SECURITIES AND EXCHANGE COMMISSION
                      Washington, DC 20549

                            FORM 10-K

        Annual Report Pursuant to Section 13 or 15(d) of
               the Securities Exchange Act of 1934
                    for the fiscal year ended
                        December 31, 1996
                  Commission file number 1-5642

                        DRAVO CORPORATION
                   A PENNSYLVANIA CORPORATION
        I.R.S. EMPLOYER IDENTIFICATION NUMBER 25-0447860

                      3600 ONE OLIVER PLAZA
               PITTSBURGH, PENNSYLVANIA 15222-2682
                    TELEPHONE (412) 566-3000


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of Class:                                    Registered:
Common Stock, $1.00 Par Value                      New York  Stock Exchange
Preference Stock Purchase Rights                   New York Stock Exchange

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,
and (2) has been subject to such filing requirements for the past
90 days. Yes XX .  No_____.

Indicate  by  check  mark  if  disclosure  of  delinquent  filers
pursuant  to Item 405 of Regulation S-K is not contained  herein,
and will not be contained, to the best of Registrant's knowledge,
in  definitive  proxy or information statements  incorporated  by
reference in Part III of this Form 10-K or any amendment to  this
Form 10-K.  XX

Common shares outstanding as of March 20, 1997: 14,771,620
Aggregate market value of the voting stock held by non-affiliates
of the Registrant as of March 20, 1997:  $160,641,368

               DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to Shareholders for the year  ended
December 31, 1996 are incorporated by reference to the extent set
forth  in  Parts I, II and IV of this Report.   Portions  of  the
Proxy  Statement for Annual Meeting of Shareholders on April  24,
1997   are  incorporated by reference to the extent set forth  in
Part III of this Report.








                        TABLE OF CONTENTS

                                                                     Page

PART I Item 1.      Business                                         3 - 5

       Item 2.      Properties                                           6

       Item 3.      Legal Proceedings                                    7

       Item 4.      Submission of Matters to a Vote
                     of Security Holders                                 7

PART  II
       Item 5.      Market for the Registrant's Common Stock
                     and Related Stockholder Matter                 8 - 11

       Item 6.      Selected Financial Data                             12

       Item  7.     Management's Discussion  and
                     Analysis  of Financial Condition
                     and  Results   of   Operations                     12

       Item 8.      Financial Statements and Supplementary Data         12

       Item 9.      Changes in and Disagreements with Accountants
                     on Accounting and Financial Disclosure             12

PART III
       Item 10.     Directors and Executive Officers of the
                     Registrant                                         13

       Item 11.     Executive Compensation                              14

       Item 12.     Security  Ownership of Certain  Beneficial
                     Owners and Management                              14

       Item 13.     Certain   Relationships   and   Related
                     Transactions                                       14

PART IV
       Item 14.     Exhibits, Financial Statement Schedules and
                     Reports on Form 8-K                           15 - 21

                    Signatures                                          22

                    Independent Auditors' Report on Schedules           23

       Schedule I.  Condensed Financial Information of Registrant  24 - 31

       Table of Contents for documents filed herein as Exhibits
        4, 11, 13, 21, 23, 24 and 27                                    32






                               -2-
                              PART I
                                
                                
Item 1.  Business

(a)  General Development of the Business

Dravo Corporation (the Registrant or company) was incorporated in
Pennsylvania  in 1936 to consolidate several related corporations
then operating various elements of a business started in 1891  by
F.  R.  Dravo.   Its corporate offices are located  at  3600  One
Oliver  Plaza,  Pittsburgh,  Pennsylvania  15222-2682,  and   its
telephone number is 412-566-3000.  As used herein, the term Dravo
includes   its   consolidated   subsidiaries   unless   otherwise
indicated.   In  December,  1987,  Dravo's  Board  of   Directors
approved a major restructuring program which concentrated Dravo's
future  direction  exclusively  on  opportunities  involving  its
natural resources business.  The plan included the sale or  other
disposition  of the former Engineering and Construction  segment,
as  well as the sale of the former Materials Handling and Systems
segment approved earlier.  All units scheduled for sale were sold
by  the end of 1989.  The remainder of these businesses have been
presented   as    discontinued  operations   in   the   financial
statements.

Late  in 1994, the company sold substantially all the assets  and
certain  liabilities  of  Dravo  Basic  Materials  Company,   its
construction aggregates subsidiary, to Martin Marietta Materials,
Inc.  (Martin Marietta).  As a result, Dravo is now  primarily  a
lime   company  operating  principally  in  the  United   States.
Operations  are  carried on by a wholly-owned  subsidiary,  Dravo
Lime Company (Dravo Lime).  Activities include the production  of
lime  for  utility,  metallurgical, pulp  and  paper,  municipal,
construction   and   miscellaneous   chemical   and    industrial
applications as well as the development and marketing of  related
environmental technologies, products and services.   Three  major
utility companies with whom the company has long-term contracts -
American   Electric   Power,  Pennsylvania  Power   Company   and
Cincinnati Gas & Electric Company - each accounted for more  than
10  percent  of consolidated revenue in 1996.  All  reserves  are
located  on  properties  physically accessible  for  purposes  of
mining and processing limestone into lime.

Dravo Lime, one of the nation's largest lime producers, owns  and
operates  three  integrated lime production  facilities,  two  in
Kentucky  and  one in Alabama.  In 1995 a two kiln expansion  was
completed at the Black River plant in Butler, Kentucky. With  the
Black  River  expansion  on-line, Dravo Lime's  annual  quicklime
capacity  totals approximately three million tons.  This capacity
will  further  increase to slightly over 3,300,000  tons-per-year
when a fourth 1,100 tons-per-day kiln now in the process of being
constructed  at  Maysville, Kentucky is completed  early  in  the
second quarter of 1997.

The  Maysville plant, currently a three kiln, 1,050,000 tons-per-
year  facility,  is located along the Ohio River and  produces  a
material marketed under the trade name Thiosorbicr Lime that  has
a  product  chemistry ideally suited for removing sulfur  dioxide
from  power  plant  stack gases.  All of  Maysville's  output  is
committed under long-term contracts with utility companies in the
Ohio  Valley region.  All contracts contain provisions for  price
escalation.   Owned reserves at the Maysville site are  recovered
from  a mine 950 feet underground and are considered adequate  to
sustain  the future four kiln operation in excess of seventy-five
years.

                                
                                
                                
                               -3-



Item 1.  Business (continued)

Dravo  Lime's  Black River facility is an integrated  Thiosorbicr
quicklime, high calcium pebble and pulverized quicklime, and bulk
and  bagged hydrated lime facility.  Located along the Ohio River
at Butler, Kentucky, Black River has an annual quicklime capacity
of  1,350,000 tons-per-year.  Of that total, in excess of seventy
percent  is  committed to utility companies and steel  and  paper
customers   under  long-term  contracts  with  price   escalation
provisions.  Limestone reserves at Black River are recovered from
a 600-feet-deep underground mine.  At Black River's expanded rate
of   capacity,  reserves  are  considered  adequate  to   sustain
production levels for more than seventy-five years.

