INVESTOR RELATIONS

BETHLEHEM STEEL ANNOUNCES THIRD QUARTER 1997 RESULTS

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

  Nine Months Ended
September 30
            1997     1996
Operating Activities:                  
Net income       $ 239.0   $ 37.7
                   
Adjustments for items not affecting cash from
operating activities:
           
                   
Depreciation         173.7     208.6
Estimated (gain) loss on exiting
businesses
        (135.0)     15.0
Deferred income taxes         46.3     7.7
Other - net         17.3     10.0
                   
Working capital (excluding financing and investing activities):            
Receivables - operating         3.8     (13.2)
Receivables - sold         -     60.0
Inventories         115.3     8.9
Accounts payable         (9.3)     12.5
Employment costs and other         (10.7)     (80.9)
                   
Cash Provided from Operating Activities         440.4     266.3
                   
Investing Activities:                
Capital expenditures         (189.3)     (205.8)
Cash proceeds from asset sales and other     160.9     6.0
                   
Cash Used for Investing Activities         (28.4)     (199.8)
                   
Financing Activities:                
Pension expense         117.0     141.7
Pension funding         (390.0)     (155.0)
Long-term debt and capital lease borrowings     1.5     2.4
Long-term debt and capital lease payments     (53.3)     (77.4)
Cash dividends paid         (30.3)     (30.3)
Other payments         (28.7)     (21.6)
                   
Cash Used for Financing Activities         (383.8)     (140.2)
                   
Net Increase (Decrease) in Cash and Cash Equivalents         28.2     (73.7)
Cash and Cash Equivalents   - Beginning of Period     136.6     180.0
                   
      - End of Period   $ 164.8   $ 106.3
                   
Supplemental Cash Payment Information:                
Interest, net of amount capitalized       $ 42.8   $ 41.2
Income taxes       $ 7.1   $ 3.3

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

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