<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF ALLIS-CHALMERS CORPORATION AS OF
AND FOR THE PERIOD ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                             538
<SECURITIES>                                     1,350
<RECEIVABLES>                                      516
<ALLOWANCES>                                         0<F1>
<INVENTORY>                                         75
<CURRENT-ASSETS>                                 2,688
<PP&E>                                           2,248
<DEPRECIATION>                                   1,357
<TOTAL-ASSETS>                                   3,579
<CURRENT-LIABILITIES>                            3,066
<BONDS>                                            265
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         8,307
<OTHER-SE>                                    (19,405)
<TOTAL-LIABILITY-AND-EQUITY>                   (3,579)
<SALES>                                              0
<TOTAL-REVENUES>                                 3,109
<CGS>                                                0
<TOTAL-COSTS>                                    2,301
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  23
<INCOME-PRETAX>                                (1,178)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (1,178)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (1,178)
<EPS-PRIMARY>                                   (1.17)
<EPS-DILUTED>                                   (1.17)
<FN>
<F1>The Company reports Accounts Receivable Net of Allowance for doubtful accounts.
</FN>