**FORM 10-Q**

**SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549**

(MarkOne) [**X**]    Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Actof 1934.             For the quarterly period ended**September 30, 2006,** or

[   ]      Transition report pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934.             For the transition period from                                              to                                                               .Commission file number:  **0-2757**                                                                                        

| **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)
 Registrant's telephone number, including area code: **(620) 473-2222**

                                                                                                                  (former name, former address and former fiscalyear, if changed since last report) 

Indicate by check mark whether the registrant (1)has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months (or for suchshorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days.  YES  **X**     NO       

Indicateby check mark whether the registrant is an accelerated filer (as defined in Rule12b-2 of the Exchange Act).YES          NO   X  

Indicateby check mark whether the registrant is a large accelerated filer, anaccelerated filer, or a non-accelerated filer. See definition of acceleratedfiler and large accelerated filer in Rule 12b-2 of the Exchange Act. (Checkone):  Large accelerated filer ____  Accelerated filer____  Non-accelerated filer   X  

Indicateby check mark whether the registrant is a shell company (as defined in Rule12b-2 of the Exchange Act). YES          NO   X  

As of **November 7, 2006**, there were2,475,265 shares of Capital Stock, par value $2.50 per share outstandingand 1,551,693 shares of Class B Capital Stock, par value $2.50 per shareoutstanding. 

PART I  -  FINANCIAL INFORMATION

The condensed consolidated financial statementsincluded in this report have been prepared by our Company without audit. Certaininformation and footnote disclosures normally included in financial statementsprepared in accordance with generally accepted accounting principles have beencondensed or omitted.  Our Company believes that the disclosures are adequate tomake the information presented not misleading.  The accompanying consolidatedfinancial statements reflect all adjustments that are, in the opinion ofmanagement, necessary for a fair statement of the results of operations for theinterim periods presented.  Those adjustments consist only of normal, recurringadjustments.  The condensed consolidated balance sheet of the Company as ofDecember 31, 2005 has been derived from the audited consolidated balance sheetof the Company as of that date.  These condensed consolidated financialstatements should be read in conjunction with the consolidated financialstatements and notes thereto included in our Company's most recent annual reporton Form 10‐K for 2005 filed with the Securities & Exchange Commission.  Theresults of operations for the period are not necessarily indicative of theresults to be expected for the full year.

Item 1.       Financial Statements

 

 

 
    THE MONARCH CEMENT COMPANY AND SUBSIDIARIES       CONSOLIDATED BALANCE SHEETS        September 30, 2006 and December 31, 2005                         ASSETS      2 0 0 6     2 0 0 5    CURRENT ASSETS:     (Unaudited)          Cash and cash equivalents  $    2,830,739       $    4,895,561        Short-term investments, at cost which approximates market                  -               1,500,000        Receivables, less allowances of $613,000 in 2006 and             $602,000 in 2005 for doubtful accounts      20,364,446           14,186,551        Inventories, priced at cost which is not in excess of market-                Finished cement      $    4,968,631       $    1,868,412              Work in process             3,079,932            1,632,780              Building products             3,922,320            3,457,813              Fuel, gypsum, paper sacks and other            3,232,871            3,317,283              Operating and maintenance supplies            8,327,118            7,850,617           Total inventories   $  23,530,872       $  18,126,905        Deferred income taxes               663,902               665,000        Prepaid expenses               541,554                 80,843      Total current assets  $  47,931,513       $  39,454,860     PROPERTY, PLANT AND EQUIPMENT, at cost, less           accumulated depreciation and depletion of $127,971,305          in 2006 and $121,060,864 in 2005      95,045,647           85,815,343     DEFERRED INCOME TAXES            4,755,310            4,111,000     INVESTMENTS          12,539,621           13,454,631     OTHER ASSETS            1,053,483            1,219,082     $161,325,574       $144,054,916     LIABILITIES AND STOCKHOLDERS' INVESTMENT        CURRENT LIABILITIES:           Accounts payable      $    8,984,984       $    8,971,830        Line of credit payable            9,754,659                       -          Current portion of advancing term loan            2,179,445            1,965,106        Accrued liabilities            5,705,436             6,499,821      Total current liabilities  $  26,624,524       $  17,436,757     LONG-TERM DEBT          20,407,682           22,121,890     ACCRUED POSTRETIREMENT BENEFITS          12,557,426           11,456,039     ACCRUED PENSION EXPENSE            2,321,036             2,121,155     MINORITY INTEREST IN CONSOLIDATED SUBSIDIARIES           1,041,426             1,246,317     STOCKHOLDERS' INVESTMENT:           Capital stock, par value $2.50 per share, one vote per share -             Authorized 10,000,000 shares, Issued 2,471,890 shares             at 9/30/2006 and 2,464,926 shares at 12/31/2005     $    6,179,725       $    6,162,315        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 1,555,068             shares at 9/30/2006 and 1,562,032 shares at 12/31/2005           3,887,670             3,905,080        Retained earnings          86,632,085           76,965,363        Accumulated other comprehensive income            1,674,000             2,640,000      Total stockholders' investment      $  98,373,480       $  89,672,758     $161,325,574       $144,054,916     See notes to condensed consolidated financial statements    
 
