In a numerically controlled lathe, two guide bars are located in front of a headstock and extending parallel to the axis of a spindle to guide a saddle theroen. A cross slide is slidably supported by a guideway of the saddle to move a pair of turret heads in a direction perpendicular to the axis of the spindle. Turret indexing means allows indexing of one of the turret heads while a tool receiver fixed on the other turret head assumes in a predetermined cutting area relaive to the axis of the spindle. The saddle has a chip dropping wall formed between a guide bush and the pair of turret heads, with a front portion of the chip dropping wall downwardly slanting toward the front side of the lathe.