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, 1999              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.)

6655 Lancer Blvd., San Antonio, Texas                                   78219
(Address of principal executive offices)                              (Zip Code)

       Registrant's telephone number, including area code: (210) 310-7000

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 5, 1999

Common stock, par value $.01 per share                                 9,124,857



<PAGE>


Part I - Financial Information

Item 1 - Financial Statements

                                        LANCER CORPORATION AND SUBSIDIARIES
                                            CONSOLIDATED BALANCE SHEETS

                                                       ASSETS
<TABLE>
<CAPTION>

                                                                 June 30,            December 31,
                                                                   1999                  1998
                                                             -----------------     -----------------
                                                               (Unaudited)

Current assets:
<S>                                                        <C>                   <C>
     Cash                                                  $        1,136,754    $        1,118,848
     Receivables:
        Trade accounts and notes                                   23,633,136            20,866,928
        Other                                                         745,588               565,254
                                                             -----------------     -----------------
                                                                   24,378,724            21,432,182
        Less allowance for doubtful accounts                         (299,000)             (326,000)
                                                             -----------------     -----------------
            Net receivables                                        24,079,724            21,106,182
                                                             -----------------     -----------------
     Inventories                                                   44,635,982            46,128,697
     Prepaid expenses                                                 709,812               559,472
     Income taxes receivable                                           -                    211,760
     Deferred tax asset                                               127,392               117,241
                                                             -----------------     -----------------
            Total current assets                                   70,689,664            69,242,200
                                                             -----------------     -----------------

Property, plant and equipment, at cost:
     Land                                                           1,259,938             1,259,938
     Buildings                                                     21,880,079            21,769,690
     Machinery and equipment                                       20,248,803            19,699,040
     Tools and dies                                                 7,819,602             7,017,936
     Leaseholds, office equipment and vehicles                      8,466,375             8,148,299
     Assets in progress                                             2,083,857             1,200,506
                                                             -----------------     -----------------
                                                                   61,758,654            59,095,409
     Less accumulated depreciation and amortization               (26,123,106)          (24,596,773)
                                                             -----------------     -----------------
        Net property, plant and equipment                          35,635,548            34,498,636
                                                             -----------------     -----------------

Long-term receivables ($416,457 and $370,569 due
     from affiliates, respectively)                                   755,138               619,800
Long-term investments                                               4,240,626             3,317,131
Intangibles and other assets, at cost, less
     accumulated amortization                                       5,123,914             5,162,200
                                                             -----------------     -----------------

                                                           $      116,444,890    $      112,839,967
                                                             =================     =================
</TABLE>


          See accompanying notes to consolidated financial statements.



<PAGE>


                                        LANCER CORPORATION AND SUBSIDIARIES
                                      CONSOLIDATED BALANCE SHEETS (continued)

                                        LIABILITIES AND SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>

                                                              June 30,                     December 31,
                                                                1999                           1998
                                                         --------------------           --------------------
                                                             (Unaudited)
Current liabilities:
<S>                                                             <C>                            <C>
  Accounts payable                                              $  9,756,303                   $  8,854,438
  Current installments of long-term debt                           4,290,846                      4,794,400
  Line of credit with bank                                        24,100,000                     22,300,000
  Deferred licensing and maintenance fees                            619,178                        466,327
  Accrued expenses and other liabilities                           4,958,643                      5,528,425
  Income taxes payable                                               410,159                              -
                                                         --------------------           --------------------
    Total current liabilities                                     44,135,129                     41,943,590

Deferred  tax liability                                            3,198,991                      2,938,628
Long-term debt, excluding current installments                    17,009,504                     17,568,150
Deferred licensing and maintenance fees                            2,145,790                      2,131,624
                                                         --------------------           --------------------

    Total liabilities                                             66,489,414                     64,581,992
                                                         --------------------           --------------------

Commitments and contingencies                                              -                              -

Shareholders' equity:

  Preferred stock, without par value:
   5,000,000 shares authorized; none issued                                -                              -

  Common stock, $.01 par value:
   50,000,000 shares authorized; 9,121,482
   issued and outstanding                                             91,215                         91,215

  Additional paid-in capital                                      11,912,993                     11,912,993

  Accumulated other comprehensive loss                            (3,785,887)                    (2,581,558)

  Retained earnings                                               41,737,155                     38,835,325
                                                         --------------------           --------------------

    Total shareholders' equity                                    49,955,476                     48,257,975
                                                         --------------------           --------------------

                                                               $ 116,444,890                  $ 112,839,967
                                                         ====================           ====================
</TABLE>




          See accompanying notes to consolidated financial statements.