    THE MONARCH CEMENT COMPANY AND SUBSIDIARIES          CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS      For the Three Months and the Nine Months Ended September 30, 2006 and 2005 (Unaudited)      For the Three Months Ended     For the Nine Months Ended      Sept. 30, 2006     Sept. 30, 2005     Sept. 30, 2006     Sept. 30, 2005    NET SALES      $44,200,862       $41,855,661   $118,982,988       $103,668,803     COST OF SALES       33,454,729         31,219,787       91,823,324           83,360,136            Gross profit from operations     $10,746,133       $10,635,874       $  27,159,664       $  20,308,667     SELLING, GENERAL AND              ADMINISTRATIVE EXPENSES         3,706,587           3,156,193           10,559,245             9,248,656            Income from operations     $  7,039,546       $  7,479,681       $  16,600,419       $  11,060,011     OTHER INCOME (EXPENSE):              Interest income      $       82,705       $     104,400       $       263,815       $       240,919        Interest expense            (582,909)            (361,208)           (1,341,400)           (1,111,801)       Other, net              320,144                25,936                735,210                650,164         $    (180,060)      $    (230,872)      $      (342,375)      $      (220,718)                    Income before taxes on income     $  6,859,486       $  7,248,809   $  16,258,044       $  10,839,293     PROVISION FOR INCOME TAXES         2,000,000           2,320,000         4,900,000             3,500,000     NET INCOME      $  4,859,486       $  4,928,809   $  11,358,044       $    7,339,293              RETAINED EARNINGS, beg. of period        82,618,260         72,133,652           76,965,363           70,528,560     Less cash dividends             845,661              805,391             1,691,322             1,610,783     RETAINED EARNINGS, end of period     $86,632,085       $76,257,070       $  86,632,085       $  76,257,070     Basic earnings per share      $           1.21       $           1.22       $             2.82       $             1.82     Cash dividends per share      $           0.21       $           0.20       $             0.42       $             0.40               CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME        For the Three Months and the Nine Months Ended September 30, 2006 and 2005 (Unaudited)     For the Three Months Ended     For the Nine Months Ended      Sept. 30, 2006     Sept. 30, 2005     Sept. 30, 2006     Sept. 30, 2005    NET INCOME      $  4,859,486       $  4,928,809       $  11,358,044       $    7,339,293     UNREALIZED APPRECIATION                 ON AVAILABLE FOR SALE                SECURITIES (Net of deferred                tax expense of ($836,000), $760,000         ($644,000) and $535,000, respectively)        (1,254,000)          1,140,000               (966,000)               800,000              LESS:  RECLASSIFICATION ADJUST-                MENT FOR REALIZED GAINS                 INCLUDED IN NET INCOME                (net of deferred tax expense of                 $-0-, $-0-, $-0- and $155,000,                 respectively)                      -                          -                            -                  230,000     COMPREHENSIVE INCOME     $  3,605,486       $  6,068,809       $  10,392,044       $    7,909,293     See notes to condensed consolidated financial statements      
 

 
    THE MONARCH CEMENT COMPANY AND SUBSIDIARIES       CONSOLIDATED STATEMENTS OF CASH FLOWS       For the Nine Months Ended September 30, 2006 and 2005 (Unaudited)              2006     2005    OPERATING ACTIVITIES:         Net income      $ 11,358,044       $   7,339,293       Adjustments to reconcile net income to           net cash provided by operating activities:             Depreciation, depletion and amortization          7,966,688            7,915,693           Minority interest in earnings of subsidiaries               13,756                 47,135           Deferred income taxes, long-term                    788                         -             Gain on disposal of assets            (133,286)             (175,133)          Realized gain on sale of other investments                       -                (384,375)          Change in assets and liabilities:                 Receivables, net         (6,177,895)          (5,288,578)              Inventories         (5,403,968)          (2,166,992)              Refundable federal and state income taxes                       -                 812,807               Prepaid expenses            (460,711)             (341,196)              Other assets               14,759                 14,015               Accounts payable and accrued liabilities          2,302,811            2,476,162               Accrued postretirement benefits          1,101,387            1,225,917               Accrued pension expense             199,881               370,137             Net cash provided by operating activities     $ 10,782,254       $ 11,844,885        INVESTING ACTIVITIES:         Acquisition of property, plant and equipment     $(18,628,477)      $  (9,619,372)      Proceeds from disposals of property, plant and equipment             242,353               428,843       Payment for purchases of equity investments            (734,194)                        -         Proceeds from disposals of equity investments               39,204            1,150,245       Decrease in short-term investments, net          1,500,000                         -         Purchases of subsidiaries' stock            (192,914)             (105,400)            Net cash used for investing activities     $(17,774,028)      $  (8,145,684)       FINANCING ACTIVITIES:         Increase (decrease) in line of credit, net     $   9,754,659       $     (981,667)      Payments on bank loans         (1,344,913)          (1,386,595)      Payments on other long-term debt            (154,956)             (250,103)      Cash dividends paid         (3,302,105)          (3,221,566)      Subsidiaries' dividends paid to minority interest              (25,733)                        -               Net cash provided by (used for) financing activities     $   4,926,952       $  (5,839,931)       Net decrease in cash and cash equivalents     $  (2,064,822)      $  (2,140,730)    CASH AND CASH EQUIVALENTS, beginning of year          4,895,561            4,999,253     CASH AND CASH EQUIVALENTS, end of period     $   2,830,739       $   2,858,523         Interest paid, net of amount capitalized     $   1,353,488       $   1,147,528     Income taxes paid, net of refunds     $   4,819,535       $   1,072,548     Capital equipment additions included in accounts payable     $      564,579       $      785,185         See notes to condensed consolidated financial statements   
 

