| 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) |

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|  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                                                                |   |        |        |   |   |   |
| March 31, 2011 and December 31, 2010                                                       |
|                                                                                                 |   |        |        |   |   |   |
| ASSETS                                                                                               |   | 2011        |        |   | 2010 |   |
| CURRENT ASSETS:                                                                                      |   | (Unaudited) |        |   |   |   |
|    Cash and cash equivalents                                                          |   | $           | 3,109,280   |   |   | $ | 2,695,267 |   |
|    Receivables, less allowances of $737,000 in 2011 and                               |   |        |        |   |   |   |   |   |
|       $707,000 in 2010 for doubtful accounts                           |   |        | 11,984,071  |   |   |   | 12,016,919 |   |
|    Inventories, priced at cost which is not in excess of market-                           |   |        |        |   |   |
|          Finished cement                                |   | $           | 5,134,225   |   |   | $ | 5,665,411 |   |
|          Work in process                                |   |        | 1,815,317   |   |   |   | 2,095,963 |   |
|          Building products                              |   |        | 5,013,742   |   |   |   | 4,692,327 |   |
|          Fuel, gypsum, paper sacks and other            |   |        | 6,689,034   |   |   |   | 5,838,637 |   |
|          Operating and maintenance supplies             |   |        | 12,094,148  |   |   |   | 11,751,562 |   |
| Total inventories                                                                                    |   | $           | 30,746,466  |   |   | $ | 30,043,900 |   |
|    Refundable federal and state income taxes                                          |   |        | 1,785,530   |   |   |   | -       |   |
|    Deferred income taxes                                                              |   |        | 735,000     |   |   |   | 735,000 |   |
|    Prepaid expenses                                                                   |   |        | 584,944     |   |   |   | 125,787 |   |
| Total current assets                                                                                 |   | $           | 48,945,291  |   |   | $ | 45,616,873 |   |
| PROPERTY, PLANT AND EQUIPMENT, at cost, less                                                         |   |        |        |   |   |   |   |   |
|    accumulated depreciation and depletion of $175,436,082                             |   |        |        |   |   |   |   |   |
|    in 2011 and $173,656,095 in 2010                                                   |   |        | 83,524,548  |   |   |   | 84,912,099 |   |
| DEFERRED INCOME TAXES                                                                                |   |        | 17,817,393  |   |   |   | 19,254,393 |   |
| INVESTMENTS                                                                                          |   |        | 24,790,533  |   |   |   | 23,984,320 |   |
| OTHER ASSETS                                                                                         |   |        | 256,357     |   |   |   | 331,143 |   |
|                                                                                                 |   | $           | 175,334,122 |   |   | $ | 174,098,828 |   |
|                                                                                                 |   |        |        |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                 |   |        |        |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                 |   |        |        |   |   |   |   |   |
|    Accounts payable                                                                   |   | $           | 5,306,377   |   |   | $ | 5,054,236 |   |
|    Line of credit payable                                                             |   |        | 5,857,050   |   |   |   | -       |   |
|    Current portion of advancing term loan                                             |   |        | 2,849,989   |   |   |   | 2,823,648 |   |
|    Accrued liabilities                                                                |   |        | 6,050,922   |   |   |   | 7,932,115 |   |
| Total current liabilities                                                                            |   | $           | 20,064,338  |   |   | $ | 15,809,999 |   |
| LONG-TERM DEBT                                                                                       |   |        | 8,402,010   |   |   |   | 9,154,087 |   |
| ACCRUED POSTRETIREMENT BENEFITS                                                                      |   |        | 35,163,227  |   |   |   | 34,782,978 |   |
| ACCRUED PENSION EXPENSE                                                                              |   |        | 13,187,633  |   |   |   | 12,723,073 |   |
| STOCKHOLDERS' EQUITY:                                                                                |   |        |        |   |   |   |   |   |
|    Capital stock, par value $2.50 per share, one vote per share -                     |   |        |        |   |   |
|       Authorized 10,000,000 shares, Issued and Outstanding 2,538,028   |   |        |        |   |   |
|       shares at 3/31/2011 and 2,532,328 shares at 12/31/2010           |   | $           | 6,345,070   |   |   | $ | 6,330,820 |   |
|    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 and Outstanding    |   |
|       1,474,990 shares at 3/31/2011 and 1,480,690 shares at 12/31/2010 |   |        | 3,687,475   |   |   |   | 3,701,725 |   |
|    Retained earnings                                                                  |   |        | 98,204,787  |   |   |   | 102,270,564 |   |
|    Accumulated other comprehensive loss                                               |   |        | (9,720,418  | )      |   |   | (10,674,418 | ) |
| Total stockholders' equity                                                                           |   | $           | 98,516,914  |   |   | $ | 101,628,691 |   |
|                                                                                                 |   | $           | 175,334,122 |   |   | $ | 174,098,828 |   |
|                                                                                                 |   |        |        |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements                            |   |

