabilities:                                |   |   |       |    |   |   |   |   |
|           Receivables,      net                         |   |   | (5,946,178 | )       |   |   | (8,775,717 | ) |
|           Inventories                                   |   |   | (2,820,449 | )       |   |   | 2,305,770 |   |
|           Refundable      income taxes                  |   |   | 27,102     |    |   |   | - |   |
|           Prepaid      expenses                         |   |   | (270,747   | )       |   |   | (343,487 | ) |
|           Other      assets                             |   |   | 19,697     |    |   |   | 105,413 |   |
|           Accounts      payable and accrued liabilities |   |   | 1,031,913  |    |   |   | 7,069,265 |   |
|           Accrued      postretirement benefits          |   |   | 1,198,490  |    |   |   | 1,174,211 |   |
|           Accrued      pension expense                  |   |   | 642,874    |    |   |   | (420,694 | ) |
|         Net      cash provided by operating activities            |   | $      | 8,054,493  |    |   | $ | 17,893,877 |   |
|                                                                                                      |   |   |       |    |   |   |   |   |
| INVESTING      ACTIVITIES:                                                                                |   |   |       |    |   |   |   |   |
|   Acquisition      of property, plant and equipment                                             |   | $      | (6,857,737 | )       |   | $ | (6,899,507 | ) |
|   Proceeds      from disposals of property, plant and equipment                                 |   |   | 118,942    |    |   |   | 232,550 |   |
|   Payment      for acquisition of business                                                      |   |   | -          |    |   |   | (2,319,934 | ) |
|   Payment      for purchases of equity investments                                              |   |   | (3,530,703 | )       |   |   | (4,930,019 | ) |
|   Proceeds      from disposals of equity investments                                            |   |   | 1,460,489  |    |   |   | - |   |
|   Decrease      in short-term investments, net                                                  |   |   | 2,100,000  |    |   |   | - |   |
|         Net      cash used for investing activities               |   | $      | (6,709,009 | )       |   | $ | (13,916,910 | ) |
|                                                                                                      |   |   |       |    |   |   |   |   |
| FINANCING      ACTIVITIES:                                                                                |   |   |       |    |   |   |   |   |
|   Increase      in line of credit, net                                                          |   | $      | 5,253,788  |    |   | $ | - |   |
|   Payments      on bank loans                                                                   |   |   | (1,976,177 | )       |   |   | (1,532,394 | ) |
|   Payments      on other long-term debt                                                         |   |   | (216,975   | )       |   |   | (241,991 | ) |
|   Cash      dividends paid                                                                      |   |   | (3,702,262 | )       |   |   | (3,624,263 | ) |
|   Purchases      of noncontrolling interests                                                    |   |   | (660,065   | )       |   |   | - |   |
|         Net      cash used for financing activities               |   | $      | (1,301,691 | )       |   | $ | (5,398,648 | ) |
|                                                                                                      |   |   |       |    |   |   |   |   |
| Net      increase (decrease) in cash and cash equivalents                                                 |   | $      | 43,793     |    |   | $ | (1,421,681 | ) |
| Cash      and Cash Equivalents, beginning of year                                                         |   |   | 3,111,509  |    |   |   | 4,404,116 |   |
| Cash      and Cash Equivalents, end of period                                                             |   | $      | 3,155,302  |    |   | $ | 2,982,435 |   |
|                                                                                                      |   |   |       |    |   |   |   |   |
| Interest      paid, net of amount capitalized                                                             |   | $      | 496,676    |    |   | $ | 788,714 |   |
| Income      taxes paid, net of refunds                                                                    |   | $      | (72,660    | )  |   | $ | 1,790,000 |   |
| Capital      equipment additions included in accounts payable                                             |   | $      | 289,842    |    |   | $ | 44,680 |   |
|                                                                                                      |   |   |       |    |   |   |   |   |
| See      notes to condensed consolidated financial statements                                             |   |   |       |    |   |   |   |   |