 
THE MONARCH CEMENT COMPANY AND SUBSIDIARIESNOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2006 and 2005 (Unaudited), and December 31, 2005 
  -  For a summary of accounting policies, the readershould refer to Note 1 of the consolidated financial statements included in ourCompany's most recent annual report on Form 10‐K. 
-  Basic earnings per share of capital stock has beencalculated based on the weighted average shares outstanding during each of thereporting periods.  The weighted average number of shares outstanding was4,026,958 in the third quarter of 2006 and 2005 and in the first nine months of2006 and 2005.  The Company has no commonstock equivalents and therefore, does not report diluted earnings per share. 
-  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 and  sundry building materials business.  Following is condensed information  for each line for the periods indicated (in thousands):  
Three Months Ended
Nine Months Ended  9/30/06  9/30/05   9/30/06  9/30/05   Sales toUnaffiliated Customers       Cement Business $      21,753         $  20,656  $ 54,115        47,060   Ready-Mixed Concrete Business22,448         21,200       64,868        56,609  Intersegment Sales       Cement Business 3,455               3,870  10,148              9,915   Ready-Mixed Concrete Business915    -  915    -  OperatingIncome (Loss)       Cement Business7,560         6,891  17,167   12,456        Ready-Mixed Concrete Business(521)         589  (567) (1,396)CapitalExpenditures       Cement Business  2,525         846  14,104        5,450   Ready-Mixed Concrete Business2,014         815  3,051        4,169                           Balance as of
9/30/0612/31/05Identifiable Assets       Cement Business   $ 101,252  $ 82,406  Ready-Mixed Concrete Business   38,230  35,804 Corporate Assets21,843 25,845  
-  The following table presents the components of net periodic costs for the nine months endedSeptember 30, 2006 and 2005:
      Pension Benefits               
      Other Benefits                       
      2006     
      2005     
      2006 
      2005    Service cost      $ 523,257         $ 384,251         $ 381,228 
$   447,577Interest cost1,716,380       1,260,414       1,199,7401,227,500Expected return on plan assets              (1,912,423)       (1,404,376)        -        -Amortization of prior service      cost76,674       56,306              -       -Recognized net actuarial gain 100,147   73,542          -        -Unrecognized net loss -     -   600,381 449,739    Net periodic      expense       $ 504,035   $ 370,137   $ 2,181,349 $ 2,124,816
 

The following table presents the components of net periodic costs for the threemonths ended September 30, 2006 and 2005:
 
      Pension Benefits                
      Other Benefits                       
      2006     
      2005     
      2006 
      2005    Service cost      $ 174,419         $ 128,418         $ 127,076 
$  170,492Interest cost572,127         421,235         399,914       467,581Expected return on plan assets              (637,474)       (469,348)        -        -Amortization of prior service cost25,558         18,818          -        -Recognized net actuarial gain 33,382   24,578          -        -Unrecognized net loss -    -          200,127       171,315    Net periodic expense       $ 168,012   $ 123,701   $ 727,117 $ 809,388
 

Monarch expects to contribute approximately $995,000 to the pensionfund in 2006. As of September 30, 2006, we have contributed about $304,000 andanticipate contributing an additional $691,000 to this plan in 2006 for a totalof $995,000. The other benefits consist of postretirement benefits that areself-insured by Monarch and are paid out of Monarch's general assets.  Aspreviously disclosed in our financial statements for the year ended December 31,2005, Monarch expects to payapproximately $1,360,000 for benefits under this plan in 2006.  As ofSeptember 30, 2006, we havecontributed about $1,080,000 and anticipate contributing an additional $280,000to this plan in 2006 for a total of $1,360,000.
-  A Monarch subsidiary, Monarch and three  officers of Monarch are involved in a lawsuit with the former officers of that subsidiaryand companies formed by those officers.  We believe all claims filed against oursubsidiary, Monarch and its officers are without merit and we are pursuingjudgment against the former officers and their companies.  We plan to vigorouslypursue this case and do not anticipate any liability as a result of thislawsuit. 

