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

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

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| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                                   |                       |
|--------------------------------------------------------------------------------------------------------------------|----------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                         |                       |
| September 30, 2010 and December 31, 2009                                                                      |                       |
|                                                                                                               |                       |   |   |   |   |   |   |
| ASSETS                                                                                                             |                       |   | 2010 |   |   | 2 0 0 9 |   |
| CURRENT ASSETS:                                                                                                    |                       | (Unaudited) |   |   |   |   |
|    Cash and cash equivalents                                                                        |                       | $ | 1,476,971 |   |   | $ | 2,149,397 |   |
|    Receivables, less allowances of $1,014,500 in 2010 and                                           |                       |   |   |   |   |   |   |   |
|       $911,000 in 2009 for doubtful accounts                                         |                       |   | 17,623,280 |   |   |   | 12,558,856 |   |
|    Inventories, priced at cost which is not in excess of market-                                    |                       |   |   |   |   |   |   |   |
|          Finished cement                                              |                       | $ | 5,775,626 |   |   | $ | 5,345,468 |   |
|          Work in process                                              |                       |   | 1,721,160 |   |   |   | 2,050,200 |   |
|          Building products                                            |                       |   | 5,044,117 |   |   |   | 5,225,431 |   |
|          Fuel, gypsum, paper sacks and other                          |                       |   | 6,532,246 |   |   |   | 7,625,573 |   |
|          Operating and maintenance supplies                           |                       |   | 11,446,149 |   |   |   | 11,538,788 |   |
|                                                                                                               | Total inventories          |   | $ | 30,519,298 |   |   | $ | 31,785,460 |   |
|    Refundable federal and state income taxes                                                        |                       |   | 581,244 |   |   |   | 310,795 |   |
|    Deferred income taxes                                                                            |                       |   | 775,000 |   |   |   | 775,000 |   |
|    Prepaid expenses                                                                                 |                       |   | 767,362 |   |   |   | 324,844 |   |
|                                                                                                               | Total current assets       |   | $ | 51,743,155 |   |   | $ | 47,904,352 |   |
| PROPERTY, PLANT AND EQUIPMENT, at cost, less                                                                       |                       |   |   |   |   |   |   |   |
|    accumulated depreciation and depletion of $170,983,535                                           |                       |   |   |   |   |   |   |   |
|    in 2010 and $162,880,507 in 2009                                                                 |                       |   | 86,486,120 |   |   |   | 90,817,394 |   |
| DEFERRED INCOME TAXES                                                                                              |                       |   | 19,117,778 |   |   |   | 19,093,778 |   |
| INVESTMENTS                                                                                                        |                       |   | 17,756,907 |   |   |   | 18,419,208 |   |
| OTHER ASSETS                                                                                                       |                       |   | 424,186 |   |   |   | 762,945 |   |
|                                                                                                               |                       |   | $ | 175,528,146 |   |   | $ | 176,997,677 |   |
|                                                                                                               |                       |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                               |                       |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                               |                       |   |   |   |   |   |   |   |
|    Accounts payable                                                                                 |                       | $ | 5,986,433 |   |   | $ | 5,083,300 |   |
|    Line of credit payable                                                                           |                       |   | 5,416,216 |   |   |   | 511,944 |   |
|    Current portion of advancing term loan                                                           |                       |   | 2,800,389 |   |   |   | 2,732,490 |   |
|    Accrued liabilities                                                                              |                       |   | 6,439,601 |   |   |   | 10,900,596 |   |
|                                                                                                               | Total current liabilities  |   | $ | 20,642,639 |   |   | $ | 19,228,330 |   |
| LONG-TERM DEBT                                                                                                     |                       |   | 9,902,605 |   |   |   | 12,096,835 |   |
| ACCRUED POSTRETIREMENT BENEFITS                                                                                    |                       |   | 31,620,175 |   |   |   | 30,206,610 |   |
| ACCRUED PENSION EXPENSE                                                                                            |                       |   | 12,825,904 |   |   |   | 12,250,038 |   |
| STOCKHOLDERS' EQUITY:                                                                                              |                       |   |   |   |   |   |   |   |
|    Capital stock, par value $2.50 per share, one vote per share -                                   |                       |   |   |   |   |   |   |   |
|          Authorized 10,000,000 shares, Issued 2,532,078 shares        |                       |   |   |   |   |   |   |   |
|          at 09/30/2010 and 2,532,463 shares at 12/31/2009             |                       | $ | 6,330,195 |   |   | $ | 6,331,158 |   |
|    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 1,480,940 |                       |   |   |   |   |   |   |   |
|          shares at 09/30/2010 and 1,491,735 shares at 12/31/2009      |                       |   | 3,702,350 |   |   |   | 3,729,337 |   |
|    Retained earnings                                                                                |                       |   | 102,935,621 |   |   |   | 105,989,712 |   |
|    Accumulated other comprehensive loss                                                             |                       |   | (12,431,343 | ) |   |   | (12,834,343 | ) |
|                                                                                                               | Total stockholders' equity |   | $ | 100,536,823 |   |   | $ | 103,215,864 |   |
|                                                                                                               |                       |   | $ | 175,528,146 |   |   | $ | 176,997,677 |   |
|                                                                                                               |                       |   |   |   |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements                                          |                       |

