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


                                   FORM 10-Q


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

               For the quarterly period ended December 27, 1998


   [ ]      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 1-5109



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


                DELAWARE                       91-1506719
      (State or other jurisdiction of    (IRS Employer I.D. No.)
      incorporation or  organization)


      1801- 16th AVENUE SW, SEATTLE, WASHINGTON   98134-1089
      (Street address of principal executive offices - Zip Code)

      Registrant's telephone number: (206) 623-1635


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.   [X]


There were 9,910,180 shares of the corporation's $.01 par value common stock 
outstanding at December 27, 1998.

<page break>

PART I    FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(In thousands of dollars, except per share data)

                                  Quarter Ended     Nine Months Ended
                               12/27/98  12/28/97   12/27/98  12/28/97

Revenues                       $ 14,023   $27,177   $ 60,503  $ 88,681
Operating expenses:
 Cost of revenue                 15,288    20,841     53,689    72,249
 Administrative and
  manufacturing overhead
  expense                         6,119     6,371     19,629    22,912
 Contract reserve                   368    (1,515)    (4,044)   (5,453)
 Total operating expenses        21,775    25,697     69,274    89,708

Operating income(loss)           (7,752)    1,480     (8,771)   (1,027)

Investment and other income       5,451     1,346      6,272     2,370
Gain on sale of available-
 for-sale security                  455       190        770       190

Income (loss) before
 income taxes                    (1,846)    3,016     (1,729)    1,533

Income tax expense                    -         -          -         -

Net income (loss)              $ (1,846)  $ 3,016   $ (1,729) $  1,533


Basic EPS                      $  (0.19)  $  0.30   $  (0.17) $   0.16
Diluted EPS                    $  (0.19)  $  0.30   $  (0.17) $   0.16

Retained earnings at 
 beginning of period           $ 27,953   $18,698   $ 28,129  $ 19,256
Income (loss) for the period     (1,846)    3,016     (1,729)    1,533
Unrealized gain (loss) on
 available-for-sale securities     (298)     (660)      (591)      265
Retained earnings at 
 end of period                 $ 25,809   $21,054   $ 25,809  $ 21,054









The accompanying notes are an integral part of this statement.

<page break>

TODD SHIPYARDS CORPORATION
CONSOLIDATED BALANCE SHEETS 
Periods Ended December 27, 1998 and March 29, 1998
(in thousands of dollars)
                                               12/27/98     03/29/98
ASSETS:                                       (Unaudited)   (Audited)
Cash and cash equivalents                     $  2,290      $ 5,317
Restricted cash                                  5,109        7,011  
Securities available for sale                   25,269       29,524
Accounts receivable, less allowance for
 losses of $662 at December 27, 1998
 and $662 at March 29, 1998:
  Government                                     1,722        2,930
  Commercial and other                           9,666        4,203
Costs and estimated profits in excess
 of billings on incomplete contracts            11,209       16,193
Inventories                                      3,048        1,308
Other                                              620          292
Total current assets                            58,933       66,778

Property, plant and equipment, net of
 accumulated depreciation                       19,639       21,565

Deferred pension asset                          22,788       21,786
Other                                            6,711        6,744
Total assets                                  $108,071     $116,873

LIABILITIES:
Accounts payable and accruals                 $  5,419     $  7,304
Accrual for loss on contract                     1,400        5,444
Payrolls and vacations                           3,800        4,090
Income taxes                                     1,783        1,844
Billings in excess of costs and estimated
 profits on incomplete contracts                 3,752        2,351
Taxes other than income taxes                      448        1,345
Total current liabilities                       16,602       22,378

Accrued post retirement health benefits         21,330       21,617
Environmental reserves                          15,646       16,065
Total liabilities                               53,578       60,060

STOCKHOLDERS' EQUITY:
Common stock, $.01 par value - authorized
 19,500,000 shares,issued 11,956,033 shares
 at December 27, 1998 and March 29, 1998, and
 outstanding 9,910,180 at December 27,1998
 and March 29,1998                                 120          120
Additional paid-in capital                      38,181       38,181
Retained earnings                               25,809       28,129
Less treasury stock                              9,617        9,617
Total stockholders' equity                      54,493       56,813
Total liabilities and stockholders' equity    $108,071     $116,873

The accompanying notes are an integral part of this statement.