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

       Certain statements under  the caption "Management's Discussion and Analysis of Financial Condition and  Results of Operations," and elsewhere in this Form 10-Q report filed with the  Securities and Exchange Commission, constitute "forward-looking statements".   Except for historical information, the statements made in this report are  forward-looking statements that involve risks and uncertainties.  You can  identify these statements by forward-looking words such as "should", "expect",  "anticipate", "believe", "intend", "may", "hope", "forecast" or similar  words.  In particular, statements with respect to variations in future demand  for our products in our market area, the timing, scope, cost and benefits of  our proposed and recently completed capital improvements and expansion plans,  including the resulting increase in production capacity, our forecasted cement  sales, the timing and source of funds for the repayment of our line of credit,  the adequacy of earnings to support the payment of dividends, and our anticipated increase in solid fuels and electricity required to  operate our facilities and equipment are all forward-looking statements.  You  should be aware that forward-looking statements involve known and unknown  risks, uncertainties, and other factors that may affect the actual results,  performance or achievements expressed or implied by such forward-looking  statements. Such factors include, among others:
-    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 affect  weather has on our business; 
-    the affect  of environmental and other government regulation; and 
-    the affect  of federal and state funding on demand for our products. 

**RESULTS OF OPERATIONS - CRITICAL ACCOUNTING POLICIES**

    Reference is made to the Management's Discussion  and Analysis of Financial Condition and Results of Operations - Accounting  Policies incorporated herein by reference to Item 7 of the Company's Annual  Report on Form 10-K for the year ended December 31, 2005 for accounting  policies which are considered by management to be critical to an understanding  of the Company's financial statements.

**RESULTS OF OPERATIONS - OVERVIEW**

    Our products are used in residential, commercial  and governmental construction.  In recent years we experienced the return of  increased demand for our products.  The combination of residential, commercial  and governmental construction activities resulted in the need for increased  production to meet our customers' needs.  In response to those needs, we have  made, and continue to make, investments in our plant and equipment to increase  production and improve efficiencies. 

    Operating results for the first nine  months vary considerably from year-to-year.  Sales and the resulting  income (loss) are significantly affected by the length and severity of winter  weather and the corresponding slowdown in construction activity.  Cement  and ready-mixed concrete sales for the first nine months of 2006 benefited  from a shorter period of cold, wet weather in our markets.  Volume  increases made possible by the favorable weather conditions, combined with  increases in price, resulted in a substantial improvement in net income.   Price increases play a key role in helping us keep pace with increases in the  cost of labor, raw materials, and transportation and the expense of  maintaining state-of-the-art equipment in our capital intensive industry.   The higher sales volumes resulted in better utilization of our equipment also  contributing to the improvement in operating profits.  However, during  the third quarter, we began to experience the economic effects of the higher  interest rates, oil prices, and inflation.  The reduction in economic  growth caused by these factors resulted in slightly lower sales volumes for  the quarter.  We remain optimistic that Monarch will be able to maintain  much of the gain  made to date over 2005 through the end of the year.

**RESULTS OF OPERATIONS - THIRD QUARTER OF 2006 COMPARED  TO THIRD QUARTER OF 2005**

    Consolidated net sales for the three  months ended September 30, 2006, increased by $2.3 million when compared to  the three months ended September 30, 2005.  Sales in our Cement Business  were higher by $1.1 million and sales in our Ready-Mixed Concrete Business  were higher by $1.2 million.  Cement Business sales decreased $.4 million  due to decreased volume sold and increased $1.5 million due to price  increases.  Sales in the Ready-Mixed Concrete Business decreased  $.1 million due to decreased volume and increased $1.3 million due to price increases.

    Consolidated cost of sales for the three months  ended September 30, 2006, increased by $2.2 million when compared to the three  months ended September 30, 2005.  Cost of sales in our Cement Business  remained virtually the same and cost of sales in our Ready-Mixed Concrete  Business was higher by $2.2 million. Cement  Business cost of sales decreased about $.3 million due to the 2.1% decrease in  volume sold which was completely offset due to an increase in depreciation for new  equipment coming online. Ready-Mixed Concrete Business cost of sales increased  due to a combination of raw material price increases and the decreased volume  sold.  Raw materials, including cement, rock, sand and sundry building  materials purchased for resale, increased in price by $1.2 million or an  average of 11.0% due in large part to higher energy prices.  The  remaining increase of $1.0 million is due primarily to fringe benefit cost  increases.  

    As a result of the  above sales and cost of sales factors, our overall gross profit rate for the  three months ended September 30, 2006 was 24.3% versus 25.4% for the three months  ended September 30, 2005.

