Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended December 31, 2005
(In Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------
Net sales $108 $ 2 $ 7 $ 7 $ - $ - $124
Cost of goods sold 86 1 5 6 - - 98
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Gross Profit 22 1 2 1 - - 26
MAT expense 12 2 1 - - - 15
Amortization expense - - 1 - - - 1
---------------------------------------------------------------------------------------
Operating Income (Loss) 10 (1) - 1 - - 10
Interest income 1 - - - 1 - 2
Other income/(expense) (1) - 1 - 1 - 1
---------------------------------------------------------------------------------------
EBIT 10 (1) 1 1 2 - 13
-
Interest Expense 5 - - - - - 5
---------------------------------------------------------------------------------------
Income (Loss) Before Taxes 5 (1) 1 1 2 - 8
Income tax expense (benefit) 3 (1) - - - - 2
---------------------------------------------------------------------------------------
Income before Cumulative Effect of
Change in Accounting Principle 2 - 1 1 2 - 6
Cumulative Effect of Change in
Accounting Principle - - (1) (1) - - (2)
---------------------------------------------------------------------------------------
Net Income $ 2 $ - $ - $ - $ 2 $ - $ 4
=======================================================================================
1
SESA and Subsidiaries
Statement of Operations
Year-Ended December 31, 2005
(In Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------
Net sales $433 $ 13 $ 39 $ 27 $ - $ (1) $511
Cost of goods sold 347 8 28 23 - (1) 405
---------------------------------------------------------------------------------------
Gross Profit 86 5 11 4 - - 106
MAT expense 43 4 4 3 - - 54
Amortization expense - - 1 - - - 1
---------------------------------------------------------------------------------------
Operating Income 43 1 6 1 - - 51
Interest income 2 - - - 4 - 6
Other income/(expense) (1) - 1 1 4 - 5
Reorganization items (2) - - - - - (2)
---------------------------------------------------------------------------------------
EBIT 42 1 7 2 8 - 60
Interest expense 23 - - - - - 23
---------------------------------------------------------------------------------------
Income Before Taxes 19 1 7 2 8 - 37
Income tax expense 8 - 1 - - - 9
---------------------------------------------------------------------------------------
Income before Cumulative Effect of
Change in Accounting Principle 11 1 6 2 8 - 28
Cumulative Effect of Change in
Accounting Principle - - (1) (1) - - (2)
---------------------------------------------------------------------------------------
Net Income $ 11 $ 1 $ 5 $ 1 $ 8 $ - $ 26
=======================================================================================
2
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
----------------------------------------------------------------------------------------------
Gross Profit 21 - 3 (12) - - 12
MAT expense 11 1 1 1 - - 14
Amortization expense - - 1 - - - 1
Impairment of intangible assets - - 3 25 - - 28
----------------------------------------------------------------------------------------------
Operating Income (Loss) 10 (1) (2) (38) - - (31)
Interest income - - - - 1 - 1
Other income (expense) (3) - - - 1 - (2)
----------------------------------------------------------------------------------------------
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)
==============================================================================================
3
SESA and Subsidiaries
Statement of Operations
Year-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)
----------------------------------------------------------------------------------------------
Net Income (Loss) $ (6) $ 1 $ - $(30) $ 7 $ - $(28)
==============================================================================================
4
SESA and Subsidiaries
Statement of Financial Position
As of December 31, 2005
(In Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 31 $ 1 $ 5 $ 3 $ 1 $ - $ 41
Trade and notes receivable, net 68 1 4 4 - - 77
Miscellaneous receivables 16 - 1 1 10 (2) 26
Inventories 34 2 5 8 - - 49
Prepaid expenses - - - 1 - - 1
Current deferred taxes 2 - - - - - 2
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Total Current Assets 151 4 15 17 11 (2) 196
Investment in affiliates 262 - 2 - 133 (179) 218
Property, plant and equipment, net 48 - 31 3 - - 82
Intangible assets, net - 4 6 1 - - 11
Other assets 15 - - 5 1 - 21
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Total Assets $476 $ 8 $54 $26 $145 $(181) $528
=======================================================================================
Current Liabilities:
Accounts payable 16 - 2 2 - - 20
Accrued liabilities 59 2 7 9 4 (3) 78
Short-term debt 2 - - 8 - (10) -
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Total Current Liabilities 77 2 9 19 4 (13) 98
Long-term debt 247 - - - - - 247
Non-current deferred taxes 4 - 2 1 - - 7
Postretirement liabilities 1 - - - - - 1
Other liabilities 1 - 2 1 - - 4