<page break>

TODD SHIPYARDS CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Month Periods Ended December 27,1998 and December 28,1997
(in thousands of dollars)
                                                    Period Ended
                                                12/27/98     12/28/97
Cash flows from operating activities:
Net income (loss)                                $(1,729)    $  1,533
Adjustments to reconcile net income (loss) to
 net cash used in operating activities:
  Depreciation and amortization                    2,520        2,497
  Decrease (increase)in costs and estimated
   profits in excess of billings                   4,984       (9,482)
  Contract reserve activity                       (4,044)      (5,453)
  Decrease (increase) in accounts receivable      (4,255)         368
  Decrease in accounts payable and accruals       (1,885)         (82)
  Increase in deferred pension asset              (1,002)      (1,002)
  Decrease in other accrued taxes                   (898)        (686)
  Increase in other current assets                  (328)        (132)
  Decrease in environmental reserves                (420)        (190)
  Decrease in payroll and vacations                 (290)        (972)
  Decrease in other assets                            33        3,367
  Increase in billings in excess of profits        1,401          597
  Decrease in retiree medical liability             (287)        (288)
  Decrease in income taxes                           (61)         (53)
  Other, net                                      (1,740)         (72)

Total adjustments                                 (6,272)     (11,583)
Net cash used in operating activities             (8,001)     (10,050)

Cash flows from investing activities:
Purchases of marketable securities                (9,795)      (9,287)
Sales of marketable securities                     9,564       16,654
Maturities of marketable securities                4,670        2,556
Capital expenditures                                (717)      (1,015)
Disposal of assets                                   123          449
Other                                               (773)         257
Net cash provided by investing activities          3,072        9,615

Cash flows from financing activities:
Decrease (increase) in restricted cash             1,902       (4,591)
Net cash used in financing activities:             1,902       (4,591)

Net change in cash and cash equivalents           (3,027)      (5,026)
Cash and cash equivalents at beginning of period   5,317        4,232

Cash and cash equivalents at end of period         2,290         (794)

Supplemental disclosures of cash flow information:
 Cash paid during the period for:
  Interest                                           100           38
  Income taxes                                   $     -     $      -

The accompanying notes are an integral part of this statement.

<page break>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Todd Shipyards Corporation (the "Company") filed its Consolidated Financial 
Statements for the fiscal year ended March 29, 1998 with the Securities and 
Exchange Commission on Form 10-K. That report should be read in connection 
with this Form 10-Q.

1.  BASIS OF PRESENTATION
The accompanying Consolidated Financial Statements are unaudited but in the 
opinion of management reflect all adjustments necessary for a fair 
presentation of financial position and results of operations.

2.  CONTRACTS
During the third quarter of fiscal year 1999 the Company completed production 
work on the $181 million contract to construct three Jumbo Mark II ("Mark II") 
ferries for the Washington State Ferry System (the "Ferry System").  The Mark 
II ferries are designed to transport 218 automobiles and 2,500 passengers each 
and are the largest ferries in the Ferry System fleet.

The first ferry, the MV Tacoma, successfully completed its warranty period 
during the second quarter of fiscal year 1999.  The second ferry, the MV 
Wenatchee, was delivered in the first quarter of fiscal year 1999; and the 
third ferry, the MV Puyallup, was delivered on December 28, 1998, two months 
ahead of the contractual delivery date of February 28, 1999.

The Company experienced contract cost growth in both labor hours and material 
totaling $3.4 million during the third quarter of fiscal 1999 in completing 
the third ferry.  Previously, the Company had estimated that total contract 
costs would exceed contract prices by $18.0 million.  The Company also 
anticipates an additional $1.4 million in various contract related costs to be 
incurred over the next year.  These anticipated costs of $1.4 million have 
been reserved as of December 28, 1998.  The Company currently estimates that 
total contract costs will now exceed contract prices by $22.8 million.

The Company believes that a significant portion of the increased contract 
costs relate to high levels of engineering and production change orders 
directed by the Ferry System.  These customer-directed change orders, most of 
which have not been settled, continued throughout the production process and 
into the Company's fiscal year 1999, and caused production rework, delays and 
disruption.  These change orders have resulted in increased production costs 
for the entire three ship ferry construction project.

The Company has completed an extensive cost analysis of both the direct costs 
and related production schedule impact costs which resulted from these 
customer-directed change orders.  This analysis concludes that the cost impact 
to the current Mark II contract for customer-directed changes is approximately 
$43 million plus the cost of capital.  This amount is in addition to the 
original contract amount of $181 million.

