14

                        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 September 30, 1995        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.

                                  Shares outstanding as of
         Title                        October 31, 1995
                                 
Common stock, par value                   3,872,221
$.01 per share

               Part I - Financial Information
                              
Item 1 - Financial Statements

             LANCER CORPORATION AND SUBSIDIARIES
                 CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                           September 30,        December 31,
                                               1995                 1994
                                            (Unaudited)                      
<S>                                     <C>                  <C>                      
Assets                                                                       
Current assets:                                                              
  Cash                                  $      1,012,581     $      2,102,390  
  Receivables:                                                               
    Trade accounts and notes                  13,489,822            9,152,033
    Refundable income taxes                            -              342,981
    Affiliates and others                        290,931              455,811
                                              13,780,753            9,950,825
    Less allowance for doubtful accounts         (85,000)             (85,000)
      Net receivables                         13,695,753            9,865,825
  Inventories (note 2)                        16,604,549           20,318,073
  Prepaid expenses                               153,500               54,827
      Total current assets                    31,466,383           32,341,115
                                                                             
Property, plant and equipment, at cost:
  Machinery and equipment                     12,596,015           12,093,915
  Tools and dies                               5,935,959            5,189,667
  Leaseholds, office equipment and                                           
    vehicles                                   4,554,561            3,830,330
  Buildings                                    7,638,668            6,522,429
  Land                                           977,887              656,740
  Construction in progress                     1,253,676                    -
                                              32,956,766           28,293,081
  Less accumulated depreciation                                              
    and amortization                         (16,501,788)         (15,051,379)
    Net property, plant and equipment         16,454,978           13,241,702
                                                                             
Long-term receivables                            512,243              538,312
Deferred charges and other assets,                                           
    at cost, less applicable amortization        344,472              775,075
                                                                             
                                        $     48,778,076     $     46,896,204
                              
</TABLE>
See accompanying notes to consolidated financial statements.
               Part I - Financial Information


Item 1 - Financial Statements

             LANCER CORPORATION AND SUBSIDIARIES
           CONSOLIDATED BALANCE SHEETS (continued)
<TABLE>
<CAPTION>
                              
                                           September 30,        December 31,
                                               1995                 1994
                                            (Unaudited)                
<S>                                     <C>                  <C>
Liabilities and Shareholders' Equity
Current liabilities:                                                         
  Accounts payable                      $      3,677,124     $      4,899,550  
  Current installments of long-term debt       1,395,411            1,408,663
  Line of credit with bank (note 3)            3,600,000            6,000,000
  Accrued expenses and other liabilities       4,048,168            2,655,113
  Income taxes payable                           150,731                    -
                                                                             
    Total current liabilities                 12,871,434           14,963,326
                                                                             
Deferred Federal income taxes                  1,048,942            1,096,961
Other long-term liabilities                      700,000              520,000
Long-term debt, excluding current                                            
  installments (note 3)                        4,108,201            3,397,174
                                                                             
    Total liabilities                         18,728,577           19,977,461
                                                                             
Shareholders' equity:                                                        
                                                                             
  Preferred stock, without par value:
   5,000,000 shares authorized, none issued             -                    -
                                                                             
  Common stock, $.01 par value:                                              
   10,000,000 shares authorized; 3,868,171
   and 3,861,906 issued and outstanding in
   1995 and 1994, respectively                     38,669               38,619
                                                                             
  Additional paid-in capital                    9,831,180            9,797,734
                                                                             
  Retained earnings                            20,179,650           17,082,390
                                                                             
    Total shareholders' equity                 30,049,499           26,918,743
                                                                             
                                         $     48,778,076     $     46,896,204

</TABLE>
See accompanying notes to consolidated financial statements.
               Part I - Financial Information
                              
Item 1 - Financial Statements

             LANCER CORPORATION AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF INCOME
                         (Unaudited)
<TABLE>
<CAPTION>
                              
                            Three Months Ended            Nine Months Ended
                       September 30,  September 30,  September 30,  September30,
                           1995             1994           1995           1994
<S>                  <C>           <C>           <C>           <C>              
Net sales            $  17,375,660 $  19,339,961 $  59,029,816 $  54,127,833
Cost of sales           13,700,527    15,710,649    47,223,852    43,610,522
    Gross profit         3,675,133     3,629,312    11,805,964    10,517,311
                                                                               
Selling, general and
  administrative         2,631,924     2,235,629     7,621,123     6,485,151
                                                                                
