UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549


                                    FORM 10-Q
                Quarterly report pursuant to section 13 or 15 (d)
                     of the Securities Exchange Act of 1934

For the quarter ended June 30, 1997             Commission file number 0-13875


                               LANCER CORPORATION
             (Exact name of registrant as specified in its charter)


                Texas                                             74-1591073
   (State or other jurisdiction of                              (IRS employer
   incorporation or organization)                           identification no.)

 235 West Turbo, San Antonio, Texas                                   78216
(Address of principal executive offices)                            (Zip Code)

       Registrants telephone number, including area code: (210) 344-3071

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 14(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         X              NO
                                         --------                   --------


Indicate the number of shares  outstanding  of each of the issuers of classes of
common stock, as of the latest practicable date.

                  Title                                Shares outstanding as of
                                                              August 6, 1997
Common stock, par value $.01 per share                           8,895,784



<PAGE>


Part I - Financial Information

Item 1 - Financial Statements
<TABLE>
<CAPTION>

                       LANCER CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS

                                                                  June 30,                     December 31,
                                                                    1997                           1996
                                                             --------------------           --------------------
                                                                 (Unaudited)

Current assets:
<S>                                                        <C>                            <C>                  
  Cash                                                     $           2,734,981          $           1,016,425
                                                             --------------------           --------------------
  Receivables:
    Trade accounts and notes                                          27,284,845                     19,686,318
    Refundable income taxes                                                    -                        396,495
    Other                                                              1,156,037                        690,034
                                                             --------------------           --------------------
                                                                      28,440,882                     20,772,847

    Less allowance for doubtful accounts                                (189,597)                      (185,000)
                                                             --------------------           --------------------
      Net receivables                                                 28,251,285                     20,587,847
                                                             --------------------           --------------------

  Inventories
                                                                      38,443,054                     28,238,923
  Prepaid expenses                                                       150,626                        243,937
  Deferred tax asset                                                     109,521                         64,513
                                                             --------------------           --------------------

      Total current assets                                            69,689,467                     50,151,645
                                                             --------------------           --------------------

Property, plant and equipment, at cost:
  Land                                                                 1,307,663                      1,307,663
  Buildings                                                            9,683,096                      9,681,466
  Machinery and equipment                                             16,137,015                     14,925,713
  Tools and dies                                                       8,558,986                      8,448,506
  Leaseholds, office equipment and vehicles                            6,290,811                      5,945,069
  Construction in progress                                             9,427,657                      5,162,508
                                                             --------------------           --------------------
                                                                      51,405,228                     45,470,925
  Less accumulated depreciation and amortization                     (20,902,182)                   (19,676,377)
                                                             --------------------           --------------------
    Net property, plant and equipment                                 30,503,046                     25,794,548
                                                             --------------------           --------------------

Long-term receivables                                                    362,801                        404,007
Investment in affiliates                                               3,261,225                      2,975,000
Intangibles and other assets,
   at cost, less accumulated amortization                              6,098,023                      2,684,073
                                                             --------------------           --------------------

                                                           $         109,914,562          $          82,009,273
                                                             ====================           ====================
<CAPTION>
                See accompanying notes to consolidated financial statements.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                       LANCER CORPORATION AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (continued)

                      LIABILITIES AND SHAREHOLDERS EQUITY

                                                                      June 30,                     December 31,
                                                                        1997                           1996
                                                                 --------------------           -------------------
                                                                     (Unaudited)
Current liabilities:
<S>                                                            <C>                            <C>                 
  Accounts payable                                             $          13,170,413          $          6,302,345
  Current installments of long-term debt                                   3,270,000                     1,852,500
  Line of credit with bank                                                19,100,000                    11,700,000
  Deferred licensing and maintenance fees                                  1,027,530                     1,339,868
  Accrued expenses and other liabilities                                   4,664,807                     4,288,130
  Income taxes payable                                                       287,087                             -
                                                                 --------------------           -------------------

