<ARTICLE> 5
<RESTATED> 
<MULTIPLIER>  1,000  
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               MAR-31-1997
<CASH>                                          76,900
<SECURITIES>                                         0
<RECEIVABLES>                                  613,200<F1>
<ALLOWANCES>                                         0
<INVENTORY>                                    379,400
<CURRENT-ASSETS>                             1,350,600<F2>
<PP&E>                                       3,282,300
<DEPRECIATION>                               1,456,600
<TOTAL-ASSETS>                               4,430,700
<CURRENT-LIABILITIES>                        1,362,600
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           800
<OTHER-SE>                                     310,000
<TOTAL-LIABILITY-AND-EQUITY>                 4,430,700
<SALES>                                        362,400<F3>
<TOTAL-REVENUES>                               366,000
<CGS>                                          223,000
<TOTAL-COSTS>                                  223,000
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               4,800
<INCOME-PRETAX>                                 17,500
<INCOME-TAX>                                     6,400
<INCOME-CONTINUING>                             11,100
<DISCONTINUED>                                  35,300<F4>
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    46,400
<EPS-PRIMARY>                                      .62
<EPS-DILUTED>                                      .60
<FN>
<F1>Amount shown is net of allowances.
<F2>Included within current assets are net assets of discontinued operations of
$57,500.
<F3>Excludes 1997 sales from the discontinued Packaging business segment of
$422,700.
<F4>Represents after-tax income from the discontinued Packaging business segment.
<F5> Restated to reflect the adoption of SFAS No. 128 and the classification of income
and expenses of Grace's flexible packaging business as net income of discontinued operations.
</FN>