    Operating income     1,043,209     1,393,683     4,184,841     4,032,160
                                                                                
Other income(expense):
  Interest expense        (215,072)     (209,129)     (733,995)     (558,902)
  Interest and other
    income                 356,138       130,976     1,351,107       673,685
                                                                                
                           141,066      (78,153)       617,112       114,783
                                                                                
  Earnings before                                                               
    income taxes         1,184,275     1,315,530     4,801,953     4,146,943
                                                                                
Income taxes expense                                                            
  (benefit):
  Current                  312,317       434,273     1,752,713     1,575,333
  Deferred                  58,277       (78,144)      (48,020)     (142,830)

                            370,594      356,129     1,704,693     1,432,503
                                                                                
    Net earnings     $     813,681 $     959,401 $   3,097,260 $   2,714,440
                                                                                
     Weighted average
        common shares    4,003,660     3,787,448     3,989,631     3,715,671
                                                                                
Net earnings per              
common share         $        0.20 $        0.25 $        0.78 $        0.73
                              
</TABLE>
See accompanying notes to consolidated financial statements.
                              
               Part I - Financial Information
                              
                              
Item 1 - Financial Statements

             LANCER CORPORATION AND SUBSIDIARIES
            CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (Unaudited)
<TABLE>
<CAPTION>
                              
                                               Nine Months Ended
                                        September 30,    September 30,
                                            1995             1994
<S>                                         <C>              <C>                      
Cash flow from operating activities:                                  
  Net earnings                               $     3,097,260  $    2,714,440
                                                                      
  Adjustments to reconcile net 
    earnings to net cash provided
    (used) by operating activities:
     Depreciation and amortization                 1,640,587        1,431,574
     Loss on sale and disposal of assets              12,845           15,829
     Increase in receivables                      (4,146,840)      (1,366,485)
     Decrease in refundable income taxes             342,981                -
     Increase in prepaid expenses                    (98,673)         (81,581)
     Decrease (increase) in inventories            3,713,524      (4,857,821)
     Decrease in other assets                        410,350           24,080
     (Decrease) increase in accounts payable      (1,222,426)        1,372,625
     Increase in accrued expenses                  1,393,055          727,035
     Increase in income taxes payable                150,731           42,779
     Decrease in deferred Federal income taxes       (48,019)        (142,830)
     Increase in other long-term liabilities         180,000          180,000
  Net cash provided by operating activities        5,425,375           59,645
                                                                      
Cash flow from investing activities:                                  
    Proceeds from sale of assets                      19,201            4,700
    Acquisition of property, plant and                              
      equipment                                   (4,865,656)      (2,648,240)
    Investment in common stock                             -        (150,000)
  Net cash used in investing activities           (4,846,455)      (2,793,540)
                                                                      
Cash flow from financing activities:                                  
    Net (repayment) borrowings under line                                  
      of credit agreements                        (2,400,000)          245,000
    Proceeds from issuance of long-term
      debt                                         1,929,000          435,072
    Retirement of long-term debt                  (1,231,225)      (1,444,537)
    Proceeds from issuance of common stock                 -        3,534,463
    Proceeds from exercise of stock options           33,496          110,141
  Net cash (used in) provided by financing                                       
    activities                                    (1,668,729)        2,880,139
Net (decrease) increase in cash                   (1,089,809)          146,244
Cash at beginning of year                          2,102,390        1,353,167
Cash at end of period                       $      1,012,581 $      1,499,411         

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

Item 1 - Financial Statements

             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, 1994 Annual Report on Form 10-K.

Earnings per share are based on the weighted average number  of
common  and  common equivalent (dilutive stock options)  shares
outstanding  each  period.  Fully diluted  earnings  per  share
would  not  be  different than earnings per common  and  common
equivalent  share.   On July 11, 1995, 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.

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>
                            September 30,      December 31,
                                1995               1994
<S>                       <C>                <C>
Finished Goods            $    5,337,936     $    6,531,738
Work in process               10,263,044         12,558,323
Raw material and supplies      1,003,569          1,228,012
                          $   16,604,549     $   20,318,073
</TABLE>
     
     
3.   Long-term Debt and Line of Credit

One  of  the Companys wholly-owned subsidiaries entered into  a
loan  agreement dated August 1, 1995, with the Companys primary
lender  to  provide $2.5 million of term debt  to  finance  the
expansion  of  its production facilities in Mexico.   This  new
loan  will  bear interest based upon the banks prime  rate,  is
subject  to a seven-year amortization schedule and is  due  and
payable  in  full  on January 15, 1999.  The Company  has  also
entered  into a separate agreement with its lender to guarantee
the subsidiarys performance under the loan agreement.

