SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                   -------------------------------------------

                                    FORM 10-Q

    (mark one)

    [ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
          Exchange Act of 1934 for the Quarter Ended April 4, 1998.

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

                         Commission File Number 1-11406

                              THERMO FIBERTEK INC.
             (Exact name of Registrant as specified in its charter)

    Delaware                                                       52-1762325
    (State or other jurisdiction of                          (I.R.S. Employer
    incorporation or organization)                        Identification No.)

    81 Wyman Street, P.O. Box 9046
    Waltham, Massachusetts                                         02254-9046
    (Address of principal executive offices)                       (Zip Code)

       Registrant's telephone number, including area code: (781) 622-1000

         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 the latest practicable
         date.

                    Class                    Outstanding at May 1, 1998
         ----------------------------        --------------------------
         Common Stock, $.01 par value                61,706,983
PAGE

    PART I - FINANCIAL INFORMATION

    Item 1 - Financial Statements
    -----------------------------

                              THERMO FIBERTEK INC.

                           Consolidated Balance Sheet
                                   (Unaudited)

                                     Assets


                                                     April 4,     January 3,
    (In thousands)                                       1998           1998
    ------------------------------------------------------------------------
    Current Assets:
      Cash and cash equivalents (includes $66,037 
        and $62,550 under repurchase agreement 
        with affiliated company)                     $120,451       $111,648
      Available-for-sale investments, at quoted
        market value (amortized cost of $29,454
        and $36,273)                                   29,478         36,319
      Accounts receivable, less allowances of
        $2,314 and $2,565                              46,799         53,408
      Unbilled contract costs and fees                  4,166          4,422
      Inventories:
        Raw materials and supplies                     15,420         14,609
        Work in process                                 7,713          6,426
        Finished goods                                 11,399         10,925
      Prepaid and refundable income taxes (includes
        $940 due from parent company in fiscal 1997)    7,165          7,457
      Other current assets                              1,633          2,256
                                                     --------       --------
                                                      244,224        247,470
                                                     --------       --------

    Property, Plant, and Equipment, at Cost            61,763         61,059
      Less: Accumulated depreciation and
            amortization                               33,328         32,723
                                                     --------       --------
                                                       28,435         28,336
                                                     --------       --------
    Other Assets                                       14,201         14,437
                                                     --------       --------
    Cost in Excess of Net Assets of Acquired 
      Companies                                       127,887        128,695
                                                     --------       --------
                                                     $414,747       $418,938
                                                     ========       ========


                                        2PAGE

                              THERMO FIBERTEK INC.

                     Consolidated Balance Sheet (continued)
                                  (Unaudited)

                    Liabilities and Shareholders' Investment


                                                   April 4,     January 3,
   (In thousands except share amounts)                 1998           1998
   -----------------------------------------------------------------------
   Current Liabilities:
     Accounts payable                              $ 23,120       $ 25,755
     Accrued payroll and employee benefits            8,608         10,588
     Billings in excess of contract costs
       and fees                                       5,218          5,548
     Accrued warranty costs                           8,550          8,620
     Accrued income taxes (includes $737
       due from parent company in fiscal 1998)        1,193              -
     Other accrued expenses                          14,786         18,512
     Due to parent company and affiliated
       companies                                      1,107          1,451
                                                   --------       --------
                                                     62,582         70,474
                                                   --------       --------
   Deferred Income Taxes and Other Deferred Items     4,287          4,267
                                                   --------       --------
   Subordinated Convertible Debentures              153,000        153,000
                                                   --------       --------

   Minority Interest                                    252            290
                                                   --------       --------
   Common Stock of Subsidiary Subject to
     Redemption ($54,762 redemption value)           53,059         52,812
                                                   --------       --------

   Shareholders' Investment:
     Common stock, $.01 par value, 150,000,000
       shares authorized; 63,358,087 and 
       63,331,887 shares issued                         634            633
     Capital in excess of par value                  80,321         81,865
     Retained earnings                               86,858         82,607
     Treasury stock at cost, 1,682,287 and
       1,820,709 shares                             (18,120)       (19,494)
     Accumulated other comprehensive items
       (Note 3)                                      (8,126)        (7,516)
                                                   --------       --------
                                                    141,567        138,095
                                                   --------       --------
                                                   $414,747       $418,938
                                                   ========       ========


   The accompanying notes are an integral part of these consolidated
   financial statements.

                                        3PAGE

                              THERMO FIBERTEK INC.

