<ARTICLE> 5
<CIK> 0000355766
<NAME> THE HALLWOOD GROUP INCORPORATED
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               MAR-31-1999
<CASH>                                           1,043
<SECURITIES>                                     9,991
<RECEIVABLES>                                        0
<ALLOWANCES>                                         0
<INVENTORY>                                     18,530
<CURRENT-ASSETS>                                     0
<PP&E>                                         182,063
<DEPRECIATION>                                 130,411
<TOTAL-ASSETS>                                 115,610
<CURRENT-LIABILITIES>                                0
<BONDS>                                         21,426
<PREFERRED-MANDATORY>                            1,000
<PREFERRED>                                          0
<COMMON>                                           160
<OTHER-SE>                                      21,283
<TOTAL-LIABILITY-AND-EQUITY>                   115,610
<SALES>                                              0
<TOTAL-REVENUES>                                31,415
<CGS>                                                0
<TOTAL-COSTS>                                   29,650
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,249
<INCOME-PRETAX>                                    516
<INCOME-TAX>                                        11
<INCOME-CONTINUING>                                505
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       505
<EPS-PRIMARY>                                     0.40
<EPS-DILUTED>                                     0.40