Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
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Net sales $ 95 $ 3 $ 7 $ 8 $ - $ - $ 113
Cost of goods sold 76 2 5 4 - - 87
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Gross Profit 19 1 2 4 - - 26
MAT expense 10 - 1 1 - - 12
Amortization expense - - - - - - -
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Operating Income 9 1 1 3 - - 14
Interest income - - - - 1 - 1
Other income (expense) (3) - - - 2 - (1)
Loss on debt modification - - - - - - -
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EBIT 6 1 1 3 3 - 14
Interest expense 6 - - - - - 6
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Income Before Taxes - 1 1 3 3 - 8
Income tax expense (benefit) - - - - - - -
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Net Income $ - $ 1 $ 1 $ 3 $ 3 $ - $ 8
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SESA and Subsidiaries
Statement of Operations
Nine-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
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Net sales $288 $11 $19 $23 $ - $ - $341
Cost of goods sold 232 7 13 16 - - 268
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Gross Profit 56 4 6 7 - - 73
MAT expense 28 2 3 3 - - 36
Amortization expense - - 1 - - - 1
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Operating Income 28 2 2 4 - - 36
Interest income 1 - - - 3 - 4
Other income (expense) (3) - 1 - 2 - -
Loss on debt modification (15) - - - - - (15)
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EBIT 11 2 3 4 5 - 25
Interest expense 21 - - - - - 21
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Income (Loss) Before Taxes (10) 2 3 4 5 - 4
Income tax expense (benefit) (3) - 1 - - - (2)
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Net Income (Loss) $ (7) $ 2 $ 2 $ 4 $ 5 $ - $ 6
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SESA and Subsidiaries
Statement of Operations
Three-Months Ended September 30, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
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Net sales $76 $ 3 $ 7 $ 7 $ - $ - $ 93
Cost of goods sold 62 2 3 6 - - 73
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Gross Profit 14 1 4 1 - - 20
MAT expense 8 - 1 2 - - 11
Amortization expense - - - 1 - - 1
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Operating Income (Loss) 6 1 3 (2) - - 8
Interest income 1 - - - 3 (2) 2
Other income - - - - - - -
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EBIT 7 1 3 (2) 3 (2) 10
Interest expense 7 - - - - (2) 5
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Income (Loss) Before Taxes - 1 3 (2) 3 - 5
Income tax expense - - 1 - - - 1
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Net Income (Loss) $ - $ 1 $ 2 $(2) $ 3 $ - $ 4
=============================================================================
SESA and Subsidiaries
Statement of Operations
Nine-Months Ended September 30, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------
Net sales $245 $ 9 $19 $20 $ - $ - $293
Cost of goods sold 200 6 11 21 - - 238
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Gross Profit 45 3 8 (1) - - 55
MAT expense 26 2 3 5 - - 36
Amortization expense - - - 1 - - 1
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Operating Income (Loss) 19 1 5 (7) - - 18
Interest income 2 - - - 10 (6) 6
Other income 3 - - - - - 3
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EBIT 24 1 5 (7) 10 (6) 27
Interest expense 20 - - 1 1 (6) 16
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Income (Loss) Before Taxes 4 1 5 (8) 9 - 11
Income tax expense 2 - 1 - - - 3
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Net Income (Loss) $ 2 $ 1 $ 4 $(8) $ 9 $ - $ 8
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SESA and Subsidiaries
Statement of Financial Position
As of September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
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Current Assets:
Cash and cash equivalents $ 13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
Trade and notes receivable, net 58 2 2 3 - - 65
Miscellaneous receivables 19 - 1 1 8 (2) 27
Inventories 32 2 5 14 - - 53
Prepaid expenses 2 - - - - - 2
Current deferred taxes 2 - - - - - 2
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Total Current Assets 126 5 11 19 9 (2) 168
Investments in affiliates 271 - - - 138 (184) 225
Property, plant and equipment, net 47 - 32 13 - - 92
Intangible assets, net - 4 9 24 - - 37
Other assets 23 - - 4 1 - 28
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Total Assets $467 $ 9 $52 $60 $148 $(186) $550
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Current Liabilities:
Accounts payable $ 13 $ - $ 1 $ 1 $ - $ - $ 15
Accrued liabilities 60 3 5 16 3 (2) 85
Short-term debt - - 2 5 1 (8) -
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Total Current Liabilities 73 3 8 22 4 (10) 100
Long-term debt 259 - - - 8 (8) 259
Non-current deferred taxes - - 2 3 - - 5
Postretirement liabilities 3 - - - - - 3
Other liabilities - - 2 - - - 2
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Total Liabilities 335 3 12 25 12 (18) 369
Shareholders' Equity 132 6 40 35 136 (168) 181
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Total Liabilities and Shareholders'
Equity $467 $ 9 $52 $60 $148 $(186) $550
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SESA and Subsidiaries
Statement of Financial Position
As of September 30, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 14 $ 1 $ 1 $ 1 $ 46 $ - $ 63
Trade and notes receivable, net 50 2 2 3 - - 57
Miscellaneous receivables 15 - - 2 7 (5) 19
Inventories 32 2 4 9 - - 47
Prepaid expenses - - - - - - -
Current deferred taxes 2 - - - - - 2
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Total Current Assets 113 5 7 15 53 (5) 188
Investments in affiliates 452 - 4 3 319 (614) 164
Property, plant and equipment, net 47 - 27 41 - - 115
Intangible assets, net - 2 20 86 - - 108
Other assets 15 - - - 1 - 16
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Total Assets $627 $ 7 $58 $145 $373 $(619) $591
