SECURITIES AND EXCHANGE COMMISSION
                         Washington, D.C. 20549
                                    
                                    
                                FORM 10-Q
                                    
                                    
               QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
                 OF THE SECURITIES EXCHANGE ACT OF 1934
     
     
     
     For Quarter Ended March 31, 1998          Commission File No. 1-8719
                                    
                                    
                                    
                         THE TURNER CORPORATION
     
         (Exact name of registrant as specified in its charter)
     
     
     
               DELAWARE                            13-3209884
     
     (State or other jurisdiction of    (I.R.S.Employer Identification No.)
     incorporation or organization)
     
     
     
      375 Hudson Street, New York, New York        10014
     
     (Address of principal executive offices)     (Zip Code)
     
     
     
     Registrant's telephone number, including area code:       (212)229-6000
     
     
     
     
     Indicate  by  check mark whether the registrant (1) has  filed  all
     reports  required  to  be  filed by Section  13  or  15(d)  of  the
     Securities Exchange Act of 1934 during the preceding 12 months  (or
     for  such shorter period that the registrant was required  to  file
     such reports), and (2) has been subject to such filing requirements
     for the past 90 days.
     
     Yes [X]    No [   ]
     
     
     
     Indicate the number of shares outstanding of each of the issuer's
     classes of common stock, as of May 6, 1998:  5,379,506
     
     
     
                                   -2-
     
     
            SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS UNDER
              THE SECURITIES LITIGATION REFORM ACT OF 1995
                                    
       Except for historical information contained herein, this Form 10-Q
     contains  forward-looking statements within the meaning  of  the
     Private  Securities  Litigation Reform Act of  1995  which  involve
     certain  risks and uncertainties.  The Company's actual results  or
     outcomes  may differ materially from those anticipated.   Important
     factors that the Company believes might cause such differences  are
     discussed  in  the cautionary statements accompanying the  forward-
     looking statements on this Form 10-Q.  In assessing forward-looking
     statements  contained herein, readers are urged to  carefully  read
     those   statements.   When  used  on  this  Form  10-Q,  the  words
     "estimate,"   "anticipate,"  "expect,"   "believe,"   and   similar
     expressions are intended to identify forward-looking statements.
     
     
     
                     PART I - FINANCIAL INFORMATION
     
     
     Item 1                                      Financial Statements
     
     Company or group of companies for which report is filed:
     
                                    
          THE TURNER CORPORATION AND CONSOLIDATED SUBSIDIARIES
     
     
     The   consolidated  balance  sheet  as  of  March  31,  1998,   the
     consolidated  statements of operations, the consolidated  statement
     of  changes in stockholders' equity and the consolidated statements
     of  cash  flows for the three months ended March 31, 1998 and  1997
     are  unaudited,  but  in  the opinion of the  company's  management
     reflect  all  adjustments,  consisting  only  of  normal  recurring
     adjustments,  which are necessary to present fairly  the  financial
     condition  and results of operations at those dates and  for  those
     periods.   The results of operations for any three month period  is
     not  necessarily  indicative of results for a  full  year.   It  is
     suggested  that  these financial statements be read in  conjunction
     with the audited financial statements and notes thereto included in
     the company's latest annual report.

                                   -3-
                                    
                                    
                 The Turner Corporation and Subsidiaries
                       Consolidated Balance Sheets
                             (in thousands)
     <TABLE>
     <CAPTION>
                                                  (unaudited)
                                                   March 31,     December 31,
                                                     1998            1997
     <S>                                          <C>            <C>
     
     Assets:
     
     Cash and cash equivalents               $  162,961          $153,241
     Marketable securities                       18,977            18,902
     Construction receivables:
      Due on contracts                          374,592           334,802
      Retainage                                 185,432           180,329
      Unbilled construction costs and related
       earnings                                 120,173           139,969
     Real estate                                 43,986            44,378
     Property and equipment, net                 23,207            23,241
     Prepaid pension cost                        62,504            62,854
     Other assets                                14,549            14,971
                                             __________          ________
     Total assets                            $1,006,381          $972,687
                                             __________          ________      
     Liabilities:
     
     Construction accounts payable and
       accrued expenses:
      Trade                                  $  463,786          $469,734
      Retainage                                 195,061           189,480
      Billings in excess of construction
         costs and related earnings             128,461           105,021
     Notes payable                               21,683            21,719
     Deferred income taxes                       14,630            14,615
     Other liabilities                          105,413            95,982
                                             __________          ________
     Total liabilities                          929,034           896,551
                                             __________          ________
     
