10
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                        
                                    FORM 10-Q
                                        
                            ________________________
                                        
                                        
            [X]  Quarterly Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934
                       For the period ended June 30, 1998
                                        
                                       or
                                        
            [ ]  Transition Report Pursuant to Section 13 or 15(d) of
                       the Securities Exchange Act of 1934
              For the transition period from _________ to _________
                                        
                                        
                          Commission file number 0-3041


                             JUSTIN INDUSTRIES, INC.
              -----------------------------------------------------
             (Exact name of registrant as specified in its charter)

             TEXAS                                           75-0102185
-------------------------------                         -------------------
(State or other jurisdiction of                           (I.R.S. Employer
 incorporation or organization)                         Identification No.)

      2821 West 7th Street                                     76107
-------------------------------                         -------------------
     (Address of principal                                   (Zip Code)
       executive office)
                                        
                                 (817) 336-5125
               --------------------------------------------------
               (Registrant's telephone number including area code)
                                        
                                        
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter 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   XX      NO  

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 26,427,490 shares of the
Company's Common Stock ($2.50 par value) were outstanding as of August 13, 1998.
===============================================================================
                             JUSTIN INDUSTRIES, INC.
                                        
                                Table of Contents
                                        
                                                                      Page No.
PART I.    FINANCIAL INFORMATION

  Item 1. Financial Statements:
          Consolidated Balance Sheet
            June 30, 1998 and December 31, 1997                           3
          Consolidated Statement of Income
            Three Months and Six Months Ended June 30, 1998 and 1997      4
          Consolidated Statement of Shareholders' Equity
            Six Months Ended June 30, 1998 and 1997                       4
          Consolidated Statement of Cash Flows
            Six Months Ended June 30, 1998 and 1997                       5
          Notes to Consolidated Financial Statements                      6
  
  Item 2. Management's Discussion and Analysis of Financial
            Condition and Results of Operations                           7

PART II.  OTHER INFORMATION                                               9

  Item 1. Legal Proceedings                                               9
  
  Item 4. Submission of Matters to a Vote of Security Holders             9
  
  Item 6. Exhibits and Reports on Form 8-K                                9

SIGNATURE                                                                 10







All other schedules and compliance information called for by the instructions to
Form 10-Q have been omitted since the required information is not present or not
present in amounts sufficient to require submission.

                                     Page 2
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                         PART I. FINANCIAL INFORMATION                

ITEM 1.  FINANCIAL STATEMENTS 

<TABLE>
JUSTIN INDUSTRIES, INC.                                                
CONSOLIDATED BALANCE SHEET                                               
<CAPTION>                                                               
In Thousands of Dollars                                                            
                                                      June 30,     December 31,
                                                        1998           1997        
                                                    ------------   ------------
                                                     (Unaudited)                   
<S>                                                 <C>            <C>              
ASSETS                                                                             
------                                                                             
Current assets:                                                                    
  Cash                                                $    6,008     $    5,113    
  Accounts receivable, less allowance for doubtful                                
    accounts of $3,531 and $3,097, respectively           78,072         73,153    
  Inventories:                                                                     
    Finished goods                                       108,690        105,100    
    Work-in-process                                        5,293          6,040    
    Raw materials                                         29,098         30,508    
                                                      ----------     ----------
      Total inventories                                  143,081        141,648    
  Income taxes                                             6,997          7,946    
  Prepaid expenses                                         3,132          2,454    
                                                      ----------     ----------
        Total current assets                             237,290        230,314    
Other assets, at cost                                     35,658         32,740    
Assets held for sale                                       2,829          2,829    
Property, plant, and equipment, at cost:                                
  Land                                                    20,062         20,062    
  Buildings and equipment                                270,701        266,988    
  Construction-in-progress                                 8,276          3,000    
                                                      ----------     ----------
                                                         299,039        290,050    
  Less accumulated depreciation                          186,485        179,866    
                                                      ----------     ----------
    Net property, plant, and equipment                   112,554        110,184    
                                                      ----------     ----------
                                                      $  388,331     $  376,067    
                                                      ==========     ==========
                                                                                      