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Total Liabilities 330 2 13 21 4 (13) 357
Shareowners' Equity 146 6 41 5 141 (168) 171
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Total Liabilities and
Shareholders' Equity $476 $ 8 $54 $26 $145 $(181) $528
=======================================================================================
5
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
----------------------------------------------------------------------------------------------
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
==============================================================================================
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) -
----------------------------------------------------------------------------------------------
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
----------------------------------------------------------------------------------------------
Total Liabilities 377 2 14 23 11 (21) 406
Shareholders' Equity 131 6 43 5 152 (169) 168
----------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $508 $ 8 $ 57 $ 28 $163 $(190) $574
==============================================================================================
6
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended December 31, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------
Operating Activities:
Net income $ 2 $ - $ - $ - $ 2 $ - $ 4
Cumulative effect in accounting
principle, net of tax - - - 1 - - 1
Income and deferred taxes 2 - - - - - 2
Depreciation and amortization 3 - 1 - - - 4
Restructuring expenses and other
charges - - - - - - -
Accounts receivable (6) 1 1 (1) - - (5)
Inventories 1 - 1 1 - - 3
Accounts payable 3 - 3 - - - 6
Other assets and liabilities 3 - (3) - 1 - 1
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Cash Provided by Operations 8 1 3 1 3 - 16
Investing Activities:
Property, plant and equipment purchases (3) - (1) - - - (4)
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Cash Used in Investing Activities (3) - (1) - - - (4)
Financing Activities:
Net intercompany transactions 1 - 1 - (3) - (1)
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Cash Provided by (Used in) Financing
Activities 1 - 1 - (3) - (1)
---------------------------------------------------------------------------------------
Increase in Cash and Cash Equivalents 6 1 3 1 - - 11
Cash and Cash Equivalents:
Beginning of period 25 - 2 2 1 - 30
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End of period $31 $ 1 $ 5 $ 3 $ 1 $ - $41
=======================================================================================
7
SESA and Subsidiaries
Statement of Cash Flows
Year-Ended December 31, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
---------------------------------------------------------------------------------------
Operating Activities:
Net income (loss) $ 11 $ 1 $ 5 $ 1 $ 8 $ - $ 26
Cumulative effect of change in
accounting principle - - - 1 - - 1
Income and deferred taxes 7 - - - - - 7
Depreciation and amortization 10 - 5 - - - 15
Restructuring expenses and other
charges - - 1 - - - 1
Accounts receivable 12 - (2) 1 - - 11
Inventories 4 - 1 3 - - 8
Accounts payable (2) - 1 (2) - - (3)
Other assets and liabilities (19) - (2) (2) 1 - (22)
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Cash Provided by Operations 23 1 9 2 9 - 44
Investing Activities:
Property, plant and equipment purchases (8) - (4) - - - (12)
---------------------------------------------------------------------------------------
Cash Used in Investing Activities (8) - (4) - - - (12)
Financing Activities:
Net intercompany transactions 8 - (2) - (9) - (3)
---------------------------------------------------------------------------------------
Cash Provided by (Used in) Financing
Activities 8 - (2) - (9) - (3)
---------------------------------------------------------------------------------------
Increase in Cash and Cash Equivalents 23 1 3 2 - - 29
Cash and Cash Equivalents:
Beginning of period 8 - 2 1 1 - 12
---------------------------------------------------------------------------------------
End of period $ 31 $ 1 $ 5 $ 3 $ 1 $ - $ 41
=======================================================================================
8
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
---------------------------------------------------------------------------------------
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
=======================================================================================
9
SESA and Subsidiaries
Statement of Cash Flows
Year-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)
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Cash Used in Investing Activities (7) - (8) (1) - - (16)
Financing Activities:
Debt issuance costs (5) - - - - - (5)
Net intercompany transactions - - - 2 (6) - (4)
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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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10