WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

<ARTICLE>                                          5
<LEGEND>
THIS SCHEDULE  CONTAINS SUMMARY FINANCIAL  INFORMATION  EXTRACTED FROM FINANCIAL
STATEMENTS  FOR THE FISCAL YEAR ENDED  JANUARY 3, 1997 AND IS  QUALIFIED  IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

Amounts  inapplicable  or not  disclosed as a seperate  line on the Statement of
Operations are reported as herein.
</LEGEND>
<CIK>                                              0001000227
<NAME>                                             TB WOOD'S CORPORATION
<MULTIPLIER>                                                 1,000
<CURRENCY>                                         U.S. DOLLARS
       
<S>                                                  <C>
<PERIOD-TYPE>                                               YEAR
<FISCAL-YEAR-END>                                           JAN-3-1997
<PERIOD-END>                                                JAN-3-1997
<CASH>                                                         306
<SECURITIES>                                                     0
<RECEIVABLES>                                                15955
<ALLOWANCES>                                                   437
<INVENTORY>                                                  23985
<CURRENT-ASSETS>                                             40862
<PP&E>                                                       41652
<DEPRECIATION>                                               21154
<TOTAL-ASSETS>                                               73395
<CURRENT-LIABILITIES>                                        16185
<BONDS>                                                      21707
<PREFERRED-MANDATORY>                                            0
<PREFERRED>                                                      0
<COMMON>                                                        58
<OTHER-SE>                                                   16875
<TOTAL-LIABILITY-AND-EQUITY>                                 73395
<SALES>                                                     102505
<TOTAL-REVENUES>                                            104927<FN>
<CGS>                                                        64758
<TOTAL-COSTS>                                                25174
<OTHER-EXPENSES>                                               593
<LOSS-PROVISION>                                                 0
<INTEREST-EXPENSE>                                            1982
<INCOME-PRETAX>                                               9998
<INCOME-TAX>                                                  4053
<INCOME-CONTINUING>                                           5945
<DISCONTINUED>                                                   0
<EXTRAORDINARY>                                               1305
<CHANGES>                                                        0
<NET-INCOME>                                                  4640
<EPS-PRIMARY>                                                    0.83
<EPS-DILUTED>                                                    0.83
<FN>
Revenues are reported net of credits in the Statement of Operations.
</FN>
        

</TABLE>