<ARTICLE> 5 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 65,300 <SECURITIES> 0 <RECEIVABLES> 202,400 <ALLOWANCES> 5,500 <INVENTORY> 130,100 <CURRENT-ASSETS> 625,600<F1> <PP&E> 1,540,500 <DEPRECIATION> 879,100 <TOTAL-ASSETS> 2,577,800<F1> <CURRENT-LIABILITIES> 688,200 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 700 <OTHER-SE> 86,900 <TOTAL-LIABILITY-AND-EQUITY> 2,577,800 <SALES> 1,463,400<F2> <TOTAL-REVENUES> 1,511,900 <CGS> 884,800 <TOTAL-COSTS> 884,800 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 20,200<F3> <INCOME-PRETAX> (214,700) <INCOME-TAX> (69,000) <INCOME-CONTINUING> (145,700) <DISCONTINUED> (2,600)<F4> <EXTRAORDINARY> (35,300)<F5> <CHANGES> 0 <NET-INCOME> (183,600) <EPS-PRIMARY> (2.46) <EPS-DILUTED> (2.46) <FN> <F1> Includes net assets of discontinued operations of $8,300. <F2> Excludes sales of $431,200 of the Packaging Business, which was classified as a discontinued operation as of December 31, 1997. <F3> Excludes interest expense allocated to Grace's discontinued operations of $13,300 ($8,700 after-tax). <F4> Includes pretax operating income of the Packaging Business of $60,500 ($39,900 after-tax), allocated interest expense of $13,300 ($8,700 after-tax), costs related to the Packaging Business transaction of $32,600 ($28,300 after-tax) and a related pension plan curtailment loss of $8,400 ($5,500 after-tax). <F5> Reflects extraordinary loss on extinguishment of debt, net of tax. </FN>