                        Consolidated Statement of Income
                                  (Unaudited)


                                                       Three Months Ended
                                                     ----------------------
                                                     April 4,     March 29,
   (In thousands except per share amounts)               1998          1997
   ------------------------------------------------------------------------
   Revenues                                           $62,330       $44,667
                                                      -------       -------

   Costs and Operating Expenses:
     Cost of revenues                                  37,052        25,536
     Selling, general, and administrative expenses     16,244        12,975
     Research and development expenses                  1,867         1,276
                                                      -------       -------
                                                       55,163        39,787
                                                      -------       -------

   Operating Income                                     7,167         4,880

   Interest Income                                      1,982         1,437
   Interest Expense (includes $131 to related 
     party in fiscal 1997)                             (1,861)         (156)
                                                      -------       -------
   Income Before Provision for Income Taxes and
     Minority Interest                                  7,288         6,161
   Provision for Income Taxes                           2,834         2,317
   Minority Interest Expense                              203           384
                                                      -------       -------
   Net Income                                         $ 4,251       $ 3,460
                                                      =======       =======
   Earnings per Share (Note 2):
     Basic                                            $   .07       $   .06
                                                      =======       =======
     Diluted                                          $   .07       $   .05
                                                      =======       =======
   Weighted Average Shares (Note 2):
     Basic                                             61,562        61,140
                                                      =======       =======
     Diluted                                           62,641        64,189
                                                      =======       =======


   The accompanying notes are an integral part of these consolidated
   financial statements.


                                        4PAGE

                              THERMO FIBERTEK INC.

                      Consolidated Statement of Cash Flows
                                  (Unaudited) 


                                                      Three Months Ended
                                                    ----------------------
                                                    April 4,     March 29,
   (In thousands)                                       1998          1997
   -----------------------------------------------------------------------
   Operating Activities:
     Net income                                     $  4,251      $  3,460
       Adjustments to reconcile net income to 
         net cash provided by operating 
         activities:
           Depreciation and amortization               2,236         1,403
           Provision for losses on accounts 
             receivable                                   55            15
           Minority interest expense                     203           384
           Other noncash items                             8             -
           Changes in current accounts:
             Accounts receivable                       6,291         5,249
             Inventories and unbilled contract
               costs and fees                         (2,576)       (4,778)
             Prepaid income taxes and other 
               current assets                            866         1,045
             Accounts payable                         (2,962)         (111)
             Other current liabilities                (4,752)       (1,578)
                                                    --------      --------
   Net cash provided by operating activities           3,620         5,089
                                                    --------      --------
   Investing Activities:
     Purchases of available-for-sale investments      (2,500)            -
     Proceeds from sale and maturities of 
       available-for-sale investments                  9,311             -
     Purchases of property, plant, and equipment      (1,359)         (908)
     Issuance of note receivable                           -        (3,000)
     Other                                                81           (21)
                                                    --------      --------
   Net cash provided by (used in) investing 
     activities                                        5,533        (3,929)
                                                    --------      --------
   Financing Activities:
     Other                                              (169)            4
                                                    --------      --------
   Net cash provided by (used in) financing 
     activities                                     $   (169)     $      4
                                                    --------      --------

                                        5PAGE

                              THERMO FIBERTEK INC.

                Consolidated Statement of Cash Flows (continued)
                                  (Unaudited)


                                                     Three Months Ended
                                                  ------------------------
                                                   April 4,      March 29,
   (In thousands)                                      1998           1997
   -----------------------------------------------------------------------
   Exchange Rate Effect on Cash                    $   (181)      $ (2,272)
                                                   --------       --------
   Increase (Decrease) in Cash and Cash 
     Equivalents                                      8,803         (1,108)
   Cash and Cash Equivalents at Beginning of
     Period                                         111,648        109,805
                                                   --------       --------
   Cash and Cash Equivalents at End of Period      $120,451       $108,697
                                                   ========       ========


   The accompanying notes are an integral part of these consolidated
   financial statements.



















                                       6PAGE

                              THERMO FIBERTEK INC.

                   Notes to Consolidated Financial Statements

    1.  General

        The interim consolidated financial statements presented have been
    prepared by Thermo Fibertek Inc. (the Company) without audit and, in the
    opinion of management, reflect all adjustments of a normal recurring
    nature necessary for a fair statement of the financial position at April
    4, 1998, and the results of operations and cash flows for the three-month
    periods ended April 4, 1998, and March 29, 1997. Interim results are not
    necessarily indicative of results for a full year.