----

| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                      |   |   |                                  |   |   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND RETAINED EARNINGS                                  |   |   |                                  |   |
| For the Three Months Ended March 31, 2011 and 2010 (Unaudited)                                   |
|                                                                                             |   |   |                                  |   |   |   |
|                                                                                             |   | 2011   |                                  |   | 2010   |   |
| NET SALES                                                                                        |   | $      | 17,410,715                            |   |   | $      | 18,194,726 |   |
| COST OF SALES                                                                                    |   |   | 21,064,130                            |   |   |   | 20,658,998 |   |
|          Gross loss from operations                 |   | $      | (3,653,415                            | )      |   | $      | (2,464,272 | ) |
| SELLING, GENERAL AND                                                                             |   |   |                                  |   |   |   |   |   |
|    ADMINISTRATIVE EXPENSES                                                        |   |   | 3,831,304                             |   |   |   | 3,887,518 |   |
|          Loss from operations                            |   | $      | (7,484,719                            | )      |   | $      | (6,351,790 | ) |
| OTHER INCOME (EXPENSE):                                                                          |   |   |                                  |   |   |   |   |   |
|    Interest income                                                                     |   | $      | 48,884                                |   |   | $      | 50,886 |   |
|    Interest expense                                                                    |   |   | (76,780                               | )      |   |   | (122,123 | ) |
|    Gain on sale of equity investments                                                  |   |   | 2,613,056                             |   |   |   | 4,172 |   |
|    Dividend Income                                                                     |   |   | 57,914                                |   |   |   | 74,114 |   |
|    Other, net                                                                          |   |   | 165,868                               |   |   |   | 772,415 |   |
|                                                                                             |   | $      | 2,808,942                             |   |   | $      | 779,464 |   |
|                                                                                             |   |   |                                  |   |   |   |   |   |
|          Loss before benefit from income taxes |   | $      | (4,675,777                            | )      |   | $      | (5,572,326 | ) |
| BENEFIT FROM INCOME TAXES                                                                        |   |   | (610,000                              | )      |   |   | (875,000 | ) |
|                                                                                             |   |   |                                  |   |   |   |   |   |
| NET LOSS                                                                                         |   | $      | (4,065,777                            | )      |   | $      | (4,697,326 | ) |
|                                                                                             |   |   |                                  |   |   |   |   |   |
| RETAINED EARNINGS, beginning of period                                                           |   |   | 102,270,564                           |   |   |   | 105,989,712 |   |
| RETAINED EARNINGS, end of period                                                                 |   | $      | 98,204,787                            |   |   | $      | 101,292,386 |   |
| Basic loss per share                                                                             |   | $      | (1.01                                 | )      |   | $      | (1.17 | ) |
|                                                                                             |   |   |                                  |   |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                                          |   |   |                                  |   |   |
| For the Three Months Ended March 31, 2011 and 2010 (Unaudited)                                   |
|                                                                                             |   |   |                                  |   |   |   |   |   |
|                                                                                             |   |   | 2011                                  |   |   |   | 2010 |   |
| NET LOSS                                                                                         |   | $      | (4,065,777                            | )      |   | $      | (4,697,326 | ) |
| UNREALIZED APPRECIATION (DEPRECIATION)                                                           |   |   |                                  |   |   |   |   |   |
|    ON AVAILABLE FOR SALE SECURITIES                                               |   |   |                                  |   |   |   |   |   |
|    (Net of deferred tax expense (benefit) of $1,680,000                           |   |   |                                  |   |   |   |   |   |
|    and $264,000 for 2011 and 2010, respectively)                                  |   |   | 2,523,056                             |   |   |   | 400,172 |   |
|                                                                                             |   |   |                                  |   |   |   |   |   |
| LESS:  RECLASSIFICATION ADJUSTMENT FOR                                                 |   |   |                                  |   |   |   |   |   |
|    REALIZED GAINS (LOSSES) INCLUDED IN                                            |   |   |                                  |   |   |   |   |   |
|    NET LOSS (net of deferred tax (benefit) expense                                |   |   |                                  |   |   |   |   |   |
|    of $1,044,000 and $-0-  for 2011 and 2010, respectively)             |   |   | 1,569,056                             |   |   |   | 4,172 |   |
|                                                                                             |   |   |                                  |   |   |   |   |   |
| POSTRETIREMENT LIABILITY (net of deferred tax                                                    |   |   |                                  |   |   |   |   |   |
|    (benefit) expense of $-0- and $-0- for 2011 and                                |   |   |                                  |   |   |   |   |   |
|    2010, respectively)                                                            |   |   | -       |   |   |   | 685,000 |   |
| COMPREHENSIVE LOSS                                                                               |   | $      | (3,111,777                            | )      |   | $      | (3,616,326 | ) |
| See accompanying Notes to the Condensed Consolidated Financial Statements                        |   |