The   company's  Longview  facility,  located  near   Birmingham,
Alabama,  is  an integrated facility as well that  produces  high
calcium  quicklime, and bulk and bagged hydrated lime from  owned
limestone  reserves.   At this plant, Dravo  Lime  also  produces
dolomitic  quicklime  from  limestone  purchased  from  a  nearby
dolomitic stone quarry.  Due to its material handling and storage
capabilities  and  its  ability  to  produce  high  calcium   and
dolomitic  lime,  the Longview facility is able to  custom  blend
quicklime  to its customers' chemical specifications.  Longview's
annual lime production capacity is approximately 570,000 tons-per-
year.   The  company is currently evaluating the  possibility  of
building  a  fourth kiln at Longview. In early 1997,  Dravo  Lime
purchased  a  number  of land parcels adjacent  to  the  Longview
quarry  that doubled its limestone reserves. Recoverable reserves
are  estimated  to  last approximately 40 years  at  the  current
quarry production rate.  Although it will not be necessary  until
the distant future, Longview could be converted to an underground
mine if a further extension of reserves is necessary.

In  conjunction with the sale of Dravo Basic Materials' assets to
Martin  Marietta,  Dravo Lime entered into agreements  appointing
Martin Marietta the exclusive distributor of certain aggregate by-
products.    In   1995,  an  aggregates  processing   plant   was
constructed  at  the  Longview facility  that  annually  produces
between  500,000 to 1,000,000 tons of aggregates for purchase  by
Martin  Marietta.  A benefit of this installation is  to  make  a
marketable   by-product  out  of  limestone  that  is  chemically
unsuitable  for lime production, thereby reducing the cost  Dravo
Lime  incurs to recover the high calcium limestone reserves  that
are beneath the aggregate quality material.

Dravo   Lime   products   are   distributed   through   quicklime
distribution terminals located in Aliquippa, Donora  and  Monaca,
Pennsylvania; Porterfield, Ohio; Brunswick, Georgia;  and  Tampa,
Fort Lauderdale and Sanford, Florida.  At Baton Rouge, Louisiana,
Dravo  Lime  owns  and  operates a  lime  hydration  and  bagging
facility from which quicklime, and bulk and bagged hydrated  lime
products are distributed.

(b)  Competitive Conditions

Dravo  encounters competition at all its operations but  believes
that its experience, strategically located reserves and technical
expertise  in  the  flue  gas desulfurization  industry  give  it
certain competitive advantages.



                               -4-
                                
Item 1. Business (continued)

Dravo's  research and development expenditures were $3.7  million
in  1996  and  $3.6  million in 1995.  Research  and  development
spending in 1997 is expected to exceed $3.3 million.  The company
expects  the  research, much of which is being conducted  jointly
with  utility customers, to lower both the capital and  operating
costs  associated with flue gas desulfurization (FGD).   A  major
advancement toward that goal was achieved with the development of
a  second  generation, proprietary ThioClearr FGD technology.   A
commercial scale demonstration facility using this technology  is
currently  being  engineered and constructed  at  Applied  Energy
Services'   Beaver  Valley  cogeneration  facility   in   Monaca,
Pennsylvania.   Construction is expected to be completed  in  the
second  quarter of 1997.  Other research projects  are  aimed  at
developing proprietary technologies for use in reducing stack gas
emissions of combined SOx/NOx and air toxins while recovering and
processing  salable  by-products.  Dravo believes  that  in  this
field   its  long-term  contracts,  accumulated  experience   and
technical skill represent significant competitive advantages.

With the exception  of its research and development capabilities,
several firms with which Dravo competes have comparable resources
and  income.   Dravo  competes with  other  firms  for  qualified
professional personnel, particularly those with technical skills.

(c)  Corporate Development

Dravo's  corporate development policy encompasses growth  through
investment  in  existing  businesses,  internal  development  and
acquisition.  The company announced in October 1996 that  it  was
undertaking   an   investment   banking   review   of   strategic
alternatives to accelerate growth and enhance shareholder  value.
Additionally,  to the extent that business units no  longer  meet
management's  long-term  profitability performance  criteria  and
business  strategies,  or  do  not  contribute  significantly  to
corporate objectives, a policy of divestiture is followed.

Continuing operations of Dravo Corporation, which are principally
domestic  in nature, function in one segment, a natural  resource
business,  primarily involved in the production,  processing  and
supply  of lime for environmental, metallurgical, pulp and paper,
municipal, construction and miscellaneous chemical and industrial
applications as well as the development and marketing of  related
environmental  technologies,  products  and  services.    Dravo's
position  as  the world's leading producer of lime for  flue  gas
desulfurization applications was enhanced by the passage  of  the
1990 Clean Air Act Amendments.

Further  information  required by this item  is  incorporated  by
reference  to  the  information  set  forth  under  the  captions
indicated  below in the 1996 Annual Report to Shareholders  which
accompanies this report:

       Caption in Annual Report           Page No.

       Results of Operations               12 - 14
       Note 16:  Research and Development       32
       Employees at Year-End                    35




                               -5-
Item 2.  Properties

The following is a listing of principal offices, plants and mines
currently used in operations:


Use                    Location                  Owned or Leased

Executive and general  Pittsburgh, Pennsylvania   Leased
 offices

Production facilities  Saginaw, Alabama           Owned
                       Butler, Kentucky           Owned
                       Maysville, Kentucky        Owned

Distribution sites     Ft. Lauderdale, Florida    Leased
                       Tampa, Florida             Owned/Leased
                       Sanford, Florida           Leased
                       Brunswick, Georgia         Owned/Leased
                       Baton Rouge, Louisiana     Owned
                       Porterfield, Ohio          Leased
                       Donora, Pennsylvania       Leased
                       Monaca, Pennsylvania       Owned/Leased

The following table shows a summary of the company's reserves  at
December 31, 1996 and tons mined by Dravo Lime in 1996.

     (Tons in millions)
                          Recoverable           1996
                           Reserves          Production

     Underground Mines:
      Owned                 592.6            6.2
     Quarries:
      Owned (1)              31.1            1.4

                            623.7            7.6


(1)  Does  not include over 27 million tons of reserves purchased
in early 1997.

Additional  information required by this item is incorporated  by
reference  to the information set forth under Item 1(a)  "General
Development of the Business" on pages 3 through 5 of this Form 10-
K.







                         -6-

Item 3.  Legal Proceedings


Information required by this item is incorporated by reference to
the  information set forth under the caption Note 8:  "Contingent
Liabilities" in the Notes to Consolidated Financial Statements on
pages  25 and 26 of the 1996 Annual Report to Shareholders  which
accompanies this report.

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

There were no matters submitted to a vote of security holders for
the three months ended December 31, 1996.



































                               -7-
                                
                             PART II

Item  5.   Market for the Registrant's Common Stock  and  Related
           Stockholder Matters

Information required by this item is incorporated by reference to
the  information set forth under the captions indicated below  in
the  1996  Annual  Report to Shareholders which accompanies  this
report:

Caption in Annual Report                       Page No.