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| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                             |   |
|----------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND RETAINED EARNINGS                     |   |
| For the Three Months and the Nine Months Ended September 30, 2010 and 2009 (Unaudited)  |   |
|                                                                                         |   | For the Three Months Ended |   |   | For the Nine Months Ended |   |
|                                                                                         |   | Sept. 30, 2010 |   |   | Sept. 30, 2009 |   |   | Sept. 30, 2010 |   | Sept. 30, 2009 |   |
| NET SALES                                                                                    |   | $ | 37,123,469 |   |   | $ | 42,410,390 |   |   | $ | 89,391,942 |   |   | $ | 103,905,194 |   |
| COST OF SALES                                                                                |   |   | 30,656,629 |   |   |   | 31,761,671 |   |   |   | 77,877,860 |   |   |   | 84,553,938 |   |
|        Gross profit from operations                       |   | $ | 6,466,840 |   |   | $ | 10,648,719 |   |   | $ | 11,514,082 |   |   | $ | 19,351,256 |   |
| SELLING, GENERAL AND                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   ADMINISTRATIVE EXPENSES                                                          |   |   | 3,850,693 |   |   |   | 4,015,605 |   |   |   | 11,599,979 |   |   |   | 12,170,135 |   |
|        Income (loss) from operations                      |   | $ | 2,616,147 |   |   | $ | 6,633,114 |   |   | $ | (85,897 | ) |   | $ | 7,181,121 |   |
| OTHER INCOME (EXPENSE):                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Interest income                                                            |   | $ | 40,728 |   |   | $ | 52,062 |   |   | $ | 142,393 |   |   | $ | 139,699 |   |
|    Interest expense                                                           |   |   | (156,674 | ) |   |   | (157,277 | ) |   |   | (437,554 | ) |   |   | (487,742 | ) |
|    Gain on equity investments                                                 |   |   | -     |   |   |   | 53,568 |   |   |   | 11,839 |   |   |   | 123,133 |   |
|    Realized loss on impairment of equity investments                          |   |   | (858,787 | ) |   |   | -     |   |   |   | (858,787 | ) |   |   | -     |   |
|    Dividend income                                                            |   |   | 55,184 |   |   |   | 40,021 |   |   |   | 176,700 |   |   |   | 130,780 |   |
|    Other, net                                                                 |   |   | 6,753 |   |   |   | 200,645 |   |   |   | 669,297 |   |   |   | 175,713 |   |
|                                                                                         |   | $ | (912,796 | ) |   | $ | 189,019 |   |   | $ | (296,112 | ) |   | $ | 81,583 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        Income (Loss) before taxes                         |   | $ | 1,703,351 |   |   | $ | 6,822,133 |   |   | $ | (382,009 | ) |   | $ | 7,262,704 |   |
| PROVISION FOR INCOME TAXES                                                                   |   |   | 475,000 |   |   |   | 1,875,000 |   |   |   | 575,000 |   |   |   | 2,000,000 |   |
| NET INCOME (LOSS)                                                                            |   | $ | 1,228,351 |   |   | $ | 4,947,133 |   |   | $ | (957,009 | ) |   | $ | 5,262,704 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net Loss attributable to Noncontrolling interests                                      |   |   | -     |   |   |   | -     |   |   |   | -     |   |   |   | (48,799 | ) |
| NET INCOME (LOSS) ATTRIB. TO COMPANY                                                         |   | $ | 1,228,351 |   |   | $ | 4,947,133 |   |   | $ | (957,009 | ) |   | $ | 5,311,503 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| RETAINED EARNINGS, beg. of period                                                            |   |   | 102,878,787 |   |   |   | 104,397,360 |   |   |   | 105,989,712 |   |   |   | 104,958,556 |   |
| Less cash dividends                                                                          |   |   | 925,566 |   |   |   | 925,565 |   |   |   | 1,851,131 |   |   |   | 1,851,131 |   |
| Less purchase and retirement  of treasury stock                                    |   |   | 245,951 |   |   |   | -     |   |   |   | 245,951 |   |   |   | - |   |
| RETAINED EARNINGS, end of period                                                             |   | $ | 102,935,621 |   |   | $ | 108,418,928 |   |   | $ | 102,935,621 |   |   | $ | 108,418,928 |   |
| Basic earnings (losses) per share                                                            |   | $ | 0.31 |   |   | $ | 1.23 |   |   | $ | (0.24 | ) |   | $ | 1.32 |   |
| Cash dividends per share                                                                     |   | $ | 0.23 |   |   | $ | 0.23 |   |   | $ | 0.46 |   |   | $ | 0.46 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)                             |   |   |   |   |
| For the Three Months and the Nine Months Ended September 30, 2010 and 2009 (Unaudited)       |   |
|                                                                                         |   | For the Three Months Ended |   |   | For the Nine Months Ended |   |
|                                                                                         |   | Sept. 30, 2010 |   |   | Sept. 30, 2009 |   |   | Sept. 30, 2010 |   | Sept. 30, 2009 |   |
| NET INCOME (LOSS)                                                                            |   | $ | 1,228,351 |   |   | $ | 4,947,133 |   |   | $ | (957,009 | ) |   | $ | 5,262,704 |   |
| UNREALIZED APPRECIATION (DEPRECIATION)                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      ON AVAILABLE FOR SALE SECURITIES                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      (Net of deferred tax expense (benefit) of $(84,000),           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      $1,276,000, $(528,000) and $1,528,000, respectively)           |   |   | (124,787 | )  |   |   | 1,917,568 |   |   |   | (788,948 | ) |   |   | 2,295,133 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| LESS:  RECLASSIFICATION ADJUSTMENT FOR                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      REALIZED GAINS (LOSSES) INCLUDED IN NET                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      INCOME (net of deferred tax expense (benefit) of               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      $(344,000), $20,000, $(340,000), and $48,000, respectively)    |   |   | (514,787 | )  |   |   | 33,568 |   |   |   | (506,948 | )  |   |   | 75,133 |   |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| POSTRETIREMENT LIABILITY (net of deferred tax                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      expense of $-0-, $-0-, $-0- and $-0-, respectively)                 |   |   | -     |   |   |   | -     |   |   |   | 685,000 |   |   |   | -     |   |
| COMPREHENSIVE INCOME (LOSS)                                                                  |   | $ | 1,618,351 |   |   | $ | 6,831,133 |   |   | $ | (554,009 | ) |   | $ | 7,482,704 |   |
|                                                                                         |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements                    |   |   |   |   |   |