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| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                                 |   |   |                                  |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                             |   |   |                                  |   |
| For the Three Months Ended March 31, 2011 and 2010 (Unaudited)                                              |
|                                                                                                        |   |   |                                  |   |   |   |
|                                                                                                        |   | 2011   |                                  |   | 2010 |   |
| OPERATING ACTIVITIES:                                                                                       |   |   |                                  |   |   |   |
|    Net loss                                                                                       |   | $      | (4,065,777                            | )      |   | $ | (4,697,326 | ) |
|    Adjustments to reconcile net loss to                                                           |   |   |                                  |   |   |   |   |   |
|       net cash provided by operating activities:                              |   |   |                                  |   |   |   |   |   |
|          Depreciation, depletion and amortization                        |   |   | 2,649,701                             |   |   |   | 2,893,295 |   |
|          Deferred income taxes                                      |   |   | 801,000                               |   |   |   | (12,000 | ) |
|          Gain on disposal of assets                                 |   |   | (33,782                               | )      |   |   | (34,523 | ) |
|          Realized gain on sale of equity investments                |   |   | (2,613,056                            | )      |   |   | (4,172 | ) |
|          Gain on disposal of other assets                           |   |   | -       |   |   |   | (700,000 | ) |
|          Postretirement benefit and pension expense                 |   |   | 844,809                               |   |   |   | 1,646,759 |   |
|          Change in assets and liabilities:                          |   |   |                                  |   |   |   |   |   |
|             Receivables, net                         |   |   | 32,848                                |   |   |   | (906,864 | ) |
|             Inventories                              |   |   | (702,566                              | )      |   |   | (613,687 | ) |
|             Refundable income taxes                  |   |   | (1,785,530                            | )      |   |   | (1,547,901 | ) |
|             Prepaid expenses                         |   |   | (459,157                              | )      |   |   | (364,782 | ) |
|             Other assets                             |   |   | 750                                   |   |   |   | 750 |   |
|             Accounts payable and accrued liabilities |   |   | 167,442                               |   |   |   | 970,855 |   |
|          Net cash used for operating activities                     |   | $      | (5,163,318                            | )      |   | $ | (3,369,596 | ) |
|                                                                                                        |   |   |                                  |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                       |   |   |                                  |   |   |   |   |   |
|    Acquisition of property, plant and equipment                                              |   | $      | (1,146,259                            | )      |   | $ | (2,164,332 | ) |
|    Proceeds from disposals of property, plant and equipment                                       |   |   | 41,422                                |   |   |   | 47,375 |   |
|    Proceeds from disposals of other assets                                                   |   |   | -       |   |   |   | 700,000 |   |
|    Payment for purchases of equity investments                                                    |   |   | (142,803                              | )      |   |   | (47,800 | ) |
|    Proceeds from disposals of equity investments                                                  |   |   | 3,539,645                             |   |   |   | 165,900 |   |
|          Net cash provided by (used for) investing activities       |   | $      | 2,292,005                             |   |   | $ | (1,298,857 | ) |
|                                                                                                        |   |   |                                  |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                       |   |   |                                  |   |   |   |   |   |
|    Increase in line of credit, net                                                                |   | $      | 5,857,050                             |   |   | $ | 6,586,466 |   |
|    Payments on bank loans                                                                         |   |   | (698,199                              | )      |   |   | (676,008 | ) |
|    Payments on other long-term debt                                                               |   |   | (27,537                               | )      |   |   | (25,616 | ) |
|    Cash dividends paid                                                                            |   |   | (1,845,988                            | )      |   |   | (1,851,131 | ) |
|          Net cash provided by financing activities             |   | $      | 3,285,326                             |   |   | $ | 4,033,711 |   |
|                                                                                                        |   |   |                                  |   |   |   |   |   |
| Net Increase (decrease) in cash and cash equivalents                                                        |   | $      | 414,013                               |   |   | $ | (634,742 | ) |
| Cash and Cash Equivalents, beginning of year                                                                |   |   | 2,695,267                             |   |   |   | 2,149,397 |   |
| Cash and Cash Equivalents, end of period                                                                    |   | $      | 3,109,280                             |   |   | $ | 1,514,655 |   |
|                                                                                                        |   |   |                                  |   |   |   |   |   |
| Interest paid, net of amount capitalized                                                                    |   | $      | 76,780                                |   |   | $ | 119,826 |   |
| Income taxes paid, net of refunds                                                                           |   |   | 510,000                               |   |   |   | -       |   |
| Capital equipment additions included in accounts payable                                                    |   |   | 61,990                                |   |   |   | 90,111 |   |
|                                                                                                        |   |   |                                  |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements                                   |   |

