Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended December 31, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Net sales $106 $ 1 $ 9 $ 9 $ - $ - $125
Cost of goods sold 85 1 6 21 - - 113
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Gross Profit 21 - 3 (12) - - 12
MAT expense 11 1 1 1 - - 14
Amortization expense - - 1 - - - 1
Impairment of intangible assets - - 3 25 - - 28
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Operating Income (Loss) 10 (1) (2) (38) - - (31)
Interest income - - - - 1 - 1
Other income (expense) (3) - - - 1 - (2)
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EBIT 7 (1) (2) (38) 2 - (32)
Interest expense 6 - - - - - 6
---------------------------------------------------------------------------------------------------
Income (Loss) Before Taxes 1 (1) (2) (38) 2 - (38)
Income tax benefit - - - (4) - - (4)
---------------------------------------------------------------------------------------------------
Net Income (Loss) $ 1 $(1) $(2) $(34) $ 2 $ - $(34)
===================================================================================================
1
SESA and Subsidiaries
Statement of Operations
Twelve-Months Ended December 31, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Net sales $394 $12 $27 $ 32 $ - $ - $465
Cost of goods sold 317 8 19 37 - - 381
---------------------------------------------------------------------------------------------------
Gross Profit 77 4 8 (5) - - 84
MAT expense 39 3 4 4 - - 50
Amortization expense - - 1 - - - 1
Impairment of intangible assets - - 3 25 - - 28
---------------------------------------------------------------------------------------------------
Operating Income (Loss) 38 1 - (34) - - 5
Interest income 1 - - - 4 - 5
Other income (expense) (6) - 1 - 3 - (2)
Loss on debt modification (15) - - - - - (15)
---------------------------------------------------------------------------------------------------
EBIT 18 1 1 (34) 7 - (7)
Interest expense 27 - - - - - 27
---------------------------------------------------------------------------------------------------
Income (Loss) Before Taxes (9) 1 1 (34) 7 - (34)
Income tax expense (benefit) (3) - 1 (4) - - (6)
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Net Income (Loss) $ (6) $ 1 $ - $(30) $ 7 $ - $(28)
===================================================================================================
2
SESA and Subsidiaries
Statement of Operations
Three-Months Ended December 31, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Net sales $89 $ 2 $ 5 $ 7 $ - $ - $ 103
Cost of goods sold 72 1 4 38 - - 115
---------------------------------------------------------------------------------------------------
Gross Profit 17 1 1 (31) - - (12)
MAT expense 15 1 1 1 - - 18
Impairment of intangible assets - - 11 64 - - 75
---------------------------------------------------------------------------------------------------
Operating Income (Loss) 2 - (11) (96) - - (105)
Interest income 1 - - - 3 (2) 2
Other income (expense) 22 - - - 1 (24) (1)
---------------------------------------------------------------------------------------------------
EBIT 25 - (11) (96) 4 (26) (104)
Interest expense 8 - - - - (2) 6
---------------------------------------------------------------------------------------------------
Income (Loss) Before Taxes 17 - (11) (96) 4 (24) (110)
Income tax expense (benefit) (1) 1 (1) (10) 1 - (10)
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Net Income (Loss) $18 $(1) $(10) $(86) $ 3 $(24) $(100)
===================================================================================================
3
SESA and Subsidiaries
Statement of Operations
Twelve-Months Ended December 31, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Net sales $335 $10 $24 $ 27 $ - $ - $ 396
Cost of goods sold 272 7 15 59 - - 353
---------------------------------------------------------------------------------------------------
Gross Profit 63 3 9 (32) - - 43
MAT expense 41 3 3 6 - - 53
Amortization expense - - 1 1 - - 2
Impairment of intangible assets - - 11 64 - - 75
---------------------------------------------------------------------------------------------------
Operating Income (Loss) 22 - (6) (103) - - (87)
Interest income 3 - - - 13 (8) 8
Other income 24 - - - 1 (24) 1
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EBIT 49 - (6) (103) 14 (32) (78)
Interest expense 28 - - 1 1 (8) 22
