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

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                              29
<SECURITIES>                                         0
<RECEIVABLES>                                    1,384
<ALLOWANCES>                                        12
<INVENTORY>                                      1,317
<CURRENT-ASSETS>                                 2,850
<PP&E>                                          14,149
<DEPRECIATION>                                   7,925
<TOTAL-ASSETS>                                  12,846
<CURRENT-LIABILITIES>                            3,126
<BONDS>                                          3,519
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           146
<OTHER-SE>                                       3,280
<TOTAL-LIABILITY-AND-EQUITY>                    12,846
<SALES>                                          3,223
<TOTAL-REVENUES>                                 3,223
<CGS>                                            2,465
<TOTAL-COSTS>                                    2,465
<OTHER-EXPENSES>                                   240
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 114
<INCOME-PRETAX>                                    117
<INCOME-TAX>                                        49
<INCOME-CONTINUING>                                 68
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                   (14)
<CHANGES>                                            0
<NET-INCOME>                                        54
<EPS-BASIC>                                       0.02<F1>
<EPS-DILUTED>                                     0.02<F2>
<FN>
<F1> The Timber Company EPS-BASIC is  0.54.
<F2> The Timber Company EPS-DILUTED is  0.54.
</FN>