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| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                |
|----------------------------------------------------------------------------|
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS              |
| March 31, 2011 and 2010 (Unaudited), and December 31, 2010  |

| 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. | Our Ready-Mixed Concrete Business includes precast concrete construction which involve short-term and long-term contracts. Short-term contracts for specific projects are generally of three to six months in duration. Long-term contracts relate to specific projects with terms in excess of one year from the contract date. Revenues for these contracts are recognized under the percentage of completion method of accounting using cost-to-cost measures. Revenues from contracts using the cost-to-cost measures of completion are recognized based on the ratio of contract costs incurred to date to total estimated contract costs. Full provision is made for any anticipated losses. The majority of the long-term contracts will allow only scheduled billings and contain retainage provisions under which 5 to 10% of the contract invoicing may be withheld by the customer pending project completion. As of March 31, 2011, the amount of billed retainage which is included in accounts receivable was approximately $339,000, all of which is expected to be collected within one year. The amount of billed retainage which was included in accounts receivable at December 31, 2010 was approximately $120,000.The amount of unbilled revenue in accounts receivable was approximately $196,000 and $380,000 at March 31, 2011 and December 31, 2010, respectively. Unbilled revenue contained approximately $11,000 and $43,000 of not-currently-billable retainage at March 31, 2011 and December 31, 2010, respectively, which is expected to be collected within one year. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | As of March 31, 2011, the amount of accounts payable related to property, plant and equipment was $61,990 compared to December 31, 2010 which was $12,495. Depreciation, depletion and amortization related to manufacturing operations are recorded in Cost of Sales, those related to general operations are recorded in Selling, General and Administrative Expenses, and those related to non-operational activities are in Other, net on the Condensed Consolidated Statements of Loss and Retained Earnings. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | For the three months ended March 31, 2011, we incurred a temporary LIFO liquidation gain due to reductions in finished cement and work in process inventory of $.2 million which we expect to be restored by the end of the year. The temporary LIFO liquidation gain has been deferred as a component of accrued liabilities. We incurred a temporary LIFO liquidation gain of $.2 million due to reductions in finished cement and work in process inventory during the three months ended March 31, 2010. The temporary LIFO liquidation gain was deferred as a component of accrued liabilities. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 2011 include cash and cash equivalents, refundable income taxes, deferred income taxes, investments and other assets. Corporate assets for 2010 include 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 03/31/11        |   |           |       |   |             |    |                                  |            |   |   |                                   |   |
| Sales to unaffiliated customers            |   | $              | 6,107,144  |   |             | $       | 11,303,571                            |            |   | $      | -        |   |   | $ | 17,410,715 |   |
| Intersegment sales                         |   |           | 2,190,001  |   |             |    | -       |            |   |   | (2,190,001                             | )      |   |   | -        |   |
|    Total net sales          |   | $              | 8,297,145  |   |             | $       | 11,303,571                            |            |   | $      | (2,190,001                             | )      |   | $ | 17,410,715 |   |
| Loss from operations                  |   | $              | (4,938,383 | )      |             | $       | (2,546,336                            | )               |   |   |                                   |   |   | $ | (7,484,719 | ) |
| Other income, net                          |   |           |       |   |             |    |                                  |            |   |   |                                   |   |   |   | 2,808,942 |   |
|    Loss before income taxes |   |           |       |   |             |    |                                  |            |   |   |                                   |   |   | $ | (4,675,777 | ) |
| Capital Expenditures                  |   | $         | 527,091    |   |             | $  | 668,663                               |            |   |   |                                   |   |   | $  | 1,195,754 |   |