     Stockholders' Equity:
     
     Series C, 8.5% cumulative convertible
      preferred stock, $1 par value                   9                 9 
     Series D, 8.5% cumulative convertible
      preferred stock, $1 par value                   6                 6
     Series B cumulative convertible preferred
      stock, $1 par value                           843               845
     Common stock, $1 par value                   5,514             5,441
     Paid in capital                             49,122            50,250
     Accumulated other comprehensive income          15                 -
     Retained earnings                           29,427            26,436
                                             __________          ________
                                                 84,936            82,987
     Less: Loan to Employee Stock
             Ownership Plan                      (3,969)           (4,349)
           Treasury stock, at cost               (3,620)           (2,502)
                                             __________          ________
     Total stockholders' equity                  77,347            76,136
                                             __________          ________
     Total liabilities and stockholders'
      equity                                 $1,006,381          $972,687
                                             __________          ________
     
     </TABLE>
     
     See Notes to Consolidated Financial Statements.
                                   -4-
                                    
                                    
                 The Turner Corporation and Subsidiaries
                  Consolidated Statements of Operations
                  (in thousands, except share amounts)
                                    
     <TABLE>
     <CAPTION>
     
                                                       (unaudited)
                                                       Three Months Ended
                                                           March 31,
                                                         1998     1997
     <S>                                               <C>        <C>
     
     Value of construction completed (see below)    $ 906,438   $ 792,338
                                                    _________   _________
 
     Revenue from construction contracts            $ 814,435   $ 700,072
     Cost of construction contracts                   792,859     681,857
                                                    _________   _________
     Earnings from construction contracts              21,576      18,215
     Construction operating expenses                   13,671      12,014
     General & administrative expenses                  2,583       2,761
                                                    _________   _________
     Income from construction operations                5,322       3,440
     Losses from real estate operations (see below)      (179)       (179)
     Interest expense                                    (218)     (1,747)
     Other income                                       1,574         743
                                                    _________   _________
     Income before income taxes                         6,499       2,257
     Income tax provision                               2,925       1,016
                                                    _________   _________
     Net income                                      $  3,574   $   1,241
     
     Earnings per common share:
        Basic                                           $0.56       $0.15
        Diluted                                         $0.40       $0.13
     
     Weighted average common shares outstanding     5,329,684   5,258,978
     Weighted average common and common equivalent
      shares outstanding                            8,243,685   6,830,701
     
     Value of construction completed consists of
      the following:
     Revenue from construction contracts             $814,435    $700,072
     Construction costs incurred by owners in
      connection with work under construction
      management and similar contracts                 92,003      92,266
                                                     ________    ________
     Value of construction completed                 $906,438    $792,338
                                                     ________    ________ 
     Real estate operations consist of the
        following:
     Real estate sales                               $      -    $    160
     Cost of sales                                          -        (160)
     Rental & other income                                458       1,349
     Cost of operations                                  (260)       (840)
     Depreciation and amortization expense               (377)       (688)
                                                     ________    ________ 
     Losses from real estate operations              $   (179)   $   (179)
                                                     ________    ________

     </TABLE>
     
     See Notes to Consolidated Financial Statements.

                                   -5-
                                    
                                    
                 The Turner Corporation and Subsidiaries
        Consolidated Statement of Changes in Stockholders' Equity
                  (in thousands, except share amounts)
                For the three months ended March 31, 1998
     <TABLE>
     <CAPTION>
     
     Comprehensive
                                                     Total        Income
     <S>                                             <C>          <C>
     
     Retained earnings
     Balance at January 1                          $26,436
     Net income                                      3,574        $3,574
     Cash dividends on Series C preferred stock      (191)
     Cash dividends on Series D preferred stock      (128)
     Cash dividends on Series B preferred stock      (456)
     Tax benefits on Series B preferred stock
       dividends                                       192
                                                    ______
     Balance at March 31                            29,427
                                                    ______
     Accumulated other comprehensive income,
        net of tax
     Balance at January 1                                -
     Net unrealized gains on marketable securities                    15
                                                                  ______
     Other comprehensive income                         15
                                                    ______
     Comprehensive income                                         $3,589
                                                                  ______
     Balance at March 31                                15
                                                    ______
     Convertible preferred stock, Series C
     Balance at January 1 and March 31                   9
                                                    ______ 
     Convertible preferred stock, Series D
     Balance at January 1 and March 31                   6
                                                    ______
     Convertible preferred stock, Series B
     Balance at January 1                              845
     Preferred stock retired                            (2)
                                                   _______
     Balance at March 31                               843
                                                   _______
     Common stock
     Balance at January 1                            5,441
     Common stock issued                                73
                                                  ________
     Balance at March 31                             5,514
                                                  ________
     Paid in capital
     Balance at January 1                           50,250
     Excess of proceeds over par value of common
       stock issued                                    909
     Income tax benefit from stock options
       exercised                                        21
     Retirement of shares                              (31)
     Exercise of stock awards                       (2,027)
                                                  ________
     Balance at March 31                            49,122
                                                  ________
     Loan to Employee Stock Ownership Plan (ESOP)
     Balance at January 1                           (4,349)
     Repayment from loan to ESOP                       380
                                                  ________
     Balance at March 31                            (3,969)
                                                  ________
     Treasury stock
     Balance at January 1                           (2,502)
     Purchases of treasury stock                    (1,987)
     Treasury stock issued                             869
                                                 _________
     Balance at March 31                            (3,620)
                                                 _________
     Total stockholders' equity                    $77,347
                                                 _________
     