        The consolidated balance sheet presented as of January 3, 1998, has
    been derived from the consolidated financial statements that have been
    audited by the Company's independent public accountants. The consolidated
    financial statements and notes are presented as permitted by Form 10-Q
    and do not contain certain information included in the annual financial
    statements and notes of the Company. The consolidated financial
    statements and notes included herein should be read in conjunction with
    the financial statements and notes included in the Company's Annual
    Report on Form 10-K for the fiscal year ended January 3, 1998, filed with
    the Securities and Exchange Commission.

    2.  Earnings per Share

        Basic and diluted earnings per share were calculated as follows:

                                                        Three Months Ended
                                                       --------------------
                                                       April 4,   March 29,
    (In thousands except per share amounts)                1998        1997
    -----------------------------------------------------------------------
    Basic
    Net income                                          $ 4,251     $ 3,460
                                                        -------     -------
    Weighted average shares                              61,562      61,140
                                                        -------     -------
    Basic earnings per share                            $   .07     $   .06
                                                        =======     =======
    Diluted
    Net income                                          $ 4,251     $ 3,460
    Effect of:
      Convertible obligations                                 -          79
      Majority-owned subsidiary's dilutive securities        (9)        (27)
                                                        -------     -------
    Income available to common shareholders, 
      as adjusted                                       $ 4,242     $ 3,512
                                                        -------     -------

    Weighted average shares                              61,562      61,140
    Effect of:
      Convertible obligations                                 -       1,888
      Stock options                                       1,079       1,161
                                                        -------     -------
    Weighted average shares, as adjusted                 62,641      64,189
                                                        -------     -------
    Diluted earnings per share                          $   .07     $   .05
                                                        =======     =======

                                        7PAGE

                              THERMO FIBERTEK INC.

    2.  Earnings per Share (continued)

        The computation of diluted earnings per share excludes the effect of
    assuming the exercise of certain outstanding stock options because the
    effect would be antidilutive. As of April 4, 1998, there were 48,000 of
    such options outstanding, with exercise prices ranging from $12.58 to
    $14.32 per share.

        In addition, the computation of diluted earnings per share for 1998
    excludes the effect of assuming the conversion of the Company's $153.0
    million principal amount of 4 1/2% subordinated convertible debentures,
    convertible at $12.10 per share, because the effect would be
    antidilutive.

    3.  Comprehensive Income

        During the first quarter of 1998, the Company adopted Statement of
    Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive
    Income." This pronouncement sets forth requirements for disclosure of the
    Company's comprehensive income and accumulated other comprehensive items.
    In general, comprehensive income combines net income and "other
    comprehensive items" which represent certain amounts that are reported as
    components of shareholders' investment in the accompanying balance sheet,
    including foreign currency translation adjustments and unrealized net of
    tax gains and losses on available-for-sale investments. During the first
    quarter of 1998 and 1997, the Company had comprehensive income of
    $3,645,000 and a comprehensive loss of $1,070,000, respectively.

    Item 2 - Management's Discussion and Analysis of Financial Condition and
    ------------------------------------------------------------------------
             Results of Operations
             ---------------------

        Forward-looking statements, within the meaning of Section 21E of the
    Securities Exchange Act of 1934, are made throughout this Management's
    Discussion and Analysis of Financial Condition and Results of Operations.
    For this purpose, any statements contained herein that are not statements
    of historical fact may be deemed to be forward-looking statements.
    Without limiting the foregoing, the words "believes," "anticipates,"
    "plans," "expects," "seeks," "estimates," and similar expressions are
    intended to identify forward-looking statements. There are a number of
    important factors that could cause the results of the Company to differ
    materially from those indicated by such forward-looking statements,
    including those detailed under the heading "Forward-looking Statements"
    in Exhibit 13 to the Company's Annual Report on Form 10-K for the fiscal
    year ended January 3, 1998, filed with the Securities and Exchange
    Commission.


                                        8PAGE

                              THERMO FIBERTEK INC.