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES                      |
|-----------------------------------------------------------------------|
| NOTES      TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS    |
| September 30,      2009 (Unaudited), and December 31, 2008  |

| 1. | For      a summary of accounting policies, the reader should refer to Note 1      of the consolidated financial statements included in our Company's most      recent annual report on Form 10-K. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | Certain      reclassifications have been made to the 2008 financial statements to      conform to the current year presentation. These reclassifications had no      effect on net earnings. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | For      the nine months ended September 30, 2009, we restored      the $.1 million temporary LIFO liquidation created by reductions      in finished cement and work in process inventory in the first six      months of 2009. The temporary LIFO liquidation gain had been deferred      as a component of accrued liabilities. We had temporary      LIFO liquidation gains during the nine months ended September 30,      2008 due to reductions in finished cement and work in process inventory of      $.8 million. For the three months ended September 30,      2009, we restored $.1      million of the LIFO liquidation incurred in the first six      months of 2009. We had temporary LIFO liquidation gains for      the three months ended September 30, 2008 due to reductions in finished      cement and work in process inventory of $.8      million. During      the nine months and the three months ended September 30, 2009 we      did not incur any permanent reductions in the LIFO layers of work in      process or cement inventories. During the nine months ended September      30, 2008 we incurred a $.7 million permanent reduction in LIFO layers      which was recognized as a reduction of cost of sales. During the      three months ended September 30, 2008 we did not incur any permanent      reductions in the LIFO layers of work in process or cement      inventories. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Basic      earnings per share of capital stock has been calculated based on the      weighted average shares outstanding during each of the reporting      periods. The weighted average number of shares outstanding was 4,024,198      and 4,026,958      in the third quarter of 2009 and 2008, respectively. The weighted      average number of shares outstanding was 4,024,198      and 4,026,958      in the first nine months of 2009 and 2008,      respectively. The Company has no common stock equivalents and      therefore, does not report diluted earnings per  share. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Our      Company groups its operations into two lines of business - Cement Business      and Ready-Mixed Concrete Business. The "Cement  Business" refers to      our manufacture and sale of cement and "Ready-Mixed Concrete Business"      refers to our ready-mixed concrete, concrete products, precast concrete      construction, and sundry building materials business. Corporate      assets for 2009 and 2008 include cash and cash      equivalents, deferred income taxes, investments and other      assets. Following is information for each line for the      periods indicated: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   |                |       |   | Ready-Mixed      |   |       | Adjustments     |   |   |         |   |
|---------------------------------------------------|--------|----------------|------------|--------|------------------|--------|------------|-----------------|--------|--------|--------------|--------|
|                                              |   | CementBusiness |       |   | ConcreteBusiness |   |       | andEliminations |   |   | Consolidated |   |
| For      the Three Months Ended 9/30/09           |   |           |       |   |             |   |       |            |   |   |         |   |
| Sales      to unaffiliated customers              |   | $              | 17,982,074 |   |             | $      | 24,428,316 |            |   | $      | -            |   |   | $ | 42,410,390 |   |
| Intersegment      sales                           |   |           | 3,940,641  |   |             |   | -          |            |   |   | (3,940,641   | )      |   |   | - |   |
|    Total      net sales            |   | $              | 21,922,715 |   |             | $      | 24,428,316 |            |   | $      | (3,940,641   | )      |   | $ | 42,410,390 |   |
| Income      from operations                       |   | $              | 4,980,605  |   |             | $      | 1,652,509  |            |   |   |         |   |   | $ | 6,633,114 |   |
| Other      income, net                            |   |           |       |   |             |   |       |            |   |   |         |   |   |   | 189,019 |   |
|    Income      before income taxes |   |           |       |   |             |   |       |            |   |   |         |   |   | $ | 6,822,133 |   |
| Capital      Expenditures                         |   | $              | 1,469,980  |   |             | $      | 985,253    |            |   |   |         |   |   | $ | 2,455,233 |   |

|                                              |   |        |       |   |        |   |       |        |   |   |       |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
| For      the Three Months Ended 9/30/08           |   |        |       |   |        |   |       |        |   |   |       |   |
| Sales      to unaffiliated customers              |   | $      | 23,898,613 |   |   | $      | 24,978,168 |   |   | $      | -          |   |   | $ | 48,876,781 |   |
| Intersegment      sales                           |   |   | 4,788,475  |   |   |   | 1,079      |   |   |   | (4,789,554 | )      |   |   | - |   |
|    Total      net sales            |   | $      | 28,687,088 |   |   | $      | 24,979,247 |   |   | $      | (4,789,554 | )      |   | $ | 48,876,781 |   |
| Income      from operations                       |   | $      | 8,220,387  |   |   | $      | 607,894    |   |   |   |       |   |   | $ | 8,828,281 |   |
| Other      income, net                            |   |   |       |   |   |   |       |   |   |   |       |   |   |   | 46,657 |   |
|    Income      before income taxes |   |   |       |   |   |   |       |   |   |   |       |   |   | $ | 8,874,938 |   |
| Capital      Expenditures                         |   | $      | 1,201,958  |   |   | $      | 827,443    |   |   |   |       |   |   | $ | 2,029,401 |   |