Common Stock Market Price                            15

Shareholders at year-end                             35

Dividends                                        14, 35

               Description of Dravo Capital Stock

General

Under its Restated Articles of Incorporation ("the Articles"), as
amended,  Dravo  is  authorized  to  issue  1,878,870  shares  of
preference  stock,  par  value $1.00 per  share,  and  35,000,000
shares  of common stock, par value $1.00 per share.  At  December
31,  1996  issued preference and common shares were  220,386  and
15,096,817, respectively and there were 333,168 shares of  common
stock held in the treasury.

Four  series  of  preference  stock  have  been  established   by
resolutions   of  the  Board  of  Directors:   $2.20   Cumulative
Convertible  Series  A  Preference Stock  ("Series  A  Preference
Stock"),  consisting  of 26,817 shares, issued  on  September  1,
1970;  $2.475  Cumulative Convertible Series B  Preference  Stock
("Series  B  Preference Stock"), consisting  of  165,516  shares,
issued on June 12, 1973; Series C Preference Stock consisting  of
200,000  shares;  and  $12.35  Series  D  Cumulative  Convertible
Exchangeable  Preference  Stock ("Series  D  Preference  Stock"),
consisting of 200,000 shares, issued on September 21, 1988.   All
of  the  shares of Series A Preference Stock were converted  into
shares  of  common stock on April 2, 1978.  Presently  there  are
20,386 shares of Series B Preference Stock and 200,000 shares  of
Series  D Preference Stock issued and outstanding.  No shares  of
Series  C  Preference Stock have been issued or are  outstanding.
The  Board of Directors did not extend the rights to issue Series
C stock, pursuant to the Shareholders' Rights Agreement, past the
April 17, 1996 expiration date.  Other series of preference stock
may  be created by resolution of the Board of Directors with such
dividend,  liquidation, redemption, sinking fund  and  conversion
rights as shall be specified therein.

Dividend Rights

The  holders  of the preference stock are entitled to  cumulative
dividends,  payable quarterly, which must be paid  and  the  next
quarterly  dividend  set  apart  before  any  dividends   (except
dividends in common stock or any other



                               -8-
                                
                                
                                
                                
Item  5.   Market for the Registrant's Common Stock  and  Related
Stockholder
         Matters (continued)

Dividend Rights (continued)

stock  ranking  after the preference stocks as to  dividends  and
assets)  are  declared,  or paid, or monies  set  apart  for  the
payment  of  dividends on any class of stock  ranking  after  the
preference  stock  as  to  dividends  or  assets.   The  rate  of
dividends  payable upon the Series B Preference Stock  is  $2.475
per  annum.  The  rate of dividends payable  upon  the  Series  D
Preference Stock is 12.35 percent per annum or $12.35 per  share,
which  rate  shall be increased by 2 percent per  annum  if  such
dividends  are  not paid on any quarterly dividend  payment  date
until  accrued  and unpaid dividends on the Series  D  Preference
Stock are paid.

The holders of the common stock are entitled to such dividends as
may  be declared by the Board of Directors out of assets properly
available for that purpose.  No common stock dividends have  been
declared since April, 1987.

Other  information  required  by this  item  is  incorporated  by
reference to the information set forth under the caption "Note 5:
Notes Payable", in the Notes to Consolidated Financial Statements
on  pages  24  and  25 of the 1996 Annual Report to  Shareholders
which accompanies this report.

Voting Rights

Each  share  of  the  common stock and the  preference  stock  is
entitled  to  one  vote, which is cumulative in the  election  of
directors.  The Board of Directors is divided into three classes,
and  approximately one third of the directors  are  elected  each
year for three year terms.  The effect of such classification  of
the   Board   is   to  increase  the  number  of  shares,   voted
cumulatively, necessary to elect directors.  If dividends on  the
preference stock shall be unpaid or in arrears for six  quarterly
dividend periods, the holders of the preference stock voting as a
class shall have the right to elect two additional directors.

Liquidation Rights

In  the  event  of  the voluntary or involuntary  liquidation  or
dissolution  of  Dravo,  or  the sale  or  other  disposition  of
substantially  all of its assets, the holders  of  the  Series  B
Preference Stock shall be entitled to receive the sum of $55  per
share plus all accumulated and unpaid dividends thereon; and  the
holders of Series D Preference Stock shall be entitled to receive
$100 per share plus all accumulated and unpaid dividends thereon.
The holders of any other series of preference stock which may  be
issued  shall be entitled to receive the amounts provided for  in
the  resolutions creating such series.  The holders of the common
stock shall share ratably in the remaining assets, if any.







                               -9-

                                
Item  5.   Market for the Registrant's Common Stock  and  Related
           Stockholder Matters (continued)

No Preemptive Rights and Non-assessability

No preemptive rights attach to the common stock or the preference
stock.   Neither  the  holders  of  the  common  stock  nor   the
preference  stock  are liable to further calls or  assessment  by
Dravo.

Redemption and Sinking Fund Provisions

There  are  no redemption provisions with respect to  the  common
stock.   The Series B Preference Stock may be redeemed, in  whole
or  in  part,  at the option of Dravo, on not less than  60  days
notice, on any quarterly dividend payment date by the payment  of
$55  per  share and all accumulated and unpaid dividends  to  the
redemption date. The Series D Preference Stock may be redeemed in
whole or in part at the option of Dravo at any time after January
21,  1996,  by the payment of $100 per share and all  accumulated
and  unpaid  dividends to the redemption date,  so  long  as  the
current   market   price  (as  defined  in  the  Certificate   of
Designations, Preferences and Rights for the Series D  Preference
Stock)  of  the  common stock on the date the  Board  decides  to
redeem  the shares is at least 175 percent of the then  effective
conversion  price for the Series D Preference Stock.   Commencing
on  the first quarterly dividend payment date after September 21,
1998  and annually thereafter, Dravo is required to redeem 50,000
shares  of  Series D Preference Stock in cash at  the  redemption
price   of  $100  per  share  plus  all  accumulated  and  unpaid
dividends.  Dravo is also required (unless certain conditions are
met)  to  redeem all of the then outstanding shares of  Series  D
Preference  Stock in cash at $100 per share plus all  accumulated
and  unpaid dividends (a) if Dravo declares or pays or sets apart
for payment any dividends or makes any other distribution in cash
or  other  property on or in respect of the common stock  or  any
other  class  or  series of the capital stock  of  Dravo  ranking
junior  to  the  Series  D  Preference Stock  as  to  payment  of
dividends ("Junior Dividend Stock"), or sets apart money for  any
sinking fund or analogous fund for the redemption or purchase  of
any   Junior   Dividend  Stock  and  (b)  upon  any   merger   or
consolidation of Dravo if, in connection therewith,  the  holders
of  the common stock receive cash, debt instruments or preference
stock  of  the surviving entity which ranks on a parity  with  or
senior  to  the  Series  D  Preference  stock  with  respect   to
liquidation, dissolution or winding up or dividends.   There  are
no  sinking fund provisions with respect to the common stock, the
Series B Preference Stock or the Series D Preference Stock.