----

| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                                          |   |   |                      |   |   |   |
|------------------------------------------------------------------------------------------------------|--------|--------|---------------------------|--------|--------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                      |   |   |                      |   |
| For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)                               |   |
|                                                                                                 |   |   |                      |   |   |   |
|                                                                                                 |   | 2010   |                      |   | 2009   |   |
| OPERATING ACTIVITIES:                                                                                |   |   |                      |   |   |   |
|   Net income (loss)                                                                        |   | $      | (957,009                  | )      |   | $      | 5,262,704 |   |
|   Adjustments to reconcile net income (loss) to                                            |   |   |                      |   |   |   |   |   |
|     net cash provided by (used for) operating activities:                        |   |   |                      |   |   |   |   |   |
|       Depreciation, depletion and amortization                         |   |   | 8,766,192                 |   |   |   | 9,136,307 |   |
|       Deferred income taxes, long-term                                 |   |   | 164,000                   |   |   |   | (38,000 | ) |
|       Gain on disposal of assets                                       |   |   | (29,688                   | )      |   |   | (66,087 | ) |
|       Realized gain on sale of equity investments                      |   |   | (11,839                   | )      |   |   | (123,133 | ) |
|       Realized loss on impairment of equity investments                     |   |   | 858,787                   |   |   |   | -     |   |
|       Gain on disposal of other assets                                 |   |   | (700,000                  | )      |   |   | -     |   |
|       Postretirement benefits and pension expense                      |   |   | 2,674,431                 |   |   |   | 1,841,364 |   |
|       Change in assets and liabilities:                                |   |   |                      |   |   |   |   |   |
|           Receivables, net                         |   |   | (5,064,425                | )      |   |   | (5,946,178 | ) |
|           Inventories                              |   |   | 1,266,161                 |   |   |   | (2,820,449 | ) |
|           Refundable income taxes                  |   |   | (270,449                  | )      |   |   | 27,102 |   |
|           Prepaid expenses                         |   |   | (442,518                  | )      |   |   | (270,747 | ) |
|           Other assets                             |   |   | 1,692                     |   |   |   | 19,697 |   |
|           Accounts payable and accrued liabilities |   |   | (990,587                  | )      |   |   | 1,031,913 |   |
|         Net cash provided by operating activities            |   | $      | 5,264,748                 |   |   | $      | 8,054,493 |   |
|                                                                                                 |   |   |                      |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                |   |   |                      |   |   |   |   |   |
|   Acquisition of property, plant and equipment                                             |   | $      | (4,836,923                | )      |   | $      | (6,857,737 | ) |
|   Proceeds from disposals of property, plant and equipment                                 |   |   | 52,618                    |   |   |   | 118,942 |   |
|   Proceeds from disposals of other assets                                                  |   |   | 700,000                   |   |   |   | -     |   |
|   Payment for purchases of equity investments                                              |   |   | (860,134                  | )      |   |   | (3,530,703 | ) |
|   Proceeds from disposals of equity investments                                            |   |   | 205,487                   |   |   |   | 1,460,489 |   |
|   Decrease in short-term investments, net                                                  |   |   | -     |   |   |   | 2,100,000 |   |
|         Net cash used for investing activities               |   | $      | (4,738,952                | )      |   | $      | (6,709,009 | ) |
|                                                                                                 |   |   |                      |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                |   |   |                      |   |   |   |   |   |
|   Increase in line of credit, net                                                          |   | $      | 4,904,271                 |   |   | $      | 5,253,788 |   |
|   Payments on bank loans                                                                   |   |   | (2,040,889                | )      |   |   | (1,976,177 | ) |
|   Payments on other long-term debt                                                         |   |   | (85,441                   | )      |   |   | (216,975 | ) |
|   Cash dividends paid                                                                      |   |   | (3,702,262                | )      |   |   | (3,702,262 | ) |
|   Purchases of noncontrolling interests                                                    |   |   | -     |   |   |   | (660,065 | ) |
|   Purchase of treasury stock                                                               |   |   | (273,901                  | )      |   |   | -     |   |
|         Net cash used for financing activities               |   | $      | (1,198,222                | )      |   | $      | (1,301,691 | ) |
|                                                                                                 |   |   |                      |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                 |   | $      | (672,426                  | )      |   | $      | 43,793 |   |
| Cash and Cash Equivalents, beginning of year                                                         |   |   | 2,149,397                 |   |   |   | 3,111,509 |   |
| Cash and Cash Equivalents, end of period                                                             |   | $      | 1,476,971                 |   |   | $      | 3,155,302 |   |
|                                                                                                 |   |   |                      |   |   |   |   |   |
| Interest paid, net of amount capitalized                                                             |   | $      | 442,149                   |   |   | $      | 496,676 |   |
| Income taxes paid, net of refunds                                                                    |   | $      | 1,617                     |   |   | $      | (72,660 | ) |
| Capital equipment additions included in accounts payable                                             |   | $      | 32,335                    |   |   | $      | 289,842 |   |
|                                                                                                 |   |   |                      |   |   |   |   |   |
| See accompanying Notes to the Condensed Consolidated Financial Statements                            |   |