----

|                                              |   |           |       |   | Ready-Mixed      |   |       | Adjustments     |   |   |         |   |
|---------------------------------------------------|--------|----------------|------------|--------|------------------|--------|------------|-----------------|--------|--------|--------------|--------|
|                                              |   | CementBusiness |       |   | ConcreteBusiness |   |       | andEliminations |   |   | Consolidated |   |
| For      the Nine Months Ended 9/30/09       |   |           |       |   |             |   |       |            |   |   |         |   |
| Sales      to unaffiliated customers              |   | $              | 43,462,640 |   |             | $      | 60,442,554 |            |   | $      | -            |   |   | $ | 103,905,194 |   |
| Intersegment      sales                           |   |           | 9,485,585  |   |             |   | -          |            |   |   | (9,485,585   | )      |   |   | - |   |
|    Total      net sales            |   | $              | 52,948,225 |   |             | $      | 60,442,554 |            |   | $      | (9,485,585   | )      |   | $ | 103,905,194 |   |
| Income      from operations                       |   | $              | 6,509,648  |   |             | $      | 671,473    |            |   |   |         |   |   | $ | 7,181,121 |   |
| Other      income, net                            |   |           |       |   |             |   |       |            |   |   |         |   |   |   | 81,583 |   |
|    Income      before income taxes |   |           |       |   |             |   |       |            |   |   |         |   |   | $ |     7,262,704 |   |
| Capital      Expenditures                         |   | $              | 4,356,039  |   |             | $      | 2,569,626  |            |   |   |         |   |   | $ | 6,925,665 |   |
|                                              |   |           |       |   |             |   |       |            |   |   |         |   |   |   |   |   |

| For      the Nine Months Ended 9/30/08            |   |   |       |   |   |   |       |   |   |   |        |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|-------------|--------|
| Sales      to unaffiliated customers              |   | $      | 53,060,536 |   |   | $      | 63,901,953 |   |   | $      | -           |   |   | $ | 116,962,489 |   |
| Intersegment      sales                           |   |   | 12,006,567 |   |   |   | 1,079      |   |   |   | (12,007,646 | )      |   |   | - |   |
|    Total      net sales            |   | $      | 65,067,103 |   |   | $      | 63,903,032 |   |   | $      | (12,007,646 | )      |   | $ | 116,962,489 |   |
| Income      (loss) from operations                |   | $      | 11,539,045 |   |   | $      | (320,655   | )      |   |   |        |   |   | $ | 11,218,390 |   |
| Other      income, net                            |   |   |       |   |   |   |       |   |   |   |        |   |   |   | 188,670 |   |
|    Income      before income taxes |   |   |       |   |   |   |       |   |   |   |        |   |   | $ | 11,407,060 |   |
| Capital      Expenditures                         |   | $      | 2,192,725  |   |   | $      | 5,743,533  |   |   |   |        |   |   | $ | 7,936,258 |   |

|                       |   |   |   |       |   |   |   |       |   |   |   |   |   |
|----------------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Balance      as of 9/30/09 |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Identifiable      Assets   |   |   | $      | 98,596,663 |   |   | $      | 43,866,244 |   |   |   |   |   |   | $ | 142,462,907 |   |
| Corporate      Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 41,423,960 |   |
|                       |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 183,886,867 |   |

| Balance      as of 9/30/08 |   |   |   |       |   |   |   |       |   |   |   |   |   |
|----------------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Identifiable      Assets   |   |   | $      | 96,894,209 |   |   | $      | 44,097,503 |   |   |   |   |   |   | $ | 140,991,712 |   |
| Corporate      Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 33,560,322 |   |
|                       |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 174,552,034 |   |