|                                       |   |           |       |   | Ready-Mixed      |    |                                  | Adjustments     |   |   |                                   |   |
|--------------------------------------------|--------|----------------|------------|--------|------------------|---------|---------------------------------------|-----------------|--------|--------|----------------------------------------|--------|
|                                       |   | CementBusiness |       |   | ConcreteBusiness |    |                                  | andEliminations |   |   | Consolidated                           |   |
| For the Three Months Ended 03/31/10        |   |           |       |   |             |    |                                  |            |   |   |                                   |   |
| Sales to unaffiliated customers            |   | $              | 6,945,883  |   |             | $       | 11,248,843                            |            |   | $      | -        |   |   | $ | 18,194,726 |   |
| Intersegment sales                         |   |           | 2,351,659  |   |             |    | -       |            |   |   | (2,351,659                             | )      |   |   | -        |   |
|    Total net sales          |   | $              | 9,297,542  |   |             | $       | 11,248,843                            |            |   | $      | (2,351,659                             | )      |   | $ | 18,194,726 |   |
| Loss from operations                  |   | $              | (3,260,410 | )      |             | $       | (3,091,380                            | )               |   |   |                                   |   |   | $ | (6,351,790 | ) |
| Other income, net                          |   |           |       |   |             |    |                                  |            |   |   |                                   |   |   |   | 779,464 |   |
|    Loss before income taxes |   |           |       |   |             |    |                                  |            |   |   |                                   |   |   | $ | (5,572,326 | ) |
| Capital Expenditures                  |   | $         | 465,318    |   |             | $  | 1,040,647                             |            |   |   |                                   |   |   | $  |  1,505,965 |   |

| Balance as of 3/31/11 |   |   |   |       |   |   |   |       |   |   |   |   |   |
|-----------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Identifiable Assets   |   |   | $      | 89,181,465 |   |   | $      | 37,658,564 |   |   |   |   |   |   | $ | 126,840,029 |   |
| Corporate Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 48,494,093 |   |
|                  |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 175,334,122 |   |

| Balance as of 3/31/10 |   |   |   |       |   |   |   |       |   |   |   |   |   |
|-----------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
| Identifiable Assets   |   |   | $      | 95,881,164 |   |   | $      | 40,212,936 |   |   |   |   |   |   | $ | 136,094,100 |   |
| Corporate Assets      |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   | 42,595,208 |   |
|                  |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 178,689,308 |   |

| 6.        | Realized gains (losses) on equity investments are computed using the specific identification method. The Company 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. The Company measures fair value using the following fair value hierarchy which is based on three levels of inputs intended to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value: Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in 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 - 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, receivables, accounts payable and long-term debt have carrying values that approximate fair values. Equity securities for which the Company has no immediate plan to sell but that may be sold in the future are classified as available for sale.  If the fair value of the equity security is readily determinable, it is carried at fair value and unrealized gains and losses are recorded, net of related income tax effects, in stockholders' equity. Realized gains and losses, based on the specifically identified cost of the security, are included in net income (loss). The Company's valuation techniques used to measure the fair value of its marketable equity securities were derived from quoted prices in active markets for identical assets. Equity securities whose fair value is not readily determinable are carried at cost unless the Company is aware of significant adverse effects which have impaired the investments. Investments that are recorded at cost are evaluated quarterly for events that may adversely impact their fair value. |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                    |   |       |       |   | Fair Value at Reporting Date Using: |    |
|---------------------------------------------------------------------------------------------------------|--------|------------|------------|--------|------------------------------------------|---------|
|                              |   |       |       |   | Quoted Prices                            |    |   |   |   |   |   |   |
|                                                                                                    |   |       |       |   | in Active                                |    |   | Significant |   |   |   |   |
|                                                                                                    |   |       |       |   | Markets for                              |    |   | Other |   |   | Significant |   |
|                                                                                                    |   |       |       |   | Identical                           |    |   |  Observable |   |   |  Unobservable |   |
|                                                                                                    |   |       |       |   |  Assets                             |    |   | Inputs |   |   | Input |   |
| Assets:                                                                                            |   | 03/31/2011 |       |   | (Level 1)                                |    |   | (Level 2) |   |   | (Level 3) |   |
|    Available-for-sale equity securities                                             |   |       |       |   |                                     |    |   |   |   |   |   |   |
|       Cement industry                                                          |   |  $    | 9,722,904  |   |                                     | $  | 9,722,904 |   |   | $ |  -           |   |   | $ |  -           |   |
|       General building materials industry                                      |   |       | 3,725,064  |   |                                     |    | 3,725,064 |   |   |   |  -           |   |   |   |  -           |   |
|       Oil and gas refining and marketing industry                              |   |       | 8,078,208  |   |                                     |    | 8,078,208 |   |   |   |  -           |   |   |   |  -           |   |
|       Residential construction industry                              |   |       | 809,745    |   |                                     |    | 809,745 |   |   |   |  -           |   |   |   |  -           |   |
| Total assets measured at fair value                                                                     |   | $          | 22,335,921 |   |                                     | $       | 22,335,921 |   |   | $ |  -           |   |   | $ |  -           |   |
|                                                                                                    |   |       |       |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
| Assets:                 |   |       | 12/31/2010 |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
|    Available-for-sale equity securities                                                  |   |       |       |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
|       Cement industry                                                          |   | $          | 9,499,615  |   |                                     | $       | 9,499,615 |   |   | $ |  -           |   |   | $ |  -           |   |
|       General building materials industry                                      |   |       | 3,623,769  |   |                                     |    | 3,623,769 |   |   |   |  -           |   |   |   |  -           |   |
|       Oil and gas refining and marketing industry                              |   |       | 7,545,978  |   |                                     |    | 7,545,978 |   |   |   |  -           |   |   |   |  -           |   |
|       Residential construction industry                                   |   |       | 896,346    |   |                                     |    | 896,346 |   |   |   |  -           |   |   |   |  -           |   |
| Total assets measured at fair value                                                                     |   | $          | 21,565,708 |   |                                     | $       | 21,565,708 |   |   | $ |  -           |   |   | $ |  -           |   |

