<ARTICLE> 5
<LEGEND>       THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION 
               EXTRACTED FROM THE ARMCO INC. STATEMENT OF CONSOLIDATED 
               FINANCIAL POSITION AND STATEMENT OF CONSOLIDATED INCOME
               AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
               FINANCIAL STATEMENTS.
                
<MULTIPLIER> 1,000
       
                           
<PERIOD-TYPE>                 12-MOS
<FISCAL-YEAR-END>             DEC-31-1996
<PERIOD-END>                  DEC-31-1996
<CASH>                            168,900
<SECURITIES>                            0
<RECEIVABLES>                     149,600
<ALLOWANCES>                        3,800
<INVENTORY>                       246,900
<CURRENT-ASSETS>                  571,800
<PP&E>                          1,267,700
<DEPRECIATION>                    597,600
<TOTAL-ASSETS>                  1,867,800
<CURRENT-LIABILITIES>             358,200
<BONDS>                           344,300
<COMMON>                            1,100
<PREFERRED-MANDATORY>                   0
<PREFERRED>                       185,900
<OTHER-SE>                       (399,000)
<TOTAL-LIABILITY-AND-EQUITY>    1,867,800
<SALES>                         1,724,000
<TOTAL-REVENUES>                1,724,000
<CGS>                           1,549,700
<TOTAL-COSTS>                   1,549,700
<OTHER-EXPENSES>                        0
<LOSS-PROVISION>                        0
<INTEREST-EXPENSE>                 36,300
<INCOME-PRETAX>                    27,400
<INCOME-TAX>                        1,400
<INCOME-CONTINUING>                26,000
<DISCONTINUED>                      6,500
<EXTRAORDINARY>                         0
<CHANGES>                               0
<NET-INCOME>                       32,500
<EPS-PRIMARY>                        0.14
<EPS-DILUTED>                        0.25