Exhibit 99
SESA and Subsidiaries
Statement of Operations
Three-Months Ended June 30, 2004
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Net sales $ 95 $ 4 $ 9 $ 8 $ - $ - $ 116
Cost of goods sold 76 2 6 7 - - 91
-----------------------------------------------------------------------------------------------------
Gross Profit 19 2 3 1 - - 25
MAT expense 9 1 1 1 - - 12
Amortization expense - - - - - - -
-----------------------------------------------------------------------------------------------------
Operating Income 10 1 2 - - - 13
Interest income - - - - 1 - 1
Other income (1) - - - - - (1)
Loss on debt modification - - - - - - -
-----------------------------------------------------------------------------------------------------
EBIT 9 1 2 - 1 - 13
Interest expense 7 - - - - - 7
-----------------------------------------------------------------------------------------------------
Income Before Taxes 2 1 2 - 1 - 6
Income tax expense 1 - - - - - 1
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Net Income $ 1 $ 1 $ 2 $ - $ 1 $ - $ 5
=====================================================================================================
SESA and Subsidiaries
Statement of Operations
Six-Months Ended June 30, 2004
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Net sales $ 194 $ 7 $ 12 $ 15 $ - $ - $ 228
Cost of goods sold 156 4 9 12 - - 181
-----------------------------------------------------------------------------------------------------
Gross Profit 38 3 3 3 - - 47
MAT expense 18 2 2 2 - - 24
Amortization expense - - - 1 - - 1
-----------------------------------------------------------------------------------------------------
Operating Income 20 1 1 - - - 22
Interest income 1 - - - 2 - 3
Other income - - - 1 - - 1
Loss on debt modification (15) - - - - - (15)
-----------------------------------------------------------------------------------------------------
EBIT 6 1 1 1 2 - 11
Interest expense 16 - - - - - 16
-----------------------------------------------------------------------------------------------------
Income (Loss) Before
Taxes (10) 1 1 1 2 - (5)
Income tax expense (benefit) (3) - - - - - (3)
-----------------------------------------------------------------------------------------------------
Net Income (Loss) $ (7) $ 1 $ 1 $ 1 $ 2 $ - $ (2)
=====================================================================================================
SESA and Subsidiaries
Statement of Operations
Three-Months Ended June 30, 2003
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Net sales $ 87 $ 4 $ 5 $ 6 $ - $ - $ 102
Cost of goods sold 69 2 3 8 - - 82
-----------------------------------------------------------------------------------------------------
Gross Profit 18 2 2 (2) - - 20
MAT expense 10 1 1 2 - - 14
Amortization expense - - 1 - - - 1
-----------------------------------------------------------------------------------------------------
Operating Income (Loss) 8 1 - (4) - - 5
Interest income 1 - - - 3 (2) 2
Other income (1) - - - - - (1)
-----------------------------------------------------------------------------------------------------
EBIT 8 1 - (4) 3 (2) 6
Interest expense 7 - - - - (2) 5
-----------------------------------------------------------------------------------------------------
Income (Loss) Before
Taxes 1 1 - (4) 3 - 1
Income tax expense (benefit) - - - - - - -
-----------------------------------------------------------------------------------------------------
Net Income (Loss) $ 1 $ 1 $ - $ (4) $ 3 $ - $ 1
=====================================================================================================
SESA and Subsidiaries
Statement of Operations
Six-Months Ended June 30, 2003
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Net sales $ 169 $ 6 $ 12 $ 13 $ - $ - $ 200
Cost of goods sold 138 4 8 14 - - 164
-----------------------------------------------------------------------------------------------------
Gross Profit 31 2 4 (1) - - 36
MAT expense 18 2 2 3 - - 25
Amortization expense - - - 1 - - 1
-----------------------------------------------------------------------------------------------------
Operating Income (Loss) 13 - 2 (5) - - 10
Interest income 2 - - - 7 (5) 4
Other income 3 - - - - - 3
-----------------------------------------------------------------------------------------------------
EBIT 18 - 2 (5) 7 (5) 17
Interest expense 14 - - 1 1 (5) 11