    Total current liabilities                                             41,519,837                    25,482,843

Deferred tax liability                                                     1,109,568                     1,038,655
Other long-term liabilities                                                  848,771                       820,000
Long-term debt, excluding current installments                            22,103,750                    15,459,375
Deferred licensing and maintenance fees                                    2,173,149                     2,172,137
                                                                 --------------------           -------------------

    Total liabilities                                                     67,755,075                    44,973,010
                                                                 --------------------           -------------------

Shareholders equity:
  Common stock, $.01 par value:
   50,000,000 shares authorized; 8,895,036 and 5,820,976
   issued and outstanding in 1997 and 1996, respectively                      88,950                        58,209

  Additional paid-in capital                                              11,555,581                     9,888,244

  Cumulative translation adjustment                                           17,623                       183,803

  Retained earnings                                                       30,497,333                    26,906,007
                                                                 --------------------           -------------------

    Total shareholders equity
                                                                          42,159,487                    37,036,263
                                                                 --------------------           -------------------

                                                               $         109,914,562          $         82,009,273
                                                                 ====================           ===================
<CAPTION>

          See accompanying notes to consolidated financial statements.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                       LANCER CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)


                                             Three Months Ended                          Six Months Ended
                                         June 30,             June 30,             June 30,             June 30,
                                           1997                 1996                 1997                 1996
                                      ---------------    ---------------         --------------     --------------

<S>                                 <C>                <C>                     <C>                <C>            
Net sales                           $     32,294,556   $     25,602,226        $    62,692,715    $    49,280,423
Cost of sales                             24,353,236         19,482,223             47,086,773         37,457,419
                                      ---------------    ---------------         --------------     --------------
    Gross profit                           7,941,320          6,120,003             15,605,942         11,823,004

Selling, general and
   administrative expenses                 4,836,694          3,403,310              9,057,344          6,626,830
                                      ---------------    ---------------         --------------     --------------

    Operating income                       3,104,626          2,716,693              6,548,598          5,196,174
                                      ---------------    ---------------         --------------     --------------

Other income (expense):
  Interest expense                          (826,649)          (378,456)            (1,374,107)          (807,365)
  Other income, net                          447,816             97,173                464,185            221,277
                                      ---------------    ---------------         --------------     --------------
                                            (378,833)          (281,283)              (909,922)          (586,088)
                                      ---------------    ---------------         --------------     --------------

    Income before income taxes             2,725,793          2,435,410              5,638,676          4,610,086
                                      ---------------    ---------------         --------------     --------------

Income tax expense (benefit):
  Current                                    874,813            949,757              1,976,437          1,814,351
  Deferred                                    49,786            (40,219)                70,913            (70,512)
                                      ---------------    ---------------         --------------     --------------
                                             924,599            909,538              2,047,350          1,743,839
                                      ---------------    ---------------         --------------     --------------

    Net earnings                    $      1,801,194   $      1,525,872        $     3,591,326    $     2,866,247
                                      ===============    ===============         ==============     ==============

Weighted average shares                    9,380,837          9,110,795              9,371,218          9,070,248
                                      ===============    ===============         ==============     ==============

Net earnings per share              $           0.19   $           0.17        $          0.38    $          0.32
                                      ===============    ===============         ==============     ==============


<CAPTION>
          See accompanying notes to consolidated financial statements.
</TABLE>



<PAGE>

<TABLE>
<CAPTION>

                       LANCER CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                     Six Months Ended
                                                                              June 30,                  June 30,
                                                                                1997                      1996
                                                                       -----------------------   -----------------------