| 6. | The      following table presents the components of net periodic pension and      postretirement benefit costs allocated to Cost of Sales and Selling,      General and Administrative expenses for the nine months      ended September 30, 2009 and  2008: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                               |   | Pension Benefits  |       |   | Other Benefits  |   |
|----------------------------------------------------|--------|------------------------|------------|--------|----------------------|--------|
|                                               |   | 2009                   |       |   | 2008                 |   |   | 2009 |   |   | 2008 |   |
| Service      cost                                  |   | $                      | 1,265,959  |   |                 | $      | 589,949 |   |   | $ | 402,827 |   |   | $ | 367,193 |   |
| Interest      cost                                 |   |                   | 4,099,310  |   |                 |   | 1,831,407 |   |   |   | 1,371,150 |   |   |   | 1,134,506 |   |
| Expected      return on plan assets                |   |                   | (4,356,624 | )      |                 |   | (2,143,163 | ) |   |   | - |   |   |   | - |   |
| Amortization      of prior service cost            |   |                   | 296,466    |   |                 |   | 77,786 |   |   |   | - |   |   |   | - |   |
| Recognized      net actuarial gain                 |   |                   | 428,325    |   |                 |   | 130,938 |   |   |   | - |   |   |   | - |   |
| Unrecognized      net loss                         |   |                   | -          |   |                 |   | - |   |   |   | 598,152 |   |   |   | 723,942 |   |
|          Net periodic expense  |   | $                      | 1,733,436  |   |                 | $      | 486,917 |   |   | $ | 2,372,129 |   |   | $ | 2,225,641 |   |

|                                               |   | Pension Benefits  |       |   | Other Benefits  |   |
|----------------------------------------------------|--------|------------------------|------------|--------|----------------------|--------|
|                                               |   | 2009                   |       |   | 2008                 |   |   | 2009 |   |   | 2008 |   |
| Service      cost                                  |   | $                      | 421,986    |   |                 | $      | 248,352 |   |   | $ | 135,500 |   |   | $ | 109,560 |   |
| Interest      cost                                 |   |                   | 1,366,437  |   |                 |   | 770,969 |   |   |   | 461,217 |   |   |   | 338,506 |   |
| Expected      return on plan assets                |   |                   | (1,452,208 | )      |                 |   | (902,210 | ) |   |   | - |   |   |   | - |   |
| Amortization      of prior service cost            |   |                   | 98,822     |   |                 |   | 32,746 |   |   |   | - |   |   |   | - |   |
| Recognized      net actuarial gain                 |   |                   | 142,775    |   |                 |   | 55,121 |   |   |   | - |   |   |   | - |   |
| Unrecognized      net loss                         |   |                   | -          |   |                 |   | - |   |   |   | 201,202 |   |   |   | 216,004 |   |
|          Net periodic expense  |   | $                      | 577,812    |   |                 | $      | 204,978 |   |   | $ | 797,919 |   |   | $ | 664,070 |   |

