<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF ALLIS-CHALMERS CORPORATION AS OF AND FOR THE
THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                             124
<SECURITIES>                                       900
<RECEIVABLES>                                      821
<ALLOWANCES>                                        30
<INVENTORY>                                         77
<CURRENT-ASSETS>                                 2,025
<PP&E>                                           2,385
<DEPRECIATION>                                   1,361
<TOTAL-ASSETS>                                   3,049
<CURRENT-LIABILITIES>                            7,939
<BONDS>                                            320
<PREFERRED-MANDATORY>                            8,307
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                    (22,555)
<TOTAL-LIABILITY-AND-EQUITY>                   (3,049)
<SALES>                                              0
<TOTAL-REVENUES>                                 1,028
<CGS>                                                0
<TOTAL-COSTS>                                      817
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  (604)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                              (604)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (604)
<EPS-PRIMARY>                                    (.60)
<EPS-DILUTED>                                    (.60)