<ARTICLE>  5
<LEGEND> THIS SCHEDULE  CONTAINS SUMMARY  FINANCIAL  INFORMATION  EXTRACTED
FROM  ASHLAND  INC.'S 1ST QUARTER  10-Q AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH 10-Q.
<MULTIPLIER>  1,000,000
       
                                                
<PERIOD-TYPE>                                      3-MOS
<FISCAL-YEAR-END>                                  SEP-30-1997
<PERIOD-END>                                       DEC-31-1996
<CASH>                                             50
<SECURITIES>                                       0
<RECEIVABLES>                                      1,753
<ALLOWANCES>                                       27
<INVENTORY>                                        801
<CURRENT-ASSETS>                                   2,823
<PP&E>                                             7,450
<DEPRECIATION>                                     3,736
<TOTAL-ASSETS>                                     7,362
<CURRENT-LIABILITIES>                              2,244
<BONDS>                                            1,860
<COMMON>                                           65
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        293
<OTHER-SE>                                         1,490
<TOTAL-LIABILITY-AND-EQUITY>                       7,362
<SALES>                                            3,427
<TOTAL-REVENUES>                                   3,446
<CGS>                                              3,025
<TOTAL-COSTS>                                      3,025
<OTHER-EXPENSES>                                   333
<LOSS-PROVISION>                                   0
<INTEREST-EXPENSE>                                 41
<INCOME-PRETAX>                                    47
<INCOME-TAX>                                       15
<INCOME-CONTINUING>                                36
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                       36
<EPS-PRIMARY>                                      .47
<EPS-DILUTED>                                      .47