INVESTOR RELATIONS

BETHLEHEM STEEL ANNOUNCES FIRST QUARTER 1997 RESULTS

CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
(unaudited)

      Three Months Ended
March 31
 
      1997   1996
Operating Activities:          
Net income   $ 38.4 $ 0.1
Adjustments for items not affecting cash from
operating activities:
         
Depreciation     56.9   69.9
Deferred Income Taxes     7.5   -
Other - net     9.3   5.3
Working capital (excluding financing and
investing activities):
         
Receivables - operating     (20.1)   (20.6)
Receivables - sold     -   60.0
Inventories     36.5   (37.1)
Accounts payable     (43.3)   8.2
Employment costs and other     (17.1)   (63.8)
Cash Provided from Operating Activities     68.1   22.0
Investing Activities:          
Capital expenditures     (50.0)   (59.9)
Cash proceeds from asset sales and other     1.3   2.5
Cash Used for Investing Activities     (48.7)   (57.4)
Financing Activities:          
Pension expense     40.9   47.6
Pension funding     (25.0)   (10.0)
Long-term debt and capital lease borrowings     0.4   0.7
Long-term debt and capital lease payments     (25.7)   (34.8)
Cash dividends paid     (10.1)   (10.1)
Other payments     (2.6)   (7.5)
Cash Used for Financing Activities     (22.1)   (14.1)
Net Decrease in Cash and Cash Equivalents     (2.7)   (49.5)
Cash and Cash Equivalents - Beginning of Period   136.6   180.0
  - End of Period $ 133.9 $ 130.5
Supplemental Cash Payment Information:          
Interest, net of amount capitalized   $ 15.8 $ 23.0
Income taxes   $ 7.5 $ 3.2

The accompanying Notes are an integral part of the Consolidated Financial Statements.

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