UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549



                            FORM 10-Q
(Mark One)

[X] Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934

      For the quarterly period ended  September 27, 1996 or

[   ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

        For the transition period from _______ to _______
                                
                Commission File Number:  0-21204
                                
                                
                   SOUTHERN ENERGY HOMES, INC.
     (Exact name of registrant as specified in its charter)

               Delaware
63-1083246
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)


          Highway 41 North, P.O. Box 390, Addison, Alabama
35540
                    (Address of principal executive offices)
(Zip Code)

                         (205) 747-8589
      (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant:  (1)  has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports) and (2)  has been subject to such filing
requirements for the past 90 days.

                       Yes  [X]   No  [  ]

Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.


   15,101,706 shares of Common Stock, $.0001 par value, as of
                        October 31, 1996

          SOUTHERN ENERGY HOMES, INC. AND SUBSIDIARIES


                              INDEX

                                                       Page
PART I         FINANCIAL INFORMATION:

          Consolidated Condensed Balance Sheets,
               September 27, 1996 and December 29, 1995
2

          Consolidated Condensed Statements of Operations -
Thirteen
               Weeks Ended September 27, 1996 and September 29,
1995, and
               Thirty-nine Weeks Ended September 27, 1996 and
September 29, 1995      3

          Consolidated Condensed Statements of Cash Flows -
Thirty-nine
               Weeks Ended September 27, 1996 and September 29,
1995            4

          Notes to Consolidated Condensed Financial Statements
5

          Management's Discussion and Analysis of Financial
               Condition and Results of Operations
7

PART II        OTHER INFORMATION
10


          SIGNATURES
11
I.  FINANCIAL INFORMATION
Item 1.  Financial Statements

          SOUTHERN ENERGY HOMES, INC. AND SUBSIDIARIES
              CONSOLIDATED CONDENSED BALANCE SHEETS
                           (Unaudited)
                                        September     December
                                        27,           29,
                                                      
                                        1996          1995
                             ASSETS
CURRENT ASSETS:                                       
   Cash and cash equivalents            $4,195,000    $16,750,000
   Investments                          650,000       2,076,000
   Accounts receivable (less allowance                
for doubtful accounts of                26,024,000    21,070,000
     $182,000 in 1996 and $163,000 in
1995)
   Installment contracts receivable -   622,000       18,000
current
   Inventories                          15,322,000    11,226,000
   Deferred tax benefits                2,188,000     1,269,000
   Prepayments and other                              
                                        1,520,000     623,000
                                                       53,032,000
                                        50,521,000
                                                      
PROPERTY AND EQUIPMENT:                               
   Property and equipment, at cost      20,928,000    17,521,000
   Less - Accumulated depreciation                    
                                        (4,855,000)   (3,690,000)
                                         16,073,000    13,831,000
                                                      
INSTALLMENT CONTRACTS RECEIVABLE, less
allowance
   for credit losses of $991,000 and    24,689,000    638,000
$0, respectively
                                                      
INTANGIBLES AND OTHER ASSETS:                         
   Goodwill                             7,691,000     7,509,000
   Non-compete agreements               648,000       328,000
   Organization and pre-operating costs 508,000       523,000
   Other assets                                       
                                        40,000        38,000
                                                      
                                        8,887,000     8,398,000
                                        $100,170,000  $75,899,000
                                                      
              LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:                                  
   Current maturities of long-term debt $             $
                                        29,000        86,000
   Accounts payable                     10,841,000    4,947,000
   Accrued liabilities                                
                                        19,991,000    13,618,000
                                                      
                                        30,861,000    18,651,000
                                                      
LONG-TERM DEBT                          -             6,000
                                                      
STOCKHOLDERS' EQUITY:                                 
   Preferred stock, $.0001 par value,                 
1,000,000 shares authorized,
      none outstanding
   Common stock, $.0001 par value,                    
20,000,000 shares authorized,                         
     15,101,706 shares outstanding at   2,000         2,000
September 27, 1996 and
     15,053,388 at December 29, 1995
   Capital in excess of par             31,445,000    31,110,000
   Retained earnings                                  
                                        37,862,000    26,130,000
                                                      
                                        69,309,000    57,242,000
                                        $100,170,000  $75,899,000
The accompanying notes are an integral part of these consolidated
                 condensed financial statements.
                                