| 7.      | The      Company or one of its subsidiaries files income tax returns in the U.S.      Federal jurisdiction and various state jurisdictions. With few      exceptions, the Company is no longer subject to U.S. Federal or state      income tax examinations by tax authorities for years before      2005. |
|----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | As      of September 30, 2009, the amount of accounts payable related to      property, plant and equipment was $289,842 compared to December 31, 2008      which was $221,914. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.             | The Company adopted      the provisions of Financial Accounting Standards Board (FASB)      ASC Topic 820, "Fair      Value Measurements and Disclosures" effective January 1, 2008 which      defines fair      value, establishes a framework for measuring fair value under      generally accepted accounting principles and enhances disclosures about      fair value measurements. The Company deferred      until January 1, 2009 the application of FASB ASC Topic 820 “Fair      Value Measurements and Disclosures” to nonfinancial assets and      nonfinancial liabilities not recognized or disclosed at least annually at      fair value. FASB      ASC Topic 820 "Fair Value Measurements and Disclosures" defines fair value      as the exchange price that would be received to sell an asset or paid to      transfer a liability in the principal or most advantageous market for the      asset or liability in an orderly transaction between market      participants at the measurement date. FASB ASC 820 also establishes a      fair value hierarchy which requires an entity to maximize the use of      observable inputs and minimize the use of unobservable inputs when      measuring fair value. The standard describes a fair value hierarchy based      on three levels of inputs which may be used to measure fair      value. Level 1 uses quoted prices in active markets for identical      assets or liabilities. Level 2 uses observable inputs other than      Level 1 prices, such as quoted prices for similar assets or liabilities;      quoted prices in active markets that are not active; or other inputs that      are observable or can be corroborated by observable market data for      substantially the full term of the assets or liabilities. Level 3      uses unobservable inputs that are supported by little or no market      activity and that are significant to the fair value of the assets or      liabilities. Cash      and cash equivalents, short-term investments, receivables, accounts      payable and long-term debt have carrying values that approximate fair      values. Investment fair values equal quoted market prices, if      available.  If quoted market prices are not available, fair value is      estimated based on quoted market prices of similar securities. If it      is not practicable to estimate the fair value of an investment, the      investment is recorded at cost and evaluated quarterly for events that may      adversely impact its fair    value. |
|----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                        |   |          |       |   | Fair      Value Measurements at Reporting Date Using: |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------------------------------------------|--------|
|                                                  |   |          |       |   | Quoted      Prices                                    |   |   |   |   |   |   |   |
|                                                                                                                        |   |          |       |   | in      Active                                        |   |   | Significant |   |   |   |   |
|                                                                                                                        |   |          |       |   | Markets      for                                      |   |   | Other |   |   | Significant |   |
|                                                                                                                        |   |          |       |   | Identical                                        |   |   |  Observable |   |   |  Unobservable |   |
|                                                                                                                        |   |          |       |   |  Assets                                          |   |   | Inputs |   |   | Input |   |
| September 30,      2009                                                                                      |   |  Balance |       |   | (Level      1)                                        |   |   | (Level      2) |   |   | (Level      3) |   |
| Assets:                                                                                                                     |   |          |       |   |                                                  |   |   |   |   |   |   |   |
| Available-for-sale      securities                                                                                          |   | $             | 16,609,291 |   |                                                  | $      | 16,609,291 |   |   | $ | - |   |   | $ | - |   |
| Total                                                                                                                       |   | $             | 16,609,291 |   |                                                  | $      | 16,609,291 |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                        |   |          |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| December      31,      2008                 |   |          |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                                                                                                     |   |          |       |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale      securities                                                                                          |   | $             | 10,939,044 |   |                                                  | $      | 10,939,044 |   |   | $ | - |   |   | $ | - |   |
| Total                                                                                                                       |   | $             | 10,939,044 |   |                                                  | $      | 10,939,044 |   |   | $ | - |   |   | $ | - |   |

|                                                |   | Less      than 12 Months |      |   | 12      Months or Greater |   |    | Total      |   |
|-----------------------------------------------------|--------|--------------------------|-----------|--------|---------------------------|--------|---------|-----------------|--------|
|                                                |   |                     |      |   | Unrealized                |   |    |            |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
| Description      of Securities                 |   | Fair      Value          |      |   | Losses                    |   |    | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
|                                                |   |                     |      |   |                      |   |    |            |   |   |  |   |   |   |  |   |   |   |   |   |   |   |   |   |
|  Marketable      equity securities   |   | $                        | 2,231,423 |   |                      | $      | 472,923 |            |   | $ | - |   |   | $ | - |   |   | $ | 2,231,423 |   |   | $ | 472,923 |   |
| Total                                               |   | $                        | 2,231,423 |   |                      | $      | 472,923 |            |   | $ | - |   |   | $ | - |   |   | $ | 2,231,423 |   |   | $ | 472,923 |   |