The Company plans to pursue full recovery of these costs and has advised the 
Ferry System of the amounts involved.  The Company is currently supporting the 
Ferry System's fact finding efforts that began during the third quarter of 
fiscal year 1999.  This fact finding phase will provide the Ferry System an 
opportunity to discuss and review in more detail the basis for the Company's 
cost analysis.  No assurances can be made that these preliminary discussions 
will lead to a formal stage of negotiation and settlement with the Ferry 
System.  Since the Company cannot predict the outcome of any future 
negotiations with the Ferry System, it has not included any estimates of 
possible recoveries above the original contract amount in its above mentioned 
Mark II Ferry program loss estimates.  In addition, the Company cannot 
reasonably estimate the cost associated with pursing full recovery from the 
State at this time.  Therefore, these costs will be recognized as they are 
incurred in future accounting periods.

As the remaining post delivery activities continue over the next year, the 
Company will continue to review and revise its estimates of the long term 
contract sales values and costs at completion.  Changes in these estimates 
will be made based upon the facts then known to the Company and may be a 
result of change order pricing, material and warranty costs. Depending on the 
outcome of these various post delivery activities, the Company's $22.8 million 
program loss recorded to date could change.

In the second quarter of fiscal year 1999 the Company commenced work on a new 
contruction contract with an estimated price of approximately $20.0 million.  
The contract calls for the construction of a floating electrical powerplant 
(the "Margarita"), 206 feet long and capable of developing 70 mega-watts of 
electricity.

Work on the Margarita continued throughout the third quarter as scheduled.  On 
January 9, 1999, the Company launched the Margarita and anticipates delivery 
of the vessel early in the first quarter of fiscal year 2000.

3.  INCOME TAXES
The Company did not have net taxable income during the first nine months of 
fiscal year 1999.  During the first nine months of fiscal 1998 the Company did 
not have net taxable income due to available net operating loss carryforwards.  
Accordingly, the Company did not recognize income tax expense during these 
periods.

4.  ENVIRONMENTAL MATTERS
As discussed in the Company's Form 10-K for fiscal year ended March 29, 1998, 
the Company faces significant potential liabilities in connection with the 
alleged presence of hazardous waste materials at certain of its closed 
shipyards, at its Seattle shipyard and at several sites used by the Company 
for disposal of alleged hazardous waste.  The Company has been named as a 
defendant in civil actions by parties alleging damages from past exposure to 
toxic substances at Company facilities.


Harbor Island Site
As discussed further in the Company's Form 10-K for the year ending March 29, 
1998, the Company and several other parties have been named as potential 
responsible parties by the Environmental Protection Agency ("EPA") pursuant to 
the Comprehensive Environmental, Response, Compensation, and Liability Act in 
connection with the documented release of hazardous substances, pollutants, 
and contaminants at the Harbor Island Superfund Site upon which the Seattle 
Shipyard is located.

Other Environmental Matters
The Company also is currently involved, together with other companies in some 
cases, in 14 other Superfund and Non-Superfund remediation sites and 
environmental legal issues.  In certain instances, the Company's liability and 
proportionate share of costs have not been determined due to uncertainties as 
to the nature and extent of site conditions and the Company's involvement.  
Based on the Company's previous experience, its allocated share of multi-
participant remediation sites has often been minimal, in certain instances 
less than 1 percent.

The actual costs relating to environmental remediation and settlements will 
depend upon numerous factors, including the number of parties found liable at 
each environmental site, the method of remediation, outcome of negotiations 
with regulatory authorities, outcome of litigation, technological developments 
and changes in environmental laws and regulations.

The Company's financial statements as of December 27, 1998 reflect aggregate 
reserves for environmental matters of $15.6 million.  The Company is 
negotiating with its insurance carriers and certain prior landowners and 
operators for past and future remediation costs.  The Company has recorded a 
non-current asset of $3.7 million to reflect a contractual arrangement with an 
insurance company to share costs for certain environmental matters.  No 
assurance can be given that the Company's reserves are adequate to cover all 
potential environmental costs the Company could incur.

5.  SUPPLEMENTAL CASH FLOW DISCLOSURE
During the nine months ending December 27, 1998, the Company paid $100 
thousand in interest.  During the prior year period ending December 28, 1997, 
the Company paid $38 thousand in interest.

