<ARTICLE> 5 <MULTIPLIER> 1,000,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> MAR-31-1998 <CASH> 487 <SECURITIES> 0 <RECEIVABLES> 1845 <ALLOWANCES> 19 <INVENTORY> 2359 <CURRENT-ASSETS> 5073 <PP&E> 27161 <DEPRECIATION> 15660 <TOTAL-ASSETS> 20342 <CURRENT-LIABILITIES> 4298 <BONDS> 3313 <PREFERRED-MANDATORY> 182 <PREFERRED> 3 <COMMON> 376<F1> <OTHER-SE> 5216 <TOTAL-LIABILITY-AND-EQUITY> 20342 <SALES> 6887 <TOTAL-REVENUES> 7187 <CGS> 6623 <TOTAL-COSTS> 6623 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 89 <INCOME-PRETAX> 482 <INCOME-TAX> 158 <INCOME-CONTINUING> 270 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 270 <EPS-PRIMARY> 0<F2> <EPS-DILUTED> 0<F3> <FN> <F1>Consists of Marathon Stock issued, $289; Steel Stock issued, $87. <F2>Basic earnings per share applicable to Marathon Stock,$.63; Steel Stock, $.98. <F3>Diluted earnings per share applicable to Marathon Stock, $.63; Steel Stock, $.95. </FN>