               SOUTHERN ENERGY HOMES, INC. AND SUBSIDIARIES
             CONSOLIDATED CONDENSED STATEMENTS OF  OPERATIONS
                               (Unaudited)
                                                                          
                                Thirteen Weeks           Thirty-nine Weeks
                                         Ended                       Ended
                       September     September     September     September
                             27,           29,           27,           29,
                                                                          
                            1996          1995          1996          1995
                                                                          
NET SALES            $77,414,000   $58,460,000  $232,446,000  $175,244,000
                                                                          
COST OF SALES                       50,550,000                            
                      66,490,000                 199,571,000   152,167,000
                                                                          
        Gross                                                             
profit                10,924,000     7,910,000    32,875,000    23,077,000
                                                                          
OPERATING EXPENSES:                                                       
  Selling                            1,322,000     4,910,000     4,178,000
                       1,731,000
  General and                        1,837,000     7,942,000     5,474,000
administrative         2,526,000
  Provision for                              -     1,066,000             -
credit losses            168,000
  Amortization of                                                         
intangibles              130,000       104,000       379,000       312,000
                                                                          
                                                                          
                       4,555,000     3,263,000    14,297,000     9,964,000
                                                                          
        Operating                                                         
income                 6,369,000     4,647,000    18,578,000    13,113,000
                                                                          
INTEREST EXPENSE           7,000         3,000        10,000       141,000
INTEREST INCOME          164,000       175,000       501,000       523,000
                                                                          
        Income                                                            
before income taxes    6,526,000     4,819,000    19,069,000    13,495,000
                                                                          
PROVISION FOR                                                             
INCOME TAXES           2,509,000     1,755,000     7,337,000     4,949,000
                                                                          
        Net income   $ 4,017,000   $ 3,064,000  $ 11,732,000  $  8,546,000
                                                             
NET INCOME PER             $0.27         $0.22         $0.78         $0.60
SHARE
                                                             
WEIGHTED AVERAGE                                                          
NUMBER OF                                                                 
  COMMON AND COMMON                                                       
  EQUIVALENT SHARES   15,101,706    14,161,336    15,075,229    14,161,336
                                                                          
The accompanying notes are an integral part of these consolidated
condensed financial statements.
                                
               SOUTHERN ENERGY HOMES, INC. AND SUBSIDIARIES                  
              CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                               (Unaudited)
                                             Thirty-nine Weeks Ended      
                                             September       September
                                             27,             29,
                                                             
                                             1996            1995
OPERATING ACTIVITIES:                                        
   Net income                                $11,732,000     $8,546,000
   Adjustments to reconcile net income to                    
cash (used in) provided
      by operating activities
       Depreciation of property and          1,165,000       902,000
equipment
       Amortization of intangibles           379,000         312,000
       Credit for deferred tax benefits      (919,000)       (302,000)
       Provision for doubtful accounts       19              27,000
       Accretion of discount on debt         -               78,000
       Provision for credit losses           1,066,000       -
       Origination of installment contracts  (25,731,000)    -
       Principal collected on originated     85,000          -
installment contracts
       Change in assets and liabilities:                     
         Increase in inventory               (4,096,000)     (1,043)
         Increase in accounts receivable     (4,973,000)     (4,848,000)
         Increase in prepayments and other   (1,765,000)     (1,181,000)
         Increase in accounts payable        5,894,000       2,218,000
         Increase in accrued liabilities                     
                                             6,373,000       2,549,000
                                                             
           Net cash (used in) provided by                    
operating activities                         (10,846,000)    7,258,000
                                                             
INVESTING ACTIVITIES:                                        
   Purchase of subsidiary, net of cash       (413,000)       -
acquired
   Capital expenditures                      (2,994,000)     (3,643,000)
   Maturities of investments                 2,076,000       2,757,000
   Purchase of investments                                   
                                             (650,000)       -
                                                             
           Net cash (used in) provided by                    
investing activities                         (1,981,000)     (886,000)
                                                             
FINANCING ACTIVITIES:                                        
     Repayments on long-term debt                            (1,432,000)
                                             (63,000)
     Proceeds from exercise of stock options                 
                                             335,000         -
                                                             
           Net cash (used in) provided by    272,000         (1,432,000)
financing activities
                                                             