    Selling, general, and administrative  expenses increased by 17.4% during the third quarter of 2006 compared to the  third quarter of 2005.  These costs are normally considered fixed costs  that do not vary significantly with changes in sales volume.    This  increase is primarily due to expenses related to pending litigation and  Sarbanes Oxley compliance efforts.

    Other, net increased approximately $.3  million during the third quarter of 2006 as compared to the third quarter of  2005.  The increase was not due  to any one significant activity.

    The effective tax rates for the three months  ended September 30, 2006 and 2005 were 29.2% and 32.0%, respectively.  The Company's effective tax rate  differs from the federal and state statutory income tax rate primarily due to  the effects of percentage depletion, minority interest in consolidated income  and valuation allowance.  Taxes for the current year are estimated based  on prior year effective tax rates.  

**RESULTS OF OPERATIONS - FIRST NINE MONTHS OF 2006 COMPARED  TO THE FIRST NINE MONTHS OF 2005**

    Consolidated net sales for the nine  months ended September 30, 2006, increased by $15.3 million when compared to  the nine months ended September 30, 2005.  Sales in our Cement Business  were higher by $7.0 million and sales in our Ready-Mixed Concrete Business  were higher by $8.3 million.  Cement Business sales increased $2.1  million due to increased volume sold and $4.9 million due to price increases.   Sales in the Ready-Mixed Concrete Business increased $3.6 million due to  increased volume primarily attributed to construction contracts and increased $4.7 million due to price  increases primarily in sales of ready-mixed concrete.

    Consolidated cost of sales for the nine months  ended September 30, 2006, increased by $8.4 million when compared to the  nine  months ended September 30, 2005.  Cost of sales in our Cement Business  was higher by $1.7 million and cost of sales in our Ready-Mixed Concrete  Business was higher by $6.7 million. Cement Business cost of sales increased  $1.4 million due to the 4.5% increase in volume sold. The remaining $.3  million increase is due to an increase in depreciation for new equipment  coming online. Ready-Mixed Concrete Business cost of sales increased due to a  combination of raw material price increases and increases in volume sold.   Raw materials, including cement, rock, sand and sundry building materials  purchased for resale, increased in price by $2.8 million or an average of  11.0% due in large part to higher energy prices.  The remaining increase  of $3.9 million is due to the 6.4% increase in volume.  

    As a result of the  above sales and cost of sales factors, our overall gross profit rate for the  nine months ended September 30, 2006 was 22.8% versus 19.6% for the nine months  ended September 30, 2005.

    Selling, general, and administrative  expenses increased by 14.2% during the first nine months of 2006 compared to  the first nine months of 2005.  These costs are normally considered fixed  costs that do not vary significantly with changes in sales volume.  This  increase is primarily due to an increase in legal and professional fees due to  pending litigation and Sarbanes Oxley compliance work. Payroll also increased  during the first nine months of 2006 as compared to the first nine months of  2005 due to an increase in management personnel responsible for construction  projects. Early in the first quarter of 2005, the departure of management  personnel responsible for construction projects reduced our administrative  costs. These personnel have been replaced.

    Other, net increased  approximately $.1 million for the first nine months of 2006 as compared to the first  nine months of 2005 primarily due to an increase in net oil property income  and a decrease in the amount of gain  realized on the sale of other equity investments.

    The effective tax rates for the nine months  ended September 30, 2006 and 2005 were 30.1% and 32.3%, respectively.   The Company's effective tax rate differs from the federal and state statutory  income tax rate primarily due to the effects of percentage depletion, minority  interest in consolidated income and valuation allowance.  Taxes for the  current year are estimated based on prior year effective tax rates.  

** LIQUIDITY**

**   **  We are able to meet our cash needs primarily from a combination of operations  and bank loans.  Cash decreased during the first nine months of 2006  primarily due to increases in receivables and inventories, the purchase of  equipment and the payment of dividends.   

       In December 2005, we  renewed our line of credit with our current lender.  Our current unsecured  credit commitment consists of a $25 million advancing term loan maturing  December 31, 2009 and a $10 million line of credit maturing December 31,  2006.  The term loan bears a floating interest rate based on JP Morgan Chase  prime rate less .75% and the line of credit bears a floating interest rate  based on lender's national prime rate less 1.00%.  The loan agreement contains  a financial covenant related to net worth which the Company was in compliance  with at the end of the first nine months of 2006.  As of September 30, 2006, we had  borrowed $21.9 million on the advancing term loan and $9.8 million on the line  of credit leaving a balance available on the line of credit of $.2 million.  The annual weighted average interest rate we paid on the advancing term loan  during the third quarter of 2006 and 2005 was 7.5% and 5.7%, respectively, and  for the first nine months of 2006 and 2005 was 7.1% and 5.2%, respectively.   The annual weighted average interest rate we paid on the line of credit during  the third quarter of 2006 and 2005 was 7.25% and 5.4%, respectively, and for  the first nine months of 2006 and 2005 was 6.9% and 4.9%, respectively.   As of September 30, 2006, the applicable interest rate was 7.5% on the  advancing term loan and 7.3% on the line of credit. The advancing term loan  was used to help finance the expansion project at our cement manufacturing  facility.  The line of credit was used to cover operating expenses during  the first six months of the year when we build inventory due to the  seasonality of our business and for capital expenditures.  We anticipate  that the line of credit maturing December 31, 2006 will be paid using funds  from operations or replacement bank financing.  Our board of directors  has given management the authority to borrow an additional $15 million for a  maximum of $50 million. 

