SECURITIES AND EXCHANGE COMMISSION

                     Washington, D. C. 20549

                            FORM 10-Q


          Quarterly Report Under Section 13 or 15(d) of
               the Securities Exchange Act of 1934


For Quarter Ended:  June 30, 1997

Commission File Number:  1-5642  

                                                                               
                            DRAVO CORPORATION                                  
      (Exact name of registrant as specified in its charter)

           Pennsylvania                                  25-0447860          
(State or other jurisdiction of                        (I.R.S. employer
  incorporation or organization)                      identification no.)


One Oliver Plaza, Pittsburgh, Pennsylvania                 15222             
(Address of principal executive offices)                 (Zip Code)            

Registrant's telephone number, including area code:        (412) 566-3000     



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       

The number of shares outstanding of each of the registrant's classes of common
stock as of July 31, 1997:


     Title of Class                              Shares Outstanding
Common Stock, $1.00 par value                        14,777,620  

                 DRAVO CORPORATION AND SUBSIDIARIES

                              INDEX


PART I - FINANCIAL INFORMATION

                                                                  Page No.

     Consolidated Balance Sheets at June 30, 1997
     and December 31, 1996                                             3, 4
 
     Consolidated Statements of Earnings for the
     Quarters ended June 30, 1997 and 1996                                5
    
     Consolidated Statements of Earnings for the
     Six Months ended June 30, 1997 and 1996                              6

     Consolidated Statements of Cash Flows for the
     Six Months ended June 30, 1997 and 1996                           7, 8

     Notes to Consolidated Financial Statements                        9-12

     Management's Discussion and Analysis of Financial    
     Condition and Results of Operations                                 13


PART II - OTHER INFORMATION                                        
 
     Item 4.  Submission of Matters to a Vote of Security
             Holders                                                     14

     Item 6.  Exhibits and Reports on Form 8-K                           14


SIGNATURES                                                               15



                 DRAVO CORPORATION AND SUBSIDIARIES
                    Consolidated Balance Sheets
                           ($ in 000's)
<TABLE>
<CAPTION>

                                                 June 30,     December 31,
                                                    1997          1996    
                                                 (unaudited)

ASSETS
<S>                                               <C>          <C>

Current assets:
Cash and cash equivalents                         $    510     $  1,600
Accounts receivable, net                            21,328       23,265
Notes receivable, net                                  768          921
Inventories                                         16,931       16,481
Other current assets                                   751          751

 Total current assets                               40,288       43,018

Advances to and equity in joint ventures             2,563        2,093
Notes receivable                                     5,572        4,380
Other assets                                        25,024       25,066
Deferred income taxes                               24,853       24,853

Property, plant and equipment                      256,361      238,025
Less: accumulated depreciation and 
amortization                                       116,524      112,026

 Net property, plant and equipment                 139,837      125,999

   Total assets                                   $238,137     $225,409

</TABLE>
See accompanying notes to consolidated financial statements.


                 DRAVO CORPORATION AND SUBSIDIARIES
                    Consolidated Balance Sheets
                           ($ in 000's)
<TABLE>
<CAPTION>
                                                 June 30,     December 31,
                                                    1997        1996     
                                                 (unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                               <C>          <C>

Current liabilities:
Current portion of long-term notes                $  6,356     $  6,166
Accounts payable - trade                            11,597       14,542
Accrued insurance                                    3,468        1,906
Accrued retirement contribution                      1,810        1,785
Net liabilities of discontinued operations           5,772        6,299
Other current liabilities                            4,148        3,843

 Total current liabilities                          33,151       34,541

Long-term notes                                     74,265       63,535
Net liabilities of discontinued operations           5,492        6,786
Other liabilities                                    7,064        6,632

Redeemable preference stock:
 Par value $1, issued 200,000 shares: 
 Series D, $12.35 cumulative, convertible, 
 exchangeable (entitled in liquidation to 
 $20.0 million)                                     20,000       20,000

Shareholders' equity:
 Preference stock, par value $1, authorized 
 1,878,870: Series B, $2.475 cumulative, 
 convertible; issued 19,386 and 20,386 shares
 (entitled in liquidation to $1.1 million);             19           20
 Series D, reported above

Common stock, par value $1, authorized 
 35,000,000 shares; issued 15,100,033
 and 15,096,817                                     15,100       15,097

Other capital                                       63,063       63,077
Retained earnings                                   24,190       20,063    
Treasury stock at cost:
 Common shares 322,413 and 333,168                  (4,207)      (4,342)

Total shareholders' equity                          98,165       93,915

Total liabilities and shareholders' equity        $238,137     $225,409
</TABLE>
 See accompanying notes to consolidated financial statements.