Cash flow from operating activities:
<S>                                                                  <C>                       <C>                     
     Net earnings                                                    $              3,591,326  $              2,866,247
     Adjustments to reconcile net income to net cash provided (used)
        by operating activities (net of effects from purchase of
        subsidiaries:)
        Depreciation and amortization                                               1,234,297                 1,232,021
        Loss on sale and disposal of assets                                                 -                     1,382
        Cumulative effect of the translation adjustment                              (166,180)                  213,997
        Gain on investments in affiliates                                              (9,945)                        -
        Changes in assets and liabilities:
            Receivables                                                            (6,727,884)               (5,568,485)
            Refundable income taxes                                                   396,495                         -
            Prepaid expenses                                                          110,733                  (231,042)
            Deferred tax liability                                                     25,905                   (63,912)
            Inventories                                                            (6,021,115)               (3,271,354)
            Other assets                                                              173,196                    (6,963)
            Accounts payable                                                        6,285,948                 2,048,976
            Accrued expenses and other liabilities                                    214,348                 1,524,463
            Income taxes payable                                                      287,087                   350,931
            Deferred license fees and other revenue                                  (311,326)                  951,587
            Other long-term liabilities                                                28,771                    60,000
                                                                       -----------------------   -----------------------
     Net cash (used) provided by operating activities                                (888,344)                  107,848
                                                                       -----------------------   -----------------------

Cash flow from investing activities:
        Proceeds from sale of assets                                                        -                       200
        Acquisition of property, plant and equipment                               (4,966,526)               (3,583,441)
        Acquisition of subsidiary companies                                        (3,768,375)                        -
        Additional investments in affiliates                                         (276,280)                        -
                                                                       -----------------------   -----------------------
     Net cash used in investing activities                                         (9,011,181)               (3,583,241)
                                                                       -----------------------   -----------------------

Cash flow from financing activities:
        Net borrowings under line of credit agreements                              7,400,000                 5,000,000
        Proceeds from long-term debt                                                5,100,000                         -
        Retirement of long-term debt                                               (1,024,125)                 (676,133)
        Proceeds from exercise of stock options                                       142,206                    23,204
                                                                       -----------------------   -----------------------
Net cash provided by financing activities                                          11,618,081                 4,347,071
                                                                       -----------------------   -----------------------
Net increase in cash                                                                1,718,556                   871,678
Cash at beginning of year                                                           1,016,425                   754,352
                                                                       -----------------------   -----------------------
Cash at end of period                                                $              2,734,981  $              1,626,030
                                                                       =======================   =======================
<CAPTION>

    Lancer issued debt of $3,986,000 and stock of $1,555,872 to the sellers of the subsidiaries acquired in 1997.
          The non-cash portion of these transactions is excluded from the above statement.

                           See accompanying notes to consolidated financial statements.
</TABLE>



<PAGE>



                       LANCER CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)



1.       Basis of Presentation

All  adjustments  (consisting of normal  recurring  adjustments)  have been made
which are necessary for a fair presentation of financial position and results of
operations.  All intercompany  balances and transactions have been eliminated in
consolidation.  It is suggested that the  consolidated  financial  statements be
read in conjunction with the consolidated financial statements and notes thereto
included in the December 31, 1996 Annual Report on Form 10-K.

Net earnings per share are based on the  weighted  average  number of common and
common equivalent (dilutive stock options) shares outstanding each period. Fully
diluted net  earnings  per share would not be  different  than net  earnings per
share.  On July 8, 1997,  the  Company  effected  a  three-for-two  stock  split
accounted for as a dividend.  Prior year weighted average shares outstanding and
prior year per share amounts have been restated accordingly.

Certain amounts in the  consolidated  financial  statements for prior years have
been reclassified to conform with the current year's presentation.


2.       Inventory Components

The  Company  uses the  gross  profit  method  to  determine  cost of sales  and
inventory for interim  periods.  Inventory  components  are  estimated  based on
historical relationships as follows:

<TABLE>
<CAPTION>

                                               June 30,                   December 31,
                                                 1997                         1996
                                          --------------------         --------------------
<S>                                     <C>                          <C>                  
Finished Goods                          $          10,560,851        $           8,543,784
Work in process                                    22,547,285                   18,425,735
Raw material and supplies                           5,334,918                    1,269,404
                                          ====================         ====================
                                        $          38,443,054        $          28,238,923
                                          ====================         ====================
</TABLE>



3.       Long-term Debt and Revolving Facility

Effective May 12, 1997, the Company increased its revolving  facility from $17.5
million to $25.0 million. All other material terms of the revolving facility are
unchanged.