----

|                                                                                  |   | 9/30/2009 |       |   | 12/31/2008 |   |
|---------------------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|
| Fair      value of equity securities                                                  |   | $         | 18,633,591 |   |       | $      | 12,740,244 |   |
| Cost      of equity securities                                                        |   |      | 12,953,591 |   |       |   | 10,760,244 |   |
|         Net unrealized gains                                                |   | $         | 5,680,000  |   |       | $      | 1,980,000 |   |
|                                                                                  |   |      |       |   |       |   |   |   |
| Unrealized      gain (loss) recorded in equity                                        |   |      |       |   |       |   |   |   |
|    Equity securities carried      at fair value              |   | $         | 3,408,000  |   |       | $      | 1,411,000 |   |
|    Equity      securities carried at cost                         |   |      | -          |   |       |   | (223,000 | ) |
|         Deferred income taxes                                               |   |      | 2,272,000  |   |       |   | 792,000 |   |
|                                                                                  |   | $         | 5,680,000  |   |       | $      | 1,980,000 |   |
|                                                                                  |   |      |       |   |       |   |   |   |
| Proceeds      from sale of equity securities                                          |   | $         | 1,460,489  |   |       | $      | - |   |
| Realized      gains on equity securities                                              |   | $         | 123,133    |   |       | $      | - |   |
| Realized      losses due to other-than-temporary      impairment of equity securities |   | $         | -          |   |       | $      | (4,157,612 | ) |

| 10.   | Recently      Adopted Accounting Standards In      June 2009, the FASB issued FASB ASC Topic 105 "Generally Accepted Accounting Principles"      which identifies the      FASB Accounting Standards Codification (ASC)      as the authoritative source of generally accepted accounting principles in      the United States. Rules and interpretive releases of the Securities and      Exchange Commission (SEC) under federal securities laws are also sources      of authoritative GAAP for SEC registrants. This standard is effective for      financial statements issued for interim and annual periods ending after      September 15, 2009. The adoption of this standard      did not have a material impact on our consolidated financial      statements.References to      authoritative accounting literature contained in our financial statements      will be made in accordance with the ASC commencing with this quarterly      report for the period ending September 30, 2009.       Effective January 1,      2009, the Company adopted FASB ASC Section 810-10-65, "Consolidation:      Overall: Transition and Effective Date Information". Upon adoption,      minority interest previously presented in the mezzanine section of the      balance sheet has been retrospectively reclassified as noncontrolling      interest within equity.  In addition, the consolidated      net income and comprehensive income presented in the      statements of income have been retrospectively revised to      include the net loss attributable to the noncontrolling interest.       Beginning January 1, 2009, losses attributable to the noncontrolling      interest have      been allocated to the noncontrolling interest even if the      carrying amount of the noncontrolling interest is reduced below      zero.  Any changes in ownership after January 1, 2009,      that did      not result in a loss of control have been      prospectively accounted for as equity transactions in accordance with FASB      ASC 810. Effective      June 30, 2009, the Company adopted the requirements of FASB      ASC Topic 855, "Subsequent Events", which establishes general      standards of accounting for and disclosure of events that occur after the      balance sheet date but before financial statements are issued or are      available to be issued. Adoption of the      standard did not have a material impact on the Company’s consolidated      financial statements. See Note 12 for disclosures required by this      standard. In March 2008, the      FASB updated FASB ASC Topic 815, "Derivatives and Hedging", which      establishes, among other things, the disclosure requirements      for derivative instruments and for hedging      activities. Since the Company      does not participate in hedging activities and does not use derivative      instruments, the Company's adoption of the standard,      effective January 1, 2009, did not have any impact on our      disclosures or our consolidated financial statements. In April 2009, the      FASB amended ASC Topic 825 "Financial      Instruments" to expand the disclosure about the fair      value of financial instruments that were previously required only annually      to also be required for interim period reporting. In addition, it requires      certain additional disclosures regarding the methods and significant      assumptions used to estimate the fair value of financial instruments. The      adoption April 1, 2009 of this amendment on a prospective      basis by the Company did not have a      financial impact on the Company's Consolidated Financial Statements. See      Note 9 for disclosures      required by this standard. In      April 2009, the FASB amended ASC Topic 320, "Investments - Debt and      Equity Securities" to provide guidance      for evaluating and recognizing other-than-temporary impairment      ("OTTI") of debt securities. The amendment also expands the      disclosure requirements in interim and annual financial statements      for both debt and equity securities to enable users      to understand the types of securities held, including      information about investments in an unrealized loss position, the      reasons that a portion of an OTTI of a debt security was not      recognized in earnings and the methodology and significant      inputs used to calculate the portion of the total OTTI that was      recognized in earnings. This amendment is effective      for interim or annual periods ending after June 15, 2009 and its      adoption did not impact the      Company’s financial position, results of operations or cash flows.       See Note 9 for disclosures required by this      standard. Effective January 1,      2009, the Company adopted FASB ASC Topic 805 "Business      Combinations", which revised certain principles, including the      definition of a business combination, the recognition and measurement      of assets acquired and liabilities assumed in a business combination, the      accounting for goodwill, and financial statement      disclosure.  FASB ASC 805 to date did not have any impact on our      disclosures or our consolidated financial statements, but will be      applicable to the Company for business combinations that may occur in the      future.In      August 2009, the FASB issued Accounting Standards Update (ASU) No.      2009-05, "Fair Value Measurements and Disclosures: Measuring Liabilities      at Fair Value". This ASU provides amendments for fair value      measurements of liabilities.  