<PAGE>


                                        LANCER CORPORATION AND SUBSIDIARIES
                                         CONSOLIDATED STATEMENTS OF INCOME
                                                    (Unaudited)
<TABLE>
<CAPTION>


                                                Three Months Ended                          Six Months Ended
                                          June 30,              June 30,             June 30,              June 30,
                                            1999                  1998                 1999                  1998
                                      -----------------     -----------------    -----------------     -----------------

<S>                                       <C>                   <C>                  <C>                   <C>
Net sales                                 $ 38,072,256          $ 37,128,197         $ 74,300,200          $ 73,320,452
Cost of sales                               30,497,559            27,515,400           58,657,980            54,381,140
                                      -----------------     -----------------    -----------------     -----------------
    Gross profit                             7,574,697             9,612,797           15,642,220            18,939,312

Selling, general and
   administrative expenses                   5,355,458             5,220,986           10,548,639            10,218,895
                                      -----------------     -----------------    -----------------     -----------------

    Operating income                         2,219,239             4,391,811            5,093,581             8,720,417
                                      -----------------     -----------------    -----------------     -----------------

Other (income) expense:
  Interest expense                             896,301             1,004,576            1,804,253             1,936,609
  Other (income) expense, net                 (994,791)                3,428           (1,536,551)               54,644
                                      -----------------     -----------------    -----------------     -----------------
                                               (98,490)            1,008,004              267,702             1,991,253
                                      -----------------     -----------------    -----------------     -----------------

    Income before income taxes               2,317,729             3,383,807            4,825,879             6,729,164
                                      -----------------     -----------------    -----------------     -----------------

Income tax expense:
  Current                                      764,180             1,006,692            1,706,483             1,948,188
  Deferred                                     103,870               227,613              217,566               505,846
                                      -----------------     -----------------    -----------------     -----------------
                                               868,050             1,234,305            1,924,049             2,454,034
                                      -----------------     -----------------    -----------------     -----------------
  Net earnings                             $ 1,449,679           $ 2,149,502          $ 2,901,830           $ 4,275,130
                                      =================     =================    =================     =================

Common shares and equivalents outstanding:
Basic                                        9,121,482             9,121,241            9,121,482             9,015,769
Diluted                                      9,283,841             9,336,111            9,313,484             9,283,229

Earnings per share:
Basic                                        $    0.16             $    0.24            $    0.32             $    0.47
Diluted                                      $    0.16             $    0.23            $    0.31             $    0.46

</TABLE>


          See accompanying notes to consolidated financial statements.



<PAGE>


                                        LANCER CORPORATION AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                    (Unaudited)
<TABLE>
<CAPTION>
                                                                                           Six Months Ended
                                                                                    June 30,                  June 30,
                                                                                      1999                      1998
                                                                              ----------------------    ----------------------
Cash flow from operating activities:
<S>                                                                                  <C>                       <C>
     Net earnings                                                                    $    2,901,830            $    4,275,130
     Adjustments to reconcile net earnings to net cash provided (used) by
       operating activities :
        Depreciation and amortization                                                     1,827,776                 1,618,568
        Deferred licensing and maintenance fees                                             167,017                  (268,280)
        Deferred income taxes                                                               250,252                   659,525
        (Gain) loss on sale and disposal of assets                                           (8,414)                   23,851
        (Earnings) loss on investments in affiliates                                     (1,580,903)                   17,039
        Changes in assets and liabilities:
            Receivables                                                                  (3,094,856)               (6,398,049)
            Prepaid expenses                                                               (150,340)                 (104,655)
            Income taxes receivable                                                         205,204                    (5,176)
            Inventories                                                                   1,994,684                (5,186,269)
            Other assets                                                                   (329,108)                  (61,438)
            Accounts payable                                                                760,938                 2,255,851
            Accrued expenses                                                               (455,704)                  706,240
            Income taxes payable                                                            404,761                   663,196
            Other long-term liabilities                                                           -                    25,203
                                                                              ----------------------    ----------------------
     Net cash provided (used) by operating activities                                     2,893,137                (1,779,264)
                                                                              ----------------------    ----------------------