| Available-for-sale equity securities                      |   | Less than 12 Months |                                  |   | 12 Months or Greater |   |                                  | Total  |   |
|----------------------------------------------------------------|--------|---------------------|---------------------------------------|--------|----------------------|--------|---------------------------------------|-------------|--------|
|                                                           |   |                |                                  |   | Unrealized           |   |                                  |        |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
| March 31, 2011                                            |   | Fair Value          |                                  |   | Losses               |   |                                  | Fair Value  |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|    Cement industry                                   |   | $                   | -       |   |                 | $      | -       |        |   | $ | 17,000 |   |   | $ | 1,116 |   |   | $ | 17,000 |   |   | $ | 1,116 |   |
|    Residential construction                     |   |                |                                  |   |                 |   |                                  |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          industry |   |                | 300,995                               |   |                 |   | 37,047                                |        |   |   | -         |   |   |   | -           |   |   |   | 300,995 |   |   |   | 37,047 |   |
| Total                                                          |   | $                   | 300,995                               |   |                 | $      | 37,047                                |        |   | $ | 17,000 |   |   | $ | 1,116 |   |   | $ | 317,995 |   |   | $ | 38,163 |   |

|  December 31, 2010                                   |   |   |                                  |   |   |   |                                  |   |   |   |                                  |   |   |   |                                  |   |   |   |
|-----------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|--------|---------------------------------------|--------|--------|--------|---------------------------------------|--------|--------|--------|---------------------------------------|--------|--------|--------|
|    Cement industry                              |   | $      | -       |   |   | $      | -       |   |   | $      | 16,400                                |   |   | $      | 1,716                                 |   |   | $      | 16,400 |   |   | $ | 1,716 |   |
|    Residential construction                |   |   |                                  |   |   |   |                                  |   |   |   |                                  |   |   |   |                                  |   |   |   |   |   |   |   |   |   |
|          industry |   |   | 488,379                               |   |   |   | 86,054                                |   |   |   | -       |   |   |   | -       |   |   |   | 488,379 |   |   |   | 86,054 |   |
| Total                                                     |   | $      | 488,379                               |   |   | $      | 86,054                                |   |   | $      | 16,400                                |   |   | $      | 1,716                                 |   |   | $      | 504,779 |   |   | $ | 87,770 |   |

|                                                                        |   | Amortized |       |   | Gross Unrealized |    |       | Fair   |   |
|-----------------------------------------------------------------------------|--------|-----------|------------|--------|------------------|---------|------------|--------|--------|
| March 31, 2011                                                         |   | Cost      |       |   | Gains            |    |       | Losses |   |   | Value |   |
| Available for sale equity securities                                        |   |      |       |   |             |    |       |   |   |   |   |   |
| Cement industry                                                             |   | $         | 4,971,000  |   |             | $       | 4,752,000  |   |   | $ | -       |   |   | $ | 9,723,000 |   |
| General building materials industry                                         |   |      | 2,866,000  |   |             |    | 859,000    |   |   |   | -       |   |   |   | 3,725,000 |   |
| Oil and gas refining and marketing industry                                 |   |      | 1,910,000  |   |             |    | 6,168,000  |   |   |   | -       |   |   |   | 8,078,000 |   |
| Residential construction industry                                           |   |      | 719,000    |   |             |    | 91,000     |   |   |   | -       |   |   |   | 810,000 |   |
| Total available for sale equity securities                                  |   | $         | 10,466,000 |   |             | $       | 11,870,000 |   |   | $ | -       |   |   | $ | 22,336,000 |   |
|                                                                        |   |      |       |   |             |    |       |   |   |   |   |   |   |   |   |   |
| Less: Deferred taxes on unrealized holding gains                            |   |      |       |   |             |    | 4,748,000  |   |   |   |   |   |   |   |   |   |
|     Unrealized gains recorded in equity, net of deferred tax |   |      |       |   |             | $  | 7,122,000  |   |   |   |   |   |   |   |   |   |