NET INCREASE (DECREASE) IN CASH                              
                                             (12,555,000)    (4,940,000)
                                                             
CASH AND CASH EQUIVALENTS AT THE BEGINNING                   
OF THE                                                       
  PERIOD                                     16,750,000      4,004,000
                                                             
CASH AND CASH EQUIVALENTS AT THE END OF THE  $  4,195,000    $ 8,944,000
PERIOD
                                                             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW                         
INFORMATION:
                                                             
     Cash paid during the period for         $     10,000    $    72,000
interest
                                                             
     Income taxes paid                       $  6,778,000    $ 5,356,000

The accompanying notes are an integral part of these consolidated
condensed financial statements.
                                
                                
          SOUTHERN ENERGY HOMES, INC. AND SUBSIDIARIES
      NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                                
1.  BASIS OF PRESENTATION:

The consolidated condensed balance sheet as of December 29, 1995,
which has been derived from audited financial statements, and the
unaudited interim consolidated condensed financial statements as
of September 27, 1996, have been prepared by the Company without
audit, but in the opinion of management reflect all adjustments
necessary for the fair presentation of the Company's financial
position as of December 29, 1995 and September 27, 1996 and the
results of operations for the thirteen and Thirty-nine week
periods ended September 27, 1996 and September 29, 1995.  Results
of operations for the interim 1996 period are not necessarily
indicative of results expected for the full year.  While certain
information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations of the Securities and
Exchange Commission, the Company believes that the disclosures
herein are adequate to make the information presented not
misleading.  These financial statements should be read in
conjunction with the audited financial statements and the notes
thereto included in the Company's 1995 Annual Report to
Shareholders for the year ended December 29, 1995.
2.  INVENTORIES:

Inventories are valued at first-in, first-out ("FIFO") cost,
which is not in excess of market.  An analysis of inventories
follows:

                              September 27,  December 29,
                                      1996          1995
                                          (Unaudited)
     Raw materials                   $13,427,000    $  9,658,000
     Work in progress                  1,120,000       1,007,000
     Finished goods                      775,000         561,000
                                     $15,322,000     $11,226,000

3.  NET INCOME PER SHARE:

Net income per common and common equivalent share is computed by
dividing net income by the weighted average number of shares of
common stock and common stock equivalents outstanding during the
periods.  An analysis of weighted average shares outstanding
follows:

                             Thirteen weeks ended    Thirty-nine weeks ended
                     September 27,  September 29,  September 27, September 29,
                             1996           1995           1996          1995
Weighted average shares,
  excluding stock option
                effects  15,101,706     14,161,336    15,053,388   14,161,336

Weighted average effect
  of stock options                0              0        21,841            0

Weighted average shares  15,101,706     14,161,336    15,075,229   14,161,336
4.  REPURCHASE AGREEMENTS:

It is customary practice for companies in the manufactured home
industry to enter into repurchase agreements with financial
institutions which provide financing to dealers.  Generally, the
agreements provide for the repurchase of the manufactured homes
from the financing institution in the event of repossession upon
a dealer's default.  The Company's contingent liability under
such agreements is approximately $88.0 million as of September
27, 1996.  Losses experienced under these agreements have not
been significant and, in the opinion of management, any future
losses under these agreements should not have a material effect
on the accompanying financial statements.
5.  STOCK SPLIT:

On June 5, 1996, the Board of Directors of the Company voted to
approve a three-for-two stock split of the Company's common
stock, payable in the form of a 50% stock dividend on July 3,
1996 to shareholders of record on June 19, 1996.  The stock split
resulted in one additional share of common stock being issued for
each two shares of common stock issued and outstanding on the
record date.  The par value of the common stock will remain
unchanged at $.0001 per share.  Cash was paid in lieu of issuing
fractional shares.  All share and per share amounts have been
retroactively restated to reflect this split.
6.  LEGAL PROCEEDINGS:

