<ARTICLE> 5
<MULTIPLIER> 1,000,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                             146
<SECURITIES>                                         0
<RECEIVABLES>                                    1,675
<ALLOWANCES>                                        12
<INVENTORY>                                      2,008
<CURRENT-ASSETS>                                 4,206
<PP&E>                                          29,167
<DEPRECIATION>                                  16,238
<TOTAL-ASSETS>                                  21,133
<CURRENT-LIABILITIES>                            3,619
<BONDS>                                          3,920
<PREFERRED-MANDATORY>                              432
<PREFERRED>                                          3
<COMMON>                                           397<F1>
<OTHER-SE>                                       6,005
<TOTAL-LIABILITY-AND-EQUITY>                    21,133
<SALES>                                         27,887
<TOTAL-REVENUES>                                28,335
<CGS>                                           20,712
<TOTAL-COSTS>                                   26,818
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 279
<INCOME-PRETAX>                                    989
<INCOME-TAX>                                       315
<INCOME-CONTINUING>                                674
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       674
<EPS-PRIMARY>                                        0<F2>
<EPS-DILUTED>                                        0<F3>
<FN>
<F1>Consists of Marathon Stock issued, $308; Steel Stock issued, $88; Securities
Exchangeable solely into Marathon Stock, $1.
<F2>Basic earnings (loss) per share applicable to Marathon Stock, $1.06; Steel
Stock, $4.05.
<F3>Diluted earnings (loss) per share applicable to marathon Stock, $1.05; Steel
Stock, $3.92.
</FN>