                              -10-
                                
                                
                                
                                
Item  5.   Market for the Registrant's Common Stock  and  Related
           Stockholder Matters (continued)

Conversion

The  Series  B Preference Stock is presently convertible  at  any
time  prior to redemption at the option of the holder into common
stock on the basis of 3.216 shares of common stock for each share
of  Series B Preference Stock, subject to equitable adjustment in
the  event  of certain changes affecting the common  stock.   The
Series  D  Preference Stock is presently convertible at any  time
prior to redemption at the option of the holder into common stock
on  the  basis  of 8.0 shares of common stock for each  share  of
Series D Preference Stock, subject to adjustment in the event  of
certain  changes  affecting  the  common  stock.   The  Series  D
Preference Stock is convertible or exchangeable in whole  at  any
time   by  Dravo  for  an  equal  face  amount  of  Dravo  Senior
Subordinated Convertible Notes due September 21, 2001  containing
the same conversion rights, transfer restrictions and other terms
(other  than  voting  rights) as the Series D  Preference  Stock.
There are no conversion rights with respect to the common stock.

Other Information

Dravo may purchase shares of the Preference Stock whether or  not
any  dividend arrearage shall exist with respect thereto, and may
hold and dispose of such shares in such manner as it may elect.

The  holders  of the preference stock who comply with  applicable
provisions  of  law  and  object to  a  merger  or  consolidation
involving  Dravo shall have all of the legal rights of  objecting
shareholders  in a merger or consolidation whether  or  not  they
constitute a class otherwise entitled to such rights.

The  transfer  agent  and  registrar  for  the  common  stock  is
Continental Stock Transfer & Trust Company, New York, NY.
























                              -11-




Item 6.  Selected Financial Data

Information required by this item, with the exception  of  common
stock  dividends  declared, is incorporated by reference  to  the
information  set forth under the caption "Five-Year  Summary"  on
page   35  of  the  1996  Annual  Report  to  Shareholders  which
accompanies  this  report.  Dravo has declared  no  common  stock
dividends in the five-year period ending December 31, 1996.


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

Information required by this item is incorporated by reference to
the information set forth under the captions "Overview", "Results
of  Operations", "Financial Position and Liquidity" and "Outlook"
on  pages 12 through 15 of the 1996 Annual Report to Shareholders
which accompanies this report, to the information set forth under
the caption Note 2: "Discontinued Operations" on page 23, Note 3:
"Dispositions" on pages 23 and 24, Note 7: "Commitments" on  page
25, Note 8: "Contingent Liabilities" on pages 25 and 26, Note 13:
"Income  Taxes"  on  pages 31 and 32 and Note 14:  "Extraordinary
Item"   on  page  32  in  the  Notes  to  Consolidated  Financial
Statements of the 1996 Annual Report to Shareholders.


Item 8.  Financial Statements and Supplementary Data

Information required by this item is incorporated by reference to
the financial statements and notes thereto set forth on pages  16
through  33,  and the Independent Auditors' Report set  forth  on
page   34  of  the  1996  Annual  Report  to  Shareholders  which
accompanies this report.


Item  9.   Changes  in  and  Disagreements  with  Accountants  on
           Accounting and Financial Disclosure

Not applicable.

















                              -12-
                                
                                
                            PART III

Item 10.  Directors and Executive Officers of the Registrant

Information  required by this Item as to Directors  and  nominees
for  Director is incorporated by reference to the information set
forth  under  the caption "Information Concerning  Directors  and
Nominees  for  Director" in the Registrant's Proxy Statement  for
the Annual Meeting of Shareholders on April 24, 1997.

The following information indicates the position and age at March
22,   1997  of  the  non-director  executive  officers  of  Dravo
Corporation  and their business experience during the  last  five
years:

Marshall  S.  Johnson,  Age  55, Vice President,  Operations  and
Engineering  since  December, 1994; Vice  President,  Operations,
Dravo  Lime  Company  from April, 1992 to  December  1994;  prior
thereto Regional Operations Manager, Dravo Lime Company.

Ernest  F.  Ladd  III,  Age 56, Executive Vice  President,  Chief
Financial Officer since December, 1994; Executive Vice President,
Finance and Administration from December, 1989 to December, 1994.

John  R.  Major,  Age  52, Vice President,  Administration  since
January, 1989.

James  J.  Puhala,  Age 54, Vice President, General  Counsel  and
Secretary since September, 1987.

Richard   E.   Redlinger,  Age  45,  Vice  President,   Corporate
Development,  and Treasurer since July, 1995; prior thereto  Vice
President, Finance and Planning, Dravo Lime Company.

Donald H. Stowe, Jr., Age 45, Vice President Sales and Technology
since   December  1994;  Executive  Vice  President,  Sales   and
Technology,  Dravo  Lime Company from March,  1992  to  December,
1994;  prior  thereto Sr. Vice President, Sales  and  Technology,
Dravo Lime Company.

Larry  J.  Walker,  Age 44, Vice President and  Controller  since
July, 1995; Controller since December, 1989.















                              -13-
                                
                                
Item 11.  Executive Compensation

Information required by this item is incorporated by reference to
the   information   set  forth  under  the   caption   "Executive
Compensation" in the Registrant's Proxy Statement for the  Annual
Meeting of Shareholders on April 24, 1997.


Item  12.   Security Ownership of Certain Beneficial  Owners  and
Management

Information required by this item is incorporated by reference to
the  information set forth under the captions "Security Ownership
of  Certain  Beneficial Owners" and "Ownership by  Management  of
Equity  Securities" in the Registrant's Proxy Statement  for  the
Annual Meeting of Shareholders on April 24, 1997.


Item 13.  Certain Relationships and Related Transactions

Information required by this item is incorporated by reference to
the   information  set  forth  under  the  caption   "Information
Concerning   Directors  and  Nominees  for   Director"   in   the
Registrant's   Proxy  Statement  for  the   Annual   Meeting   of
Shareholders on April 24, 1997.

























                              -14-
                             PART IV

Item  14.   Exhibits, Financial Statement Schedules and Reports  on Form 8-K

(a) 1. Financial Statements

       The  following  consolidated  financial  statements  of  the
       Registrant  are filed pursuant to Item 8 of this  Form  10-K
       and are incorporated herein by reference to the page numbers
       indicated  below  in the 1996 Annual Report to  Shareholders
       which accompanies this report.

               Description                                         Page No.

       Consolidated Balance Sheets at December 31, 1996 and 1995    16, 17

       Consolidated Statements of Operations for the years ended
       December 31, 1996, 1995 and 1994                                 18

       Consolidated Statements of Retained Earnings for the years
       ended December 31, 1996, 1995 and 1994                           19

       Consolidated Statements of Cash Flows for the years ended
       December 31, 1996, 1995 and 1994                             20, 21

       Notes to Consolidated Financial Statements                  22 - 33

       Independent Auditors' Report                                     34

    2. Financial Statement Schedules

       The following  financial statement schedules of the Registrant
       are  required and are filed pursuant to this item in  this
       Form 10-K.