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Income (Loss) Before Taxes 21 - (6) (104) 13 (24) (100)
Income tax expense (benefit) 1 - - (10) 1 - (8)
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Net Income (Loss) $ 20 $ - $(6) $ (94) $12 $(24) $ (92)
===================================================================================================
4
SESA and Subsidiaries
Statement of Financial Position
As of December 31, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 8 $ - $ 2 $ 1 $ 1 $ - $ 12
Trade and notes receivable, net 79 2 2 5 - - 88
Miscellaneous receivables 21 - 1 2 9 (3) 30
Inventories 38 2 6 10 - - 56
Prepaid expenses 2 - 1 1 - - 4
Current deferred taxes 2 - - - - - 2
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Total Current Assets 150 4 12 19 10 (3) 192
Investments in affiliates 282 - - - 152 (187) 247
Property, plant and equipment,
net 54 - 38 2 - - 94
Intangible assets, net - 4 7 2 - - 13
Other assets 22 - - 5 1 - 28
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Total Assets $508 $ 8 $57 $28 $163 $(190) $574
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Current Liabilities:
Accounts payable $ 18 $ - $ 3 $ 3 $ - $ - $ 24
Accrued liabilities 71 1 6 12 3 (3) 90
Short-term debt - 1 1 8 1 (11) -
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Total Current Liabilities 89 2 10 23 4 (14) 114
Long-term debt 286 - - - 7 (7) 286
Non-current deferred taxes - - 2 - - - 2
Postretirement liabilities 2 - - - - - 2
Other liabilities - - 2 - - - 2
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Total Liabilities 377 2 14 23 11 (21) 406
Shareholders' Equity 131 6 43 5 152 (169) 168
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Total Liabilities and
Shareholders' Equity $508 $ 8 $57 $28 $163 $(190) $574
===================================================================================================
5
SESA and Subsidiaries
Statement of Financial Position
As of December 31, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 11 $ - $ - $ 2 $ 1 $ - $ 14
Trade and notes receivable, net 69 1 5 4 - - 79
Miscellaneous receivables 21 - - 2 11 (7) 27
Inventories 34 2 4 7 - - 47
Prepaid expenses 2 - 1 - - - 3
Current deferred taxes 2 - - - - - 2
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Total Current Assets 139 3 10 15 12 (7) 172
Investments in affiliates 484 - 1 - 365 (620) 230
Property, plant and equipment,
net 52 - 30 14 - - 96
Intangible assets, net - 3 10 25 - - 38
Other assets 16 - - 4 1 - 21
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Total Assets $691 $ 6 $51 $58 $378 $(627) $557
===================================================================================================
Current Liabilities:
Accounts payable $ 12 $ - $ 2 $ 2 $ 2 $ - $ 18
Accrued liabilities 85 1 3 13 3 (7) 98
Short-term debt 224 1 1 5 1 (225) 7
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Total Current Liabilities 321 2 6 20 6 (232) 123
Long-term debt 405 - - 1 - (1) 405
Non-current deferred taxes - - 2 3 - - 5
Postretirement liabilities 3 - - - - - 3
Other liabilities - - 4 2 - - 6
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Total Liabilities 729 2 12 26 6 (233) 542
Shareholders' Equity (38) 4 39 32 372 (394) 15
---------------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $691 $ 6 $51 $58 $378 $(627) $557
===================================================================================================
6
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended December 31, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 1 $(1) $(2) $(34) $ 2 $ - $(34)
Income and deferred taxes - - - (4) - - (4)
Depreciation and amortization 2 - 1 1 - - 4
Restructuring expenses and
other charges - - 3 37 - - 40
Accounts receivable (23) 2 1 (2) - - (22)
Inventories (5) - (2) 3 - - (4)
Accounts payable 5 - 1 2 1 - 9
Other assets and liabilities 18 (1) - (5) (1) - 11
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Cash Provided by (Used in)
Operations (2) - 2 (2) 2 - -
Investing Activities:
Property, plant and equipment
purchases (5) - (3) - - - (8)
---------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities (5) - (3) - - - (8)
Financing Activities:
Net intercompany transactions 2 (1) - 2 (2) - 1
---------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 2 (1) - 2 (2) - 1
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Increase (Decrease) in Cash