LIABILITIES AND SHAREHOLDERS' EQUITY                                               
------------------------------------                                               
Current liabilities:                                                               
  Trade accounts payable                              $   11,691     $   18,412    
  Other accrued items                                     37,976         37,505    
  Current portion of long-term debt                        8,000          8,000    
                                                      ----------     ----------
    Total current liabilities                             57,667         63,917    
Long-term debt, less current portion                      31,750         23,750    
Deferred income taxes                                     15,420         15,420    
Shareholders' equity:                                                              
  Voting preferred stock, $2.50 par value;                                
    1,000,000 shares authorized - Series Two
    convertible, 100 shares issued and outstanding                              -              -    
  Common stock, $2.50 par value; 100,000,000 shares                                
    authorized, 27,869,888 shares issued                  69,674         69,674    
  Capital in excess of par value                          15,985         16,040    
  Retained earnings                                      212,724        202,645    
  Treasury stock, at cost, 1,442,398 and 1,490,915                                
    shares, respectively                                 (14,889)       (15,379)    
                                                      ----------     ----------
      Total shareholders' equity                         283,494        272,980    
                                                      ----------     ----------
                                                      $  388,331     $  376,067    
                                                      ==========     ==========
<FN>                                                                               
                See notes to consolidated financial statements.                                  
</TABLE>                                    

                                     Page 3
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<TABLE>
JUSTIN INDUSTRIES, INC. 
CONSOLIDATED STATEMENT OF INCOME                          
<CAPTION>                                                                                           
In Thousands of Dollars (Except Per Share Data)                     
                                                 
                                     Three Months Ended        Six Months Ended
                                          June 30,                 June 30,                  
                                  ----------   ----------  ----------   ----------
                                     1998         1997        1998         1997       
                                  ----------   ----------  ----------   ----------
                                        (Unaudited)              (Unaudited)
<S>                               <C>          <C>         <C>          <C>            
Net sales:                                                                                           
  Building materials               $  77,326   $   71,017  $  141,241   $  128,158    
  Footwear                            41,764       39,869      81,629       80,334    
                                  ----------   ----------  ----------   ----------
                                     119,090      110,886     222,870      208,492    
Costs and expenses:                                                                                  
  Cost of goods sold                  74,698       69,134     141,881      133,369    
  Selling, general, and               30,876       29,459      60,070       57,612    
    administrative expenses
  Interest expense                       502          440         889          856    
                                  ----------   ----------  ----------   ----------
                                     106,076       99,033     202,840      191,837    
                                  ----------   ----------  ----------   ----------
Income before income taxes            13,014       11,853      20,030       16,655    
Provision for income taxes             4,750        4,326       7,311        6,079    
                                  ----------   ----------  ----------   ----------
Net income                        $    8,264   $    7,527  $   12,719   $   10,576    
                                  ==========   ==========  ==========   ==========
                                                                                                    
Earnings per share:                                                                                 
  Basic                           $      .31   $      .29  $      .48   $      .40    
                                  ==========   ==========  ==========   ==========
  Diluted                         $      .31   $      .28  $      .48   $      .39    
                                  ==========   ==========  ==========   ==========
</TABLE> 

<TABLE>
JUSTIN INDUSTRIES, INC.                                                                             
CONSOLIDATED STATEMENT OF                                                                  
SHAREHOLDERS' EQUITY
Six Months Ended June 30, 1998 and 1997
<CAPTION>                                                                                           
In Thousands of Dollars (Except Share and Per Share Data)
                                                                                                    
                                                   Capital In                             
                           Preferred   Common      Excess of   Retained     Treasury     
                             Stock      Stock      Par Value   Earnings       Stock      
------------------------  ----------  ----------  ----------  ----------   ----------
     (Unaudited)                                                                               
<S>                       <C>         <C>         <C>         <C>          <C>            
Balance January 1, 1998    $       -   $  69,674   $  16,040   $ 202,645    $ (15,379)    
Net income                         -           -           -      12,719            -    
Exercise of stock options          -           -         (55)          -          490    
Cash dividends declared                                                                              
  ($.10 per share)                 -           -           -      (2,640)           -    
                           ---------   ---------   ---------   ---------    ---------
Balance June 30, 1998      $       -   $  69,674   $  15,985   $ 212,724    $ (14,889)    
                           =========   =========   =========   =========    =========
                                                                                                   