Cash flow from investing activities:
        Proceeds from sale of assets                                                         11,610                         -
        Acquisition of property, plant and equipment                                     (2,433,833)               (2,970,170)
        Acquisition of subsidiary company                                                (1,718,335)                        -
        Cash proceeds from long-term investments                                            759,408                    62,189
                                                                              ----------------------    ----------------------
     Net cash used in investing activities                                               (3,381,150)               (2,907,981)

Cash flow from financing activities:                                          ----------------------    ----------------------
        Net borrowings under line of credit agreements                                    1,800,000                 5,700,000
        Retirement of long-term debt, net of proceeds                                    (1,109,433)               (2,047,200)
        Proceeds from exercise of stock options                                              -                        196,912
                                                                              ----------------------    ----------------------
      Net cash provided by financing activities                                             690,567                 3,849,712
                                                                              ----------------------    ----------------------

Effect of exchange rate changes on cash                                                    (184,648)                    9,608
                                                                              ----------------------    ----------------------

Net increase (decrease) in cash                                                              17,906                  (827,925)
Cash at beginning of period                                                               1,118,848                 1,850,779
                                                                              ----------------------    ----------------------
Cash at end of period                                                                $    1,136,754            $    1,022,854
                                                                              ======================    ======================
</TABLE>


          See accompanying notes to consolidated financial statements.

<PAGE>


                       LANCER CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


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, 1998 Annual Report on Form 10-K.

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


2.       Inventory

The cost of the inventory  and its  components  at interim  reporting  dates are
determined   based  on  various   factors   including   estimated  gross  profit
percentages,  historical  percentages  and  price  changes.  Year-end  inventory
adjustments are based upon valuation of ending inventory.  Inventory  components
are as follows (dollars in thousands):

<TABLE>
<CAPTION>

                                              June 30,              December 31,
                                                1999                  1998
                                           ---------------       ---------------

<S>                                                <C>                    <C>
Raw material and supplies                       $  15,361              $  13,107
Work in process                                    14,281                 11,371
Finished Goods                                     14,994                 21,651
                                           ---------------       ---------------
                                                $  44,636              $  46,129
                                           ===============      ================
</TABLE>



3.       Earnings Per Share

The Company  calculates  earnings per share in accordance  with the Statement of
Financial  Accounting  Standards  (SFAS) No. 128.  Basic  earnings  per share is
calculated  using the weighted  average number of common shares  outstanding and
diluted earnings per share is calculated  assuming the issuance of common shares
for all  potential  dilutive  common  shares  outstanding  during the  reporting
period.  The dilutive effect of stock options  approximated  162,359 and 214,870
shares  for the three  months  ended June 30,  1999 and 1998,  and  192,002  and
267,460 shares for the six months ended June 30, 1999 and 1998, respectively.


4.       Comprehensive Income

As of January  1,  1998,  the  Company  has  adopted  SFAS No.  130,  "Reporting
Comprehensive  Income."  SFAS 130  established  new rules for the  reporting and
display  of  comprehensive  income  and its  components.  The  adoption  of this
statement, however, has no impact on the Company's net earnings.


<PAGE>

                      LANCER CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


The following are the components of comprehensive income (dollars in thousands):

<TABLE>
<CAPTION>
                                                          Three Months Ended                   Six Months Ended
                                                       June 30,            June 30,          June 30,          June 30,
                                                         1999               1998              1999              1998
                                                    ---------------   --------------    --------------   ---------------

<S>                                                      <C>              <C>               <C>               <C>
Net earnings                                             $   1,450        $   2,150         $   2,902         $   4,275
Foreign currency translation gain (loss)                        31             (644)           (1,306)             (645)
Unrealized gain (loss) on investment (net of tax)              (12)               -               102                 -
                                                    ---------------   --------------    --------------   ---------------
Comprehensive income                                     $   1,469        $   1,506         $   1,698         $   3,630
                                                    ===============   ==============    ==============   ===============
</TABLE>

Accumulated other  comprehensive loss on the accompanying  consolidated  balance
sheets includes foreign currency translation  adjustments and unrealized gain on
investment.