     </TABLE>
     
     
     
     See Notes to Consolidated Financial Statements.
                                   -6-
                                    
                                    
                 The Turner Corporation and Subsidiaries
                  Consolidated Statements of Cash Flows
                             (in thousands)
     <TABLE>
     <CAPTION>
                                                            (unaudited)
                                                         Three Months Ended
                                                              March 31,
                                                          1998         1997
     <S>                                                 <C>          <C>
     
     Cash flows from operating activities:
       Net income                                       $ 3,574     $ 1,241
      Adjustments to reconcile net income to net cash
       provided by (used in) operating activities:
        Depreciation and amortization                     2,244       2,738
        Net periodic pension charge                         350         350
        Changes in operating assets and liabilities:
          Increase in construction receivables          (25,097)    (30,643)
          Increase in construction accounts
           payable and accrued expenses                  23,073       5,907
          Decrease (increase) in other assets            (1,471)      2,935
          Increase in other liabilities                   9,897       5,024
     ______________________________________________________________________
      Net cash provided by (used in) operating 
        activities                                       12,570     (12,448)
     ______________________________________________________________________
     Cash flows from investing activities:
      Purchases of marketable securities                (11,865)          -
      Proceeds from sale of marketable securities        11,817           -
      Distributions from joint ventures                      18           -
      Proceeds from sale of real estate, net                  -         140
      Increase in real estate                                 -        (113)
      Purchases of property & equipment                  (1,259)     (1,876)
      Proceeds from sale of property & equipment              5          47
      Repayments on notes receivable                        325         629
     ______________________________________________________________________
      Net cash used in investing activities                (959)     (1,173)
     ______________________________________________________________________
     Cash flows from financing activities:
      Common stock issued                                   982         282
      Cash dividends to preferred stockholders             (775)       (649)
      Repayments from loan to ESOP                          380         356
      Principal payments under capital lease
       obligations                                         (491)       (570)
      Purchases of treasury stock                        (1,987)       (188)
      Payments on borrowings                                  -         (87)
     ______________________________________________________________________
      Net cash used in financing activities              (1,891)       (856)
     ______________________________________________________________________
       Net increase (decrease) in cash and cash
        equivalents                                       9,720     (14,477)
       Cash and cash equivalents at beginning of 
        period                                          153,241     121,981
     ______________________________________________________________________                                     
       Cash and cash equivalents at end of period      $162,961    $107,504
     ______________________________________________________________________     
      Noncash investing activities:
       Note receivable from sale of net assets of
        construction affiliate                         $  1,200    $      -
       Change in unrealized gain on marketable
        securities                                           15           -
      Noncash financing activities:
       Treasury stock issued under stock-based
        compensation plans                                  869           -
       Capital lease obligations incurred by the
        Company                                             455         486
     ______________________________________________________________________
     
     </TABLE>
     
     See Notes to Consolidated Financial Statements.
                                   -7-
                                    
                                    
                 The Turner Corporation and Subsidiaries
               Notes to Consolidated Financial Statements
                  (in thousands, except share amounts)
     