|                                                     |   | Amortized |       |      | Gross Unrealized |   |       | Fair   |   |
|----------------------------------------------------------|--------|-----------|------------|-----------|------------------|--------|------------|--------|--------|
| December 31, 2010                                        |   | Cost      |       |      | Gains            |   |       | Losses |   |   | Value |   |
| Available for sale equity securities                     |   |      |       |      |             |   |       |   |   |   |   |   |
| Cement industry                                          |   | $         | 4,971,000  |      |             | $      | 4,529,000  |   |   | $ | -       |   |   | $ | 9,500,000 |   |
| General building materials industry                      |   |      | 2,866,000  |      |             |   | 758,000    |   |   |   | -       |   |   |   | 3,624,000 |   |
| Oil and gas refining and marketing industry              |   |      | 2,600,000  |      |             |   | 4,946,000  |   |   |   | -       |   |   |   | 7,546,000 |   |
| Residential construction industry                        |   |      | 849,000    |      |             |   | 47,000     |   |   |   | -       |   |   |   | 896,000 |   |
| Total available for sale equity securities               |   | $         | 11,286,000 |      |             | $      | 10,280,000 |   |   | $ | -       |   |   | $ | 21,566,000 |   |
|                                                     |   |      |       |      |             |   |       |   |   |   |   |   |   |   |   |   |
| Less: Deferred taxes on unrealized holding gains         |   |      |       |      |             |   | 4,112,000  |   |   |   |   |   |   |   |   |   |
| Unrealized gains recorded in equity, net of deferred tax |   |      | $          | 6,168,000 |             |   |       |   |   |   |   |   |   |

| 7. | 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 three months ended March 31, 2011 and 2010: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Pension Benefits  |                                        |   | Other Benefits  |   |
|-----------------------------------------------|--------|------------------------|---------------------------------------------|--------|----------------------|--------|
|                                          |   | 2011                   |                                        |   | 2010                 |   |   | 2011 |   |   | 2010 |   |
| Service cost                                  |   | $                      | 187,917                                     |   |                 | $      | 167,245 |   |   | $ | 162,416 |   |   | $ | 136,392 |   |
| Interest cost                                 |   |                   | 505,176                                     |   |                 |   | 515,829 |   |   |   | 461,368 |   |   |   | 467,122 |   |
| Less: Expected return on plan assets          |   |                   | 484,275                                     |   |                 |   | 431,334 |   |   |   | -        |   |   |   | -       |   |
| Amortization of prior service cost            |   |                   | 27,495                                      |   |                 |   | 27,495 |   |   |   | (13,419 | )  |   |   | -       |       |
| Recognized net actuarial loss            |   |                   | 228,247                                     |   |                 |   | 217,163 |   |   |   | -        |   |   |   | -       |   |
| Unrecognized net loss                         |   |                   | -        |   |                 |   | -        |   |   |   | 180,028 |   |   |   | 180,227 |   |
|     Net periodic expense  |   | $                      | 464,560                                     |   |                 | $      | 496,398 |   |   | $ | 790,393 |   |   | $ | 783,741 |   |

