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:  March 31, 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 April 30, 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 March 31, 1997
       and December 31, 1996                               3, 4

       Consolidated Statements of Earnings for the
       Quarters ended March 31, 1997 and 1996                 5

       Consolidated Statements of Cash Flows for the
       Quarters ended March 31, 1997 and 1996              6, 7

       Notes to Consolidated Financial Statements        8 - 12

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


PART II - OTHER INFORMATION

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


SIGNATURES                                                   15























                               -2-
               DRAVO CORPORATION AND SUBSIDIARIES
                   Consolidated Balance Sheets
                           ($ in 000's)
<TABLE>
<CAPTION>
                                         March 31,   December 31,
                                           1997         1996
(unaudited)

ASSETS
<S>                                     <C>          <C>

Current assets:
 Cash and cash equivalents              $  1,055     $  1,600
 Accounts receivable, net                 22,045       23,265
 Notes receivable, net                       922          921
 Inventories                              17,265       16,481
 Other current assets                        576          751

  Total current assets                    41,863       43,018

Advances to and equity in joint ventures   2,384        2,093
Notes receivable                           4,833        4,380
Other assets                              24,886       25,066
Deferred income taxes                     24,853       24,853

Property, plant and equipment            251,508      238,025
Less: accumulated depreciation and
 amortization                            114,555      112,026

  Net property, plant and equipment      136,953      125,999

    Total assets                        $235,772     $225,409

</TABLE>
















See accompanying notes to consolidated financial statements.


                               -3-
               DRAVO CORPORATION AND SUBSIDIARIES
                   Consolidated Balance Sheets
                           ($ in 000's)
<TABLE>
<CAPTION>
                                         March 31,   December 31,
                                           1997          1996
                                                  (unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                       <C>          <C>

Current liabilities:
 Current portion of long-term notes       $  6,326     $  6,166
 Accounts payable - trade                   13,704       14,542
 Accrued insurance                           1,807        1,906
 Accrued retirement contribution             1,565        1,785
 Net liabilities of discontinued operations  6,126        6,299
 Other current liabilities                   4,011        3,843

  Total current liabilities                 33,539       34,541

Long-term notes                             74,645       63,535
Net liabilities of discontinued operations   6,172        6,786
Other liabilities                            6,996        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 shares 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                              63,075       63,077
 Retained earnings                          20,507       20,063
 Treasury stock at cost:
  Common shares 328,413 and 333,168        (4,281)      (4,342)

 Total shareholders' equity                 94,420       93,915

 Total liabilities and shareholders' equity  $235,772  $225,409

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


                               -4-
               DRAVO CORPORATION AND SUBSIDIARIES
               Consolidated Statements of Earnings
         (unaudited, $ in 000's, except per share data)
<TABLE>
<CAPTION>
                                         Quarters ended March 31,
                                              1997        1996
<S>                                        <C>          <C>

Revenue                                    $ 37,624     $ 38,224
Cost of revenue                              29,851       28,486

    Gross profit                              7,773        9,738

Selling, general and administrative expenses  5,284        5,071

    Earnings from operations                  2,489        4,667

Other income (expense):
 Equity in earnings of joint ventures           199          234
 Interest income                                 32           --
 Interest expense                            (1,562)      (1,696)

    Net other income (expense)               (1,331)      (1,462)

Earnings before taxes                         1,158        3,205
Provision for income taxes                       84           96

Net earnings                                  1,074        3,109
Preference dividends                            630          633

Net earnings available
 for common shares                         $    444     $  2,476

Earnings per share:
 Operations                                $   0.03     $   0.17

Weighted average shares outstanding          14,880       14,823

</TABLE>












See accompanying notes to consolidated financial statements.


                               -5-
               DRAVO CORPORATION AND SUBSIDIARIES
              Consolidated Statements of Cash Flows
                     (unaudited, $ in 000's)
                                
<TABLE>
<CAPTION>

                                         Quarters ended March 31,
                                               1997        1996
<S>                                          <C>        <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings                                 $  1,074   $  3,109
Adjustments to reconcile net earnings
 to net cash provided (used) by continuing
 operations activities:
  Depreciation and amortization                 2,530      2,790
  Equity in joint ventures                       (291)      (238)
  Changes in assets and liabilities:
   Decrease (increase) in accounts receivable   1,220     (2,671)
   Decrease (increase) in notes receivable       (454)         9
   Increase in inventories                       (784)    (2,183)
   Decrease (increase) in other current assets    175       (352)
   Decrease in accounts payable
    and accrued expenses                         (947)    (4,531)
   Increase (decrease) in taxes payable            19       (125)
   Decrease in other assets                       180        460
   Increase in other liabilities                  364        429

Net cash provided (used) by continuing
 operations activities                          3,086     (3,303)

Net cash provided (used) by discontinued
 operations activities                           (787)      5,971

Net cash provided by operating activities       2,299       2,668

CASH FLOWS FROM INVESTING ACTIVITIES:
 Additions to property, plant and equipment   (13,484)     (2,716)
 Other, (net)                                       1          --

Net cash used by investing activities        $(13,483)   $(2,716)

</TABLE>








See accompanying notes to consolidated financial statements.