The Company is the defendant in a lawsuit filed on March 27, 1996
in Fulton County Superior Court, Georgia by EurAm International,
Inc., a sales agent for the Company.  On April 29, 1996 the
Company removed the case to the United States District Court for
the Northern District of Georgia in Atlanta.  In this lawsuit,
the plaintiff alleges that the Company has caused a breach to a
written agreement relating to the sale of the Company's modular
homes in Germany, including alleged misrepresentations and faulty
performance, resulting in damages alleged to amount to $25
million.  The Company believes the claim is without merit and
intends to vigorously defend the claim.
In addition, the Company has been informed by Gesellschoft fur
Bauen Und Wohnen Hannover MbH ("GBH"), a German housing
authority, that it is proceeding to replace the Company with a
local company to complete a contract that GBH had entered into
with the Company for the purchase and erection of modular housing
in Hannover, Germany.  GBH has notified the Company that GBH
intends to make a claim against the Company for any resulting
damages due to the prospective shift in suppliers.  The Company
is actively negotiating with GBH to resolve the dispute.  In the
opinion of management, and in consultation with corporate
counsel, any losses associated with these claims should not have
a material effect on the Company's financial statements.

Item 2.
        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS

Thirty-nine and thirteen weeks ended September 27, 1996 as
compared with Thirty-nine and thirteen weeks ended September 29,
1995.
Net Sales

The Company manufactures its homes pursuant to dealer orders, and
sales are recognized upon completion of the home.  Net sales
(gross sales less volume discounts, returns and allowances) for
the thirty-nine weeks ended September 27, 1996 were $232.4
million, which represented an increase of 32.6% over the same
period of 1995.  For the thirteen weeks ended September 27, 1996,
net sales increased 32.4% to $77.4 million from $58.5 million in
the comparable period a year ago.  Total homes sold in the thirty-
nine and thirteen weeks ended September 27, 1996 were 8,403 and
2,753, up 24.5% and 18.8%, respectively, over the homes sold in
the prior year periods.  These increases are attributable
primarily to increased capacity from a manufactured housing
facility in Alabama, which started production in the fourth
quarter of 1995.
Gross Profit

Gross profit consists of net sales less the cost of sales, which
includes labor, materials and overhead.  Gross profit for the
thirty-nine weeks ended September 27, 1996 was $32.9 million, or
14.1% of net sales as compared with $23.1 million, or 13.2% of
net sales, in the prior year period.  For the thirteen weeks
ended September 27, 1996, gross profit increased to $10.9
million, or 14.1% of net sales, from $7.9 million, or 13.5% of
net sales in the prior year period.  The increase in gross profit
percentage in the most recent quarter was attributable to lower
raw material prices and increased labor efficiency, which was
partially offset by increased warranty costs.
Selling Expenses

Selling expenses include primarily sales commissions, advertising
expenses, salaries for support personnel and freight costs.
Selling expenses were $4.9 million, or 2.1% of net sales, during
the thirty-nine weeks ended September 27, 1996, as compared with
$4.2 million, or 2.4% of net sales, during the prior year period.
For the quarter ended September 27, 1996, selling expenses were
$1.7 million, or 2.2% of net sales, as compared with $1.3 million
or 2.3% of net sales, for the same period of the prior year.  The
decrease in selling expense as a percentage of net sales was
attributable primarily to savings in shipping costs arising from
shipments through MH Transport, Inc., the Company's newly formed
trucking subsidiary.
General and Administrative

General and administrative expenses include administrative
salaries, executive and management bonuses, insurance costs and
professional fees. For the thirty-nine weeks ended September 27,
1996, general and administrative expenses were $7.9 million, or
3.4% of net sales, as compared with $4.2 million, or 3.1% of net
sales, for the same period of 1995. For the quarter ended
September 27, 1996 general and administrative expenses were $2.5
million, or 3.3% of net sales, as compared with $1.8 million or
3.1% of the net sales, in the prior year period.  The increase in
general and administrative expense is primarily attributable to
increased reserves for legal and other expenses associated with
the Company's sales initiatives in Germany and to additional
employees hired in connection with the Company's expansion.
Provision for Credit Losses

Provision for credit losses for the thirty-nine weeks ended
September 27, 1996 was $1.1 million, as compared with $0 in the
prior year period.  For the thirteen weeks ended September 27,
1996 provision for credit losses was $168,000, as compared with
$0 in the prior year period.  The increase in the current year
periods was a result of reserves established associated with the
start-up of the Company's finance subsidiary.
Interest Expense

