Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended June 30, 2005
(in Millions and USD)
CONSOLIDATED
ENTITY 1 ENTITY 2 ENTITY 3 ENTITY 4 ENTITY 5 ELIMINATIONS SESA
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Net sales $109 $5 $12 $ 5 $ - $(1) $130
Cost of goods sold 88 3 9 5 - (1) 104
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Gross Profit 21 2 3 - - - 26
MAT expense 11 1 - 1 - - 13
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Operating Income (Loss) 10 1 3 (1) - - 13
Interest income 1 - - - 1 - 2
Other income - - - 1 1 - 2
Reorganization items (2) - - - - - (2)
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EBIT 9 1 3 - 2 - 15
Interest expense 6 - - - - - 6
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Income Before Taxes 3 1 3 - 2 - 9
Income tax expense 1 - 1 - - - 2
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Net Income $ 2 $1 $ 2 $ - $ 2 $ - $ 7
===================================================================================
SESA and Subsidiaries
Statement of Operations
Six-Months Ended June 30, 2005
(in Millions and USD)
CONSOLIDATED
ENTITY 1 ENTITY 2 ENTITY 3 ENTITY 4 ENTITY 5 ELIMINATIONS SESA
-----------------------------------------------------------------------------------
Net sales $222 $8 $23 $13 $- $(1) $265
Cost of goods sold 178 5 17 11 - (1) 210
---------------------------------------------------------------------------------
Gross Profit 44 3 6 2 - - 55
MAT expense 20 2 2 2 - - 26
---------------------------------------------------------------------------------
Operating Income 24 1 4 - - - 29
Interest income 1 - - - 2 - 3
Other income 1 - - 1 2 - 4
Reorganization items (2) - - - - - (2)
---------------------------------------------------------------------------------
EBIT 24 1 4 1 4 - 34
Interest expense 12 - - - - - 12
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Income Before Taxes 12 1 4 1 4 - 22
Income tax expense 5 - 1 - - - 6
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Net Income $ 7 $1 $ 3 $ 1 $4 $ - $ 16
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SESA and Subsidiaries
Statement of Operations
Three-Months Ended June 30, 2004
(in Millions and USD)
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
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Gross Profit 19 2 3 1 - - 25
MAT expense 9 1 1 1 - - 12
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Operating Income 10 1 2 - - - 13
Interest income - - - - 1 - 1
Other income (1) - - - - - (1)
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EBIT 9 1 2 - 1 - 13
Interest expense 7 - - - - - 7
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Income Before Taxes 2 1 2 - 1 - 6
Income tax expense 1 - - - - - 1
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Net Income $ 1 $ 1 $ 2 $ - $ 1 $ - $ 5
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SESA and Subsidiaries
Statement of Operations
Six-Months Ended June 30, 2004
(in Millions and USD)
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
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Gross Profit 38 3 3 3 - - 47
MAT expense 18 2 2 2 - - 24
Amortization expense - - - 1 - - 1
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Operating Income 20 1 1 - - - 22
Interest income 1 - - - 2 - 3
Other income - - - 1 - - 1
Loss on debt modification (15) - - - - - (15)
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EBIT 6 1 1 1 2 - 11
Interest expense 16 - - - - - 16
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Income (Loss) Before Taxes (10) 1 1 1 2 - (5)
Income tax benefit (3) - - - - - (3)
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Net Income (Loss) $ (7) $ 1 $ 1 $ 1 $ 2 $ - $ (2)
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SESA and Subsidiaries
Statement of Financial Position
As of June 30, 2005
(in Millions and USD)
CONSOLIDATED
ENTITY 1 ENTITY 2 ENTITY 3 ENTITY 4 ENTITY 5 ELIMINATIONS SESA
-----------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 16 $- $ 4 $ 1 $ 1 $ - $ 22
Trade and notes receivable, net 70 3 3 4 - - 80
Miscellaneous receivables 16 - 1 1 10 (2) 26
Inventories 34 2 4 8 - - 48
Prepaid expenses 1 - - - - - 1
Current deferred taxes 1 - - - - - 1
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Total Current Assets 138 5 12 14 11 (2) 178
Investment in affiliates 267 - - - 136 (182) 221
Property, plant and equipment, net 46 - 33 2 - - 81
Intangible assets, net - 4 6 1 - - 11
Other assets 17 - - 5 - - 22
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Total Assets $468 $9 $51 $22 $147 $(184) $513
===================================================================================
Current Liabilities:
Accounts payable $ 15 $- $ 1 $ 1 $ - $ - $ 17
Accrued liabilities 56 3 7 9 2 (3) 74
Short-Term Debt - - - 7 6 (13) -
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Total Current Liabilities 71 3 8 17 8 (16) 91