On  August 1, 1995, the Company replaced its prior $8.0 million
working  capital revolving line of credit with a $10.0  million
working  capital revolving line of credit (the Credit Facility)
from its primary lender.  The terms of the Credit Facility  are
substantially  the  same as the terms  of  the  prior  line  of
credit,  with  the interest rate being based  upon  either  the
London Interbank Offered Rates (LIBOR) or upon, and fluctuating
with,  the lenders prime rate.  Under the Credit Facility,  the
Company  will  be able to borrow up to a certain percentage  of
its  eligible  accounts receivable and inventory,  provided  it
maintains  certain financial ratios and complies  with  certain
covenants.  The Company is either in compliance with  all  such
convenants or has obtained waivers from its primary lender.
                              
                              
               Part I - Financial Information

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

Results of Operations

Comparison of the Three-Month Periods Ended September 30, 1995
and 1994

Net  sales  for the quarter ended September 30, 1995, decreased
by  $1.9 million, or 10.2%, to $17.4 million from $19.3 million
for  the  same  period  last year.  This  decrease  reflects  a
temporary decline in demand from manufacturers who use  certain
of  the  Companys  products in their  line  of  fountain  drink
dispensers  and a decrease in sales to Mexican customers  as  a
result  of  a  significant devaluation  in  the  Mexican  Peso.
Combined sales in international markets other than Mexico  more
than  offset this decline.  Total international sales  amounted
to  $5.2 million, or 29.9% of net sales, for the quarter  ended
September 30, 1995, an increase of $1.9 million, or 57.6%, from
$3.3  million, or 17.1% of net sales, for the same period  last
year.

Even  though sales were down for the 1995 quarter, gross profit
recognized  for  the period increased by 1.3% to  $3.7  million
from  $3.6 million for the same quarter last year, while  gross
margin  for  the  period (represented as a  percentage  of  net
sales)  increased  to 21.2% from 18.8% in the  same  period  of
1994.   These increases are primarily due to an increased focus
on  cost  reductions  and manufacturing  process  improvements;
however, they were tempered by corresponding increases  in  the
prices of certain key raw materials.

Selling,  general and administrative costs during  the  quarter
ended  September 30, 1995 increased by $396 thousand, or 17.7%,
to  $2.6  million from $2.2 million for the same  quarter  last
year.   This increase reflects higher selling and research  and
development expenses.

Interest expense for the three months ended September 30,  1995
increased  $6  thousand, or 2.8%, to $215  thousand  from  $209
thousand  for  the  same period last year, reflecting  slightly
higher  average bank debt in 1995 associated with the  purchase
of   land   and  facilities  and  construction  of   additional
facilities  to  support  the  Companys  operations  in  Piedras
Negras, Coahuila, Mexico.

Interest  and other income for the three months ended September
30,  1995  increased  by $225 thousand, or  171.9%,  from  $131
thousand  for  the  same period in 1994, due  primarily  to  an
increase in revenues from special engineering services provided
to the Companys largest customer.

Income tax expense for the three months ended September 30,
1995 increased by 4.1%, to $371 thousand from $356 thousand for
the same period in 1994.  The Companys estimated effective tax
rate used for 1995 is slightly higher than the rate used for
1994.

Net  earnings  for  the three months ended September  30,  1995
decreased  by  $146 thousand, or 15.2%, to $814 million  ($0.20
per  share) from $959 thousand ($0.25 per share) for  the  same
period in 1994.  This decrease was primarily due to lower sales
partially offset by improved gross margins and higher  interest
and other income.

Comparison of the Nine-Month Periods Ended September 30, 1995
and 1994

Net  sales for the nine-month period ended September  30,  1995
increased by $4.9 million, or 9.1%, to $59.0 million from $54.1
million for the same period in 1994.  This increase reflects  a
general  increase in demand for all product lines, particularly
dispensers of all types.  International sales amounted to $18.3
million,  or  31.0%  of net sales, for the  nine  months  ended
September 30, 1995, an increase of $4.6 million, or 33.6%, from
$13.7 million, or 25.3% of net sales, for the same period  last
year.