                 DRAVO CORPORATION AND SUBSIDIARIES
                Consolidated Statements of Earnings
          (unaudited, $ in 000's, except per share data)
<TABLE>
<CAPTION>

                                                  Quarters ended June 30,
                                                     1997        1996  
<S>                                               <C>          <C>

Revenue                                           $ 42,435     $ 39,349
Cost of revenue                                     30,908       30,004

   Gross profit                                     11,527        9,345

Selling, general and administrative expenses         5,497        5,252

   Earnings from operations                          6,030        4,093

Other income (expense):
 Equity in earnings of joint ventures                  174          234
 Other expense                                          (9)           -
 Interest income                                        50          868
 Interest expense                                   (1,607)      (1,640)

   Net other income (expense)                       (1,392)        (538)

Earnings before taxes                                4,638        3,555
Provision for income taxes                             326          107

Net earnings                                         4,312        3,448
Preference dividends                                   629          633

Net earnings available 
 for common shares                                $  3,683     $  2,815

Earnings per share:
Operations                                        $   0.25     $   0.19
 
Weighted average shares outstanding                 14,818       14,894

</TABLE>
See accompanying notes to consolidated financial statements.


                 DRAVO CORPORATION AND SUBSIDIARIES
                Consolidated Statements of Earnings
          (unaudited, $ in 000's, except per share data)
<TABLE>
<CAPTION>

                                                Six Months ended June 30,
                                                     1997        1996  

<S>                                               <C>          <C>
Revenue                                           $ 80,059     $ 77,573
Cost of revenue                                     60,759       58,490

   Gross profit                                     19,300       19,083

Selling, general and administrative expenses        10,781       10,323

   Earnings from operations                          8,519        8,760

Other income (expense):
 Equity in earnings of joint ventures                  373          468
 Other expense                                          (9)           -
 Interest income                                        82          868
 Interest expense                                   (3,169)      (3,336)

   Net other income (expense)                       (2,723)      (2,000)

Earnings before taxes                                5,796        6,760
Provision for income taxes                             410          203

Net earnings                                         5,386        6,557
Preference dividends                                 1,259        1,266

Net earnings available 
 for common shares                                $  4,127     $  5,291

Earnings per share:
Operations                                        $   0.28     $   0.36
 
Weighted average shares outstanding                 14,851       14,859
</TABLE>

See accompanying notes to consolidated financial statements.


                 DRAVO CORPORATION AND SUBSIDIARIES
               Consolidated Statements of Cash Flows
                      (unaudited, $ in 000's)
<TABLE>
<CAPTION>
                                                                             
                                                    Six Months ended June 30,
                                                      1997        1996   
<S>                                               <C>          <C>
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings                                      $  5,386     $  6,557
Adjustments to reconcile net earnings
     to net cash provided (used) by continuing
     operations activities:
 Depreciation and amortization                       5,007        5,641
 Loss on disposal of assets                              9            -
 Equity in joint ventures                             (470)        (458)
 Changes in assets and liabilities:
  Decrease (increase) in accounts receivable         1,937       (2,856)
  Decrease (increase) in notes receivable           (1,039)         442
  Increase in inventories                             (450)      (2,554)
  Decrease (increase) in other current assets           62         (146)
  Decrease in accounts payable 
   and accrued expenses                             (1,069)      (5,412)
  Increase (decrease) in taxes payable                  77         (120)
  Decrease in other assets                              42          422
  Increase in other liabilities                        432          132

Net cash provided by continuing
 operations activities                               9,924        1,648

Net cash provided (used) by discontinued
 operations activities                              (1,821)       6,385
  
Net cash provided by operating
 activities                                          8,103        8,033

CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment         (18,854)      (8,075)
Other, (net)                                             -           (1)

Net cash used by investing activities            $ (18,854)   $  (8,076)
</TABLE>

See accompanying notes to consolidated financial statements.

                 DRAVO CORPORATION AND SUBSIDIARIES
               Consolidated Statements of Cash Flows
                      (unaudited, $ in 000's)
<TABLE>
<CAPTION>
                                               Six Months ended June 30,
     
                                               1997         1996  
<S>                                               <C>          <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowing under revolving credit
 agreements                                       $ 15,390     $  6,901
Principal payments under long-term notes            (6,133)      (6,007)
Proceeds from issuance of common stock               1,663           48
Dividends on preference stock                       (1,259)      (1,266)

Net cash provided (used) by financing
 activities                                          9,661        (324)

Net decrease in cash and cash
 equivalents                                        (1,090)        (367)
Cash and cash equivalents at beginning of
 period                                              1,600        1,086

Cash and cash equivalents at end of period        $    510     $    719

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash paid during the period for:
 Interest (net of amount capitalized)             $  3,183     $  3,347
 Income taxes                                          336          323

</TABLE>

See accompanying notes to consolidated financial statements.


