<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF CLAYTON HOMES, INC. FOR THE THREE MONTHS ENDED SEPTEMBER
30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               SEP-30-1998
<EXCHANGE-RATE>                                      1
<CASH>                                          11,248
<SECURITIES>                                         0
<RECEIVABLES>                                  918,573
<ALLOWANCES>                                    28,682
<INVENTORY>                                    149,392
<CURRENT-ASSETS>                                     0
<PP&E>                                         341,571
<DEPRECIATION>                                  70,334
<TOTAL-ASSETS>                               1,525,221
<CURRENT-LIABILITIES>                          115,941
<BONDS>                                        355,129
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        11,632
<OTHER-SE>                                     857,818
<TOTAL-LIABILITY-AND-EQUITY>                 1,525,221
<SALES>                                        247,192
<TOTAL-REVENUES>                               314,686
<CGS>                                          171,662
<TOTAL-COSTS>                                  255,987
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                 2,559
<INTEREST-EXPENSE>                               3,443
<INCOME-PRETAX>                                 52,697
<INCOME-TAX>                                    19,500
<INCOME-CONTINUING>                             33,197
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    33,197
<EPS-PRIMARY>                                      .28
<EPS-DILUTED>                                      .28