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

                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                               8
<SECURITIES>                                         0
<RECEIVABLES>                                    1,390
<ALLOWANCES>                                        19
<INVENTORY>                                      1,357
<CURRENT-ASSETS>                                 2,916
<PP&E>                                          14,134
<DEPRECIATION>                                   7,837
<TOTAL-ASSETS>                                  12,950
<CURRENT-LIABILITIES>                            3,020
<BONDS>                                          3,713
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           148
<OTHER-SE>                                       3,322
<TOTAL-LIABILITY-AND-EQUITY>                    12,950
<SALES>                                         13,094
<TOTAL-REVENUES>                                13,094
<CGS>                                           10,209
<TOTAL-COSTS>                                   10,209
<OTHER-EXPENSES>                                 1,017
<LOSS-PROVISION>                                    21
<INTEREST-EXPENSE>                                 465
<INCOME-PRETAX>                                    235
<INCOME-TAX>                                       106
<INCOME-CONTINUING>                                129
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                         (60)
<NET-INCOME>                                        69
<EPS-BASIC>                                     (0.80)<F1>
<EPS-DILUTED>                                   (0.80)<F2>
<FN>
<F1> The Timber Company EPS-BASIC is  2.35.
<F2> The Timber Company EPS-DILUTED is  2.33.
</FN>