                 DRAVO CORPORATION AND SUBSIDIARIES
            Notes to Consolidated Financial Statements

(1)  Basis of Presentation

     The accompanying consolidated financial statements include the accounts of
     Dravo Corporation and its majority-owned subsidiaries (the company).
     The principal subsidiary is Dravo Lime Company, one of the nation's
     largest lime producers.  Significant intercompany balances and
     transactions have been eliminated in the consolidation process.

     These unaudited consolidated financial statements include all adjustments,
     consisting only of normal, recurring accruals, which management
     considers necessary for a fair presentation of the company's
     consolidated financial position, results of operations, and cash flows
     for the interim periods presented.
     

(2) Inventories
<TABLE>
    Inventories are classified as follows:
<CAPTION>
          ($ in 000's)

                                                    June 30,    December 31,
                                                      1997          1996    

         <S>                                        <C>            <C>
         Finished goods                             $ 2,809        $ 2,586
         Materials and supplies                      14,122         13,895

         Net inventories                            $16,931        $16,481
</TABLE>
     Finished goods are valued at average production cost or market, whichever
     is lower, and include raw materials, direct labor, and operating
     overhead.  Materials and supplies are valued at average cost.  


(3)  Contingent Liabilities

     The company has been notified by the federal Environmental Protection
     Agency (EPA) that the EPA believes the company is a potentially
     responsible party (PRP) for the clean-up of soil and groundwater
     contamination at four sub-sites in Hastings, NE.  The Hastings site is
     one of the EPA's priority sites for taking remedial action under the
     Comprehensive Environmental Response, Compensation and Liability Act
     (CERCLA).
    
     The company participated in an EPA-initiated allocation proceeding for
     a municipal landfill sub-site to allocate shares of liability for past
     response costs and costs of a proposed cap of the landfill.  As part
     of this proceeding, the allocator conducted a mediation session which
     resulted in a settlement among the EPA and the PRPs.  Pursuant to the
     settlement, the company agreed to pay $702,000, or 14.33 percent of
     the $4.9 million past costs and estimated source control costs for
     this sub-site.  A Consent Order incorporating the settlement and an 

                  DRAVO CORPORATION AND SUBSIDIARIES
              Notes to Consolidated Financial Statements 
 
(3)  Contingent Liabilities (continued)
     
     agreement among the private parties concerning the construction and
     maintenance of the proposed cap is being negotiated.  In exchange, the
     company received contribution protection against third-party claims as
     well as a covenant from the EPA not to sue for its past and future
     response costs at this sub-site and matters covered by the settlement.
    
     The company has also been notified by the EPA that the EPA considers
     it a PRP at another municipal landfill in Hastings.  At least three
     other parties (including the City of Hastings) are considered by the
     EPA to be PRPs at this second sub-site.  At this sub-site, the company
     has concluded that the City of Hastings is primarily responsible for
     proper closure of the landfill and the remediation of any release of
     hazardous substances. In January, 1994, the EPA invited the company
     and the other PRPs to make an offer to conduct a remedial
     investigation and feasibility study (RI/FS) of this sub-site and
     stated that the EPA was in the process of preparing a work plan for
     the RI/FS.  None of the PRPs accepted EPA's invitation to perform the
     RI/FS for this sub-site. The EPA has conducted the remedial
     investigation.
    
     With respect to the third sub-site, the company and two other PRPs
     have been served with administrative orders directing them to
     undertake soil remediation and interim groundwater remediation at that
     sub-site.  The company is currently complying with these orders while
     reserving its right to seek reimbursement from the United States for
     its costs if it is determined it is not liable for response costs or
     if it is required to incur costs because of arbitrary, capricious or
     unreasonable requirements imposed by the EPA.
    
     The EPA has taken no legal action with respect to its demand that the
     company and the other PRPs pay its past response costs.  A total of five
     parties have been named by the EPA as PRPs at this sub-site, but two of
     them have been granted de minimis status.  The company believes other
     persons should also be named as PRPs.

     The fourth sub-site is a former naval ammunition depot which was
     subsequently converted to an industrial park.  The company and its
     predecessor owned and operated a manufacturing facility in this
     industrial park.  To date, the company's investigation indicates that it
     did not cause the release of hazardous substances at this sub-site
     during the time it owned and operated the facility. The United States
     has undertaken to conduct the remediation of this sub-site.
        
