INVESTOR RELATIONS

BETHLEHEM STEEL ANNOUNCES FOURTH QUARTER 1997 RESULTS

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

Year Ended
December 31
1997 1996
Operating Activities:
Net income (loss) $ 280.7 $ (308.8)
Adjustments for items not affecting cash from
operating activities:
Depreciation 231.0 268.7
Estimated (gain) loss on exiting
businesses
(135.0) 465.0
Deferred income taxes 53.0 (67.0)
Other - net 28.2 9.1
Working capital (excluding financing and investing activities):
Receivables - operating 11.6 9.1
Receivables - sold (6.0) 54.0
Inventories 115.6 (58.8)
Accounts payable (24.5) 28.9
Employment costs and other (3.7) (59.4)
Cash Provided from Operating Activities 550.9 340.8
Investing Activities:
Capital expenditures (228.2) (259.0)
Cash proceeds from asset sales and other 191.8 7.7
Cash Used for Investing Activities (36.4) (251.3)
Financing Activities:
Pension expense 155.0 192.0
Pension funding (425.0) (170.0)
Long-term debt and capital lease borrowings 1.9 3.1
Long-term debt and capital lease payments (53.4) (91.8)
Cash dividends paid (40.4) (40.4)
Other payments (36.8) (25.8)
Cash Used for Financing Activities (398.7) (132.9)
Net Increase (Decrease) in Cash and Cash Equivalents 115.8 (43.4)
Cash and Cash Equivalents - Beginning of Period 136.6 180.0
- End of Period $ 252.4 $ 136.6
Supplemental Cash Payment Information:
Interest, net of amount capitalized $ 52.6 $ 52.8
Income taxes $ 7.6 $ 3.7

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

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