<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                               7
<SECURITIES>                                         0
<RECEIVABLES>                                    1,418
<ALLOWANCES>                                        12
<INVENTORY>                                      1,269
<CURRENT-ASSETS>                                 2,871
<PP&E>                                          14,162
<DEPRECIATION>                                   8,024
<TOTAL-ASSETS>                                  12,999
<CURRENT-LIABILITIES>                            2,589
<BONDS>                                          4,140
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           148
<OTHER-SE>                                       3,300
<TOTAL-LIABILITY-AND-EQUITY>                    12,999
<SALES>                                          6,530
<TOTAL-REVENUES>                                 6,530
<CGS>                                            5,010
<TOTAL-COSTS>                                    5,010
<OTHER-EXPENSES>                                   491
<LOSS-PROVISION>                                     2
<INTEREST-EXPENSE>                                 225
<INCOME-PRETAX>                                    234
<INCOME-TAX>                                        98
<INCOME-CONTINUING>                                136
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                   (15)
<CHANGES>                                            0
<NET-INCOME>                                       121
<EPS-BASIC>                                       0.18<F1>
<EPS-DILUTED>                                     0.18<F2>
<FN>
<F1> The Timber Company EPS-BASIC is  0.95.
<F2> The Timber Company EPS-DILUTED is  0.94.
</FN>