               Schedule                                            Page No.

        Independent Auditors' Report                                   23

        Schedule I.    Condensed Financial Information of         24 - 31
                       Registrant

Schedules other than those listed above have been omitted because they
are not applicable or because the required information is reported  in
the financial statements or notes.











                              -15-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
         (continued)

(a)  3.        Exhibits

     (3)  Articles of Incorporation and By-laws

        (i)    Articles    of    Amendment    restating     Dravo
               Corporation's Articles of Incorporation  in  their
               entirety  and  all  subsequent amendments  thereto
               including  but  not limited to the Statement  with
               Respect  to Shares of Dravo Corporation  as  filed
               with   the   Secretary  of  the  Commonwealth   of
               Pennsylvania  on January 27, 1992 are incorporated
               by  reference  to Exhibit 3.1 of the February  12,
               1992 Form 8-K of the Registrant.

       (ii)    By-laws of the  Registrant  as  amended are  incorporated  by
               reference  to  Exhibit 3 (ii) of the December  31,
               1995 Form 10-K of the Registrant.

   (4)    Instruments  Defining  the  Rights  of  Security
          Holders, including Indentures

        (i)    Articles    of    Amendment    restating     Dravo
               Corporation's     Articles    of    Incorporation,
               described in Exhibit (3)(i) in this Form  10-K  of
               the Registrant.


       (ii)    Statement  with Respect  to  Shares  -
               Domestic  Business  Corporation  amending  Section
               3(a)   of   the   Certificate   of   Designations,
               Preferences  and  Rights of  Series  D  Cumulative
               Convertible  Exchangeable  Preference   Stock   is
               incorporated by reference to exhibit (4)  (ii)  of
               the June 30, 1990 Form 10-Q of the Registrant.

     (iii)     Form of indemnification agreement
               between Dravo Corporation and members of its Board
               of  Directors incorporated by reference to Exhibit
               (10)(xvii) of the December 31, 1987 Form  10-K  of
               the Registrant.
   
      (iv)     Statement with respect to amended rules
               for  Form  S-8  is  incorporated by  reference  to
               Exhibit (4)(x) of the December 31, 1990 Form  10-K
               of the Registrant.











                              -16-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
          (continued)

(a)  3.        Exhibits (continued)

     (4)(v)    Credit  and  Note  and  Stock  Purchase
               Agreement  dated as of September 21, 1988  by  and
               among    Dravo   Corporation,   its   wholly-owned
               subsidiaries, Dravo Lime Company and  Dravo  Basic
               Materials   Company,  Inc.  and   The   Prudential
               Insurance   Company  of  America  and   Prudential
               Interfunding Corp. is incorporated by reference to
               Exhibit (4)(i) of the September 27, 1988 Form  8-K
               of  the  Registrant and amendment dated March  13,
               1990   to   said  agreement  is  incorporated   by
               reference  to  Exhibit (4)(v) of the December  31,
               1989 Form 10-K of the Registrant.

       (vi)    Registration  agreement  dated  as  of
               September  21, 1988 between Dravo Corporation  and
               The  Prudential Insurance Company of  America,  is
               incorporated  by reference to Exhibit  (4)(vi)  of
               the September 27, 1988 Form 8-K of the Registrant.

      (vii)  (a)  Revolving Line of  Credit
                  Agreement  with  all  attendant  schedules  and
                  exhibits  dated as of September  20,  1990,  by
                  and   among   Dravo  Corporation,  Dravo   Lime
                  Company,  Dravo Basic Materials Company,  Inc.,
                  Regions   Bank   of  Alabama  (formerly   First
                  Alabama  Bank), and PNC Bank, N.  A.  (formerly
                  Pittsburgh  National Bank) is  incorporated  by
                  reference  to  Exhibit (4)(i) of the  September
                  30, 1990 Form 10-Q of the Registrant.

            (b)   Amendment dated September
                  20,  1990 to Credit and Note and Stock Purchase
                  Agreement  dated as of September  21,  1988  is
                  incorporated by reference to Exhibit  (4)  (ii)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

            (c)   First  amendment  to  the
                  Companies'  Pledge  Agreement  dated  September
                  20,  1990  of  the Credit and  Note  and  Stock
                  Purchase Agreement dated September 21, 1988  is
                  incorporated  by reference to Exhibit  (4)(iii)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

            (d)   First  amendment  to  the
                  Second  Intercreditor Agreement dated September
                  20,  1990  of  the Credit and  Note  and  Stock
                  Purchase Agreement dated September 21, 1988  is
                  incorporated  by  reference to Exhibit  (4)(iv)
                  of  the  September 30, 1990 Form  10-Q  of  the
                  Registrant.

            (e)   Intercreditor  Agreement
                  dated  September  20, 1990  by  and  among  The
                  Prudential   Insurance  Company   of   America,
                  Regions   Bank   of  Alabama  (formerly   First
                  Alabama   Bank),  PNC  Bank,  N.  A.  (formerly
                  Pittsburgh National Bank), Mellon Bank, N.  A.,
                  and  the  Royal Bank of Canada is  incorporated
                  by   reference  to  Exhibit  (4)  (v)  of   the
                  September   30,   1990   Form   10-Q   of   the
                  Registrant.

                              -17-
Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
          (continued)

(a)  3.        Exhibits (continued)

      (4)(viii)  Loan  Agreement dated  as  of  December  1,  1978
                 between  Dravo Equipment Company and  County
                 of Harrison, Ohio.

                 The  Registrant hereby agrees to furnish  to  the
                 Commission  upon  request a copy of  the  instrument  listed
                 under  exhibit  (4)(ix).  The instrument does not  authorize
                 the issuance of securities in excess of 10 percent  of total
                 assets  of  the  Registrant  and  its  subsidiaries   on   a
                 consolidated  basis.

         (ix)    Override Agreement, dated January  21,
                 1992,  between  Dravo Corporation, The  Prudential
                 Insurance  Company  of America,  Regions  Bank  of
                 Alabama  (formerly First Alabama Bank), PNC  Bank,
                 N. A. (formerly Pittsburgh National Bank) and Bank
                 of America Illinois (formerly Continental Bank, N.
                 A.)  is incorporated by reference to Exhibit  10.1
                 of   the  February  12,  1992  Form  8-K  of   the
                 Registrant.

         (x)     First Amendment, dated March 10, 1993,
                 to  the Override Agreement dated January 21,  1992
                 is  incorporated by reference to Exhibit 4 (xi) of
                 the December 31, 1992 Form 10-K of the Registrant.

        (xi)     Second Amendment, dated March 7, 1994,
                 to  the Override Agreement dated January 21,  1992
                 is  incorporated by reference to Exhibit 4   (xii)
                 of   the  December  31,  1993  Form  10-K  of  the
                 Registrant.

       (xii)     First Amendment, dated March 7, 1994, to
                 the   Amended   and   Restated  Revolving   Credit
                 Agreement  dated January 21, 1992 is  incorporated
                 by  reference to Exhibit 4 (xiii) of the  December
                 31, 1993 Form 10-K of the Registrant.