and Cash Equivalents (5) (1) (1) - - - (7)
Cash and Cash Equivalents:
Beginning of period 13 1 3 1 1 - 19
---------------------------------------------------------------------------------------------------
End of period $ 8 $ - $ 2 $ 1 $ 1 $ - $ 12
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7
SESA and Subsidiaries
Statement of Cash Flows
Twelve-Months Ended December 31, 2004
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ (6) $ 1 $ - $(30) $ 7 $ - $(28)
Income and deferred taxes (3) - - (4) - - (7)
Depreciation and amortization 9 - 4 3 - - 16
Restructuring expenses and
other charges 16 - 3 35 - - 54
Accounts receivable (11) - 4 (1) - - (8)
Inventories (4) - (2) (3) - - (9)
Accounts payable 6 - 1 - (1) - 6
Other assets and liabilities 2 (1) - (2) - - (1)
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Cash Provided by (Used in)
Operations 9 - 10 (2) 6 - 23
Investing Activities:
Property, plant and equipment
purchases (7) - (8) (1) - - (16)
---------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities (7) - (8) (1) - - (16)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net intercompany transactions - - - 2 (6) - (4)
---------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities (5) - - 2 (6) - (9)
---------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (3) - 2 (1) - - (2)
Cash and Cash Equivalents:
Beginning of period 11 - - 2 1 - 14
---------------------------------------------------------------------------------------------------
End of period $ 8 $ - $ 2 $ 1 $ 1 $ - $ 12
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8
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended December 31, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 18 $(1) $(10) $(86) $ 3 $(24) $(100)
Income and deferred taxes (2) - (1) (10) 1 - (12)
Depreciation and amortization 2 - 1 1 - - 4
Restructuring expenses and
other charges - - 10 94 - - 104
Accounts receivable (18) 1 (4) (1) - - (22)
Inventories (2) - - 1 - - (1)
Accounts payable 2 - 1 1 2 - 6
Other assets and liabilities (5) - (1) - (2) 24 16
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Cash Provided by (Used in)
Operations (5) - (4) - 4 - (5)
Investing Activities:
Property, plant and equipment
purchases (3) - (2) (1) - - (6)
---------------------------------------------------------------------------------------------------
Cash Used in Investing
Activities (3) - (2) (1) - - (6)
Financing Activities:
Net intercompany transactions 5 (1) 5 2 (49) - (38)
---------------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 5 (1) 5 2 (49) - (38)
---------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (3) (1) (1) 1 (45) - (49)
Cash and Cash Equivalents:
Beginning of period 14 1 1 1 46 - 63
---------------------------------------------------------------------------------------------------
End of period $ 11 $ - $ - $ 2 $ 1 $ - $ 14
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9
SESA and Subsidiaries
Statement of Cash Flows
Twelve-Months Ended December 31, 2003
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 20 $ - $ (6) $(94) $ 12 $(24) $(92)
Income and deferred taxes 1 - (1) (10) 1 - (9)
Depreciation and amortization 9 - 4 6 - - 19
Restructuring expenses and
other charges (1) - 10 95 - - 104
Accounts Receivable (19) - (4) 1 - - (22)
Inventories (7) - - 1 - - (6)
Accounts Payable (1) - 1 1 2 - 3
Pretax gain/loss from
asset disposals (1) - - - - - (1)
Other assets and liabilities (3) - 1 3 4 24 29
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Cash Provided by (Used in)
Operations (2) - 5 3 19 - 25
Investing Activities:
Property, plant and equipment
purchases (4) - (5) (1) - - (10)
Property disposals and
investment proceeds 1 - - - - - 1
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Cash Used in Investing
Activities (3) - (5) (1) - - (9)
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) - 13 13 (42) - (18)
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Cash Used in Financing
Activities (2) - - - (42) - (44)
---------------------------------------------------------------------------------------------------
Increase (Decrease) in Cash
and Cash Equivalents (7) - - 2 (23) - (28)
Cash and Cash Equivalents:
Beginning of period 18 - - - 24 - 42
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End of period $ 11 $ - $ - $ 2 $ 1 $ - $ 14
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10