Consolidated Balance Sheets

	September 30 1997 (unaudited)	December 31 1996	September 30 1996 (unaudited)
Current Assets:
Cash and cash equivalents	$ 164.8	$ 136.6	$ 106.3
Receivables, less allowances	307.8	311.6	327.9
Inventories:
Raw materials	325.8	332.0	307.3
Finished and semifinished	560.9	667.0	623.3
Contract work-in-progress, less billings	7.7	18.3	19.0
	894.4	1,017.3	949.6
Other current assets	10.4	22.9	9.4

Total Current Assets	1,377.4	1,488.4	1,393.2
Investments and Miscellaneous Assets	103.2	106.7	113.3
Property, Plant and Equipment, less accumulated depreciation of $4,067.5, $3,924.3, and $4,476.6	2,404.7	2,419.8	2,670.0

Deferred Income Tax Asset - net	888.7	935.0	875.0
Intangible Asset - Pensions	160.0	160.0	463.0

Total Assets	$ 4,934.0	$ 5,109.9	$ 5,514.5

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$ 400.9	$ 410.4	$ 394.0
Accrued employment costs	314.0	313.3	313.7
Accrued taxes	57.3	67.9	62.3
Debt and capital lease obligations	41.8	49.3	61.5
Other current liabilities	106.1	116.5	98.6

Total Current Liabilities	920.1	957.4	930.1

Pension Liability	598.0	870.0	1,101.7
Postretirement Benefits Other Than Pensions	1,442.4	1,445.0	1,419.5
Long-term Debt and Capital Lease Obligations	451.7	497.4	499.5
Other Long-term Liabilities	340.5	374.1	310.1

Stockholders' Equity:
Preferred Stock	11.6	11.6	11.6
Preference Stock	2.5	2.5	2.6
Common Stock	114.5	113.9	113.6
Common Stock held in treasury at cost	(60.0)	(59.7)	(59.4)
Additional paid-in capital	1,862.0	1,886.3	1,827.3
Accumulated deficit	(749.6)	(988.6)	(642.1)

Total Stockholders' Equity	1,181.3	966.0	1,253.6

Total Liabilities and Stockholders' Equity	$ 4,934.0	$ 5,109.9	$ 5,514.5

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

Bethlehem Steel Corporation