      (xiii)     Four copies of the First Amendment, (one
                 each  for  The  Prudential  Insurance  Company  of
                 America,  Regions Bank of Alabama (formerly  First
                 Alabama  Bank), PNC Bank, N.A. and Bank of America
                 Illinois  (formerly Continental Bank N.A.),  dated
                 March   7,  1994,  to  the  Amended  and  Restated
                 Revolving Credit Agreement dated January 21,  1992
                 are  incorporated by reference to Exhibit 4  (xiv)
                 of   the  December  31,  1993  Form  10-K  of  the
                 Registrant.

        (xiv)    Amendment Agreement dated August 1, 1994
                 encompassing  the Third Amendment to the  Override
                 Agreement  dated January 21, 1992 and  the  Second
                 Amendment  to  the Amended and Restated  Revolving
                 Credit   Agreement  dated  January  21,  1992   is
                 incorporated by reference to the August  18,  1994
                 Form 8-K of the Registrant.



                              -18-
                                
Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
          (continued)

(a)  3.        Exhibits (continued)

     (4)(xv)    Amendment Agreement  dated  January  3,
                1995  encompassing  the Fourth  Amendment  to  the
                Override Agreement dated January 21, 1992 and  the
                Third   Amendment  to  the  Amended  and  Restated
                Revolving Credit Agreement dated January 21,  1992
                is  incorporated by reference to Exhibit 4  (xvii)
                of   the  December  31,  1994  Form  10-K  of  the
                Registrant.

       (xvi)    Amendment Agreement dated December  31,
                1995  encompassing  the  Fifth  Amendment  to  the
                Override Agreement dated January 21, 1992 and  the
                Fifth   Amendment  to  the  Amended  and  Restated
                Revolving Credit Agreement dated January 21,  1992
                is  incorporated by reference to Exhibit 4  (xvii)
                of   the  December  31,  1995  Form  10-K  of  the
                Registrant.   (Note: There is no Fourth  Amendment
                to  the  Amended  and  Restated  Revolving  Credit
                Agreement due to a numbering error.)

      (xvii)    Amendment and Restatement of  Articles
                IV,  V, VI and Appendix A dated February 15,  1996
                of  the Override Agreement dated January 21,  1992
                is  incorporated by reference to Exhibit  4(xviii)
                of   the  December  31,  1995  Form  10-K  of  the
                Registrant.

  (xviii)       Amendment Agreement dated June 28,
                1996  encompassing  the  Sixth  Amendment  to  the
                Amended  and  Restated Revolving Credit  Agreement
                dated  January  21,  1992 is  filed  herein  under
                separate cover.

   (10) Material Contracts
          (All  of the following, except item 10  (xiv),
          are  Management  Contracts  or  Compensatory  Plans  or
          Arrangements required to be filed as an Exhibit to this
          Form 10-K.)

       (i)     Dravo Corporation Executive Death  and
               Disability  Income Executive  Benefits  Plan  (now
               Executive Benefit Plan), approved by the Board  of
               Directors  on  October 23, 1980,  incorporated  by
               reference  to  Exhibit 10 (i) of the December  31,
               1980  Form  10-K of the Registrant, and  amendment
               thereto  dated  July  1,  1984,  incorporated   by
               reference to Exhibit 10 (i)  of the  December  31,
               1984 Form 10-K of the Registrant.

        (ii)   Dravo Corporation Stock Option Plan  of
               1978,  as  amended, incorporated by  reference  to
               Exhibit 10 (vi) of the December 31, 1982 Form 10-K
               of the Registrant.

       (iii)   Dravo Corporation Long-Term  Incentive
               Award  Plan  of 1983, as amended, incorporated  by
               reference  to Exhibit 10 (iv) of the December  31,
               1987 Form 10-K of the Registrant.



                              -19-

Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
         (continued)

(a)  3.   Exhibits (continued)

     (10)(iv)  Dravo  Corporation Employee Stock Option  Plan  of
               1988,  incorporated  by  reference  to  the  Proxy
               Statement  for the Annual Meeting of  Shareholders
               on April 28, 1988.

        (v)    Dravo Corporation Incentive Compensation
               Plan  is  incorporated by reference to Exhibit  10
               (v)  of  the  December 31, 1995 Form 10-K  of  the
               Registrant.

        (vi)   Dravo Corporation Stock Option Plan  of
               1994,  as  amended December, 1995, is incorporated
               by  reference  to Exhibit 10 (vi) of the  December
               31, 1996 Form 10-K of the Registrant.

     (vii)     Dravo   Corporation   Non-Employee
               Directors'  Retainer  Fee  Plan,  incorporated  by
               reference   to   the   Registrant's   Registration
               Statement  No. 333-01689 on Form S-8  dated  March
               13, 1996.

      (viii)   Dravo  Corporation  Stock  Incentive
               Compensation  Plan, incorporated by  reference  to
               the  Registrant's Registration Statement No.  333-
               01691 on Form S-8 dated March 13, 1996.

       (ix)    Agreement dated June 1,  1993  between
               Dravo  Corporation  and  Ernest  F.  Ladd  III  is
               incorporated by reference to Exhibit 10 (viii)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (x)     Agreement dated June 1,  1993  between
               Dravo   Corporation  and  Carl   A.   Gilbert   is
               incorporated by reference to Exhibit  10  (ix)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (xi)    Agreement dated June 1,  1993  between
               Dravo   Corporation   and   John   R.   Major   is
               incorporated by reference to Exhibit  10  (xi)  of
               the December 31, 1993 Form 10-K of the Registrant.

       (xii)   Agreement dated June 1,  1993  between
               Dravo   Corporation  and  James   J.   Puhala   is
               incorporated by reference to Exhibit 10  (xii)  of
               the December 31, 1995 Form 10-K of the Registrant.

     (xiii)    Agreement dated January 1, 1995 between
               Dravo  Corporation and Donald H.  Stowe,  Jr.,  is
               incorporated by reference to Exhibit 10 (xiii)  of
               the December 31, 1995 Form 10-K of the Registrant.

      (xiv)    Noncompetition   and   Nondisclosure
               Agreement dated January 3, 1995 by and among Dravo
               Corporation, Dravo Basic Materials Company,  Inc.,
               Dravo  Lime Company and Martin Marietta Materials,
               Inc.  is incorporated by reference to Exhibit 10.1
               of   the   January  17,  1995  Form  8-K  of   the
               Registrant.



                              -20-

Item 14.  Exhibits, Financial Statement Schedules and Reports  on Form 8-K
              (continued)

(a)       3.   Exhibits (continued)

    (11)  Statement  Re Computation of Per  Share  Earnings
          filed under separate cover.

    (13)  1996  Annual Report to Shareholders  attached  to
          this report under separate cover.  Except for the pages
          and  information  thereof  expressly  incorporated   by
          reference  in  this  Form 10-K, the  Annual  Report  to
          Shareholders is provided solely for the information  of
          the Securities and Exchange Commission and is not to be
          deemed "filed" as part of the Form 10-K.