                               -6-
               DRAVO CORPORATION AND SUBSIDIARIES
              Consolidated Statements of Cash Flows
                     (unaudited, $ in 000's)

<TABLE>
<CAPTION>
                                         Quarters ended March 31,
                                               1997        1996
<S>                                          <C>         <C>

CASH FLOWS FROM FINANCING ACTIVITIES:
 Net borrowing under revolving credit
  agreements                                 $ 15,690    $ 6,150
 Principal payments under long-term notes      (6,084)    (6,001)
 Proceeds from issuance of long-term notes      1,663         --
 Proceeds from issuance of common stock            --         32
 Dividends on preference stock                   (630)      (633)

Net  cash  provided (used) by 
  financing activities                         10,639       (452)

Net decrease in cash and cash equivalents        (545)      (500)
Cash and cash equivalents at beginning of
 period                                         1,600      1,086

Cash and cash equivalents at end of period   $  1,055    $   586

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 Cash paid during the period for:
  Interest (net of amount capitalized)       $  1,575    $ 1,712
  Income taxes                                     89        221

</TABLE>




















See accompanying notes to consolidated financial statements.


                               -7-
               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.  Certain  reclassifications  of
    previously  reported balances have been made to  conform  to
    the current period's presentation.
    

(2)  Inventories
<TABLE>
     Inventories are classified as follows:

     ($ in 000's)
<CAPTION>
                                       March  31,    December 31,
                                          1997           1996
         <S>                          <C>             <C>

         Materials and supplies       $ 14,058        $ 13,895
         Finished goods                  3,207           2,586

         Total inventories            $ 17,265        $ 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.














                                
                               -8-
               DRAVO CORPORATION AND SUBSIDIARIES
           Notes to Consolidated Financial Statements

(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.  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.
    
    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 has volunteered to
    undertake the RI/FS.
    
    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.
    

                               -9-
               DRAVO CORPORATION AND SUBSIDIARIES
           Notes to Consolidated Financial Statements


(3)  Contingent Liabilities (continued)


    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.  The EPA has indicated some interest in this
    proposal but has decided to first conduct an area-wide
    remedial investigation before choosing a remedy.
    
    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 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.
    
                              -10-
               DRAVO CORPORATION AND SUBSIDIARIES
           Notes to Consolidated Financial Statements


    
(3)  Contingent Liabilities (continued)
    
    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  March
    31,  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)                       March  31,  December 31,
                                            1997        1996
    <S>                                    <C>         <C>
    Current assets:
     Accounts and retainers receivable $    288    $    323
    
       Total current assets                 288         323
    
     Other                                  309         309
    
       Total assets                    $    597    $    632
    
    Current liabilities:
     Accounts and retainers payable    $    536    $    536
     Accrued loss on leases               2,592       2,304
     Other                                3,286       3,782
    
       Total current liabilities          6,414       6,622
    
     Accrued loss on leases                 384         954
     Other                                6,097       6,141
    
       Total liabilities               $ 12,895    $ 13,717
    
     Net liabilities and accrued loss
      on leases of discontinued 
      operations                       $(12,298)   $(13,085)
</TABLE>
    
    
    
    
    
    
    
                               -11-
    
               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.





























                              -12-
                                
               DRAVO CORPORATION AND SUBSIDIARIES
        Management's Discussion and Analysis of Financial
               Condition and Results of Operations
    
Net earnings for the quarter of $1.1 million were down $2.0
million, or 65 percent, from 1996's first quarter.  Several
factors contributed to the variance.  The Ohio River serves as
the major transportation link between the Maysville and Black
River lime production facilities and several major utility
customers.  An early March flood in northern Kentucky stopped
the company from loading barges and its customers from unloading
barges for an extended period.  Further compounding the problem,
the Corps of Engineers was forced to close various sections of
the river to towboat and barge traffic for up to a week.  Once
the river was reopened, obtaining barges for lime delivery was
complicated by a lack of towboat availability and a delay in
getting barges back into a normal operating cycle.  The flood,
barge unloading equipment problems at a major utility customer's
plant and other brief, but unscheduled power plant outages,
caused utility lime sales to be down 51,000 tons compared to
last year. The company's Longview operation in northern Alabama
experienced operating related disruptions that also contributed
to the lower earnings.  Two of Longview's three kilns had to be
shut down several days for major maintenance work that was
scheduled to occur later in the year.  The down time not only
reduced the lime tons produced, but also drove the cost of the
tons that were produced, and ultimately cost of sales, much
higher than normal.  Lower production also required the purchase
of lime from outside sources to meet contractual requirements
and maintain key customer relationships.  Profit margins were
reduced because purchased lime costs more than company produced
lime.  While revenue was down $600,000 from last year, the sales
variance would have been larger had the company not purchased
lime for resale.  Production and customer demand returned to
more normal and anticipated levels in April.

Capital expenditures for the quarter were $13.5 million compared
to $2.7 million last year.  Construction progress payments for
the 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 $11.1
million from year-end primarily due to funding capital
expenditures.

As  previously  reported,  the company  announced  that  it  was
undertaking   an   investment  banking   review   of   strategic
alternatives  for  accelerating  growth  including   merger   or
acquisition  opportunities.   Although  this  process  has   not
resulted  to  date  in  any formal offers to  buy  the  company,
discussions continue with prospective buyers.
    
    
    
    
    
    
    
    
                              -13-
               DRAVO CORPORATION AND SUBSIDIARIES

                   PART II - Other Information


               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 March 31, 1997.
























    
    









                               -14-

                             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:  May 12, 1997               /s/ERNEST F.  LADD III
                                         Ernest F. Ladd III
                                         Executive Vice President 
                                         and Chief Financial      
                                         Officer
    
    
    Date:  May 12, 1997               /s/LARRY J. WALKER
                                         Larry J. Walker
                                         Vice President and       
                                         Controller
                                         (Principal Accounting    
                                          Officer)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
                              -15-