Consolidated Statements of Cash Flows

	Nine Months Ended September 30
	1996	1995
Operating Activities:
Net Income	$ 37.7	$ 147.2
Adjustments for items not affecting cash from operating activities:
Estimated Restructuring Loss	15.0	0.0
Depreciation	208.6	213.2
Deferred Income Taxes	7.7	29.5
Other - net	11.2	(4.4)
Working capital (excluding financing and investing activities):
Receivables - operating	(13.2)	(3.8)
Receivables - sold	60.0	0.0
Inventories	8.9	(27.4)
Accounts payable	12.5	1.8
Employment costs and other	(80.0)	(8.9)
Other - net	(1.2)	(38.5)
Cash Provided from Operating Activities	266.3	308.7

Investing Activities:
Capital expenditures	(205.8)	(204.9)
Cash proceeds from asset sales and other	6.0	13.9
Cash Used for Investing Activities	(199.8)	(191.0)

Financing Activities:
Pension expense	141.7	159.2
Pension funding	(155.0)	(220.0)
Long-term debt and capital lease borrowings	2.4	3.1
Long-term debt and capital lease payments	(77.4)	(79.7)
Cash dividends paid	(30.3)	(30.3)
Other payments	(21.6)	(7.1)
Cash Used for Financing Activities	(140.2)	(174.8)

Net Decrease in Cash and Cash Equivalents	(73.7)	(57.1)
Cash and Cash Equivalents	180.0	159.5
	$ 106.3	$ 102.4

Supplemental Cash Payment Information:
Interest, net of amount capitalized	$ 41.2	$ 53.9
Income taxes	$ 3.3	$ 0.0

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

Bethlehem Steel Corporation