4.       Earnings Per Share

In February  1997,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Statement  of  Financial  Accounting  Standards  No.  128,  Earnings  Per  Share
(Statement  128).  Statement 128 specifies the  computation,  presentation,  and
disclosure  requirements for earnings per share (EPS) for entities with publicly
held  common  stock or  potential  common  stock.  Statement  128 was  issued to
simplify the  computation of EPS and to make the U.S.  standard more  compatible
with  the EPS  standards  of  other  countries  and  that  of the  International
Accounting  Standards  Committee (IASC). It replaces the presentation of primary
EPS with a presentation of basic EPS and fully diluted EPS with diluted EPS.


<PAGE>


If the Company had adopted the  Statement  as of June 30,  1997,  EPS would have
been as follows:
<TABLE>
<CAPTION>

                      Three Months Ended                        Six Months Ended
                 June 30,            June 30,              June 30,           June 30,
                   1997                1996                  1997               1996
                 ----------          ----------           -----------         ----------
<S>               <C>                 <C>                   <C>                <C>     
Basic EPS         $   0.20            $   0.17              $   0.40           $   0.33
Diluted EPS           0.19                0.17                  0.38               0.32
</TABLE>



Item 2 - Managements Discussion and Analysis of Financial Condition and Results
         of Operations

Results of Operations

Comparison of the Three-Month Periods Ended June 30, 1997 and 1996

Net sales for the  quarter  ended  June 30,  1997 were  $32.3  million,  a 26.1%
increase from sales in the second quarter of 1996. The increase in 1997 reflects
the  inclusion  of the  Companys  newly-acquired  operations  in Brazil and New
Zealand, sales of frozen beverage equipment produced by the joint venture formed
in late 1996, as well as growth from established operations.  Sales to customers
outside the United States  accounted for 55.1% of sales in the second quarter of
1997, and 37.1% of sales in the second quarter of 1996.

Gross  margins in the second  quarter of 1997 were  24.6%,  up from 23.9% in the
same period of 1996. The  improvement  was the result of improved  manufacturing
efficiencies.

Selling,  general  and  administrative  expenses  were $4.8  million  during the
quarter  ended June 30,  1997,  an increase of $1.4  million,  or 42.1% from the
second  quarter of 1996. The Companys  newly acquired  operations in Brazil and
New Zealand,  and the establishment of a distribution  company based in Belgium,
contributed to the increase in expenses in the 1997 quarter.

Interest  expense for the three months ended June 30, 1997 was $0.8 million,  up
$0.4  million,  or 118.4%,  from the same  period of 1996.  The higher  interest
expense in 1997 was driven by increased  borrowing that financed Lancers recent
acquisitions,  capital spending,  and growth of its current assets. Other income
was $0.4 million in the second quarter of 1997, up from $0.1 million in the 1996
period.  Income from the Companys  frozen beverage  dispenser joint venture was
primarily  responsible  for the  improvement  in 1997. Net earnings for the 1997
quarter  was $1.8  million,  up 18.0% from the $1.5  million of net  earnings in
1996.

Comparison of the Six-Month Periods ended June 30, 1997 and 1996

Net sales for the six months  ended June 30,  1997 were $62.7  million,  a 27.2%
increase from net sales in the same period of 1996. The Companys new operations
in Brazil  (acquired  in January,  1997) and in New Zealand  (acquired in April,
1997)  contributed  to the sales  growth.  In addition,  sales of the  Companys
frozen beverage  dispensers and an overall increase in international  sales also
contributed  to the sales  growth  during the 1997  period.  Sales to  customers
outside  the  United  States  were 50.3% of net sales in the first half of 1997,
compared to 41.2% in the same period of 1996.

