Consolidated Statements of Cash Flows

		Year Ended December 31
		1996	1995
Operating Activities:
Net Income (loss)		$ (308.8)	$ 179.6
Adjustments for items not affecting cash from operating activities:
Estimated Restructuring Loss		465.0	0.0
Depreciation		268.7	284.0
Deferred Income Taxes		(67.0)	35.0
Other - net		9.1	2.1
Working capital (excluding financing and investing activities):
Receivables - operating		9.1	114.9
Receivables - sold		54.0	30.0
Inventories		(58.8)	(79.0)
Accounts payable		28.9	(5.6)
Employment costs and other		(60.6)	35.8
Other - net		1.2	(10.5)
Cash Provided from Operating Activities		340.8	586.3

Investing Activities:
Capital expenditures		(259.0)	(266.8)
Cash proceeds from asset sales and other		7.7	17.6
Cash Used for Investing Activities		(251.3)	(249.2)

Financing Activities:
Pension expense		192.0	210.0
Pension funding		(170.0)	(330.0)
Long-term debt and capital lease borrowings		3.1	3.6
Long-term debt and capital lease payments		(91.8)	(120.7)
Cash dividends paid		(40.4)	(40.4)
Other payments		(25.8)	(39.1)
Cash Used for Financing Activities		(132.9)	(316.6)

Net Increase (Decrease) in Cash and Cash Equivalents		(43.4)	20.5
Cash and Cash Equivalents	Beginning of Period	180.0	159.5
	End of Period	136.6	180.0


Supplemental Cash Payment Information:
Interest, net of amount capitalized		$ 52.8	$ 61.1
Income taxes		$ 3.7	$ 0.0

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

Bethlehem Steel Corporation