Interest expense for the thirty-nine weeks ended September 27,
1996 was $10,000, as compared with $141,000 in the prior year
period.  For the thirteen weeks ended September 27, 1996,
interest expense was $7,000, as compared with $3,000 in the prior
year period.  The decrease in the current year period was a
result of the June 1995 full repayment of certain related party
debt.
Interest Income

Interest income for the thirty-nine weeks ended September 27,
1996 was $501,000, as compared with $523,000 in the prior year
period.  For the thirteen weeks ended September 27, 1996,
interest income was $164,000, as compared with $175,000.  The
decrease in interest income in the current year periods reflects
lower average cash and investment balances.
Provision for Income Taxes

Income taxes are provided based on the tax effect of revenue and
expense transactions included in the determination of pre-tax
book income.  Income tax expense for the thirty-nine weeks ended
September 27, 1996 was $7.3 million, or an effective tax rate of
38.5% as compared with $4.9 million, or an effective tax rate of
36.7% in the prior year period.  The increase in the effective
tax rate is attributable in part to the Company's movement into a
higher federal income tax bracket and also reflects a
proportional shift in the Company's income from Alabama to other
states which have higher tax rates than Alabama.
LIQUIDITY AND CAPITAL RESOURCES

Since its organization, the Company has financed its operations
primarily from a combination of cash generated from operations,
stock offerings and borrowings.
At September 27, 1996, the Company's net working capital was
$19.7 million, including $4.2 million in cash and cash
equivalents and $650,000 in investments. The Company also has a
$10.0 million unsecured line of credit from AmSouth Bank, N.A.,
which is renewable annually and bears interest at the London
Interbank Offered Rate ("LIBOR") plus 1.5% (6.9% at September 27,
1996).  The Company's ability to draw upon this line of credit is
dependent upon meeting certain financial ratios and covenants.
At September 27, 1996, the Company no outstanding borrowings
under this line.
The Company's finance subsidiary, Wenco Finance, Inc., also has a
$10.0 million unsecured line of credit with a bank, which is
guaranteed by the Company and is renewable annually and bears
interest at LIBOR plus 1.5% (6.9% at September 27, 1996).  The
Company's ability to draw upon this line of credit is dependent
upon meeting certain financial ratios and covenants.  At
September 27, 1996, the Company had no borrowings under this
line.
During the thirty-nine weeks ended September 27, 1996, the
Company's cash used in operating activities was approximately
$10.8 million.  Cash used in operating activities reflects
originations of installment contracts of $25.7 million, increased
inventory, accounts receivable and prepayments of approximately
$10.8 million.  These amounts were partially offset by net income
of $11.7 million and an increase in accounts payable and accrued
liabilities of approximately $12.3 million.  Each of these
increases was primarily related to sales growth.  Other
significant cash flows included capital expenditures of $3.0
million and maturities of investments of $2.1 million.
In January 1996, the Company purchased a wood trim and moulding
finishing Company in Haleyville, Alabama for $413,000.  The
Company does not anticipate any significant expenditures for
capital improvements for this facility.
Substantially all of the Company's dealers finance their
purchases through "floor plan" arrangements under which a
financial institution provides the dealer with a loan for the
purchase price of the home and maintains a security interest in
the home as collateral.  In connection with a floor plan
arrangement, the financial institution which provides the dealer
financing customarily requires the Company to enter into a
separate repurchase agreement with the financial institution
under which the Company is obligated, upon default by the dealer,
to repurchase the homes at the Company's original invoice price
plus certain administrative and shipping expenses less any
principal payments made by the dealer.  At September 27, 1996,
the Company's contingent repurchase liability under floor plan
financing arrangements was approximately $88.0 million.  While
homes that have been repurchased by the Company under floor plan
financing arrangements are usually sold to other dealers and
losses experienced to date under these arrangements have been
insignificant, no assurance can be given that the Company will be
able to sell to other dealers homes which it may be obligated to
repurchase in the future under such floor plan financing
arrangements or that the Company will not suffer losses with
respect to, and as a consequence of, these arrangements.
During 1996, the Company plans to build a new corporate office
facility adjacent to its Southern Energy plant in Addison,
Alabama at a cost of approximately $1.6 million, and plans to
provide additional capitalization for Wenco, its finance
subsidiary.  The amount of capital which the Company may commit
to Wenco has not been established at this time and is dependent
upon how quickly Wenco can move beyond its current start-up phase
of operation.
The Company announced that it has signed a non-binding letter of
intent for a stock and cash purchase for the assets, liabilities
and the business of SE Management, Inc., a manufactured home
retail company headquartered in Northport, Alabama.  Under the
letter of intent, the parties anticipate reaching final agreement
and completing the transaction by November 20, 1996.
The Company believes that its cash flow generated from operations
and available sources of credit will provide adequate cash to
fund the Company's future working capital requirements and growth
plans through at least December 1996.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995

