Exhibit 99.1
SESA and Subsidiaries
Statement of Operations
Three-Months Ended March 31, 2006
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
-----------------------------------------------------------------------------------------------------
Net sales $ 105 $ 3 $ 16 $ 7 $ - $ - $ 131
Cost of goods sold 83 2 11 6 - - 102
-----------------------------------------------------------------------------------------------------
Gross Profit 22 1 5 1 - - 29
MAT expense 10 1 1 - - - 12
-----------------------------------------------------------------------------------------------------
Operating Income 12 - 4 1 - - 17
Interest income - - - - 1 - 1
Other income (Expense) (1) - - - 1 - -
-----------------------------------------------------------------------------------------------------
EBIT 11 - 4 1 2 - 18
Interest expense 5 - - - - - 5
-----------------------------------------------------------------------------------------------------
Income Before Taxes 6 - 4 1 2 - 13
Income tax expense 2 - 1 - - - 3
-----------------------------------------------------------------------------------------------------
Net Income $ 4 $ - $ 3 $ 1 $ 2 $ - $ 10
=====================================================================================================
SESA and Subsidiaries
Statement of Operations
Three-Months Ended March 31, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Net sales $ 113 $ 3 $ 11 $ 8 $ - $ - $ 135
Cost of goods sold 90 2 8 6 - - 106
--------------------------------------------------------------------------------------------
Gross Profit 23 1 3 2 - - 29
MAT expense 9 1 2 1 - - 13
--------------------------------------------------------------------------------------------
Operating Income 14 - 1 1 - - 16
Interest income - - - - 1 - 1
Other income 1 - - - 1 - 2
--------------------------------------------------------------------------------------------
EBIT 15 - 1 1 2 - 19
Interest expense 6 - - - - - 6
--------------------------------------------------------------------------------------------
Income Before Taxes 9 - 1 1 2 - 13
Income tax expense 4 - - - - - 4
--------------------------------------------------------------------------------------------
Net Income $ 5 $ - $ 1 $ 1 $ 2 $ - $ 9
============================================================================================
2
SESA and Subsidiaries
Statement of Financial Position
As of March 31, 2006
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 41 $ 1 $ 4 $ 1 $ 1 $ - $ 48
Trade and notes receivable, net 64 2 8 3 - - 77
Miscellaneous receivables 16 - - 2 11 (1) 28
Inventories 37 2 3 12 - - 54
Prepaid expenses 1 - 2 - - - 3
Current deferred taxes 1 - - - - - 1
--------------------------------------------------------------------------------------------
Total Current Assets 160 5 17 18 12 (1) 211
Investments in affiliates 263 - 3 - 135 (179) 222
Property, plant and equipment, net 46 - 31 3 - - 80
Intangible assets, net - 4 5 1 - - 10
Other assets 15 - - 5 1 - 21
--------------------------------------------------------------------------------------------
Total Assets $ 484 $ 9 $ 56 $ 27 $ 148 $(180) $544
============================================================================================
Current Liabilities:
Accounts payable $ 16 $ - $ 2 $ 1 $ - $ - $ 19
Accrued liabilities 57 3 6 11 3 (1) 79
Short-term debt 3 - - 8 - (11) -
--------------------------------------------------------------------------------------------
Total Current Liabilities 76 3 8 20 3 (12) 98
Long-term debt 251 - - - - - 251
Non-current deferred taxes 6 - 1 1 - - 8
Postretirement liabilities 1 - - - - - 1
Other liabilities - - 2 1 - - 3
--------------------------------------------------------------------------------------------
Total Liabilities 334 3 11 22 3 (12) 361
Shareholders' Equity 150 6 45 5 145 (168) 183
--------------------------------------------------------------------------------------------
Total Liabilities and
Shareholders' Equity $ 484 $ 9 $ 56 $ 27 $ 148 $(180) $544
============================================================================================
3
SESA and Subsidiaries
Statement of Financial Position
As of March 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 $ 13 $ - $ 4 $ 2 $ - $ - $ 19
Trade and notes receivable, net 64 2 2 3 - - 71
Miscellaneous receivables 20 - - 1 9 (1) 29
Inventories 36 3 3 9 - - 51