Gross  profit  for  the nine months ended  September  30,  1995
increased  by  $1.3  million, or 12.3%, to $11.8  million  from
$10.5  million for the same period in 1994, while gross  margin
for  the  period  (represented as a percentage  of  net  sales)
increased  slightly to 20.0% from 19.4% in the same  period  in
1994  reflecting  the  Companys focus on  cost  reductions  and
manufacturing  process  improvements partially  offset  by  the
impact of key raw material price increases.

Selling, general and administrative expenses for the nine-month
period  ended September 30, 1995 increased by $1.1 million,  or
17.5%, to $7.6 million from $6.5 million for the same period in
1994.   This  increase was due primarily to higher selling  and
engineering research and development expenses.

Interest expense for the first nine months of 1995 increased by
$175  thousand, or 31.3%, to $734 thousand from  $559  thousand
for the same period last year.  This increase resulted from the
increase  in  average bank debt resulting from the purchase  of
land  and  facilities and construction of additional facilities
in Mexico.

Interest  and other income for the nine months ended  September
30, 1995 increased by $677 thousand, or 100.6%, to $1.4 million
from  $674 thousand for the same period in 1994. This  increase
was  due  primarily to higher revenues from special engineering
projects  sponsored by the Companys largest customer  and  from
commissions  the Company was paid under a sales  representative
agreement  entered  into  in 1993  for  the  sale  of  beverage
coolers.  This agreement is terminable by either party upon  30
days written notice.

Income tax expense for the nine months ended September 30, 1995
increased  by  19.0%, to approximately $1.7 million  from  $1.4
million  for  the  same  period in  1994.   This  increase  was
primarily  due  to  increased earnings and a  higher  estimated
effective tax rate for 1995.

Net  earnings  for  the nine months ended  September  30,  1995
increased  by  $383  thousand, or 14.1%, to approximately  $3.1
million  ($0.78 per share) from $2.7 million ($0.73 per  share)
for the same period in 1994.  The increase was primarily due to
improvements  in gross margin and the increase in interest  and
other  income partially offset by higher selling,  general  and
administrative expense and higher interest expense.

Liquidity and Capital Resources

Cash provided by operations for the nine months ended September
30,  1995  was  approximately  $5.4  million  compared  to  $60
thousand  for the same period in the prior year.  Cash provided
by  operations during the first nine months of 1995, along with
cash  on hand and approximately $1.9 million in new borrowings,
was  used to acquire additional machinery and equipment,  tools
and dies, and leaseholds and office equipment for $2.2 million,
purchase  Company  occupied  buildings  and  land,  which   had
previously  been leased, to support its Maquiladora  operations
in  Mexico,  for  $1.3  million, fund  construction  of  a  new
building in Mexico for $1.3 million, and repay $1.2 million  of
long-term debt.

On  August 1, 1995, the Company replaced its prior $8.0 million
working  capital revolving line of credit with a $10.0  million
working  capital revolving line of credit (the Credit Facility)
from its primary lender.  The terms of the Credit Facility  are
substantially  the  same as the terms  of  the  prior  line  of
credit,  with the interest rate being based upon either  London
Interbank Offered Rates (LIBOR) or upon, and fluctuating  with,
the lenders prime rate.  Under the Credit Facility, the Company
will  be  able  to  borrow up to a certain  percentage  of  its
eligible   accounts  receivable  and  inventory,  provided   it
maintains  certain financial ratios and complies  with  certain
covenants.    As  of  September  30,  1995,  the  Company   had
outstanding  borrowings  of  $3.6  million  under  the   Credit
Facility  and  the  blended  interest  rate  was  8.12%.    All
borrowings under the Credit Facility become due and payable  in
full on July 31, 1996.

The Company also entered into a loan agreement dated August  1,
1995,  with its primary lender to provide $2.5 million of  term
debt  to finance the expansion of its production facilities  in
Mexico.  This new loan will bear interest based upon the  banks
prime  rate, is subject to an seven-year amortization  schedule
and is due and payable in full on July 31, 1998.

                 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 5.   Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

     (a)  Exhibits:
          
          None
          
     (b)  Reports on Form 8-K
          
          No  reports  on Form 8-K have been filed  during  the
          fiscal quarter for which this report is filed.
          
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)




November 10, 1995   By: /s/ George F. Schroeder
                        George F. Schroeder
                        President and CEO




November 10, 1995   By: /s/ John P. Herbots
                        John P. Herbots
                        Chief Financial Officer