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Current Liabilities:
Accounts payable $ 10 $ - $ 1 $ - $ 1 $ - $ 12
Accrued liabilities 57 3 4 15 1 (5) 75
Short-term debt 208 - - 23 6 (237) -
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Total Current Liabilities 275 3 5 38 8 (242) 87
Long-term debt 374 - - 6 - (6) 374
Non-current deferred taxes 2 - 3 8 - - 13
Postretirement liabilities - - - - - - -
Other liabilities - - 4 - - - 4
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Total Liabilities 651 3 12 52 8 (248) 478
Shareholders' Equity (24) 4 46 93 365 (371) 113
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Total Liabilities and Shareholders'
Equity $627 $ 7 $58 $145 $373 $(619) $591
=============================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
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Operating Activities:
Net income $ - $ 1 $ 1 $ 3 $ 3 $ - $ 8
Income and deferred taxes - - - - - - -
Depreciation and amortization 2 - 1 1 - - 4
Restructuring expenses and other charges - - - (1) - - (1)
Accounts Receivable 14 - 1 (1) - - 14
Inventories (1) - 1 (1) - - (1)
Accounts Payable 2 - - (2) - - -
Pretax gain/loss from asset disposals - - - - - - -
Other assets and liabilities (4) - - 1 - - (3)
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Cash Provided by Operations 13 1 4 - 3 - 21
Investing Activities:
Property, plant and equipment purchases (1) - (2) - - - (3)
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Cash Used in Investing Activities (1) - (2) - - - (3)
Financing Activities:
Net intercompany transactions (7) (1) (1) - (3) - (12)
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Cash Used in Financing Activities (7) (1) (1) - (3) - (12)
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Increase in Cash and Cash Equivalents 5 - 1 - - - 6
Cash and Cash Equivalents:
Beginning of period 8 1 2 1 1 - 13
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End of period $13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
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SESA and Subsidiaries
Statement of Cash Flows
Nine-Months Ended September 30, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ (7) $ 2 $ 2 $ 4 $ 5 $ - $ 6
Income and deferred taxes (3) - - - - - (3)
Depreciation and amortization 7 - 3 2 - - 12
Restructuring expenses and other
charges 16 - - (1) - - 15
Accounts Receivable 12 (2) 3 1 - - 14
Inventories 1 - - (6) - - (5)
Accounts Payable 1 - - (2) (2) - (3)
Pretax gain/loss from asset disposals - - - - - - -
Other assets and liabilities (16) - - 2 1 - (13)
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Cash Provided by Operations 11 - 8 - 4 - 23
Investing Activities:
Property, plant and equipment
purchases (2) - (5) (1) - - (8)
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Cash Used in Investing Activities (2) - (5) (1) - - (8)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net intercompany transactions (2) 1 - - (4) - (5)
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Cash Provided by (Used in) Financing
Activities (7) 1 - - (4) - (10)
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Increase (Decrease) in Cash and
Cash Equivalents 2 1 3 (1) - - 5
Cash and Cash Equivalents:
Beginning of period 11 - - 2 1 - 14
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End of period $ 13 $ 1 $ 3 $ 1 $ 1 $ - $ 19
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SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended September 30, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ - $ 1 $ 2 $(2) $ 3 $ - $ 4
Depreciation and amortization 2 - 1 2 - - 5
Restructuring expenses and other
charges - - - 1 - - 1
Accounts Receivable 11 - - (1) - - 10
Inventories (4) - - - - - (4)
Accounts Payable (1) - - - - - (1)
Other assets and liabilities 7 - 1 - 4 - 12
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Cash Provided by Operations 15 1 4 - 7 - 27
Investing Activities:
Property, plant and equipment
purchases (1) - (1) - - - (2)
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Cash Used in Investing Activities (1) - (1) - - - (2)
Financing Activities:
Net intercompany transactions (5) (1) (2) - (1) - (9)
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Cash Used in Financing Activities (5) (1) (2) - (1) - (9)
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Increase in Cash and Cash Equivalents 9 - 1 - 6 - 16
Cash and Cash Equivalents:
Beginning of period 5 1 - 1 40 - 47
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End of period $14 $ 1 $ 1 $ 1 $46 $ - $63
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SESA and Subsidiaries
Statement of Cash Flows
Nine-Months Ended September 30, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 2 $1 $ 4 $ (8) $ 9 $ - $ 8
Income and deferred taxes 3 - - - - - 3
Depreciation and amortization 6 - 3 5 - - 14
Restructuring expenses and other
charges (4) - - 1 - - (3)
Accounts Receivable (1) (1) (1) 2 - - (1)
Inventories (5) - - - - - (5)
Accounts Payable (3) - - - - - (3)
Pretax gain/loss from asset disposals (1) - - - - - (1)
Other assets and liabilities 6 1 2 3 6 - 18
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Cash Provided by Operations 3 1 8 3 15 - 30
Investing Activities:
Property, plant and equipment
purchases (1) - (3) - - - (4)
Property disposals and investment
proceeds 1 - - - - - 1
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Cash Used in Investing Activities - - (3) - - - (3)
Financing Activities:
Net change in short-term debt
obligations - - (1) - - - (1)
Net change in long-term debt
obligations - - (12) (13) - - (25)
Net intercompany transactions (7) - 9 11 7 - 20
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Cash Provided by (Used in) Financing
Activities (7) - (4) (2) 7 - (6)
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Increase (Decrease) in Cash and Cash
Equivalents (4) 1 1 1 22 - 21
Cash and Cash Equivalents:
Beginning of period 18 - - - 24 - 42
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End of period $14 $1 $ 1 $ 1 $46 $ - $63
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