    Overview

        The Company designs and manufactures processing machinery,
    accessories, and water-management systems for the paper and paper
    recycling industries. The Company's principal products include custom-
    engineered systems and equipment for the preparation of wastepaper for
    conversion into recycled paper; accessory equipment and related
    consumables important to the efficient operation of papermaking machines;
    and water-management systems essential for draining, purifying, and
    recycling process water. The Company's Thermo Black Clawson subsidiary,
    acquired May 1997, is a leading supplier of recycling equipment used in
    processing fiber for the manufacture of "brown paper," such as that used
    in the manufacture of corrugated boxes. The Company's Thermo Fibergen
    Inc. subsidiary is developing and commercializing technology to recover
    valuable materials from papermaking sludge generated by plants that
    produce virgin and recycled pulp and paper. In December 1997, Thermo
    Fibergen entered into a ten-year contract with a paper mill to provide
    fiber-recovery and water-clarification services to the paper mill, and an
    engineering, procurement, and construction contract for the construction
    of the facility to provide such services. Construction of the fiber-
    recovery and water-clarification facility began during the first quarter
    of 1998. Through its GranTek Inc. subsidiary, Thermo Fibergen employs
    patented technology to produce absorbing granules from papermaking
    sludge.

        The Company's manufacturing facilities are principally located in the
    U.S. and France. The manufacturing facility in France is located at the
    Company's E. & M. Lamort, S.A. subsidiary, which primarily manufactures
    recycling equipment and accessories.

        The Company's products are primarily sold to the paper industry.
    Generally, the financial condition of the paper industry corresponds both
    to changes in the general economy and to a number of other factors,
    including paper and pulp production capacity. The paper industry entered
    a severe downcycle in early 1996 and has not recovered. This cyclical
    downturn, which began adversely affecting the Company's business during
    the second half of 1996, continues to have an adverse effect on the
    Company's business. The timing of the recovery of the financial condition
    of the paper industry cannot be predicted.

        In 1997, approximately 37% of the Company's sales originated outside
    the U.S., principally in Europe, and approximately 13% of the Company's
    revenues were exports from the U.S. During 1997, the Company had exports
    from the Company's U.S. and foreign operations to Asia of approximately
    6% of total revenues, a substantial portion of which represents sales
    from Thermo Black Clawson, acquired May 1997. Exports to Asia in 1997
    were primarily to China, Japan, and South Korea. Asia is experiencing a
    severe economic crisis, which has been characterized by sharply reduced
    economic activity and liquidity, highly volatile
    foreign-currency-exchange and interest rates, and unstable stock markets.
    The Company's sales to Asia, other than to China, have been adversely
    affected by the unstable economic conditions in that region. To date, the
    Company's business in China has not been adversely affected by the Asian
    crisis.
                                        9PAGE

                              THERMO FIBERTEK INC.

    Results of Operations

    First Quarter 1998 Compared With First Quarter 1997
    ---------------------------------------------------

        Revenues increased to $62.3 million in the first quarter of 1998 from
    $44.7 million in the first quarter of 1997, primarily due to the
    inclusion of $17.4 million in revenues from Thermo Black Clawson,
    acquired May 1997. Additional revenue improvement over the prior year was
    principally from an increase in demand at the Company's accessories
    business. These improvements were offset in part by a $2.3 million
    decrease in revenues from the Company's recycling business, principally
    due to a continuing decrease in demand resulting from a severe drop in
    de-inked pulp prices in the summer of 1996. The unfavorable effects of
    currency translation due to a stronger U.S. dollar decreased 1998
    revenues by $1.5 million.

        The gross profit margin decreased to 41% in the first quarter of 1998
    from 43% in the first quarter of 1997, primarily due to the inclusion of
    lower-margin revenues at Thermo Black Clawson.

        Selling, general, and administrative expenses as a percentage of
    revenues decreased to 26% in the first quarter of 1998 from 29% in the
    first quarter of 1997, primarily due to lower expenses as a percentage of
    revenues at Thermo Black Clawson.

        Research and development expenses increased to $1.9 million in the
    first quarter of 1998 from $1.3 million in the first quarter of 1997,
    primarily due to the inclusion of $0.5 million in expenses at Thermo
    Black Clawson.

        Interest income increased to $2.0 million in the first quarter of
    1998 from $1.4 million in the first quarter of 1997, primarily due to an
    increase in average invested balances resulting from the remaining net
    proceeds from the July 1997 sale of $153.0 million principal amount of 
    4 1/2% subordinated convertible debentures, of which $103.4 million was
    used to finance the acquisition of Thermo Black Clawson.

        Interest expense increased to $1.9 million in the first quarter of
    1998 from $0.2 million in the first quarter of 1997 as a result of the
    July 1997 issuance of subordinated convertible debentures.

        The effective tax rate was 39% in the first quarter of 1998 and 38%
    in the first quarter of 1997. These rates exceeded the statutory federal
    income tax rate primarily due to the impact of state income taxes, offset
    in part in 1997 by the effect of lower foreign tax rates.