Balance January 1, 1997    $       -   $  69,674   $  16,477   $ 181,068    $ (14,363)    
Net income                         -           -           -      10,576            -    
Purchase of 231,700 shares                                                                 
  of stock for treasury            -           -           -           -       (2,562)    
Exercise of stock options          -           -        (226)          -          895    
Cash dividends declared                                                                              
  ($.08 per share)                 -           -           -      (2,111)           -    
                           ---------   ---------   ---------   ---------    ---------
Balance June 30, 1997      $       -   $  69,674   $  16,251   $ 189,533    $ (16,030)    
                           =========   =========   =========   =========    =========
                                                                                                     
<FN>                                                                                                
                 See notes to consolidated financial statements.
</TABLE>
                                     Page 4
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<TABLE>
JUSTIN INDUSTRIES, INC.                                                                          
CONSOLIDATED STATEMENT OF CASH FLOWS                                                             
<CAPTION>                                                                                        
In Thousands of Dollars                                                                          
                                                                                                            
                                                                    Six Months Ended
                                                                        June 30,                      
                                                                  --------------------
                                                                     1998      1997       
                                                                  --------------------
                                                                      (Unaudited)                    
<S>                                                               <C>        <C>            
Cash flows from operating activities:                                                            
  Net income                                                       $ 12,719   $ 10,576     
  Adjustments to reconcile net income to cash                                                    
    provided by operating activities:                                                            
      Depreciation                                                    8,683      8,279     
      Amortization                                                      428        397     
      Provision for losses on accounts receivable                       875        873     
      Gain on sale of property, plant, and equipment                    (83)      (141)     
      Changes in assets and liabilities:                                                         
        (Increase) decrease in accounts receivable                   (5,794)     7,940     
        Increase in inventories                                      (1,433)    (6,482)     
        Decrease in other current assets                                271      3,135     
        Increase (decrease) in accounts payable                                                  
          and accrued expenses                                       (6,252)     1,505     
                                                                   --------   --------
          Net cash provided from operating activities                 9,414     26,082     
                                                                                                 
Cash flows from investing activities:                                                            
  Proceeds from the sale of property, plant,                                                     
    and equipment                                                       129        208     
  Capital expenditures                                              (11,102)   (10,117)     
  Increase in other long-term assets                                 (3,343)      (142)     
  Acquisition of IBP, net of cash acquired                                -     (2,073)     
                                                                   --------   --------
          Net cash used in investing activities                     (14,316)   (12,124)     
                                                                                                 
Cash flows from financing activities:                                                            
  Borrowings                                                         15,000      3,000     
  Repayment of borrowings                                            (7,000)   (10,300)     
  Dividends paid                                                     (2,638)    (2,117)     
  Purchase of treasury stock                                            (36)    (2,562)     
  Proceeds from exercise of stock options                               471        669     
                                                                   --------   --------
          Net cash provided from (used in) financing activities       5,797    (11,310)
                                                                   --------   --------
Net increase in cash                                                    895      2,648     
Cash at beginning of period                                           5,113      3,215     
                                                                   --------   --------
Cash at end of period                                              $  6,008   $  5,863     
                                                                   ========   ========
                                                                                                 
<FN>                                                                                             
                 See notes to consolidated financial statements.                                             
</TABLE>
                                     Page 5
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JUSTIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1998


Summary of Significant Accounting Policies
------------------------------------------

   The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
Interim results are not necessarily indicative of results for a full year.

   A summary of the company's significant accounting policies is presented on
page 28 of its 1997 Annual Report to Shareholders.  Users of financial
information produced for interim periods are encouraged to refer to the
footnotes contained in the Annual Report to Shareholders when reviewing interim
financial results.  There has been no material change in the accounting policies
followed by the company during 1998.

   In the opinion of management, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the consolidated financial position,
results of operations, cash flows, and shareholders' equity of Justin
Industries, Inc. for interim periods.