| 8. | Other, net contains miscellaneous nonoperating income (expense) items other than interest income, interest expense, gains on equity investments and dividend income. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9. | 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 4,013,018  and 4,024,198 in the first quarter of 2011 and 2010, respectively. The Company has no capital stock equivalents and therefore, does not report diluted earnings per share. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10. | The Company 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 2007. The Company believes it is not subject to any significant tax risk.  The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor were any interest expenses recognized during the three months ended March 31, 2011 or March 31, 2010. As a result of the Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act of 2010,  we will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees and reimbursed under the Medicare Part D retiree drug subsidy beginning in 2013. This resulted in a $685,000 charge to income tax provision during the first quarter of 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Recently Adopted Accounting Standards In January 2010, the FASB issued ASU 2010-06, "Improving Disclosures About Fair Value Measurements", which amends Subtopic 820-10 with new disclosure requirements and clarification of existing disclosure requirements. Reporting entities must make new disclosures about recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and settlements on a gross basis in the reconciliation of Level 3 fair- value measurements. The ASU also provides additional guidance related to the level of disaggregation in determining classes of assets and liabilities and disclosures about inputs and valuation techniques. ASU 2010-06 was effective for the Company beginning January 1, 2010 except for Level 3 reconciliation disclosures which were effective for the Company beginning January 1, 2011. The adoption of the Level 3 reconciliation disclosures did not have a material impact on our disclosures or our consolidated financial statements. In April 2010, the FASB issued ASU No. 2010-17, "Revenue Recognition - Milestone Method (Topic 605): Milestone Method of Revenue Recognition". This ASU provides guidance on defining a milestone and determining when it may be appropriate to apply the milestone method of revenue recognition. Consideration that is contingent on achievement of a milestone in its entirety may be recognized as revenue in the period in which the milestone is achieved only if the milestone is judged to meet certain criteria to be considered substantive. The updated guidance was effective on a prospective basis for the Company beginning January 1, 2011. The adoption of these provisions did not have a material effect on the Company's consolidated financial statements. In December 2010, the FASB issued ASU 2010-28, "Intangibles - Goodwill and Other (Topic 350)", which amends Subtopic 350-20 with modifications to Step 1 of the goodwill impairment test for those reporting units with zero or negative carrying amounts so that an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not, based on an assessment of qualitative indicators, that a goodwill impairment exists. ASU 2010-28 was effective for the Company beginning January 1, 2011. Adoption of this standard did not have a material impact on the Company's consolidated financial statements. In December 2010, the FASB issued ASU No. 2010-29, "Business Combinations (Topic 805)" which requires public entities that present comparative financial statements to disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred at the beginning of the comparable prior annual reporting period only. The amendments also expand the supplemental pro forma disclosures under Topic 805 to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. These amendments were effective for the Company beginning January 1, 2011. The adoption of this standard did not have a material impact on the Company's consolidated financial statements. New Accounting Standards Issued But Not Yet Adopted There are currently no accounting standards that have been issued that are expected to have a significant impact on the Company's financial position, results of operations and cash flows upon adoption. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | Subsequent events have been evaluated through the date the financial statements were issued. Pursuant to a Stock Purchase Agreement among the Company and the owners of Kay Concrete Materials Co. ("Kay Concrete"), on April 15, 2011 the Company issued a total of 105,750 shares of the Company's capital stock, par value $2.50, having one vote per share, as part of the purchase consideration for the Company's acquisition of all of the issued and outstanding shares of common stock of Kay Concrete. In addition to its stock, the Company paid approximately $1.4 million in consideration. Various non-compete agreements, worth approximately $1.0 million, were also entered into for a five year term. Not all of the disclosures related to the acquisition and transactions recognized separately from the acquisition have been made since the initial accounting related to the business combination is incomplete.  Insufficient time after the acquisition made it impracticable to provide supplemental pro forma information for the combined entity. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

    -  general economic and business conditions; 
    -  competition; 
    -  raw material and other operating costs; 
    -  costs of capital equipment; 
    -  changes in business strategy or expansion plans; 
    -  demand for our Company's products; 
    -  cyclical and seasonal nature of our business; 
    -  the effect of weather on our business; 
    -  the effect of environmental and other government regulations; 
    -  the availability of credit at reasonable prices; and 
    -  the effect of federal and state funding on demand for our products. 

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|                                                                                                       |                                             |                                                                                                         |   |  The Monarch Cement Company                                                                                                                     |   |
|------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |                                             |                    |   |                   (Registrant)                                  |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|  Date      May 10, 2011         |          |                                                                                                         |   |   /s/ Walter H. Wulf, Jr.                                                 |   |
|                                                                                                       |          |                                                                                                         |   |  Walter H. Wulf, Jr.                                                                                                                            |   |
|                                                                                                       |          |                                                                                                         |   |  President and                                                                                                                                  |   |
|                                                                                                       |          |                                                                                                         |   |  Chairman of the Board                                                                                                                          |   |
|                                                                                                       |                         |                                                                                                         |   |  (principal executive officer)                                                                                                                  |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                       |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|  Date      May 10, 2011         |                                             |                                                                                                         |   |  /s/ Debra P. Roe                      |   |
|                                                                                                       |                                             |                                                                                                         |   |  Debra P. Roe, CPA                                                                                                                              |   |
|                                                                                                       |                                             |                                                                           |   |  Chief Financial Officer and                                                                                                          |   |
|                                                                                                       |                                             |                                                                                                         |   |  Assistant Secretary-Treasurer                                                                                                                  |   |
|                                                                                                       |                                             |                                                                                                         |   |  (principal financial officer and                                                                                                               |   |
|                                                                                                       |                                             |                                                                                                         |   |  principal accounting officer)                                                                                                                  |   |

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