Gross  margins in the first half of 1997 were  24.9%,  compared  to 24.0% in the
first two quarters of 1996. Continued improved manufacturing  efficiencies drove
the gross margin improvement in the 1997 period.

Selling,  general and administrative expenses were $9.1 million in the first two
quarters of 1997, a 36.7% increase over the amount  incurred in the year earlier
period.  Added operating  costs  associated with the Companys new operations in
Brazil, New Zealand and Belgium led to the increase.

Interest  expense  rose to $1.4  million  in the  first  half of 1997  from $0.8
million in the same period of 1996.  Larger  borrowings  caused the  increase in
1997.  Other  income for the six months was $0.5  million in 1997,  up from $0.2
million in 1996.  Net earnings rose to $3.6 million for the six-month  period of
1997 from $2.9 million in the 1996 period.

Liquidity and Capital Resources

Net cash used by  operating  activities  was $0.9  million  in the first half of
1997,  compared to $0.1 million of cash provided by operating  activities in the
same period of the prior year.  Lancer invested $5.0 million in property,  plant
and  equipment  in the  first  half of  1997.  Additionally,  the  Company  paid
approximately  $6.0 million for its Brazilian  operations,  and $3.3 million for
the  assets of the New  Zealand  company  acquired  in the second  quarter.  The
Company  financed the Brazilian  transaction  with a $4.0 million note issued to
the seller and $2.0 million in cash. The New Zealand consideration  consisted of
122,832 shares of Lancer  Corporation  common stock valued at approximately $1.6
million,  adjusted for the three-for-two  stock split effected July 8, 1997, and
$1.7 million in cash.  Lancer financed the cash portion of its  acquisitions and
its capital spending with bank debt.

Effective May 12, 1997, the Company increased its revolving  facility from $17.5
million to $25.0 million. All other material terms of the revolving facility are
unchanged.


Part II - Other Information

Item 1 - Legal Proceedings

The Company is a party to various  lawsuits and claims  generally  incidental to
its business.  In the opinion of management and independent  legal counsel,  the
ultimate  disposition  of these  matters is not  expected to have a  significant
adverse effect on the Companys financial position or results of operations.

Item 4 - Submission of Matters to a Vote of Security Holders

During the Lancer  Corporation Annual Meeting of Shareholders held May 22, 1997,
the Shareholders considered the following proposals:

         1.)  An  amendment  to the  Companys  1996 Stock  Incentive  Plan (the
              Plan)  to allow for an  increase  in the maximum  number of shares
              for which options may be awarded under the Plan. The  shareholders
              approved  an increase to 600,000  shares  from  225,000  shares of
              Common Stock  reserved for issuance upon exercise of options to be
              granted under the Plan. Such shares were subsequently increased to
              900,000 following a three-for-two  stock split effected as of July
              8, 1997. Of the then outstanding  shares,  5,009,858 voted for the
              amendment  to  the  Plan,   242,937  voted  against,   and  58,233
              abstained.

         2).  An amendment to the Companys Articles of Incorporation increasing
              the number of authorized Common Shares to 50,000,000 nonassessable
              $0.01 par value common shares from 10,000,000  shares. Of the then
              outstanding  shares,  5,060,283  voted  for the  amendment  to the
              Articles  of  Incorporation,   403,101  voted  against  and  9,598
              abstained.

Item 6 - Exhibits and Reports on Form 8-K

         (a)      Exhibits:

                  None

         (b)      Reports on Form 8-K

                  None


<PAGE>



SIGNATURES

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.

LANCER CORPORATION
(Registrant)



August 13, 1997                           By: /s/ George F. Schroeder
                                          George F. Schroeder
                                          President and CEO



August 13, 1997                           By: /s/ John P. Herbots
                                          John P. Herbots
                                          Chief Financial Officer