5.       Segment and Geographic Information

The Company and its subsidiaries are engaged in the manufacture and distribution
of beverage dispensing equipment and related parts and components. The Company's
reportable  segments are based on the  geographic  area of the final customer as
indicated by the following (dollars in thousands):

<TABLE>
<CAPTION>
                                                 Latin                                    All
                                  Domestic      America       Pacific      Brazil        Other       Corporate      Total
                                 ------------ ------------  ------------ ------------ ------------  ------------ ------------

Three months ended June 30, 1999
<S>                                 <C>             <C>           <C>         <C>           <C>          <C>         <C>
    Total revenues                  $ 25,477        3,177         3,319         481         5,618             -      $ 38,072
    Operating income (loss)            3,928          379           295        (149)          780       (3,014)      $  2,219

Three months ended June 30, 1998
    Total revenues                  $ 20,153        5,242         3,990       1,527         6,216             -      $ 37,128
    Operating income (loss)            4,872          458           412         (22)        1,399       (2,727)      $  4,392

Six months ended June 30, 1999
    Total revenues                  $ 48,679        6,986         6,592         825        11,218             -      $ 74,300
    Operating income (loss)            8,451          780           598        (553)        1,728       (5,910)      $  5,094

Six months ended June 30, 1998
    Total revenues                  $ 37,927       11,684         7,629       3,716        12,364            -       $ 73,320
    Operating Income                   8,931        1,840           833          87         2,596       (5,567)      $  8,720

</TABLE>

All  intercompany  revenues are  eliminated in computing  revenues and operating
income. The corporate component of operating income represents corporate general
and administrative expenses.

<PAGE>
                      LANCER CORPORATION AND SUBSIDIARIES

Item 2 - Management's Discussion and Analysis of Financial Condition and
Resultsof Operations

This  document  contains  certain  "forward-looking"  statements as such term is
defined in the Private Securities  Litigation Reform Act of 1995 and information
relating to the Company  and its  subsidiaries  that are based on the beliefs of
the  Company's  management.  When used in this report,  the words  "anticipate,"
"believe,"  "estimate,"  "expect," "forecast," "plan," and "intend" and words or
phrases of similar import,  as they relate to the Company or its subsidiaries or
Company management,  are intended to identify forward-looking  statements.  Such
statements reflect the current risks,  uncertainties and assumptions which exist
or must be made as a result of certain factors  including,  without  limitation,
competitive   factors,   general  economic   conditions,   customer   relations,
relationships  with  vendors,   the  interest  rate  environment,   governmental
regulation  and  supervision,   seasonality,   distribution  networks,   product
introductions and acceptance, one-time events and other factors described herein
and in other  filings  made by the  Company  with the  Securities  and  Exchange
Commission.  Based  upon  changing  conditions,  should any one or more of these
risks or uncertainties  materialize,  or should any underlying assumptions prove
incorrect,  actual results may vary materially  from those  described  herein as
anticipated,  believed, estimated,  expected, forecast, planned or intended. The
Company does not intend to update these forward-looking statements.

Results of Operations

Comparison of the Three-Month Periods Ended June 30, 1999 and 1998

Net sales for the quarter ended June 30, 1999 were $38.1 million,  a 3% increase
over sales in the second quarter of 1998.  Sales in the Company's  North America
region  rose 26%,  led by  strong  sales of frozen  beverage  dispensers.  Latin
America sales (excluding sales by the Company's Brazilian  subsidiary)  declined
39% from sales in the second quarter last year.  Sales in Brazil fell 69% in the
quarter. These sales declines reflect the poor economic conditions in Brazil and
several other key markets in South and Central America.

Gross margin in the second  quarter of 1999 was 19.9%,  compared to 25.9% in the
second quarter last year. The decline in margin is primarily  attributable  to a
change in the Company's sales mix,  specifically higher sales of frozen beverage
dispensers  and lower sales of fountain  equipment.  The Company buys the frozen
beverage  dispenser  from a  joint  venture  in  which  the  Company  owns a 50%
interest.  The Company's share of the joint  venture's  earnings is presented as
other income in the Company's income statement.

Selling,  general and  administrative  expenses were $5.4 million  (14.1% of net
sales) in the quarter ended June 30, 1999,  compared with $5.2 million (14.1% of
net sales) in the same  period  last  year.  Salary  expense  rose in support of
marketing and product development activities.