       The Company completed  the conversion of one of its two preheater kilns to a precalciner kiln in 2001.   The Company completed the conversion of our remaining preheater kiln to a precalciner  kiln during the first quarter of 2006 at a total cost of approximately $17.0  million.  The conversion of this kiln should increase our production capacity  by approximately 200,000 tons per year.  Although we had to shut down this  kiln for about six weeks during the conversion, we are projecting a 15%  increase in total clinker production for the year 2006 as compared to 2005 due  to the increased kiln capacity after the conversion.  This kiln was also shut  down approximately six weeks during early 2005 for the cooler installation.   We began depreciating the precalciner equipment and related installation  costs in the second quarter of 2006.  

      The Company is in the process of expanding its corporate  office.  Completion is anticipated in the fourth quarter of 2006 at a  total cost of approximately $3.4 million.  As of the end of the third  quarter of 2006, we had spent approximately $3.0 million on this expansion.   We have not started depreciating this addition.

      Other projects,  including changes to our quarrying and grinding operation to supply the raw  materials required by the increased kiln capacity, improvements to our fuel  handling system, and installation of an overland conveyor system to improve  efficiencies in moving raw materials, are currently under consideration.  Although we  anticipate an increase in capital expenditures during 2006, we do not  anticipate the need for additional bank financing other than that available  under existing lines of credit.

      For several years the Company has paid a $.20 per share  dividend in January, March, June and September.  Beginning with the April 2006 Board of Directors meeting, the Board elected to  increase these dividends to $.21 per share.  Although  dividends are declared at the Board's discretion, we project future earnings  will support the continued payment of dividends at the current level.

**FINANCIAL  CONDITION**

      Total assets as of  September 30, 2006 were $161.3 million, an increase of $17.3 million since December  31, 2005 due to increases in receivables and inventories of approximately $6.2  million and $5.4 million, respectively.  These variations are common  during the first nine months of the year due to the seasonality of our business  (see Seasonality below).   Property, plant and equipment increased $9.2 million primarily due to the  installation of the precalciner during the first nine months of 2006.   Cash and Cash equivalents decreased $2.1 million primarily due to increases in  receivables and inventories, the purchase of equipment and the payment of  dividends. Investments decreased approximately $1.0 million as a result of   a decrease in unrealized  gains during the first nine months of 2006.

    Indebtedness  increased about $8.3 million during the first nine months of 2006 primarily due to capital expenditures of about  $18.6 million and funding the increase in receivables and inventories of about  $6.2 million and $5.4 million, respectively.

**CAPITAL  RESOURCES**

    The Company  regularly invests in miscellaneous equipment and facility improvements in both  the Cement Business and Ready-Mixed Concrete Business.  Capital expenditures  during the first nine months of 2006 included completion of the installation of a precalciner and work towards the expansion and remodeling of our corporate  offices.  We also invested in routine equipment purchases during the first  nine months of 2006, primarily in the Ready-Mixed Concrete Business. During the  first nine months of 2006, cash expenditures for property, plant and equipment  totaled approximately $18.6 million, excluding the amounts that are included  in accounts payable.  Other routine equipment purchases are also planned  during the remainder of 2006.

    The Company plans to complete the office addition in  the fourth quarter of 2006.  In addition, preliminary plans under  consideration for 2006 include changes to our quarrying and grinding operation  to supply the raw materials required by the increased kiln capacity.  We  do not anticipate the need for additional bank financing beyond the amount  available through our existing line of credit.

**MARKET RISK**     

    Market risks  relating to the Company's operations result primarily from changes in demand  for our products.  A significant increase in interest rates could lead to  a reduction in construction activities in both the residential and commercial  market.  Budget shortfalls during economic slowdowns could cause money to  be diverted away from highway projects, schools, detention facilities and  other governmental construction projects.  Reduction in construction  activity lowers the demand for cement, ready-mixed concrete, concrete products  and sundry building materials.  As demand decreases, competition to  retain sales volume could create downward pressure on sales prices.  The  manufacture of cement requires a significant investment in property, plant and  equipment and a trained workforce to operate and maintain this equipment.  These costs do not materially vary with the level of production.  As a  result, by operating at or near capacity, regardless of demand, companies can  reduce per unit production costs.  The continual need to control  production costs encourages overproduction during periods of reduced demand.