----

| THE MONARCH CEMENT COMPANY AND SUBSIDIARIES                                    |
|--------------------------------------------------------------------------------|
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                  |
| September 30, 2010 and 2009 (Unaudited), and December 31, 2009  |

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

| 2. | Certain reclassifications have been made to the 2009 financial statements to conform to the current year presentation. These reclassifications had no effect on net earnings. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Our Ready-Mixed Concrete Business includes precast concrete construction which involve long-term and short-term contracts. Long-term contracts relate to specific projects with terms in excess of one year from the contract date. Short-term contracts for specific projects are generally of three to six months in duration. The majority of the long-term contracts will allow only scheduled billings and contain retainage provisions under which 5% to 10% of the contract invoicing may be withheld by the customer pending project completion. As of September 30, 2010, the amount of billed retainage which is included in accounts receivable was approximately $145,000, all of which is expected to be collected within one year. The amount of billed retainage which was included in accounts receivable at December 31, 2009 was approximately $360,000. We recognize revenues under the percentage of completion method of accounting using cost-to-cost measures. Revenues from contracts using the cost-to-cost measures of completion are recognized based on the ratio of contract costs incurred to date to total estimated contract costs.  The amount of unbilled revenue in accounts receivable was approximately $735,000 and $780,000 at September 30, 2010 and December 31, 2009, respectively. Unbilled revenue contained approximately $44,000 and $525,000 of not-currently-billable retainage at September 30, 2010 and December 31, 2009, respectively, which is expected to be collected within one year. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | As of September 30, 2010, the amount of accounts payable related to property, plant and equipment was $32,335 compared to the amount as of December 31, 2009 which was $748,479. Depreciation, depletion and amortization related to manufacturing operations are recorded in Cost of Sales, those related to general operations are recorded in Selling, General and Administrative Expenses, and those related to non-operational activities are in Other, net on the Condensed Consolidated Statements of Income (Loss) and Retained Earnings. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | We did not incur a temporary LIFO liquidation gain for the nine months and the three months ended September 30, 2010.For the nine months  and the three months ended September 30, 2009, we restored the $.1 million temporary LIFO liquidation created by reductions in finished cement and work in process inventory in the first six months of 2009. The temporary LIFO liquidation gain was deferred as a component of accrued liabilities. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.           | In 1996, our Board of Directors authorized the purchase, through open market transactions, of up to 400,000 shares of our Company's common stock. The authorization has no expiration. Management was given discretion to determine the number and pricing of the shares to be purchased as well as the timing of any such purchases. The Company repurchased and retired 11,180 shares at a cost of $273,901 in isolated, open-market transactions during the nine months ending September 30, 2010 under this program. No shares were repurchased during 2009. As of September 30, 2010, 113,152 shares of our common stock remained under the share repurchase authorization at management's discretion. Cash on hand has been used to fund all stock repurchases under the program. |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Our Company groups its operations into two lines of business - Cement Business and Ready-Mixed Concrete Business. The "Cement  Business" refers to our manufacture and sale of cement and "Ready-Mixed Concrete Business" refers to our ready-mixed concrete, concrete products, precast concrete construction, and sundry building materials business. Corporate assets for 2010 and 2009 include cash and cash equivalents, refundable income taxes, deferred income taxes, investments and other assets. Following is information for each line for the periods indicated: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   |           |       |   | Ready-Mixed      |    |          | Adjustments     |   |   |                      |   |
|-----------------------------------------------------------|--------|----------------|------------|--------|------------------|---------|---------------|-----------------|--------|--------|---------------------------|--------|
|                                                      |   | CementBusiness |       |   | ConcreteBusiness |    |          | andEliminations |   |   | Consolidated              |   |
| For the Three Months Ended 9/30/10                        |   |           |       |   |             |    |          |            |   |   |                      |   |
|    Sales to unaffiliated customers              |   | $              | 15,357,098 |   |             | $       | 21,766,371    |            |   | $      | -     |   |   | $ | 37,123,469 |   |
|    Intersegment sales                           |   |           | 4,328,760  |   |             |    | 14,667        |            |   |   | (4,343,427                | )      |   |   | -     |   |
|       Total net sales            |   | $              | 19,685,858 |   |             | $       | 21,781,038    |            |   | $      | (4,343,427                | )      |   | $ | 37,123,469 |   |
|    Income (Loss) from operations                |   | $              | 3,094,501  |   |             | $       | (478,354      | )               |   |   |                      |   |   | $ | 2,616,147 |   |
|    Other expense, net                      |   |           |       |   |             |    |          |            |   |   |                      |   |   |   | (912,796 | ) |
|       Income before income taxes |   |           |       |   |             |    |          |            |   |   |                      |   |   | $ | 1,703,351 |   |
|    Capital Expenditures                         |   | $              | 337,751    |   |             | $  |  505,857 |            |   |   |                      |   |   | $  |  843,608 |   |