-----------------------------------------------------------------------------------------------------
Income (Loss) Before
Taxes 4 - 2 (6) 6 - 6
Income tax expense 2 - - - - - 2
-----------------------------------------------------------------------------------------------------
Net Income (Loss) $ 2 $ - $ 2 $ (6) $ 6 $ - $ 4
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SESA and Subsidiaries
Statement of Financial Position
As of June 30, 2004
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 8 $ 1 $ 2 $ 1 $ 1 $ - $ 13
Trade and notes receivable,
net 71 3 3 2 - - 79
Miscellaneous receivables 27 - - 2 6 (10) 25
Inventories 33 1 5 12 - - 51
Prepaid expenses 2 - - - - - 2
Current deferred taxes 3 - - - - - 3
-----------------------------------------------------------------------------------------------------
Total Current Assets 144 5 10 17 7 (10) 173
Investments in affiliates 263 - - - 135 (177) 221
Property, plant and equipment,
net 47 - 31 14 - - 92
Intangible assets, net - 4 10 24 - - 38
Other assets 21 - - 4 1 - 26
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Total Assets $ 475 $ 9 $ 51 $ 59 $ 143 $ (187) $ 550
=====================================================================================================
Current Liabilities:
Accounts payable $ 11 $ - $ 2 $ 2 $ - $ - $ 15
Accrued liabilities 73 3 4 13 11 (10) 94
Short-term debt - 1 2 5 1 (9) -
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Total Current Liabilities 84 4 8 20 12 (19) 109
Long-term debt 255 - - - - - 255
Non-current deferred taxes - - 2 3 - - 5
Postretirement liabilities 3 - - - - - 3
Other liabilities - - 2 4 - - 6
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Total Liabilities 342 4 12 27 12 (19) 378
Shareholders' Equity 133 5 39 32 131 (168) 172
-----------------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity
(Deficit) $ 475 $ 9 $ 51 $ 59 $ 143 $ (187) $ 550
=====================================================================================================
SESA and Subsidiaries
Statement of Financial Position
As of June 30, 2003
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 5 $ 1 $ - $ 1 $ 40 $ - $ 47
Trade and notes receivable,
net 61 2 2 3 - - 68
Miscellaneous receivables 19 - 1 1 9 (4) 26
Inventories 28 2 3 10 - - 43
Prepaid expenses - - - 1 - - 1
Current deferred taxes 2 - - - - - 2
-----------------------------------------------------------------------------------------------------
Total Current Assets 115 5 6 16 49 (4) 187
Investments in affiliates 441 - 2 3 316 (612) 150
Property, plant and
equipment, net 48 - 27 41 - - 116
Intangible assets, net - 3 19 85 - - 107
Other assets 16 - - - 1 - 17
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Total Assets $ 620 $ 8 $ 54 $ 145 $ 366 $ (616) $ 577
=====================================================================================================
Current Liabilities:
Accounts payable $ 11 $ - $ 1 $ - $ - $ - $ 12
Accrued liabilities 50 3 3 15 2 (4) 69
Short-term debt 206 1 - 6 5 (218) -
-----------------------------------------------------------------------------------------------------
Total Current Liabilities 267 4 4 21 7 (222) 81
Long-term debt 371 - - 23 - (23) 371
Non-current deferred taxes 3 - 3 9 - - 15
Other liabilities - - 4 - - - 4
-----------------------------------------------------------------------------------------------------
Total Liabilities 641 4 11 53 7 (245) 471
Shareholders' Equity (Deficit) (21) 4 43 92 359 (371) 106
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Total Liabilities and
Shareholders' Equity
(Deficit) $ 620 $ 8 $ 54 $ 145 $ 366 $ (616) $ 577
=====================================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended June 30, 2004
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 1 $ 1 $ 2 $ - $ 1 $ - $ 5
Income and deferred taxes 1 - - - - 1
Depreciation and amortization 2 - 1 1 - - 4
Accounts Receivable (14) - (2) (1) - - (17)
Inventories (2) - 1 - - - (1)
Accounts Payable - - (1) - - - (1)
Other assets and liabilities 6 - 1 - - - 7
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Cash Provided by (Used in)
Operations (6) 1 2 - 1 - (2)
Investing Activities:
Property, plant and equipment
purchases (1) - (1) (1) - - (3)
-----------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities (1) - (1) (1) - - (3)
Financing Activities:
Net intercompany transactions 1 - - 1 (1) - 1
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 1 - - 1 (1) - 1