**INFLATION**

      Inflation  directly affects the Company's operating costs.  The manufacture of cement  requires the use of a significant amount of energy.  The Company burns  primarily solid fuels, such as coal and petroleum coke, and to a lesser extent  natural gas, in its kilns and uses a significant amount of electricity to  operate our cement manufacturing equipment.  An increase in such manufacturing  components could adversely affect us.  Prices of the specialized replacement  parts and equipment the Company must continually purchase tend to increase  directly with the rate of inflation causing manufacturing costs to increase. 

**SEASONALITY**

    Portland cement is the basic material used in  the production of ready-mixed concrete that is used in highway, bridge and  building construction.  These construction activities are seasonal in nature.   During winter months when the ground is frozen, groundwork preparation cannot  be completed.  Cold temperatures affect concrete set-time, strength and  durability, limiting its use in winter months.  Dry ground conditions are also  required for construction activities to proceed.  During the summer, winds and  warmer temperatures tend to dry the ground quicker creating fewer delays in  construction projects.

    Variations in weather conditions from  year-to-year significantly affect the demand for our products during any  particular quarter; however, our Company's highest revenue and earnings  historically occur in its second and third fiscal quarters, April through  September.

**FUTURE  CHANGE IN ACCOUNTING PRINCIPLES**

    The Financial Accounting Standards Board (FASB)  has issued the following new accounting pronouncement and exposure draft.

    In June 2006, the  Financial Accounting Standards Board (FASB) issued Interpretation No. 48, "Accounting  for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109"  ("FIN48").  FIN 48 clarifies the application of Statement 109 by defining  a recognition threshold of "more likely than not" that the position would be  sustained upon examination before any part of the benefit of that position be  recognized in an enterprise's financial statements. It also provides guidance  on the measurement of the tax position. This Interpretation will be effective  for fiscal years beginning after December 15, 2006.  The Company has not  yet determined the impact, if any, that this new pronouncement will have on the  Company's consolidated financial statements.

     In  September 2006, the  Financial Accounting Standards Board (FASB) issued Standard No. 158  "Employers' Accounting for Defined Benefit Pension and Other Postretirement  Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)". The most  significant change is the requirement for companies to recognize the  overfunded or underfunded status of a defined benefit postretirement plan as  an asset or liability in its statement of financial position and to recognize  changes in that funded status in the year in which the changes occur through  comprehensive income. It is effective for fiscal years ending after December 15, 2006.  The  Company has not yet determined the exact amount that this new pronouncement  would impact the Company's Consolidated Balance Sheet and Statement of  Stockholders' Investment. However, the Company anticipates that it will be  required to record additional liabilities for both its pension and other  benefits plans.  These additional liabilities will result in a reduction  in stockholders' investment due to a change to accumulated other comprehensive  income.  Notes 6 and 7 in the 2005 Annual Report provide information  regarding the funded status of the plans.

     In March2006, the Financial Accounting Standards Board (FASB) issued Interpretation No.47, "Accounting for Conditional Asset Retirement Obligations, an interpretationof FASB Statement No. 143" ("FIN 47)". FIN 47 requires the recognition of aliability for the fair value of a legally-required conditional asset retirementobligation when incurred, if the liability's fair value can be reasonablyestimated.  FIN 47 also clarifies when an entity would have sufficientinformation to reasonably estimate the fair value of an asset retirementobligation.  FIN 47 is effective for fiscal years ending after December 15,2005.  The Company will adopt the new requirements at the end of its fiscalfourth quarter of 2006.  The Company is in the process of determining theimpact of adoption on the Company's consolidated financial statements andcurrently estimates that the only impact will be an additional disclosure in theNotes to the Condensed Consolidated Financial Statement.

Item 3.        Quantitative and Qualitative Disclosures  about Market Risk

    The Company owns $12.5 million of equity  securities, primarily publicly traded entities, as of September 30, 2006.  These  investments are not hedged and are exposed to the risk of changing market  prices.  The Company classifies these securities as "available-for-sale" for  accounting purposes and marks them to market on the balance sheet at the end  of each period.  Management estimates that its investments will generally  be consistent with trends and movements of the overall stock market excluding  any unusual situations.  An immediate 10% change in the market price of  our equity securities would have a $.8 million effect on comprehensive income.

    The Company also has $31.6 million of bank loans  as of September 30, 2006.  Interest rates on the Company's advancing term loan and  line of credit are variable and are based on the JP Morgan Chase prime rate  less .75% and lender's national prime rate less 1.00%, respectively. 

Item 4.          Controls and Procedures 

    The Company maintains disclosure controls and  procedures (as defined in Rules 13a-5(e) and 15d-15(e) under the Exchange Act)  that are designed to ensure that information required to be disclosed in the  Company's reports under the Exchange Act is recorded, processed, summarized  and reported within the time periods specified in the rules and forms of the  Securities and Exchange Commission, and that such information is accumulated  and communicated to the Company's management, including its President and  Chief Financial Officer, as appropriate, to allow timely decisions regarding  required disclosures.  Any controls and procedures, no matter how well  designed and operated, can provide only reasonable assurance of achieving the  desired control objectives.