    (21)  Subsidiaries of the Registrant filed  under  separate cover.

    (23)  Consent of Independent Auditors filed under  separate cover.

    (24)  Powers  of Attorney are filed herein  under  separate cover.

(b)  Reports on Form 8-K

     There were no reports on Form 8-K for the three months ended
     December 31, 1996.






























                              -21-




                                

                             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.

                        DRAVO CORPORATION

March 26, 1997   By:/s/ CARL A. GILBERT
                 Carl A. Gilbert, President and Chief Executive Officer

Pursuant  to the requirements of the Securities Exchange  Act  of
1934,  this report has been signed below by the following persons
on behalf of the Registrant and in the capacities and on the date
indicated.

        Signature                     Title                      Date

/s/  CARL  A. GILBERT        President, Chief Executive
Carl  A.  Gilbert            Officer and Director           March  26, 1997

/s/  ERNEST  F.  LADD III    Executive Vice President,
Ernest  F.  Ladd III         Chief Financial Officer        March  26, 1997

/s/    LARRY J. WALKER       Vice President and
Larry  J.  Walker            Controller                     March  26, 1997

*ARTHUR   E.  BYRNES         Director                       March 26, 1997
Arthur E. Byrnes

*JAMES C. HUNTINGTON, JR.    Director                       March 26, 1997
James C. Huntington, Jr.

*WILLIAM   E.  KASSLING      Director                       March 26, 1997
William E. Kassling

*WILLIAM   G.  ROTH          Director                       March 26, 1997
William G. Roth

*KONRAD   M.  WEIS           Director                       March 26, 1997
Konrad M. Weis

/s/ ERNEST F. LADD III
*By Ernest F. Ladd III, Attorney-in-fact






                              -22-
                                
                                
                                






                  INDEPENDENT AUDITORS' REPORT



The Board of Directors and Shareholders
Dravo Corporation:

Under  date  of January 22, 1997, we reported on the consolidated
balance  sheets  of  Dravo Corporation  and  subsidiaries  as  of
December  31,  1996,  and  1995,  and  the  related  consolidated
statements of operations, retained earnings, and cash  flows  for
each  of  the  years in the three-year period ended December  31,
1996, as contained in the 1996 annual report to shareholders.  As
discussed  in  Note 10 to the consolidated financial  statements,
the  company  adopted the method of accounting for postemployment
benefits   prescribed   by  Statement  of  Financial   Accounting
Standards   No.  112  in  1994.   These  consolidated   financial
statements  and our report thereon are incorporated by  reference
in  the  annual  report  on Form 10-K  for  the  year  1996.   In
connection  with  our  audits of the aforementioned  consolidated
financial  statements,  we  also audited  the  related  financial
statement  schedule  as  listed in the accompanying  index.   The
financial  statement  schedule  is  the  responsibility  of   the
company's  management.   Our  responsibility  is  to  express  an
opinion on the financial statement schedule based on our audits.

In   our   opinion,  such  financial  statement  schedule,   when
considered  in  relation  to  the  basic  consolidated  financial
statements  taken as a whole, presents fairly,  in  all  material
respects, the information set forth therein.







                                            KPMG PEAT MARWICK LLP




Pittsburgh, Pennsylvania
January 22, 1997






                              -23-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                         Balance Sheets

<TABLE>

(In thousands)                                           December 31,
<CAPTION>
                                                      1996        1995

ASSETS
<S>                                                <C>        <C>

Current assets:
 Cash and cash equivalents                         $ 1,390    $    279
 Accounts receivable                                   517         879
 Current income tax benefit from affiliates          6,104       4,724
 Net assets of discontinued operations                  --         923
 Other current assets                                  183         434

     Total current assets                            8,194       7,239

 Due from affiliates                                23,094          --
 Investments in affiliates                          52,525     141,836
 Deferred income tax benefit from affiliates        29,718      26,723
 Other assets                                       23,561      19,532

 Property, plant and equipment                         123       6,832
 Less accumulated depreciation and amortization        123       6,824

  Net property, plant and equipment                     --           8

     Total assets                                 $137,092    $195,338

</TABLE>

See accompanying notes to financial statements.



                              -24-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                         Balance Sheets

<TABLE>
(In thousands)                                          December 31,
                                                      1996        1995
<CAPTION>

LIABILITIES AND SHAREHOLDERS' EQUITY
<S>                                               <C>         <C>

Current liabilities:
 Accounts payable-trade                           $  1,038    $  1,566
 Accrued retirement contribution                     1,785       2,423
 Net liabilities of discontinued operations          6,299          --
 Other current liabilities                             637         641

     Total current liabilities                       9,759       4,630

Advances from affiliates                                --      75,046
Net liabilities of discontinued operations           6,786       9,517
Other liabilities                                    6,632       6,290

Redeemable preference stock:
 Par value $1, issued 200,000 shares: Series D,
  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 shares: Series B, $2.475 cumulative,
  convertible, issued 20,386 and 25,386 shares
  (entitled in liquidation to $1.1 million
  and $1.4 million);                                    20          25
  Series D, reported above
 Common stock, par value $1, authorized 35,000,000
  shares; issued 15,096,817 and 15,055,237
  shares                                            15,097      15,055
 Other shareholders' equity                         78,798      64,775

  Total shareholders' equity                        93,915      79,855

     Total liabilities and shareholders' equity   $137,092    $195,338

</TABLE>

See accompanying notes to financial statements.


                              -25-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Operations


<TABLE>
                                                 Years ended December 31,
(In thousands)                                   1996     1995     1994
<CAPTION>
<S>                                         <C>        <C>     <C>

General and administrative
 expenses                                   $  (709)   $ (961) $ (1,433)
Other expense                                    (4)       --       --
Interest expense                                  --       (9)      (16)
Interest income                                   10       --         9

Loss from continuing operations
  before  taxes  and affiliate earnings        (703)     (970)  (1,440)
Income tax benefit (provision)                4,142     2,038   (4,107)

Earnings (loss) from continuing
 operations before affiliate earnings         3,439     1,068   (5,547)
Equity in affiliate earnings                 10,689     9,913    1,544

Earnings  (loss)  from  
 continuing operations                       14,128    10,981   (4,003)
Loss from discontinued operations               --       --     (6,554)

Net earnings (loss)                         $14,12 8  $10,981 $(10,557)
</TABLE>

See accompanying notes to financial statements.