        Minority interest expense primarily represents accretion of Thermo
    Fibergen's common stock subject to redemption.


                                       10PAGE

                              THERMO FIBERTEK INC.

    Liquidity and Capital Resources

        Consolidated working capital was $181.6 million at April 4, 1998,
    compared with $177.0 million at January 3, 1998. Included in working
    capital are cash, cash equivalents, and available-for-sale investments of
    $149.9 million at April 4, 1998, compared with $148.0 million at January
    3, 1998. Of the $149.9 million balance at April 4, 1998, $57.6 million
    was held by Thermo Fibergen, $6.5 million was held by Fiberprep, and the
    remainder was held by the Company and its wholly owned subsidiaries. At
    April 4, 1998, $30.2 million of the Company's cash and cash equivalents
    was held by its foreign subsidiaries. Repatriation of this cash into the
    U.S. would be subject to foreign withholding taxes and could also be
    subject to a U.S. tax.

        During the first quarter of 1998, $3.6 million of cash was provided
    by operating activities. A decrease in accounts receivable provided $6.3
    million of cash, primarily as a result of a decline in revenues in the
    first quarter of 1998, as compared to the fourth quarter of 1997. The
    Company used $4.8 million of cash to reduce other current liabilities,
    primarily for interest and bonus payments and a decrease in commissions
    payable, which resulted from the decline in revenues from the fourth
    quarter of 1997.

        During the first quarter of 1998, the Company's primary investing
    activity, excluding available-for-sale investments activity, was the
    purchase of property, plant, and equipment for $1.4 million. During the
    first quarter of 1998, the Company's financing activities used $0.2
    million in cash.

        Thermo Fibergen's common stock is subject to redemption in September
    2000 or 2001, the redemption value of which is $54.8 million.

        At April 4, 1998, the Company had $57.7 million of undistributed
    foreign earnings. The Company does not intend to repatriate undistributed
    foreign earnings into the U.S., and does not expect that this will have a
    material adverse effect on the Company's current liquidity.

        During the remainder of 1998, the Company plans to make expenditures
    for property, plant, and equipment of approximately $9 million, which
    includes expenditures at Thermo Fibergen for the completion of the
    construction of a fiber-recovery and water-clarification facility which
    began in the first quarter of 1998. In addition, Thermo Fibergen may make
    additional capital expenditures for the construction of additional
    fiber-recovery facilities. Construction of fiber-recovery facilities is
    dependent upon Thermo Fibergen entering into long-term contracts with
    paper mills, under which Thermo Fibergen will charge fees to accept the
    mills' papermaking sludge. Thermo Fibergen currently has only one such
    agreement in place and there is no assurance that Thermo Fibergen will be
    able to obtain such additional contracts. The Company believes that its
    existing resources are sufficient to meet the capital requirements of its
    existing operations for the foreseeable future.

                                       11PAGE

                              THERMO FIBERTEK INC.

    PART II - OTHER INFORMATION

    Item 6 - Exhibits
    -----------------

        See Exhibit Index on the page immediately preceding exhibits.


















                                       12PAGE

                              THERMO FIBERTEK INC.

                                   SIGNATURES


        Pursuant to the requirements of the Securities Exchange Act of 1934,
    the Registrant has duly caused this report to be signed on its behalf by
    the undersigned thereunto duly authorized as of the 8th day of May 1998.

                                             THERMO FIBERTEK INC.



                                             Paul F. Kelleher
                                             ---------------------------
                                             Paul F. Kelleher
                                             Chief Accounting Officer



                                             John N. Hatsopoulos
                                             ---------------------------
                                             John N. Hatsopoulos
                                             Chief Financial Officer
                                               and Senior Vice President














                                       13PAGE

                              THERMO FIBERTEK INC.

                                  EXHIBIT INDEX


    Exhibit
    Number       Description of Exhibit
    -----------------------------------------------------------------------

      27         Financial Data Schedule.


















 

5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THERMO FIBERTEK INC.'S QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED APRIL 4, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINACIAL STATEMENTS. 1,000 3-MOS JAN-02-1999 APR-04-1998 120,451 29,478 49,113 2,314 34,532 244,224 61,763 33,328 414,747 62,582 153,000 0 0 634 140,933 414,747 62,330 62,330 37,052 37,052 1,867 55 1,861 7,288 2,834 4,251 0 0 0 4,251 .07 .07