6.  RECOGNITION OF GAIN ON SALE
In December 1993, the Company received $5.4 million of special project revenue 
bonds ("Revenue Bonds") from the Board of Trustees of the Galveston Wharves 
upon the sale of its Galveston shipyard facilities.  The Revenue Bonds 
contained provisions for annual principal payments of $216 thousand beginning 
on January 1, 1995 with a balloon payment of $3.5 million due on January 1, 
2004.  The Company recognized the gain on the sale of the facility as each 
payment was received.  As of March 29, 1998, the Company had received four 
annual principal payments.  As of December 27, 1998 the Company received 
notice that all of the outstanding Revenue Bonds would be called for 
redemption at a redemption price of 100% of the principal amount.  
Accordingly, during the period ending December 27, 1998, the Company has 
recognized the remaining $4.5 million gain on the sale of its Galveston 
facility.

7.  SUBSEQUENT EVENT
Subsequent to the Company's third quarter ending December 27, 1998, the 
Company was awarded a five year cost type contract for phased maintenance work 
by the Department of Navy.  The notional value of the contract is 
approximately $100 million and gives the Navy options to have the Company 
perform repair and maintenance work on three separate nuclear aircraft 
carriers at Puget Sound Naval Shipyard in Bremerton, Washington.  Since work 
under this contract is at the option of the Navy, the Company cannot provide 
assurance as to the timing or level of work that may be performed as part of 
this contract.  The first ship availablility is scheduled for April, 1999.

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

The Notes to Consolidated Financial Statements are an integral part of 
Management's Discussion and Analysis of Financial Condition and Results of 
Operations and should be read in conjunction herewith.

OPERATING RESULTS

All comparisons within the following discussion are with the corresponding 
periods in the previous year, unless otherwise stated.

<page break>

Revenue - The Company's third quarter revenue of $14.0 million reflects a 
decrease of $13.2 million (49%) from last year's level of $27.2 million.  This 
decrease is primarily attributable to a $12.1 million decrease in Mark II 
revenue reflecting the completion and delivery of all three ferries, as well 
as a $0.8 million revenue adjustment for price estimates on completed 
government contracts resulting from recently conducted overhead rate audits.

Fiscal year 1999 nine month revenue of $60.5 million reflects a decrease of 
$28.2 million (32%) compared to last year's nine month results of $88.7 
million.  This decrease is also attributable to a significant decrease in Mark 
II revenue.  Mark II revenue decreased $36.8 million during the first nine 
months of fiscal year 1999 when compared to the same period last year.  
However, increases in commercial and government repair and construction 
activities of $8.6 million during this same period partially offset the 
decreases in Mark II revenues.

Cost of Revenue - Cost of revenue during the third quarter of fiscal year 1999 
was $15.3 million, or 109% of revenue.  Cost of revenue during the third 
quarter of fiscal year 1998 was $20.8 million, or 77% of revenue.  This 
decrease of $5.5 million (26%) is the result of lower levels of Mark II 
construction activities partially offset by increases in commercial and 
government repair and construction activities which are reflected in the 
reduced third quarter revenue figures.  The increase in cost of revenue as a 
percentage of revenue in the third quarter of fiscal year 1999 is the result 
of increased costs on the Mark II contract coupled with the Company's 
inability to recognize additional revenue on the contract beyond the current 
contract price.

Cost of revenue during the first nine months of fiscal year 1999 was $53.7 
million, or 89% of revenue, which reflects a $18.5 million (26%) decrease from 
the previous fiscal year.  Cost of revenue during the first nine months of 
fiscal year 1998 was $72.2 million, or 81% of revenue.  This reduction also 
reflects the lower levels of shipyard activities primarily attributable to 
lower levels of Mark II activities reflected in the reduced first nine month 
revenue totals.  The increase in cost of revenue as a percentage of revenue in 
the first nine months of fiscal year 1999 is also due to increased costs on 
the Mark II contract coupled with the Company's inability to recognize 
additional revenue on the contract beyond the current contract price.

Administrative and manufacturing overhead expense - Overhead costs for 
administrative and manufacturing activities were $6.1 million, or 44% of 
revenue for fiscal year 1999 third quarter and $19.6 million, or 32% of 
revenue for the first nine months of fiscal 1999.