Long-Term Debt
--------------

   Certain loan agreements contain minimum requirements as to working capital,
cash flow from operations, and tangible net worth, redemption of outstanding
stock, and change in control of the company.  As of June 30, 1998, the company
was in compliance with all such requirements and restrictions.

Earnings Per Share
------------------

   Earnings per share are based on the average number of shares of common stock
outstanding during each period and such shares issuable upon assumed exercise of
stock options, using the treasury stock method, adjusted for stock splits.  The
number of shares used in the calculation of diluted earnings per share was
26,770,000 in 1998 and 26,710,000 in 1997.

                                     Page 6
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ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

RESULTS OF OPERATIONS

   Sales - Consolidated net sales for the second quarter of 1998 increased to
$119.1 million compared to $110.9 million for the same quarter in 1997, an
improvement of 7.4%.  For the first six months of 1998, consolidated net sales
were $222.9 million, 6.9% greater than 1997's first half sales of $208.5
million.

      Building Materials Segment Sales - Sales for the second quarter of
   1998 in the Building Materials segment were $77.3 million, 8.9% greater
   than the 1997 second quarter amount of $71 million.  For the first six
   months of 1998, segment sales were $141.2 million, an increase of 10.2%
   over 1997.
   
      Acme Brick Company ("Acme") and Featherlite Building Products
   ("Featherlite") each posted excellent sales gains for the 1998 second
   quarter and six month periods compared to the same time a year ago.
   Unit brick shipments at Acme increased 10.7% in the second quarter and
   12.5% for the first six months in 1998 compared to 1997.  In addition,
   brick pricing improved on average 3.8% in the first half of 1998
   compared to the same period in 1997.  Acme's and American Tile Supply's
   sales of floor and wall tile, marble, and other masonry products were up
   .5% in 1998's first half.  Additional competition in the tile
   distribution business coupled with a deliberate decision to maintain
   pricing has hampered plans for larger increases at American Tile.
   However, American Tile will be opening five new strategic locations in
   1998, which will enhance the company's ability to offer superior service
   to its customers.
   
      Footwear Segment Sales - Net sales in the Footwear operations of
   $41.8 million for the three months ended June 30, 1998 were almost 5%
   greater than those of the same quarterly period in 1997, a positive
   reversal of the trend for the last several years.  Sales were up almost
   2% during the first six months of 1998 compared to 1997.  The
   introduction in May 1997 of the highly successful Justin Original
   Workboot boosted revenues to offset a decline in sales in both periods
   of western products for the combined western operations of Justin Boot
   Company, Tony Lama Company, and Nocona Boot Company.  Although the
   western apparel market continues to be weak, the workboot product
   promises improving outlooks for the company.  Additional workboot
   products are being introduced and opportunities for expanded
   distribution are being explored.  As reported in 1998's first quarter
   report, since moving all of Chippewa Shoe Company's production into
   another facility in the fall of 1997, Chippewa has had difficulty
   meeting customer delivery requirements.  As a result, Chippewa recorded
   a 40% decline in first quarter 1998 sales.  Due to production
   improvements and sourcing additional product from third parties,
   however, Chippewa posted a 12% increase in 1998's second quarter
   compared to the same period in 1997.  Chippewa is continuing to enhance
   its sourcing opportunities for many of its products to improve product
   availability for its customers.

   Costs and Expenses - The consolidated ratio of cost of goods sold-to-sales
was 62.7% in the second quarter of 1998 versus 62.3% in the same quarter in
1997.  For the six month period ended June 30, 1998, the cost of goods sold-to-
sales percentage improved to 63.7% from 64% in 1997.

   Building Materials' ratio was 58.2% in the second quarter of 1998 compared to
   57.9% in 1997's second quarter.  For the first six months of 1998 and 1997,
   the ratio for Building Materials was 59.6% and 59.8%, respectively.  Acme's
   ratio improved in both the three and six month periods due to higher sales 
   volumes and unit pricing.  Featherlite experienced an increase in product 
   costs during both periods as a shortage in cement increased raw material 
   costs negatively impacting margins.