It provides clarification that in      circumstances in which a quoted price in an active market for the      identical liability is not available, a reporting entity is required to      measure fair value using one or more techniques.  ASU 2009-05      also clarifies that when estimating a fair value of a liability, a      reporting entity is not required to include a separate input or adjustment      to other inputs relating to the existence of a restriction that prevents      the transfer of the liability.  ASU 2009-05 is effective for the      first reporting period (including interim periods) beginning after      issuance. There was no impact on the      Company’s financial position, results of operations or cash flows as a      result of adoption of ASU      2009-05. Recently Issued Accounting      Pronouncements In      December 2008, the FASB issued an amendment to ASC 715-20,      "Compensation – Retirement Benefits – Defined Benefit Plans – General",      which requires enhanced disclosures regarding Company benefit      plans. Disclosure regarding plan assets should include discussion      about how investment allocation decisions are made, the major categories      of plan assets, the inputs and valuation techniques used to measure plan      assets and significant concentrations of risk within plan      assets. These amendments to ASC 715-20 are effective for fiscal years      ending after December 15, 2009, and earlier application is      permitted. Prior year periods presented for comparative purposes are      not required to comply. The Company does not believe that these      amendments to ASC 715-20 will have a      material impact on its financial position, results of operations or cash      flows. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Other, net contains miscellaneous nonoperating income      (expense) items other than interest income, interest expense, gains on      equity investments and dividend income.  Material items in other, net      included income from oil properties of $68,000 and a $228,000 gain related      to the settlement of a contingent liability related to the acquisition of      subsidiary stock during the first nine months of 2009. The $228,000      gain related to the settlement of a contingent liability was a material      item included in other, net for the three months ending September 30,      2009. Material items in other, net included income from oil properties of      $379,714 and income from scrap      sales of $167,225 for the first nine months of 2008.  For the      three months ending September 30, 2008, material items in other, net      included income from oil properties of $172,342. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Subsequent      events have been evaluated through November 9, 2009, which is      the date the financial statements were issued.  During this period,      no material recognizable subsequent events were identified.        |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| THE      MONARCH CEMENT COMPANY AND SUBSIDIARIES     |
|------------------------------------------------------|
| ITEM      2. MANAGEMENT'S DISCUSSION AND ANALYSIS    |
| OF      FINANCIAL CONDITION AND RESULTS OFOPERATIONS |

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|                                                                                                                |                                             |                                                                                                         |   |  The Monarch      Cement Company                                                                                                                     |   |
|---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                           |                                             |                    |   |                        (Registrant)                                  |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|  Date      November      9, 2009         |          |                                                                                                         |   |   /s/ Walter H.      Wulf,      Jr.                                            |   |
|                                                                                                                |          |                                                                                                         |   |  Walter H.      Wulf, Jr.                                                                                                                            |   |
|                                                                                                                |          |                                                                                                         |   |  President      and                                                                                                                                  |   |
|                                                                                                                |          |                                                                                                         |   |  Chairman of      the Board                                                                                                                          |   |
|                                                                                                                |                         |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|                                                                                                                |                                             |                                                                                                         |   |                                                                                                                                                      |   |
|  Date      November      9, 2009         |                                             |                                                                                                         |   |  /s/ Debra P.      Roe                      |   |
|                                                                                                                |                                             |                                                                                                         |   |  Debra P. Roe,      CPA                                                                                                                              |   |
|                                                                                                                |                                             |                                                                           |   |  Chief      Financial Officer and                                                                                                          |   |
|                                                                                                                |                                             |                                                                                                         |   |  Assistant      Secretary-Treasurer                                                                                                                  |   |

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