                              -26-
               DRAVO CORPORATION (PARENT COMPANY)
                                
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Cash Flows
<TABLE>
<CAPTION>
(In thousands)                                    Years ended December 31,
<S>                                             <C>      <C>       <C>
                                                   1996     1995     1994
Cash flows from operating activities:
Earnings (loss) from continuing
  operations                                    $14,128  $ 10,981  $ (4,003)
Adjustments to reconcile earnings (loss) from
 continuing operations to net cash provided
 (used) by continuing operations activities:
  Depreciation and amortization                      4        6        9
  Loss on disposal of assets                         4       --       --
  Equity in earnings of affiliates             (10,689)  (9,913)  (1,544)
  Changes in assets and liabilities:
   Decrease (increase) in accounts
    receivable                                     362      726   (1,036)
   Decrease (increase) in current income
    tax benefits                                (1,381)  (2,783)    2,542
   Decrease (increase) in other current
    assets                                         318    1,151   (1,269)
   Increase in other assets                     (1,991)  (3,517)  (7,791)
   Decrease (increase) in deferred
     income taxes                               (2,995)    9,689    1,591
   Increase (decrease) in accounts payable
    and accrued expenses                        (1,062)   (1,404)     961
   Increase in other liabilities                   342       390    3,352

Net cash provided (used) by continuing
 operations activities                          (2,960)    5,326   (7,188)

Loss from discontinued operations                    --       --   (6,554)
Increase (decrease) in net liabilities of
 discontinued operations                         4,491  (13,099)   (4,592)
Proceeds from repayment of notes receivable
 from sale of discontinued operations               --    2,200     1,600

Net cash provided (used) by discontinued
 operations activities                           4,491  (10,899)   (9,546)

Net cash provided (used) by operating
 activities                                    $ 1,531  $(5,573) $(16,734)

</TABLE>

See accompanying notes to financial statements.

                              -27-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                    Statements of Cash Flows
<TABLE>

(In thousands)                                     Years ended December 31,
                                                     1996     1995    1994
<CAPTION>
<S>                                             <C>        <C>        <C>

Cash flows from investing activities:
Increase (decrease) in advances from
 subsidiaries                                   $(98,140)  $(77,757)  $19,187
Dividends received from affiliates               100,000     88,000       --
Other, net                                             1         --       266

Net cash provided (used) by investing
 activities                                        1,861     10,243    19,453


Cash flows from financing activities:
Proceeds from issuance of common stock               248        557        42
Purchase of treasury stock                            --     (2,667)       --
Dividends paid                                    (2,529)    (2,535)   (2,544)

Net cash used by financing activities             (2,281)    (4,645)   (2,502)

Net increase in cash and cash
 equivalents                                       1,111         25       217
Cash and cash equivalents at beginning
 of year                                             279        254        37

Cash and cash equivalents at end of year         $ 1,390    $   279  $    254

</TABLE>

See accompanying notes to financial statements.



                              -28-
               DRAVO CORPORATION (PARENT COMPANY)
   Schedule I - Condensed Financial Information of Registrant
                  Notes to Financial Statements


Notes  1  through 3, 5 through 15, and 17 to Dravo  Corporation's
Consolidated  Financial Statements have relevance to  the  parent
company  financial statements and should be read  in  conjunction
therewith.   Certain  reclassifications  of  previously  reported
balances  have  been  made  to  conform  to  the  current  year's
presentation.

Note 1:  Commitments

There was no continuing operations rental expense for 1996,  1995
or   1994.    The  minimum  future  rentals  under  noncancelable
operating   leases  and  minimum  future  rental  receipts   from
subleases  to third parties as of December 31, 1996 are indicated
in  the  table below.  Of the $4.0 million net minimum  payments,
$3.3   million  has been expensed in connection with discontinued
operations.
<TABLE>
       (In thousands)
<CAPTION>
          <C>                              <C>
         
          1997                             $10,555
          1998                               3,561
          1999                                  --
          2000                                  --
          2001                                  --
          After 2001                            --

          Total minimum payments required   14,116
          Less: Minimum sublease rental
          receipts                         (10,203)

          Net minimum payments             $ 3,913

</TABLE>
Note 2:  Income Taxes

Dravo  Corporation files a consolidated federal income tax return
which  includes the parent and consolidated subsidiaries.   Dravo
Corporation parent company financial statements recognize current
income  tax  benefits to the extent the benefits  are  offset  by
current  income tax liabilities of the consolidated subsidiaries.
Long-term  deferred  income tax benefits are  recognized  to  the
extent  that  it  is more likely than not that the  company  will
generate  sufficient consolidated taxable income to  utilize  net
operating loss carryforwards prior to their expiration.





                              -29-
Note 2:  Income Taxes (continued)


The  income tax benefit (provision) for the years ended  December
31 are comprised of the following:
<TABLE>
(In thousands)                        1996     1995       1994
<CAPTION>
 <S>                                    <C>      <C>      <C>

 Provision to offset tax benefits
  of subsidiaries                       $    --  $    --  $ (4,107)
 Benefit to offset tax liabilities
  of subsidiaries                         4,142    2,038       --

                                        $ 4,142  $ 2,038  $ (4,107)
</TABLE>

The  tax  effects  of temporary differences  that  give  rise  to
significant portions of the deferred tax assets and deferred  tax
liabilities at December 31 are as follows:
<TABLE>
(In thousands)
<CAPTION>

<S>                                        <C>        <C>
                                             1996       1995
Deferred tax assets:
 Provision for discontinued operations     $ 4,580    $ 3,008
 Net operating loss carryforwards           62,808     67,229
 Investment tax credit carryforwards           791      1,411
 Other                                         721         --

  Total gross deferred tax assets           68,900     71,648
  Less valuation allowance                  34,829     36,381

  Net deferred tax assets after
   valuation allowance                      34,071     35,267

Deferred tax liabilities:
 Pension accrual                             4,353      6,151
 Other                                          --      2,393

  Total gross deferred tax liabilities       4,353      8,544

  Net deferred tax asset                   $29,718    $26,723
</TABLE>

Management  believes  it is more likely than  not  that  the  net
deferred  tax  asset  will be realized through  the  reversal  of
temporary differences and through its subsidiaries future income.
In  order to fully realize the net deferred tax asset, the parent
company and its subsidiaries will need to generate future taxable
income of approximately $70.9 million prior to the expiration  of
its net operating loss carryforwards.  There can be no assurance,
however,  that  the  parent, or its subsidiaries,  will  generate
enough taxable income to realize the deferred tax asset prior  to
the NOLs expiring.




                              -30-
Note 3:  Dividends

Cash  dividends  paid to the Registrant for the respective  years
ended December 31:

<TABLE>
(In thousands)
<CAPTION>
                                           1996     1995     1994
<S>                                    <C>       <C>         <C>

Consolidated affiliates                $100,000  $88,000     $-0-
50 percent or less owned companies
 accounted for by the equity method       1,090      916      792

</TABLE>


                              -31-


                            EXHIBITS

                        Table of Contents


                 Exhibit                            (Exhibit No.) Page No.

 4. Instruments Defining the Rights of Security Holders,
        Including Indentures
    
     (xviii) Amendment Agreement dated June  28,
             1996 encompassing the Sixth Amendment
             to the Amended and Restated Revolving
             Credit Agreement.                      (4)(xviii)1-7

11. Statement RE Computation of Per Share Earnings      (11) 1, 2

13. 1996 Annual Report                                 (13) 12-35

21. Subsidiaries of the Registrant                         (21) 1

23. Consent of Experts and Counsel                         (23) 1

24. Powers of Attorney                                   (24) 1-5

27. Financial Data Schedule (EDGAR filing only)            (27) 1
                                
                                
                               -32-