<ARTICLE> 5 <CIK> 0000005588 <NAME> AMERICAN PAD AND PAPER CORP. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS 9-MOS <FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 <PERIOD-START> JUL-01-1997 JAN-01-1997 <PERIOD-END> SEP-30-1997 SEP-30-1997 <CASH> 674 674 <SECURITIES> 0 0 <RECEIVABLES> 78,612 78,612 <ALLOWANCES> (987) (987) <INVENTORY> 157,882 157,882 <CURRENT-ASSETS> 250,167 250,167 <PP&E> 171,918 171,918 <DEPRECIATION> (23,108) (23,108) <TOTAL-ASSETS> 641,101 641,101 <CURRENT-LIABILITIES> 117,356 117,356 <BONDS> 368,547 368,547 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 274 274 <OTHER-SE> 115,231 115,231 <TOTAL-LIABILITY-AND-EQUITY> 641,101 641,101 <SALES> 176,462 493,456 <TOTAL-REVENUES> 176,462 493,456 <CGS> 148,246 401,419 <TOTAL-COSTS> 163,726 447,231 <OTHER-EXPENSES> (112) (233) <LOSS-PROVISION> 51 372 <INTEREST-EXPENSE> 9,851 27,646 <INCOME-PRETAX> 2,997 18,812 <INCOME-TAX> 1,350 8,465 <INCOME-CONTINUING> 1,647 10,347 <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> 1,647 10,347 <EPS-PRIMARY> .06 .35 <EPS-DILUTED> 0 0