Quarterly  interest  expense  fell to $0.9  million  from $1.0 million last year
because of a decline in average  borrowings.  Other income,  net, in the quarter
rose to $1.0 million from approximately zero in 1998 due to strong production of
frozen  beverage  equipment by a joint venture  half-owned  by the Company.  The
Company's  second  quarter  effective tax rate  increased  from 36.5% in 1998 to
37.5% this year  because  of the  non-deductibility  of losses at the  Company's
Brazilian  subsidiary.  Net  earnings  for the second  quarter of 1999 were $1.4
million versus $2.1 million for the second quarter of 1998.

Comparison of the Six-Month Periods ended June 30, 1999 and 1998

Net sales for the six months ended June 30, 1999 were $74.3 million,  up 1% from
sales in the first half of 1998. North America sales rose 28% on strong sales of
frozen  beverage  dispensers.  Sales  in  the  Company's  Latin  America  region
(excluding  Brazil)  declined 40%, while  Brazilian  sales fell 78%. These sales
declines  reflect the poor  economic  conditions in Brazil and certain other key
markets in South and Central America.
<PAGE>
                      LANCER CORPORATION AND SUBSIDIARIES

Gross  margin for the first half of 1999 was  21.1%,  compared  to 25.8% for the
same period of 1998. The decline in margin is primarily attributable to a change
in the  Company's  sales  mix,  specifically  higher  sales of  frozen  beverage
dispensers  and lower sales of fountain  equipment.  The Company buys the frozen
beverage  dispenser  from a  joint  venture  in  which  the  Company  owns a 50%
interest.  The Company's share of the joint  venture's  earnings is presented as
other income in the Company's income statement.

Selling,  general and administrative  expenses rose from $10.2 million (13.9% of
net sales) in the first six months of 1998 to $10.5 million (14.2% of net sales)
in the first half of 1999.  Salary  expense  rose in support  of  marketing  and
product development activities.

Interest  expense for the first six months of 1999 declined to $1.8 million from
$1.9 million for the same period last year because of lower average  borrowings.
Other income, net, was $1.5 million in the first half of 1999, compared to other
expense,  net, of $0.1  million in the same period of 1998.  Increased  earnings
from the Company's 50% interest in a joint venture that produces frozen beverage
dispensers  caused  the  improvement.  Non-deductible  losses  incurred  by  the
Company's  Brazilian  subsidiary caused the Company's effective tax rate to rise
to 39.9% in the first  half of 1999 from  36.5% in the first  half of 1998.  Net
earnings  were $2.9  million for the first six months of 1999,  compared to $4.3
million for the same period last year.

Liquidity and Capital Resources

The Company's  principal sources of liquidity are cash flows from operations and
amounts available under the Company's  existing lines of credit. The Company has
met, and currently  expects that it will continue to meet,  substantially all of
its working capital and capital  expenditure  requirements,  as well as its debt
service requirements, with funds provided by operations and borrowings under its
credit facilities.  During the second quarter of 1999, the Company and its Banks
amended  certain  financial  covenants  contained in the credit  agreement  that
governs the Company's  primary credit  facilities.  The Company is in compliance
with the financial covenants contained in the credit agreement.

Cash  provided by  operating  activities  was $2.9  million in the first half of
1999,  compared  with cash used in operating  activities  of $1.8 million in the
first half of 1998.  The Company  made  capital  expenditures  of $2.4  million,
primarily for  production  tooling and  equipment.  During the second quarter of
1999,  the  Company  acquired  certain  assets  of  Allbar   Manufacturing   for
approximately $1.7 million.  The Company financed most of the purchase with bank
debt denominated in Australian dollars and the remainder with cash on hand.

Accounting Matters

The  Company  maintains  a DISC in order to defer  income  taxes on its  foreign
sales. The Company continues to evaluate the benefit of converting the DISC to a
Foreign Sales Corporation.  At the time of such conversion,  the Company will be
required to provide for federal  income taxes on $2.4  million of  undistributed
earnings of the DISC. See 1998 Form 10-K.

The Internal  Revenue  Service is examining the Company's U.S. income tax return
for 1995.  Management does not believe that any significant  adjustments will be
required.