Administrative and manufacturing overhead costs for the third quarter and 
first nine months of fiscal year 1998 were $6.4 million and $22.9 million, 
respectively.  The reduction in third quarter fiscal year 1999 administrative 
and manufacturing overhead of $0.3 million (5%), as well as the reduction in 
first nine months of fiscal year 1999 of $3.3 million (14%) results from lower 
levels of Mark II construction activities during these respective time 
periods.  The Company continues to emphasize overhead cost control as 
production levels fluctuate throughout the fiscal year.

Contract reserve activity - During the third quarter of fiscal year 1999 the 
Company utilized the remaining $1.0 million of the previously recognized $18.0 
million forward loss reserve recorded on the MK II Ferry project.  However, 
this was fully offset by an additional $1.4 million charge, resulting in the 
net activity reported for the period of $0.4 million.  During the first nine 
months of fiscal year 1999, the Company utilized $5.4 million in previously 
recorded forward loss reserves which was also partially offset by the 
additional $1.4 million charge taken during the third quarter of fiscal year 
1999.

During the third quarter and first nine months of fiscal year 1998, the 
Company utilized $3.0 million and $10.0 million, respectively, of previously 
recognized forward loss reserves.  The reserve utilization for the third 
quarter and first nine months of fiscal year 1998 were partially offset by an 
additional $1.5 million charge and $4.5 million charge, respectively, 
resulting in the net activity reported of $1.5 million and $5.5 million, 
respectively.

Provision for environmental reserves - The Company did not report any changes 
to the provision for environmental reserves during the third quarter or first 
nine months of either fiscal year 1999 or 1998.

Investment and other income - Investment and other income for the third 
quarter and first nine months of fiscal year 1999 was $5.5 million and $6.3 
million, respectively.  Investment and other income for fiscal year 1998 third 
quarter and for the first nine months were $1.3 million and $2.4 million, 
respectively.  The increase in Investment and Other Income for both the third 
quarter and first nine months of fiscal year 1999 are the result of the 
Company recognizing $4.5 million on the sale of its Galveston shipyard 
facilities (see Note 6, Notes to the Consolidated Financial Statements).

Gain on sale of available-for-sale security - During the third quarter and 
first nine months of fiscal year 1999 the Company reported a gain from the 
sale of an available-for-sale security of $0.5 million and $0.8 million, 
respectively.  During the third quarter and first nine months of fiscal year 
1998 the Company reported gains from the sale of an available for sale 
security of $0.2 million, respectively.

Income taxes - The Company did not have net taxable income during the third 
quarter and first nine months of fiscal year 1999.  Accordingly, the Company 
has recognized no income tax expenses during these periods.

LIQUIDITY AND CAPITAL RESOURCES

Working capital - Working capital during the first nine months of fiscal year 
1999 remained relatively unchanged from the beginning of the fiscal year.  
Working capital for the period ending December 27, 1998 was $42.3 million, 
which represents a decrease of $2.1 million from the working capital reported 
at the end of fiscal year 1998.

Unbilled receivables - As of December 27, 1998 unbilled items on completed 
contracts totaled $0.9 million compared with $0.9 million at the end of the 
third quarter of fiscal year 1998 and $1.3 million at the beginning of fiscal 
year 1999.

Capital Resources - Capital expenditures for the third quarter of fiscal 1999 
were $0.6 million compared to $0.3 million in the third quarter of fiscal year 
1998.  Capital expenditures for the first nine months of fiscal year 1999 were 
$0.9 million compared to $1.0 million for the same period in fiscal 1998.  The 
Company's capital expenditures for the past several years have remained 
relatively constant, having achieved completion of capital improvements 
necessary to complete the Mark II Ferry project.  Fiscal year 1999 capital 
expenditures are planned to remain relatively consistent with last year's 
level.

Based upon its current cash position described above and anticipated fiscal 
year 1999 cash flow, the Company believes it has sufficient liquidity to fund 
operations for this fiscal year.  Accordingly, shipyard capital expenditures 
are expected to be financed out of working capital.  A change in the 
composition or timing of projected work could cause capital expenditures and 
repair and maintenance expenditures to change.

YEAR 2000

The Company's comprehensive Year 2000 initiative is being managed by a team of 
internal staff.  The team's activities are designed to ensure that there is no 
adverse effect on the Company's core business operations and that transactions 
with customers, suppliers, and financial institutions are fully supported.