     In addition to sub-site clean-up, the EPA is seeking a clean-up of 
     area-wide contamination associated with all of the sub-sites in and 
     around Hastings, NE.  The company, along with other Hastings PRPs, has
     recommended that the EPA adopt institutional controls as the area-wide
     remedy in Hastings.  EPA has completed an area wide remedial
     investigation and has indicated it will ask the PRPs to agree to perform
     a study to determine feasible remediation alternatives.
        
     On August 10, 1992, the company filed suit in the Alabama District
     Court against its primary liability insurance carriers and one of
     its predecessor's insurers, seeking a declaratory judgment that
     the company is entitled to a defense and indemnity under its
     contracts of insurance (including certain excess policies provided
     by one of the primary carriers) with regard to the third Hastings
     sub-site.  On motion of the defendant insurance carriers, the suit
     was transferred to the District

                  DRAVO CORPORATION AND SUBSIDIARIES
           Notes to Consolidated Financial Statements
                                           
(3)  Contingent Liabilities (continued)
    
     Court for the Western District of Pennsylvania on October 31, 1996.  The
     company has settled the claim against its predecessor's insurer, but the
     case against the company's insurers is still in litigation.  An award of
     punitive damages is also being sought against the company's insurers for
     their bad faith in failing to investigate the company's claim and/or
     denying the company's claim.  The company has notified its primary and
     excess general liability carrier, as well as the excess carrier of its
     predecessor, of the receipt of its notice of potential liability at the
     second and fourth sub-sites.
    
     Estimated total clean-up costs, including capital outlays and future
     maintenance costs for soil and groundwater remediation of approximately
     $14 million, are based on independent engineering studies.  Included in
     the discontinued operations provision is the company's estimate that it
     will participate in 33 percent of these remediation costs.  The
     company's estimated share of the costs is based on its assessment of the
     total clean-up costs, its potential exposure, and the viability of other
     named PRPs.  These estimates are, by their nature, uncertain and
     dependent upon numerous factors, any of which could cause actual results
     to differ materially from projected amounts.
    
     Other claims and assertions made against the company will be resolved,
     in the opinion of management, without material additional charges to
     earnings.



(4)  Discontinued Operations

     Discontinued operations' assets and liabilities at June 30, 1997 and
     December 31, 1996 relate to non-cancelable leases, insurance,
     environmental, legal and other matters associated with exiting the
     engineering and construction business and are presented below:
<TABLE>
<CAPTION>
    
    
    ($ in 000's)                                   June 30,     December 31,
                                                      1997         1996  

    <S>                                                <C>         <C>  
    Current assets:
     Accounts and retainers receivable            $    284     $    323
    
      Total current assets                             284          323
    
     Other                                             309          309
    
      Total assets                                $    593     $    632
    
    Current liabilities:
     Accounts and retainers payable               $    536     $    536
     Accrued loss on leases                          2,354        2,304
     Other                                           3,166        3,782
    
      Total current liabilities                      6,056        6,622
    
     Accrued loss on leases                              -          954
     Other                                           5,801        6,141
    
      Total liabilities                           $ 11,857     $ 13,717
    
     Net liabilities and accrued loss 
      on leases of discontinued operations        $(11,264)   $ (13,085)
</TABLE>

                DRAVO CORPORATION AND SUBSIDIARIES
          Notes to Consolidated Financial Statements


(5)  Earnings Per Share

     In February 1997, the Financial Accounting Standards Board issued
     Statement of Financial Accounting Standards No. 128, Earnings per
     Share (FAS 128).  FAS 128 supersedes APB Opinion No. 15, Earnings per
     Share (APB 15) and requires the calculation and dual presentation of
     Basic and Diluted earnings per share, replacing the measures of
     Primary and Fully-diluted earnings per share as reported under APB 15. 
     FAS 128 is effective for financial statements issued for periods
     ending after December 15, 1997; earlier application is not permitted. 
     After the effective date, all prior-period earnings per share data
     presented must be restated to conform with the provisions of FAS 128. 
     The impact of FAS 128 on the company's earnings per share calculation
     will be immaterial.