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

| For the Nine Months Ended 9/30/2010        |   |    |       |   |   |    |       |   |   |   |                      |   |
|--------------------------------------------|--------|---------|------------|--------|--------|---------|------------|--------|--------|--------|---------------------------|--------|
| Sales to unaffiliated customers            |   | $       | 36,188,214 |   |   | $       | 53,203,728 |   |   | $      | -     |   |   | $ | 89,391,942 |   |
| Intersegment sales                         |   |    | 11,000,943 |   |   |    | 14,667     |   |   |   | (11,015,610               | )      |   |   | -     |   |
|    Total net sales          |   | $       | 47,189,157 |   |   | $       | 53,218,395 |   |   | $      | (11,015,610               | )      |   | $ | 89,391,942 |   |
| Income (Loss) from operations              |   | $       | 4,109,578  |   |   | $       | (4,195,475 | )      |   |   |                      |   |   | $ | (85,897 | ) |
| Other expense, net                         |   |    |       |   |   |    |       |   |   |   |                      |   |   |   | (296,112 | ) |
|    Loss before income taxes |   |    |       |   |   |    |       |   |   |   |                      |   |   | $ | (382,009 | ) |
|    Capital Expenditures          |   | $  | 1,493,046  |   |   | $  | 2,627,734  |   |   |   |                      |   |   | $  | 4,120,780 |   |
|                                       |   |    |       |   |   |    |       |   |   |   |                      |   |   |   |   |   |

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

| Balance as of 9/30/10            |   |   |   |       |   |   |   |       |   |   |   |   |   |
|----------------------------------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
|    Identifiable Assets |   |   | $      | 93,015,393 |   |   | $      | 42,380,667 |   |   |   |   |   |   | $ | 135,396,060 |   |
|    Corporate Assets    |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |  40,132,086 |   |
|                             |   |   |   |       |   |   |   |       |   |   |   |   |   |   | $ | 175,528,146 |   |

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

| 8.        | The Company defines fair value as the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company measures fair value using the following fair value hierarchy which is based on three levels of inputs intended to maximize the use of observable inputs and minimize the use of unobservable inputs: Level 1 - quoted prices in active markets for identical assets or liabilities. Level 2 - observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and cash equivalents, receivables, accounts payable and long-term debt have carrying values that approximate fair values. Equity securities for which the Company has no immediate plan to sell but that may be sold in the future are classified as available for sale.  If the fair value of the equity security is readily determinable, it is carried at fair value and unrealized gains and losses are recorded, net of related income tax effects, in stockholders' equity. Realized gains and losses, based on the specifically identified cost of the security, are included in net income. The Company's valuation techniques used to measure the fair value of its marketable equity securities were derived from quoted prices in active markets for identical assets. Equity securities whose fair value is not readily determinable are carried at cost unless the Company is aware of significant adverse effects which have impaired the investments. Investments that are recorded at cost are evaluated quarterly for events that may adversely impact their fair value. |
|-----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                    |   |    |            |   | Fair Value at Reporting Date Using: |    |
|---------------------------------------------------------------------------------------------------------|--------|---------|-----------------|--------|------------------------------------------|---------|
|                              |   |    |            |   | Quoted Prices                            |    |   |   |   |   |   |   |
|                                                                                                    |   |    |            |   | in Active                                |    |   | Significant |   |   |   |   |
|                                                                                                    |   |    |            |   | Markets for                              |    |   | Other |   |   | Significant |   |
|                                                                                                    |   |    |            |   | Identical                           |    |   |  Observable |   |   |  Unobservable |   |
|                                                                                                    |   |    |            |   |  Assets                             |    |   | Inputs |   |   | Input |   |
| Assets:                                                                                            |   | 9/30/10 |            |   | (Level 1)                                |    |   | (Level 2) |   |   | (Level 3) |   |
|    Available-for-sale equity securities                                             |   |    |            |   |                                     |    |   |   |   |   |   |   |
|       Cement industry                                                          |   |  $ | 7,168,841       |   |                                     | $  | 7,168,841 |   |   | $ |  -           |   |   | $ |  -           |   |
|       General building materials industry                                      |   |    |  3,015,995 |   |                                     |    | 3,015,995 |   |   |   |  -           |   |   |   |  -           |   |
|       Oil and gas refining and marketing industry                              |   |    | 4,101,075       |   |                                     |    | 4,101,075 |   |   |   |  -           |   |   |   |  -           |   |
|       Residential construction industry                              |   |    | 1,064,384       |   |                                     |    | 1,064,384 |   |   |   |  -           |   |   |   |  -           |   |
| Total assets measured at fair value                                                                     |   | $       | 15,350,295      |   |                                     | $       | 15,350,295 |   |   | $ |  -           |   |   | $ |  -           |   |
|                                                                                                    |   |    |            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
| Assets:                 |   |    | 12/31/09        |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
|    Available-for-sale equity securities                                                  |   |    |            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |
|       Cement industry                                                          |   | $       | 7,910,270       |   |                                     | $       | 7,910,270 |   |   | $ |  -           |   |   | $ |  -           |   |
|       General building materials industry                                      |   |    |  4,091,932 |   |                                     |    | 4,091,932 |   |   |   |  -           |   |   |   |  -           |   |
|       Oil and gas refining and marketing industry                              |   |    | 3,410,106       |   |                                     |    | 3,410,106 |   |   |   |  -           |   |   |   |  -           |   |
|       Residential construction industry                                   |   |    | 1,020,500       |   |                                     |    | 1,020,500 |   |   |   |  -           |   |   |   |  -           |   |
| Total assets measured at fair value                                                                     |   | $       | 16,432,808      |   |                                     | $       | 16,432,808 |   |   | $ |  -           |   |   | $ |  -           |   |