     <TABLE>
     <CAPTION>
     
     1. The following table reconciles the components of basic and
         diluted earnings per share:
                                                      Three Months Ended
                                                          March 31,
                                                       1998      1997
     <S>                                               <C>       <C>
     ____________________________________________________________________
     Numerator:
      Net income                                    $3,574      $1,241
      Preferred stock dividends, net of tax
       benefits                                       (583)       (457)
                                                    ______      ______
      Basic earnings per common share - income
       available for common stockholders             2,991         784
                                                    ______      ______  
      Effect of dilutive securities:
       Series C preferred stock dividends              191           -
       Series D preferred stock dividends              128           -
       Series B preferred stock dividends,
        net of tax benefits                            264         266
       Series B preferred stock dividend
        differential                                  (264)       (266)
       Interest expense on convertible debenture,
        net of tax                                       -          74
                                                    ______      ______
                                                       319          74
                                                    ______      ______
      Diluted earnings per common share - income
       available for common stockholders            $3,310      $  858
                                                    ______      ______
     Denominator:
      Basic earnings per common share - Weighted
       average common shares outstanding         5,329,684   5,258,978
                                                 _________   _________
     
      Effect of dilutive securities:
       Stock-based compensation plans              469,413     123,798
       Convertible preferred stock, Series C     1,000,000           -
       Convertible preferred stock, Series D       600,000           -
       Convertible debenture                             -     600,000
       Convertible preferred stock, Series B       844,588     847,925
                                                 _________   _________
                                                 2,914,001   1,571,723
      Diluted earnings per common share-
        weighted average common and common
        equivalent shares outstanding            8,243,685   6,830,701
                                                 _________   _________

     Basic earnings per common share                 $0.56       $0.15
     Diluted earnings per common share               $0.40       $0.13
     
     </TABLE>
     
                                   -8-
     
     
     2.   Accounting Pronouncements
     
        In  February 1998, the Financial Accounting Standards Board (the
     "FASB") issued Statement of Financial Accounting Standards ("SFAS")
     No.   132,   "Employers'  Disclosures  about  Pensions  and   Other
     Postretirement   Benefits."   This  statement  revises   employers'
     disclosures  about pension and other postretirement benefit  plans.
     The  Statement  does not change the measurement or  recognition  of
     those   plans.    The   Statement   standardizes   the   disclosure
     requirements for pensions and other postretirement benefits to  the
     extent  practicable, requires additional information on changes  in
     the  benefit  obligations and fair value of plan assets  that  will
     facilitate  financial analysis, and eliminates certain disclosures.
     The  disclosure requirements for this statement are  effective  for
     fiscal  years beginning after December 15, 1997.  The company  will
     conform with the new standard as of December 31, 1998.
     
        In  June 1997, the FASB issued SFAS No. 131, "Disclosures  about
     Segments of an Enterprise and Related Information."  This statement
     requires   that  the  company  report  financial  and   descriptive
     information  about its reportable operating segments  in  financial
     statements  issued to shareholders for interim and annual  periods.
     The  Statement  also establishes standards for related  disclosures
     about  products and services, geographic areas and major customers.
     Under  this  Statement, operating segments  are  components  of  an
     enterprise about which separate financial information is  available
     that  is  regularly evaluated by the enterprise's chief operational
     decision-maker  in  deciding  how  to  allocate  resources  and  in
     assessing  performance.   This statement is  effective  for  fiscal
     years  beginning after December 15, 1997.  The company will conform
     with the new standard as of December 31, 1998.
     
       In July 1996, the Emerging Issues Task Force reached a consensus,
     on    Issue  96-14,  "Accounting  for  the  Costs  Associated  with
     Modifying Computer Software for the Year 2000," which requires that
     costs associated with modifying computer software for the year 2000
     be  expensed as incurred.  Management has evaluated the  impact  of
     Year  2000  issues on the Company's business and  operations.   The
     Company  believes,  based  upon  its  internal  reviews  and  other
     factors,  that  future external and internal costs to  be  incurred
     relating to the modification of internal-use software for the  year
     2000  will  not have a material effect on the Company's results  of
     operations or financial position.
     
                                   -9-
     
     Item 2 Management's Discussion & Analysis of Financial Condition
     and Results of Operations
     
        The  company reported net income of $3.6 million or $0.56  basic
     and  $0.40  diluted earnings per share for the quarter ended  March
     31,  1998.  This compares to net income of $1.2 million,  or  $0.15
     basic and $0.13 diluted earnings per share for the first quarter of
     1997.
     
        Value  of construction completed, which includes in addition  to
     revenue,  construction  costs incurred by  owners  on  construction
     management and similar projects, increased 14% in the first quarter
     of  1998 to $906 million, up $114 million over the first quarter of
     1997.  Revenue  from construction contracts increased  16%  in  the
     first  quarter of 1998 to $814 million, also up $114  million  over
     the same period in 1997.  This growth reflects the continuation  of
     a strong market across the country in non-residential construction.
     