    As of the end of the period covered by this  report, an evaluation was carried out by the Company's management, including  its President and Chairman of the Board of Directors and Chief Financial  Officer, of the effectiveness of its disclosure controls and procedures (as  defined in Rules 13a-5(e) under the Securities Exchange Act of 1934).  Based  upon that evaluation, the Company's President and Chairman of the Board of  Directors and Chief Financial Officer concluded that these disclosure controls  and procedures were effective as of the end of the period covered by this  report.

    There were no  changes in our internal control over financial reporting that occurred during  the quarter ended September 30, 2006 that materially affected, or are  reasonably likely to materially affect, our internal control over financial  reporting. 

  PART  II.   OTHER INFORMATION

Item 1.        Legal Proceedings

     The Company and its subsidiary, Tulsa Dynaspan, Inc. ("TDI"), are involved in  litigation with David G. Markle ("Markle"), a former director, president and  employee of TDI, Richard L. Evilsizer, a former officer and employee of TDI  and certain other former employees and companies controlled by one or more of  such persons (collectively the "Markle Parties").  Markle and Mr. Evilsizer are also  minority shareholders in TDI.  In the litigation TDI is seeking damages based  on allegations that one or more of the Markle Parties have (1) breached their  fiduciary duty to TDI, (2) violated noncompete agreements, (3) improperly used  TDI computers in violation of the Federal Computer Fraud and Abuse Act, (4)  improperly used TDI trade secrets and other proprietary information and (5)  made defamatory and disparaging statements about TDI. Markle and Mr. Evilsizer have alleged that the Company, as the  majority shareholder of TDI, has breached its duty to them as minority  shareholders.  Certain of the Markle Parties have made claims against three  directors of TDI who are also officers of Monarch and a former officer of  Monarch, as well as derivative claims against TDI.  The  litigation also involves a declaratory judgment as to whether TDI or Markle  owns an alleged invention for a method for the construction of parking  garages.

    Two actions have been filed in this litigation.  One was filed on December 28,  2004, in the District Court for Tulsa County, Oklahoma by Markle against TDI  and the Company (the "State Court Action") .  The other was filed by TDI  against the Markle Parties on April 27, 2005, in the United States District  Court for the Northern District of Oklahoma, but that litigation has been  stayed pending judgment in the state court action.  All of the Markle Parties  are now parties in the State Court Action.  This litigation is in the  discovery stage and no trial date has been set.  The Company and TDI believe  that all claims made by the Markle Parties are without merit and intend to  vigorously defend such claims.  TDI intends to vigorously pursue its claims  against the Markle Parties for damages, as well as its ownership of the  alleged invention.  On April 25, 2006, the District Court partially  sustained motions to dismiss filed by Monarch and the directors. A motion  for reconsideration by the Plaintiffs has been denied.  Plaintiffs filed a Fourth Amended Petition on August 22, 2006. A motion to  dismiss is currently pending. No assurances can be given as to the outcome of this  litigation.

Item 6.        Exhibits

31.1  Certificate of the President and Chairman of the Board pursuant to  Section 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.

31.2  Certificate of the Chief Financial Officer pursuant to Section  13a‐14(a)/15d‐14(a) of the Securities Exchange Act of 1934.

32.1  18 U.S.C. Section 1350 Certificate of the President and Chairman of the  Board dated November 14, 2006.

32.2  18 U.S.C. Section 1350 Certificate of the Chief Financial Officer dated  November 14, 2006.

   

  S I G N A T U R E S

  Pursuant to the  requirements of the Securities Exchange Act of 1934, the registrant has duly  caused this report to be signed on its behalf by the undersigned thereunto  duly authorized.

  The Monarch Cement Company                                                                                                 (Registrant)

  Date      November  14, 2006                                     /s/ Walter H. Wulf, Jr.             

  Walter H. Wulf, Jr.                                                                                 President and                                                                                  Chairman of the Board

  Date      November  14, 2006                                      /s/ Debra P. Roe                     

  Debra P. Roe, CPA                                                                                 Chief Financial Officer  and                                                                                           Assistant  Secretary‐Treasurer 

   

   

  EXHIBIT INDEX

   

   Exhibit   Number                                                         Description                                   

  31.1                             Certificate of the President and Chairman of  the                                              Board pursuant to Section 13a-14(a)/15d-14(a)                                              of the Securities Exchange Act of 1934.

  31.2                            Certificate of the Chief Financial Officer  pursuant                                             to Section 13a-14(a)/15d-14(a) of the                                              Securities Exchange Act of 1934.

  32.1                           18 U.S.C. Section  1350 Certificate of the President                                             and Chairman of the Board dated November  14, 2006.

  32.2                           18 U.S.C. Section  1350 Certificate of the                                              Chief Financial Officer dated November  14, 2006. |