|                                                                      |   | Less than 12 Months |      |   | 12 Months or Greater |   |    | Total  |   |
|---------------------------------------------------------------------------|--------|---------------------|-----------|--------|----------------------|--------|---------|-------------|--------|
| 9/30/10                                                                   |   |                |      |   | Unrealized           |   |    |        |   |   | Unrealized |   |   |   |   |   | Unrealized |   |
| Available-for-sale equity securities                                 |   | Fair Value          |      |   | Losses               |   |    | Fair Value  |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|    Cement industry                                              |   | $                   | 694,080   |   |                 | $      | 51,701  |        |   | $ | -         |   |   | $ | -           |   |   | $ | 694,080 |   |   | $ | 51,701 |   |
|    Oil & gas refining                                  |   |                |      |   |                 |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          & marketing industry |   |                | 268,125   |   |                 |   | 1,484   |        |   |   | -         |   |   |   | -           |   |   |   | 268,125 |   |   |   | 1,484 |   |
|    Residential construction                                |   |                |      |   |                 |   |    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          industry                 |   |                | 457,640   |   |                 |   | 86,057  |        |   |   | -         |   |   |   | -           |   |   |   | 457,640 |   |   |   | 86,057 |   |
|       Total                                      |   | $                   | 1,419,845 |   |                 | $      | 139,242 |        |   | $ | -         |   |   | $ | -           |   |   | $ | 1,419,845 |   |   | $ | 139,242 |   |

|                                                                      |   | Less than 12 Months |      |   | 12 Months or Greater |   |    | Total      |   |
|---------------------------------------------------------------------------|--------|---------------------|-----------|--------|----------------------|--------|---------|------------|--------|
|  12/31/09                                                            |   |                |      |   | Unrealized           |   |    |       |   |   |  Unrealized |   |   |   |   |   | Unrealized |   |
| Available-for-sale equity securities                                 |   | Fair Value          |      |   | Losses               |   |    | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|    Cement industry                                              |   | $                   | 14,600    |   |                 | $      | 3,516   |       |   | $ | -         |   |   | $ | -           |   |   | $ | 14,600 |   |   | $ | 3,516 |   |
|    Oil & gas refining                                  |   |                |      |   |                 |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          & marketing industry |   |                | 952,168   |   |                 |   | 114,528 |       |   |   | -         |   |   |   | -           |   |   |   | 952,168 |   |   |   | 114,528 |   |
|    Residential construction                                |   |                |      |   |                 |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          industry                 |   |                | 381,580   |   |                 |   | 32,198  |       |   |   | 105,300 |   |   |   | 12,724 |   |   |   | 486,880 |   |   |   | 44,922 |   |
|       Total                                      |   | $                   | 1,348,348 |   |                 | $      | 150,242 |       |   | $ | 105,300 |   |   | $ | 12,724 |   |   | $ | 1,453,648 |   |   | $ | 162,966 |   |

|                                                |   | 9/30/10 |       |   | 12/31/09 |   |
|-----------------------------------------------------|--------|---------|------------|--------|----------|--------|
| Fair value of investments                           |   | $       | 17,756,907 |   |     | $      | 18,419,208 |   |
| Cost of investments                                 |   |    | 13,816,907 |   |     |   | 14,009,208 |   |
|       Unrealized gain      |   | $       | 3,940,000  |   |     | $      | 4,410,000 |   |
|                                                |   |    |       |   |     |   |   |   |
| Unrealized gain recorded in equity:            |   |    |       |   |     |   |   |   |
|    Investments carried at fair value |   | $       | 2,364,000  |   |     | $      | 2,646,000 |   |
|    Deferred income taxes                  |   |    | 1,576,000  |   |     |   | 1,764,000 |   |
|                                                |   | $       | 3,940,000  |   |     | $      | 4,410,000 |   |
|                                                |   |    |       |   |     |   |   |   |
|                                                                        |   |   | 9/30/10  |   |   |   | 09/30/09             |   |
|-----------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|---------------------------|--------|
| Proceeds from sale of equity securities                                     |   | $      | 205,487       |   |   | $      | 1,460,489                 |   |
| Realized gain on equity securities                                          |   | $      | 11,839        |   |   | $      | 123,133                   |   |
| Realized losses due to other-than-temporary impairment of equity securities |   | $      | (858,787      | )      |   | $      | -     |   |