        Earnings  from  construction contracts  improved  in  the  first
     quarter of 1998 to $21.6 million compared to $18.2 million  in  the
     first  quarter  of 1997. As a percentage of revenue, earnings  from
     construction  contracts  increased  from  2.60%  to  2.65%.   These
     results  reflect  not only the growth in construction  revenue  but
     also  an improvement in margins for new contracts secured over  the
     past several years.
     
        Construction operating expenses, which are costs incurred by the
     company's  construction operating units and subsidiaries  that  are
     not  directly  attributable and charged to construction  contracts,
     increased  14% from the first quarter of 1997 to $13.7  million  in
     the   first   quarter  of  1998.   This  increase   was   primarily
     attributable to increased levels of construction activity.
     
        General  and  administrative  expenses,  representing  corporate
     overhead  expenses, decreased 6% in the first quarter  of  1998  to
     $2.6 million, down $178,000 from the first quarter of 1998.
     
        Losses  from real estate operations were $179,000 for the  first
     quarter  of  1998,  unchanged from a year ago.   Rental  and  other
     income  and the cost of operations for the first quarter  of  1998,
     declined  66%  and 69%, respectively, as a result  of  real  estate
     sales over the past twelve months.
     
        Interest expense decreased 88% in the first quarter of  1998  to
     $218,000,  down $1.5 million from the first quarter of 1997.   This
     decrease  was  due  primarily to lower debt  levels  in  1998.   In
     December  1997, the Company repaid its $39.5 million 11.74%  Senior
     Notes.
     
        Other income increased 112% in the first quarter of 1998 to $1.6
     million,  up  $831,000 over the first quarter of  1997.   Increased
     other  income  is due to increased interest income attributable  to
     higher investment balances maintained by the Company.
     
       At March 31, 1998, the company's backlog of value of construction
     to   be  completed  was  $4.15  billion  and  anticipated  earnings
     associated  with  backlog from construction  contracts  was  $105.5
     million,   compared   to   $4.01  billion   and   $104.7   million,
     respectively,  at  December  31,  1997.   Estimated  earnings  from
     construction contracts cannot and should not be used as  the  basis
     of predictions with respect to future net income.
     
                                  -10-
        
     
     Item 2 Management's Discussion & Analysis of Financial Condition
     and Results of Operations (continued)
     
        Because  of the varying proportion of construction, construction
     management  and construction consulting contracts, the relationship
     of value of work completed and earnings from construction contracts
     is not necessarily meaningful in the short run.
     
        Cash  flows  for the first quarter of 1998, resulted  in  a  net
     increase  of  funds  of  $9.7  million.   Cash  flows  provided  by
     operating activities amounted to $12.6 million due primarily to  an
     increase  in  construction activity.  Cash flows used in  investing
     activities  amounted  to  $959,000  which  is  principally  due  to
     purchases  of property and equipment.  Cash flows used in financing
     activities amounted to $1.9 million due primarily to the  purchases
     of  treasury  stock.  In November 1997, the Company  announced  the
     adoption of a stock repurchase program under which up to 5  percent
     of  the Company's common stock may be repurchased.  Repurchases may
     be  made  from  time to time in the open market  or  in  negotiated
     transactions as market and economic conditions warrant and  may  be
     discontinued  at  any  time.   The company  will  fund  repurchases
     through  internally  generated  funds.   The  company's  management
     believes  that  the  company's financial  condition  and  available
     credit  facilities at March 31, 1998 are sufficient to support  the
     present and prospective levels of the company's operations.
     
                                  -11-
     
                       Part II - OTHER INFORMATION
     
     Item 6 Exhibits and Reports on Form 8-K
     
            (a)  Exhibit  11  -Incorporated herein  by reference to Note 1
                 to the Company's Consolidated Financial Statements.
     
            (b)  During  the  three  months ended March 31, 1998 no
                 Form 8-K was required to be filed.
     
     
     
                               SIGNATURES
     
     
     Pursuant to the requirements of the Securities exchange act of
     1934, the registratnt has duly caused this report to be signed on
     its behalf by the undersigned thereunto duly authorized:
     
     
                                             THE TURNER CORPORATION
                                                 (Registrant)
     
     
     
     Date:  May 07, 1998                     /s/  H. J. Parmelee
                                                  (Signature)
                                             H. J. Parmelee
                                             President
     
     
     Date:  May 07, 1998                     /s/  D. G. Sleeman
                                                  (Signature)
                                             D. G. Sleeman
                                             Senior Vice President,
                                             Chief Financial Officer and
                                             Chief Accounting Officer