During fiscal 1999 the Company continued efforts to upgrade its payroll 
system; parallels of one of the three major payroll functions has been 
successfully tested.  Completion of the remaining payroll upgrade is now 
planned for fourth quarter.  Other remaining custom program upgrades and 
server operating system upgrades will be completed by the first quarter of 
fiscal 2000. The Company has received written assurance from most of its 
significant suppliers that they will be Year 2000 compliant. Financial 
institutions and utilities have also assured the Company that they have 
appropriate plans to remediate Year 2000 issues.

While the Company believes its planned efforts are adequate to address its 
Year 2000 concerns, there can be no assurance that the systems of other 
companies on which the Company's systems and operations rely will be converted 
on a timely basis and will not have a material effect on the Company's 
operation.  Costs incurred to date on the Company's Year 2000 upgrades have 
not been significant, nor does the Company expect the cost of the remaining 
Year 2000 initiatives to have a material impact upon the Company's results of 
operations, cash flow or financial position.

ENVIRONMENTAL MATTERS

On Going Operations - Recurring costs associated with the Company's 
environmental compliance program are not material and are expensed as 
incurred.  Capital expenditures in connection with environmental compliance 
are not material to the Company's financial statements.

Past Activities - The Company faces significant potential liabilities in 
connection with the alleged presence of hazardous waste materials at some of 
its closed shipyards, at its Harbor Island shipyard, and at several sites used 
by the Company to dispose of alleged hazardous waste.  The Company has been 
named as defendant in civil actions by parties alleging damages from past 
exposure to toxic substances at Company facilities.  The nature of 
environmental investigation and clean up activities makes it difficult to 
determine the timing and amount of any estimated future cash flows that may be 
required for remedial efforts.  The Company reviews these matters and accrues 
for costs associated with remediation of environmental pollution when it 
becomes probable that a liability has been incurred and when the amount of the 
Company's liability (or the Company's proportionate share of the amount) can 
be reasonably estimated.  

The Company's financial statements as of December 27, 1998 reflect aggregate 
reserves for environmental matters of $15.6 million.  The Company is 
negotiating with its insurance carriers and certain prior landowners and 
operators for past and future remediation costs.  The Company has recorded a 
non-current asset of $3.7 million to reflect a contractual arrangement with an 
insurance company to share costs for certain environmental matters.  No 
assurance can be given that the Company's reserves are adequate to cover all 
potential environmental costs the Company could incur.

Actual costs to address environmental matters in which the Company is involved 
will depend on numerous factors, including the number of parties found liable 
at each environmental site, the method of remediation, outcome of negotiations 
with regulatory authorities, outcome of litigation, technological 
developments, and changes in environmental laws and regulations.

BACKLOG

At December 27, 1998 the Company's firm shipyard backlog consists of 
approximately $53 million of construction, repair and overhaul work. The 
Company's repair and overhaul work generally is of short duration with little 
advance notice. The Company's backlog at December 28, 1997 was $44 million of 
which $24 million related to the Mark II Ferry Program.

LABOR RELATIONS

In February 1998, the Puget Sound Metal Trades Council (bargaining umbrella 
for all unions at Todd Pacific) and Todd Pacific were sued in Federal District 
Court for the Western District of Washington by in excess of 200 employees 
contending that the collective bargaining agreement entered into by Todd 
Pacific and the various unions representing these employees had not been 
properly ratified by the union membership.  The lawsuit sought a declaratory 
judgment that the collective bargaining agreement executed in November 1997 be 
found null and void.  The Puget Sound Metal Trades Council and the plaintiff 
employees reached a tentative settlement of this matter in December 1998, the 
terms of which have not been disclosed to Todd Pacific.    

FUTURE SHIPYARD OPERATIONS

The Company's future profitability depends largely on the ability of the 
shipyard to maintain an adequate volume of repair and new construction 
business.  The Company competes with other northwest and west coast shipyards, 
some of which have more advantageous cost structures.  The Company's 
competitors include non-union shipyards, shipyards with excess capacity and 
government subsidized facilities.

PART II. OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibit 27 - Financial Data Schedule.

(b)  Reports on Form 8-K.
None

SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) 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.

TODD SHIPYARDS CORPORATION 
Registrant



By:_______________________________
   Scott H. Wiscomb
   Chief Financial Officer and Treasurer
   February 09, 1999