| 9. | The following table presents the components of net periodic pension and postretirement benefit costs allocated to Cost of Sales and Selling, General and Administrative expenses for the nine months ended September 30, 2010 and 2009: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Pension Benefits  |                                        |   | Other Benefits  |   |
|-----------------------------------------------|--------|------------------------|---------------------------------------------|--------|----------------------|--------|
|                                          |   | 2010                   |                                        |   | 2009                 |   |   | 2010 |   |   | 2009 |   |
| Service cost                                  |   | $                      | 501,735                                     |   |                 | $      | 1,265,959 |   |   | $ | 409,177 |   |   | $ | 402,827 |   |
| Interest cost                                 |   |                   | 1,547,487                                   |   |                 |   | 4,099,310 |   |   |   | 1,401,364 |   |   |   | 1,371,150 |   |
| Less: Expected return on plan assets          |   |                   | 1,294,002                                   |   |                 |   | 4,356,624 |   |   |   | -        |   |   |   | -       |   |
| Amortization of prior service cost            |   |                   | 82,484                                      |   |                 |   | 296,466 |   |   |   | -        |   |   |   | -       |       |
| Recognized net actuarial loss            |   |                   | 651,490                                     |   |                 |   | 428,325 |   |   |   | -        |   |   |   | -       |   |
| Unrecognized net loss                         |   |                   | -        |   |                 |   | -        |   |   |   | 540,681 |   |   |   | 598,152 |   |
|     Net periodic expense  |   | $                      | 1,489,194                                   |   |                 | $      | 1,733,436 |   |   | $ | 2,351,222 |   |   | $ | 2,372,129 |   |

|                                          |   | Pension Benefits  |                                        |   | Other Benefits  |   |
|-----------------------------------------------|--------|------------------------|---------------------------------------------|--------|----------------------|--------|
|                                          |   | 2010                   |                                        |   | 2009                 |   |   | 2010 |   |   | 2009 |   |
| Service cost                                  |   | $                      | 167,245                                     |   |                 | $      | 421,986 |   |   | $ | 136,392 |   |   | $ | 135,500 |   |
| Interest cost                                 |   |                   | 515,829                                     |   |                 |   | 1,366,437 |   |   |   | 467,122 |   |   |   | 461,217 |   |
| Less: Expected return on plan assets          |   |                   | 431,334                                     |   |                 |   | 1,452,208 |   |   |   | -        |   |   |   | -       |   |
| Amortization of prior service cost            |   |                   | 27,495                                      |   |                 |   | 98,822 |   |   |   | -        |   |   |   | -       |       |
| Recognized net actuarial loss            |   |                   | 217,163                                     |   |                 |   | 142,775 |   |   |   | -        |   |   |   | -       |   |
| Unrecognized net loss                         |   |                   | -        |   |                 |   | -        |   |   |   | 180,227 |   |   |   | 201,202 |   |
|     Net periodic expense  |   | $                      | 496,398                                     |   |                 | $      | 577,812 |   |   | $ | 783,741 |   |   | $ | 797,919 |   |