   The ratio of cost of goods sold to sales in the Footwear business increased
   to 71.2% for the second quarter of 1998 versus 70.3% for the second quarter 
   of 1997.  For the six-month periods ended June 30, the ratio was 70.7% 

                                     Page 7
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   for both 1998 and 1997.  Margins for the second quarter were adversely 
   affected by higher production costs in the Tony Lama plant and writedowns of
   certain raw materials due to market conditions.  As the manufacture of 
   Chippewa products is assimilated into the Tony Lama plant, production costs
   per unit should go down due to higher production volumes.  The Diamond J 
   product line has been discontinued and the disposal of the remaining 
   inventory and other discontinued products also negatively impacted margins.

   Selling, general and administrative expenses were 25.9% of sales in the
second quarter of 1998 compared to 26.6% in the second quarter of 1997.  For the
first six months of 1998, these expenses were 27.0% of net sales compared to
27.6% for the first six months of 1997.  Building Materials' and Footwear's
operating expenses for the quarter decreased as a percentage of sales due to
higher sales volumes.

   Interest expense for the second quarter of 1998 and first six months of the
year was slightly higher than 1997 comparable periods.  The increase is
primarily due to higher borrowing levels due to increased working capital as
interest rates have had very little fluctuation during the same periods.

   Provision for Income Taxes - The Company's provision for income tax was 36.5%
of pre-tax income in the second quarter and for the first six months of 1998 and
1997, which is the current estimated effective rate for the full year.

FINANCIAL CONDITION AND LIQUIDITY

   At June 30, 1998, working capital was $179.6 million, compared to $166.4
million at year-end 1997.  Cash increased to $6 million at June 30, 1998 from
$5.1 million at year end.  Net cash provided from operating activities in the
first six months of 1998 totalled $9.4 million compared to $26.1 million last
year.  Major uses of funds in 1998 were for capital expenditures of $11.1
million, implementation costs for new computer systems as Footwear, additional
working capital and payment of $2.6 million in dividends.  Total interest-
bearing debt increased from $31.8 million at year-end 1997 to $39.8 million to
help fund these expenditures.  This increased the ratio of long-term debt-to-
equity to .11 to 1 from .09 to 1 at year-end.  Borrowings may increase during
the next quarter to finance additional seasonal working capital needs.  At June
30, 1998, unused credit facilities were more than $60 million; an amount well
above the company's estimated requirements.

   Cash dividends declared in the second quarter of 1998 and 1997 amounted to
$.05 and $.04 a share, respectively.  During each of the six month periods ended
June 30 in 1998 and 1997, dividends were declared amounting to $.10 and $.08 a
share, respectively.

                                     Page 8
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                          PART II.  OTHER INFORMATION
                                        
                                        
ITEM 1.   LEGAL PROCEEDINGS

   The company is not presently involved in any lawsuits seeking damages
relating to the normal conduct of its business that if adversely determined
would have a material effect on the consolidated financial statements.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     (a)  The Annual Meeting of Shareholders was held on April 10, 1998.
 
     (b)  The only matter submitted to a vote of security holders was for the
election of directors.  Each of the persons named in the Proxy Statement as a
nominee for director was elected.  Following are the voting results on each of
the nominees for director:

                                      Votes         Votes
          Election of Directors        For        Withheld
          ---------------------    ----------    ----------
          John Justin              23,979,479       186,084
          J. T. Dickenson          23,981,732       183,831
          Bayard H. Friedman       23,973,629       191,934
          Marvin Gearhart          23,980,895       184,668
          Robert E. Glaze          23,954,841       210,722
          Dee J. Kelly             23,806,656       358,907
          Joseph R. Musolino       23,831,306       334,257
          John V. Roach            23,982,556       183,007
          Dr. William E. Tucker    23,958,348       207,215

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

          (27) Financial Data Schedule for the period ended June 30, 1998.

     (b)  Reports on Form 8-K

          None.

                                     Page 9
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                                    SIGNATURE
                                        
                                        
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.


JUSTIN INDUSTRIES, INC.



/S/ RICHARD J. SAVITZ
Richard J. Savitz
Vice President-Finance/
Chief Financial Officer





Dated this 14th day of August 1998.

                                     Page 10
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