Prepaid expenses 2 - 1 - - - 3
Current deferred taxes 1 - - - - - 1
--------------------------------------------------------------------------------------------
Total Current Assets 136 5 10 15 9 (1) 174
Investments in affiliates 276 - - - 145 (185) 236
Property, plant and equipment, net 50 - 36 2 - - 88
Intangible assets, net - 4 7 1 - - 12
Other assets 19 - - 5 1 - 25
--------------------------------------------------------------------------------------------
Total Assets $481 $ 9 $ 53 $23 $155 $(186) $ 535
============================================================================================
Current Liabilities:
Accounts payable $ 15 $ - $ 1 $ 2 $ - $ - $ 18
Accrued liabilities 56 3 6 7 2 (2) 72
Short-term debt - - 2 8 6 (16) -
--------------------------------------------------------------------------------------------
Total Current Liabilities 71 3 9 17 8 (18) 90
Long-term debt 270 - - 1 - - 271
Non-current deferred taxes - - 2 - - - 2
Postretirement liabilities 2 - - - - - 2
Other liabilities - - 1 - - - 1
--------------------------------------------------------------------------------------------
Total Liabilities 343 3 12 18 8 (18) 366
Shareholders' Equity 138 6 41 5 147 (168) 169
--------------------------------------------------------------------------------------------
Total Liabilities and Shareholders'
Equity $481 $ 9 $ 53 $23 $155 $(186) $ 535
============================================================================================
4
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended March 31, 2006
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 4 $ - $ 3 $ 1 $ 2 $ - $ 10
Income and deferred taxes 2 - - - - - 2
Depreciation and amortization 3 - 1 - - - 4
Accounts receivable 5 (1) (4) 1 - - 1
Inventories (3) - 2 (4) - - (5)
Accounts payable 2 - (1) - - - 1
Other assets and liabilities (6) - (1) 1 - - (6)
-------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Operations 7 (1) - (1) 2 - 7
Investing Activities:
Property, plant and equipment
purchases (2) - (1) (1) - - (4)
-------------------------------------------------------------------------------------------
Cash Used in Investing Activities (2) - (1) (1) - - (4)
Financing Activities:
Net intercompany transactions 5 1 - - (2) - 4
-------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities 5 1 - - (2) - 4
-------------------------------------------------------------------------------------------
Increase (Decrease) in Cash and
Cash Equivalents 10 - (1) (2) - - 7
Cash and Cash Equivalents:
Beginning of period 31 1 5 3 1 - 41
-------------------------------------------------------------------------------------------
End of period $ 41 $ 1 $ 4 $ 1 $ 1 $ - $ 48
===========================================================================================
5
SESA and Subsidiaries
Statement of Cash Flows
Three-Months Ended March 31, 2005
(in Millions and USD)
Consolidated
Entity 1 Entity 2 Entity 3 Entity 4 Entity 5 Eliminations SESA
--------------------------------------------------------------------------------------------
Operating Activities:
Net income $ 5 $ - $ 1 $ 1 $ 2 $ - $ 9
Income and deferred taxes 4 - - - - - 4
Depreciation and amortization 3 - 1 - - - 4
Accounts receivable 16 (1) (1) 3 - - 17
Inventories 2 - 2 2 - - 6
Accounts payable (4) - (1) (1) (1) - (7)
Other assets and liabilities (20) - - (4) - - (24)
--------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Operations 6 (1) 2 1 1 - 9
Investing Activities:
Property, plant and equipment
purchases (1) - (1) - - - (2)
--------------------------------------------------------------------------------------------
Cash Used in Investing Activities (1) - (1) - - - (2)
Financing Activities:
Net intercompany transactions - 1 1 - (2) - -
--------------------------------------------------------------------------------------------
Cash Provided by (Used in)
Financing Activities - 1 1 - (2) - -
--------------------------------------------------------------------------------------------
Increase (Decrease) in Cash and
Cash Equivalents 5 - 2 1 (1) - 7
Cash and Cash Equivalents:
Beginning of period 8 - 2 1 1 - 12
--------------------------------------------------------------------------------------------
End of period $ 13 $ - $ 4 $ 2 $ - $ - $ 19
============================================================================================
6