In April 1998,  the AICPA issued SOP 98-5,  "Reporting  on the Costs of Start-Up
Activities,"  which  requires  that  costs  of  start-up  activities,  including
organizational  costs, be expensed as incurred.  Adoption of this SOP during the
three  months  ended  March  31,  1999 did not  have a  material  effect  on the
consolidated financial statements of the Company.
<PAGE>
                      LANCER CORPORATION AND SUBSIDIARIES
Year 2000

The Year 2000 ("Y2K") issue arose  because some computer  programs use two-digit
date fields to designate a year.  Some of these  programs  with  two-digit  date
fields will not  recognize  the year 2000, or may confuse it with the year 1900.
This date recognition problem could cause erroneous calculations, or could cause
entire systems to malfunction.

The Company has adopted a  two-phase  approach to the Year 2000  threat.  In the
Assessment  Phase,  the  Company  generated  a  comprehensive  inventory  of the
Company's  date-oriented  systems,  and determined which were not Y2K compliant.
The Renovation/Replacement  Phase involves correcting or replacing non-compliant
systems.  The Company has completed  substantially  all of the Assessment Phase.
The Renovation/Replacement  Phase is being executed as non-compliant systems are
identified.   The  Company   believes  that  it  has   corrected   high-priority
non-compliant   systems,   and   expects  to  have   corrected   medium-priority
non-compliant systems by September 30, 1999.

In the second quarter of 1998,  the Company  initiated  correspondence  with its
suppliers to determine  their Y2K  readiness.  The Company  plans to monitor the
readiness of its key suppliers throughout 1999. The Company intends to determine
the Y2K readiness of its key customers  during 1999.  The Coca-Cola  Company was
the Company's largest customer in 1998, accounting for 23% of sales.

The Company's primary information  technology ("IT") system is a BaaN ERP system
that was installed in 1996, and upgraded in 1998. The Company  believes the BaaN
system, and other major IT systems, are Y2K compliant. Among non-IT systems, the
Company has replaced a non-compliant  payroll  system,  and is in the process of
replacing  its  non-compliant   timekeeping   system.   The  Company  has  spent
approximately  75% of the  $200,000 it expects to spend on all of the  Company's
Y2K issues.

The Company believes there is low risk of any internal critical system not being
Y2K-compliant  by the end of 1999.  The  Company  continues  to assess  its risk
exposure  attributable to external  factors and suppliers.  Although the Company
has no reason to conclude that any specific supplier represents a risk, the most
likely  worst-case  Y2K  scenario  would  entail  production  disruption  due to
inability  of  suppliers  to deliver  critical  parts.  The Company is unable to
quantify such a scenario,  but it could potentially result in a material adverse
impact on the results of  operations,  liquidity  or  financial  position of the
Company.  The Company does not now have a formal  contingency  plan to deal with
non-performance by suppliers.  The Company intends,  however, to monitor the Y2K
readiness of key suppliers  throughout  1999, and to develop a contingency  plan
for any  supplier  whose  lack of  preparedness  may  jeopardize  the  Company's
operations.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

There have been no  significant  changes in the  Company's  market risk  factors
since December 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 Company's financial position or results of operations.
<PAGE>
                      LANCER CORPORATION AND SUBSIDIARIES

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

         At the annual  meeting of  shareholders  of the Company held on May 27,
1999,  the  shareholders  elected seven members of the Board of Directors of the
Company to serve until the next annual meeting of the shareholders.

The vote for nominated directors was as follows:
<TABLE>
<CAPTION>

        Nominee                             For               Authority Withheld
------------------------             ------------------       -------------------
<S>                                      <C>                        <C>
Alfred A. Schroeder                      8,543,767                  14,588
George F. Schroeder                      8,543,767                  14,588
Walter J. Beigler                        8,543,767                  14,588
Jean M. Braley                           8,543,767                  14,588
Charles K. Clymer                        8,543,767                  14,588
Micheal E. Smith                         8,543,767                  14,588
E.T. Summers                             8,543,767                  14,588
</TABLE>



Item 5 - Other Information

                  None

Item 6 - Exhibits and Reports on Form 8-K

         (a)      Exhibits:

                  10.39  Fourth  Amendment to Credit  Agreement  dated March 15,
                  1999 between  Lancer  Corporation  and The Frost National Bank
                  and NationsBank, N.A.

         (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 12, 1999                      By:  /S/ George F. Schroeder
                                          George F. Schroeder
                                          President and CEO



August 12, 1999                      By:  /S/David E. Green
                                          David E. Green
                                          Chief Financial Officer