Forward-looking statements in this report, including without
limitation, statements relating to the adequacy of the Company's
resources, are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995.  Investors are
cautioned that such forward-looking statements involve risks and
uncertainties, including without limitation:  the cyclical and
seasonal nature of housing markets; the availability of financing
for prospective purchasers of the Company's homes; the amount of
capital that the Company may commit to its finance subsidiary to
originate and service consumer loans; the performance of those
loans; the availability and pricing of raw materials; the
concentration of the Company's business in certain regional
markets; the Company's ability to execute and manage its
expansion plans; the availability of labor to implement those
plans; the highly competitive nature of the manufactured housing
industry; Federal, state and local regulation of the Company's
business; the Company's contingent repurchase liabilities with
respect to dealer financing; the Company's reliance on
independent dealers; and other risks indicated from time to time
in the Company's filings with the Securities and Exchange
Commission.
INFLATION

The Company believes that the relatively moderate rate of
inflation over the past few years has not had a significant
impact on its sales or profitability.  The Company has in the
past been able to pass on most of the increases in its costs by
increasing selling prices, although there can be no assurance
that the Company will be able to do so in the future.
                   PART II - OTHER INFORMATION
                                
Item 1.   Legal Proceedings

The Company is the defendant in a lawsuit filed on March 27, 1996
in Fulton County Superior Court, Georgia by EurAm International,
Inc., a sales agent for the Company.  On April 29, 1996 the
Company removed the case to the United States District Court for
the Northern District of Georgia in Atlanta.  In this lawsuit,
the plaintiff alleges that the Company has caused a breach to a
written agreement relating to the sale of the Company's modular
homes in Germany, including alleged misrepresentations and faulty
performance, resulting in damages alleged to amount to $25
million.  The Company believes the claim is without merit and
intends to vigorously defend the claim.
In addition, the Company has been informed by Gesellschoft fur
Bauen Und Wohnen Hannover MbH ("GBH"), a German housing
authority, that it is proceeding to replace the Company with a
local company to complete a contract that GBH had entered into
with the Company for the purchase and erection of modular housing
in Hannover, Germany.  GBH has notified the Company that GBH
intends to make a claim against the Company for any resulting
damages due to the prospective shift in suppliers.  The Company
is actively negotiating with GBH to resolve the dispute.  In the
opinion of management, and in consultation with corporate
counsel, any losses associated with these claims should not have
a material effect on the Company's financial statements.
Item 2.   Changes in Securities

     Not applicable.

Item 3.   Defaults Upon Senior Securities

     Not applicable.

Item 4.   Submission of Matters to a Vote of Security Holders

     Not applicable.

Item 5.   Other Information

     On June 5, 1996, the Board of Directors of the Company voted
to approve a three-for-two stock split of the Company's common
stock, payable in the form of a 50% stock dividend on July 3,
1996 to shareholders of record on June 19, 1996.  The stock split
resulted in one additional share of common stock being issued for
each two shares of common stock issued and outstanding on the
record date.  The par value of the common stock will remain
unchanged at $.0001 per share.  Cash was paid in lieu of issuing
fractional shares.  All share and per share amounts have been
retroactively restated to reflect this split.

Item 6.   Exhibits and Reports on Form 8-K

     (a)  Exhibits            Schedule 27

     (b)  Reports on Form 8-K      None
                           SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.






                              SOUTHERN ENERGY HOMES, INC.


Date:     November 7, 1996         By: /S/
                                   Wendell L. Batchelor,
                                   Chairman, President
                                   and Chief Executive Officer




Date:     November 7, 1996         By: /S/
                                   Keith W. Brown, Executive Vice
                                   President, Chief Financial
                                   Officer, Treasurer and
                                   Secretary