-----------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (6) 1 1 - - - (4)
Cash and Cash Equivalents:
Beginning of period 14 - 1 1 1 - 17
-----------------------------------------------------------------------------------------------------
End of period $ 8 $ 1 $ 2 $ 1 $ 1 $ - $ 13
=====================================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Six-Months Ended June 30, 2004
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ (7) $ 1 $ 1 $ 1 $ 2 $ - $ (2)
Income and deferred taxes (3) - - - - - (3)
Depreciation and amortization 5 - 2 1 - - 8
Restructuring expenses and
other charges 14 - - - - - 14
Accounts Receivable (2) (2) 2 2 - - -
Inventories 2 - (1) (5) - - (4)
Accounts Payable (1) - - - (2) - (3)
Other assets and liabilities (10) - - 1 1 - (8)
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Cash Provided by (Used in)
Operations (2) (1) 4 - 1 - 2
Investing Activities:
Property, plant and equipment
purchases (1) - (3) (1) - - (5)
Acquisition and investment
payments, net of cash
acquired - - - - - - -
-----------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities (1) - (3) (1) - - (5)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net intercompany transactions 5 2 1 - (1) - 7
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities - 2 1 - (1) - 2
-----------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (3) 1 2 (1) - - (1)
Cash and Cash Equivalents:
Beginning of period 11 - - 2 1 - 14
-----------------------------------------------------------------------------------------------------
End of period $ 8 $ 1 $ 2 $ 1 $ 1 $ - $ 13
=====================================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended June 30, 2003
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 1 $ 1 $ - $ (4) $ 3 $ - $ 1
Income and deferred taxes 1 - - - - - 1
Depreciation and amortization 2 - 1 1 - - 4
Accounts Receivable 1 (1) 2 - - - 2
Inventories (2) - - - - - (2)
Accounts Payable (9) - - - (4) - (13)
Other assets and liabilities 6 1 1 3 1 - 12
-----------------------------------------------------------------------------------------------------
Cash Provided by Operations - 1 4 - - - 5
Investing Activities:
Property, plant and equipment
purchases - - (1) - - - (1)
-----------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities - - (1) - - - (1)
Financing Activities:
Net change in short-term
debt obligations - - (1) - - - (1)
Net intercompany transactions 1 - (2) - 3 - 2
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 1 - (3) - 3 - 1
-----------------------------------------------------------------------------------------------------
Increase in Cash and Cash
Equivalents 1 1 - - 3 - 5
Cash and Cash Equivalents:
Beginning of period 4 - - 1 37 - 42
-----------------------------------------------------------------------------------------------------
End of period $ 5 $ 1 $ - $ 1 $ 40 $ - $ 47
=====================================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Six-Months Ended June 30, 2003
(in Millions and USD)
(Unaudited)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 2 $ - $ 2 $ (6) $ 6 $ - $ 4
Income and deferred taxes 3 - - - - - 3
Depreciation and amortization 4 - 2 3 - - 9
Restructuring expenses and
other charges (4) - - - - - (4)
Accounts Receivable (12) (1) (1) 3 - - (11)
Inventories (1) - - - - - (1)
Accounts Payable (2) - - - - - (2)
Pretax gain/loss from asset
disposals (1) - - - - - (1)
Other assets and liabilities (1) 1 1 3 2 - 6
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Operations (12) - 4 3 8 - 3
Investing Activities:
Property, plant and equipment
purchases - - (2) - - - (2)
Property disposals and
investment proceeds 1 - - - - - 1
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Investing Activities 1 - (2) - - - (1)
Financing Activities:
Net change in short-term
debt obligations - - (1) - - - (1)
Net change in long-term debt
obligations - - (12) (13) - - (25)
Net intercompany transactions (2) 1 11 11 8 - 29
-----------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities (2) 1 (2) (2) 8 - 3
-----------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (13) 1 - 1 16 - 5
Cash and Cash Equivalents:
Beginning of period 18 - - - 24 - 42
-----------------------------------------------------------------------------------------------------
End of period $ 5 $ 1 $ - $ 1 $ 40 $ - $ 47
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