| 10. | Other, net contains miscellaneous nonoperating income (expense) items other than interest income, interest expense, gains on equity investments, realized loss on impairment of equity investments, and dividend income. Material items in Other, net during the first nine months of 2010 included a $700,000 gain related to the sale of a non-operating asset. There were no material items in Other, net during the three months ending September 30, 2010. In the first nine months of 2009, material items in Other, net included income from oil properties of $68,000 and a $228,000 gain resulting from the settlement of a contingent liability related to the acquisition of subsidiary stock. The $228,000 gain related to the settlement of a contingent liability was a material item included in Other, net for the three months ending September 30, 2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11. | Basic earnings per share of capital stock has been calculated based on the weighted average shares outstanding during each of the reporting periods. The weighted average number of shares outstanding was 4,022,902 and 4,020,352 in the first nine months and third quarter of 2010, respectively. The weighted average number of shares outstanding was 4,024,198 in the first nine months and third quarter of 2009. The Company has no common stock equivalents and therefore, does not report diluted earnings per share. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | The Company files income tax returns in the U.S. Federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. Federal or state income tax examinations by tax authorities for years before 2006. The Company believes it is not subject to any significant tax risk.  The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits, nor were any interest expenses recognized during the nine months ended September 30, 2010. As a result of the Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act of 2010,  we will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees and reimbursed under the Medicare Part D retiree drug subsidy beginning in 2013. This resulted in a $685,000 charge to income tax provision during the first quarter of 2010. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | Recently Adopted Accounting Standards In December 2008, the FASB issued an amendment to Accounting Standards Codification (ASC) 715-20, "Compensation – Retirement Benefits – Defined Benefit Plans – General", which requires enhanced disclosures regarding Company benefit plans. Disclosure regarding plan assets should include discussion about how investment allocation decisions are made, the major categories of plan assets, the inputs and valuation techniques used to measure plan assets and significant concentrations of risk within plan assets. These amendments to ASC 715-20 are effective for fiscal years ending after December 15, 2009, and earlier application is permitted. Prior year periods presented for comparative purposes are not required to comply. For the Company, the amendments to ASC 715-20 were effective beginning December 31, 2009 and their adoption had no material impact on the Company's financial position, results of operations or cash flows. In January 2010, the FASB issued Accounting Standards Update (ASU) 2010-02, "Accounting and Reporting for Decreases in Ownership of a Subsidiary--a Scope Clarification", which clarifies who the scope of the decrease in ownership provisions of the Subtopic and related guidance apply to and expands the disclosures about the deconsolidation of a subsidiary or derecognition of a group of assets within the scope of Subtopic 810-10. The amendments in this Update were effective for the Company beginning January 1, 2010 and their adoption did not have a material impact on our consolidated financial statements. In January 2010, the FASB issued ASU 2010-06, "Improving Disclosures About Fair Value Measurements", which amends Subtopic 820-10 with new disclosure requirements and clarification of existing disclosure requirements. Reporting entities must make new disclosures about recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and settlements on a gross basis in the reconciliation of Level 3 fair-value measurements. The ASU also provides additional guidance related to the level of disaggregation in determining classes of assets and liabilities and disclosures about inputs and valuation techniques. ASU 2010-06 is effective for annual or interim reporting periods beginning after December 15, 2009, except for Level 3 reconciliation disclosures which are effective for annual periods beginning after December 15, 2010 and for interim periods within those fiscal years. For the Company, ASU 2010-06 was effective beginning January 1, 2010. The adoption of ASU 2010-06 did not have a material impact on our disclosures or our consolidated financial statements.In February, 2010, the FASB issued ASU No. 2010-09, "Subsequent Events (Topic 855) – Amendments to Certain Recognition and Disclosure Requirements". This ASU provides amendments to Subtopic 855-10 to clarify that SEC filers are required to evaluate subsequent events through the date that the financial statements are issued, but are not required to disclose the date through which subsequent events have been evaluated. ASU 2010-09 was effective upon issuance for the Company and its adoption did not have a material impact on the Company's consolidated financial statements. Effect of Authoritative Accounting Guidance Not Yet Adopted There are currently no accounting standards that have been issued that are expected to have a significant impact on the Company’s financial position, results of operations and cash flows upon adoption. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| Period               |   | (a) Total Number of Shares (or Units) Purchased |   |   | (b) Average Price Paid per Share (or Unit) |   |   | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs |   |   | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs * |   |
|----------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|
| July 1-31, 2010      |   |                                            | 0      |   |                                       |   | 0      |                                                                                            |   |   | 0                                                                                                                             |   |   |   | 124,332 |   |
| August 1-31, 2010    |   |                                            | 7,050  |   |                                       |   | 24.89  |                                                                                            |   |   | 7,050                                                                                                                         |   |   |   | 117,282 |   |
| September 1-30, 2010 |   |                                            | 4,130  |   |                                       |   | 23.83  |                                                                                            |   |   | 4,130                                                                                                                         |   |   |   | 113,152 |   |
| Total                |   |                                            | 11,180 |   |                                       | $      | 24.50  |                                                                                            |   |   | 11,180                                                                                                                        |   |   |   | 113,152 |   |

| * | In 1996, our Board of Directors authorized the purchase, through open market transactions, of up to 400,000 shares of our Company's common stock.  The authorization has no expiration.  Management was given discretion to determine the number and pricing of the shares to be purchased as well as the timing of any such purchases. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                           |                                             |                                                                                                         |   |  The Monarch Cement Company                                                                                                                     |   |
|----------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |                                             |                    |   |                   (Registrant)                                  |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|  Date      November 9, 2010         |          |                                                                                                         |   |   /s/ Walter H. Wulf, Jr.                                                 |   |
|                                                                                                           |          |                                                                                                         |   |  Walter H. Wulf, Jr.                                                                                                                            |   |
|                                                                                                           |          |                                                                                                         |   |  President and                                                                                                                                  |   |
|                                                                                                           |          |                                                                                                         |   |  Chairman of the Board                                                                                                                          |   |
|                                                                                                           |                         |                                                                                                         |   |  (principal executive officer)                                                                                                                  |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|                                                                                                           |                                             |                                                                                                         |   |                                                                                                                                                 |   |
|  Date      November 9, 2010         |                                             |                                                                                                         |   |  /s/ Debra P. Roe                      |   |
|                                                                                                           |                                             |                                                                                                         |   |  Debra P. Roe, CPA                                                                                                                              |   |
|                                                                                                           |                                             |                                                                           |   |  Chief Financial Officer and                                                                                                          |   |
|                                                                                                           |                                             |                                                                                                         |   |  Assistant Secretary-Treasurer                                                                                                                  |   |
|                                                                                                           |                                             |                                                                                                         |   |  (principal financial officer and                                                                                                               |   |
|                                                                                                           |                                             |                                                                                                         |   |  principal accounting officer)                                                                                                                  |   |

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