                      DRAVO CORPORATION AND SUBSIDIARIES
            Management's Discussion and Analysis of Financial
                   Condition and Results of Operations


     Revenue of $42.4 million and gross profit of $11.5 million were up 8 and
     23 percent, respectively,  over last year's second quarter.  Stronger
     lime demand, especially in the Ohio Valley utility market, contributed
     to the revenue improvement.  This year's higher revenue and $2.2 million
     gross profit increase over last year highlights the company's
     sensitivity to major customers' operating disruptions as last year's
     results were depressed due to mechanical problems at a major electric
     utility customer.  Selling, general and administrative expenses were
     higher for the quarter primarily due to recognition of a bad debt
     accrual on a note receivable associated with the company's former
     aggregates business.  The effective income tax rate is higher this year
     primarily due to an accrual for alternative minimum tax.  Last year's
     earnings were bolstered by refunds received from a state taxing
     authority for amended returns filed based on current interpretation of
     the state tax code.  The refunds included interest income of $851,000.

     Year-to date earnings of $5.4 million, or 28 cents per share, were down
     from last year's $6.6 million, or 36 cents per share.  The shortfall can
     be attributed to this year's poor first quarter earnings of $1.1
     million, or three cents per share.  As reported previously, an early
     March flood in northern Kentucky stopped the company from loading barges
     and its customers from unloading barges for an extended period.  The
     flood, barge unloading equipment problems at a major utility customer's
     plant and other brief, but unscheduled power plant outages, severely
     impacted utility lime sales. Further, the company's Longview operation
     in northern Alabama experienced operating related disruptions during the
     first quarter that also contributed to lower earnings.  Longview's
     largest kiln had to be shut down several days for major maintenance work
     that was scheduled to occur later in the year.  Lower production
     required the purchase of lime from outside sources to meet contractual
     requirements and maintain key customer relationships.  Consequently,
     profit margins were reduced because purchased lime costs more than
     company produced lime. 

     Capital expenditures for the year-to-date were $18.9 million compared to
     $8.1 million last year.  Construction progress payments for a new
     Maysville kiln and the $7.4 million purchase of more than 27 million
     tons of high calcium reserves adjacent to the Longview facility
     accounted for a large part of the additions to property, plant and
     equipment.  Long-term debt increased $10.7 million from year-end
     primarily due to funding capital expenditures.

     On July 31, 1997, a three-bank lending group extended the company's
     revolving line of credit facility to July 31, 1999.  The maximum amount
     available under the facility is $53 million.  Under the agreement, $17
     million borrowed under the facility to finance the Maysville expansion
     project was converted to a 5-year term loan.  The term loan will be paid
     in 20 quarterly installments commencing October 31, 1997 with interest
     determined quarterly based on the Eurodollar rate plus 2 percent.

     The company announced on July 7, 1997 that the investment banking review
     initiated in the fall of 1996 to explore strategic alternatives failed
     to produce a transaction favorable to the best interests of the
     company's shareholders.  As a result, the company has concluded the
     review.



                DRAVO CORPORATION AND SUBSIDIARIES

                   PART II - Other Information 


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

          The annual meeting of shareholders was held on April 24, 1997 in
          Cincinnati, Ohio.  Listed below are the proposals submitted to
          shareholders in the company's Proxy Statement dated March 31,
          1997 and the results of the shareholder votes.

          Election of three directors for a three year term:
<TABLE>
<CAPTION>
                                               For                Against

               <S>      <C>                <C>                    <C>
               William E. Kassling         13,313,393             305,563
               Peter T. Kross              13,308,557             310,399
               Konrad M. Weis              13,313,654             305,302
</TABLE>
          Following the election, the company's Board of Directors
          consisted of Mr. Arthur E. Byrnes, Mr. James C. Huntington, Jr.,
          Mr. Carl A. Gilbert, Mr. Kassling, Mr. Kross, Mr. William G.
          Roth, and Mr. Weis.

          Election of Certified Public Accountants:
<TABLE>
<CAPTION>
                                               For         Against     Abstain

               <S>                         <C>               <C>       <C>
               KPMG Peat Marwick LLP       13,493,357        6,245     119,354

          

Item 6.   Exhibits and Reports on Form 8-K

     (a)  Exhibits

          The following is filed as an exhibit to Part I of this Form 10-Q:

           Exhibit No. 11 - Statement re computation of per share earnings.

     (b)  Reports on Form 8-K

          The company filed no reports on Form 8-K for the quarter ended
          June 30, 1997.  


                                 
                             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.





                                  DRAVO CORPORATION    
                                  (Registrant)




Date:  August 13, 1997            /s/JAMES J. PUHALA          
                                  James J. Puhala
                                  Vice President, General
                                  Counsel, Secretary and Acting
                                  Chief Financial Officer




Date:  August 13, 1997            /s/LARRY J. WALKER          
                                  Larry J. Walker
                                  Vice President and Controller
                                  (Principal Accounting Officer)



</TABLE>