EXHIBIT 99.3
METALLURG, INC. AND CONSOLIDATED SUBSIDIARIES
PRO FORMA CONDENSED STATEMENT OF CONSOLIDATED OPERATIONS
YEAR ENDED DECEMBER 31, 2001
(UNAUDITED)
(In thousands)
Pro Forma
Historical (a) Adjustments Pro Forma
-------------- ----------- ---------
Total revenue...................................... $488,863 $(94,785)(b) $394,078
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Operating costs and expenses:
Cost of sales................................... 417,224 (77,057)(c) 340,167
Selling, general and administrative expenses.... 50,090 (14,948)(d) 35,142
Environmental expense recoveries................ (631) -- (631)
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Total operating costs and expenses.............. 466,683 (92,005) 374,678
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Operating income................................ 22,180 (2,780) 19,400
Other income (expense):
Other income, net............................... 279 -- 279
Interest expense, net........................... (12,966) 1,135 (e) (11,831)
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Income before income tax provision, minority
interest and discontinued operation.......... 9,493 (1,645) 7,848
Income tax provision............................... 6,394 (836)(d) 5,558
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Income before minority interest and
discontinued operation....................... 3,099 (809) 2,290
Minority interest.................................. 44 (72)(d) (28)
-------- -------- --------
Income from continuing operations............... $ 3,143 $ (881) $ 2,262
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(a) Historical figures have been restated to reflect the disposition of GfE's
prosthetics company in Morsdorf, Germany, on January 1, 2002.
(b) Reflects the following:
Total revenue of GfE, MIR, FAG and ABF............................. $(134,779)
Adjustment of intergroup activity between
the above companies and the companies retained by Metallurg..... 39,994
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$ (94,785)
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(c) Reflects the following:
Total cost of sales of GfE, MIR, FAG and ABF....................... $(117,110)
Adjustment of intergroup activity between the above
companies and the companies retained by Metallurg............... 40,053
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$ (77,057)
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(d) Reflects the activity of GfE, MIR, FAG and ABF.
(e) Reflects the following:
Reversal of interest expense, net, of GfE, MIR, FAG and ABF........ $ 854
Reversal of Metallurg's interest income on loans to the
above companies................................................. (440)
Metallurg's interest income on its restructured loan to GfE........ 721
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$1,135
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