Long-term debt 252 - - - - - 252
Non-current deferred taxes 1 - 2 - - - 3
Postretirement liabilities 2 - - - - - 2
Other liabilities - - 1 - - - 1
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Total Liabilities 326 3 11 17 8 (16) 349
Shareholders' Equity 142 6 40 5 139 (168) 164
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Total Liabilities & Shareholders' Equity $468 $9 $51 $22 $147 $(184) $513
===================================================================================
SESA and Subsidiaries
Statement of Financial Position
As of June 30, 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 $ 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
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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
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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
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Total Liabilities and
Shareholders' Equity $ 475 $ 9 $ 51 $ 59 $ 143 $ (187) $ 550
============================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended June 30, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 2 $ 1 $ 2 $ - $ 2 $ - $ 7
Income and deferred taxes 1 - - - - - 1
Depreciation and amortization 2 - 2 - - - 4
Restructuring expenses and other
charges - - 1 - - - 1
Accounts receivable (7) (1) - (1) - - (9)
Inventories 3 - (1) - - - 2
Accounts payable - - (1) - 1 - -
Other assets and liabilities (1) - (1) 1 - - (1)
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Cash Provided by Operations - - 2 - 3 - 5
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 4 - (1) (1) (2) - -
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Cash Provided by (Used in) Financing
Activities 4 - (1) (1) (2) - -
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Increase (Decrease) in Cash and Cash
Equivalents 3 - - (1) 1 - 3
Cash and Cash Equivalents:
Beginning of period 13 - 4 2 - - 19
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End of period $ 16 $ - $ 4 $ 1 $ 1 $ - $ 22
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SESA and Subsidiaries
Statement of Cash Flows
Six-Months Ended June 30, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 7 $ 1 $ 3 $ 1 $ 4 $ - $ 16
Income and deferred taxes 5 - - - - - 5
Depreciation and amortization 5 - 3 - - - 8
Restructuring expenses and other
charges - - 1 - - - 1
Accounts receivable 9 (2) (1) 2 - - 8
Inventories 5 - 1 2 - - 8
Accounts payable (4) - (2) (1) - - (7)
Other assets and liabilities (21) - (1) (3) - - (25)
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Cash Provided by (Used in)
Operations 6 (1) 4 1 4 - 14
Investing Activities:
Property, plant and equipment
purchases (2) - (2) - - - (4)
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Cash Used in Investing Activities (2) - (2) - - - (4)
Financing Activities:
Net intercompany transactions 4 1 - (1) (4) - -
--------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 4 1 - (1) (4) - -
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Increase in Cash and
Cash Equivalents 8 - 2 - - - 10
Cash and Cash Equivalents:
Beginning of period 8 - 2 1 1 - 12
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End of period $ 16 $ - $ 4 $ 1 $ 1 $ - $ 22
============================================================================================
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended June 30, 2004
(in Millions and USD)
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
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Cash Provided by (Used in)
Financing Activities 1 - - 1 (1) - 1
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Increase (Decrease) in Cash and
Cash Equivalents (6) 1 1 - - - (4)
Cash and Cash Equivalents:
Beginning of period 14 - 1 1 1 - 17
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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)
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 15 - - - - - 15
Accounts Receivable (2) (2) 2 2 - - -
Inventories 2 - (1) (5) - - (4)
Accounts Payable (1) - - - (2) - (3)
Other assets and liabilities (11) - - 1 1 - (9)
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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)
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Cash Used in Investing Activities (1) - (3) (1) - - (5)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net intercompany transactions 5 2 1 - (1) - 7
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Cash Provided by (Used in)
Financing Activities - 2 1 - (1) - 2
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Increase (Decrease) in Cash and
Cash Equivalents (3) 1 2 (1) - - (1)
Cash and Cash Equivalents: -
Beginning of period 11 - - 2 1 - 14
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End of period $ 8 $ 1 $ 2 $ 1 $ 1 $ - $ 13
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