/2H8d 1$&%*#'ITEM 1. FINANCIAL STATEMENTS;'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES"'CONSOLIDATED BALANCE SHEETS7'(In millions except share and per share amounts)^March 31,^December 31, ^2001 ^2000^(Unaudited)^(Audited) 'ASSETS 'Cash and cash equivalents "$ 23.5 "$ 26.2 'Accounts receivable  "317.7  "325.3 'Inventories  "577.6  "585.7 'Deferred income taxes  "94.2  "61.20 'Prepaid expenses and other current assets  "27.1  "24.4'Total Current Assets"1,040.1"1,022.8$'Property, plant and equipment "875.3 "872.0'Prepaid pension cost "617.5 "593.6,'Cost in excess of net assets acquired "193.9 "194.5'Other assets "85.4 "93.3'Total Assets"$ 2,812.2"$ 2,776.2+'LIABILITIES AND STOCKHOLDERS' EQUITY'Accounts payable"$ 197.8"$ 169.3'Accrued liabilities "187.9 "191.07'Short-term debt and current portion of long-term 'debt "57.6 "53.2 'Total Current Liabilities "443.3 "413.5'Long-term debt "501.5 "490.6& 'Accrued postretirement benefits  "520.1  "525.9!'Deferred income taxes !"184.4 !"158.7 "'Other ""138.4 ""148.3$'Total Liabilities$"1,787.7$"1,737.0''STOCKHOLDERS' EQUITY:4('Preferred stock, par value $0.10: authorized-%)'50,000,000 shares; issued-none )"-- )"--<*'Common stock, par value $0.10, authorized-500,000,000P+'shares; issued-98,951,490 shares at March 31, 2001 and December 31, 2000;L,'outstanding-80,133,152 shares at March 31, 2001 and 80,339,957 shares-'at December 31, 2000 -"9.9 -"9.9!.'Additional paid-in capital ."481.2 ."481.2/'Retained earnings/"1,039.2/"1,050.0+0'Treasury stock: 18,818,338 shares at+1'March 31, 2001 and 18,611,533 shares2'at December 31, 20002"(483.1)2"(482.3)&3'Accumulated other comprehensive4'loss, net of tax 4"(22.7) 4"(19.6)!6'Total Stockholders' Equity6"1,024.56"1,039.218'Total Liabilities and Stockholders' Equity8"$ 2,812.28"$ 2,776.2G;'The accompanying notes are an integral part of these statements.;='ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES(>'CONSOLIDATED STATEMENTS OF INCOME-?'(In millions except per share amounts)@'(Unaudited)B^Three Months EndedB^Three Months EndedC^March 31,C^March 31, D^2001 D^2000 F'Sales F"$542.5 F"$625.4H'Costs and expenses:I'Cost of sales I"476.9 I"510.7*J'Selling and administrative expenses J"48.4 J"51.0K'Interest expense, net K"8.0 K"6.9 M"533.3 M"568.6#O'Earnings before other income O"9.2 O"56.8P'Other income P"1.2 P"8.4!S'Income before income taxes S"10.4 S"65.2!U'Provision for income taxes U"4.0 U"23.9X'Net income X"$ 6.4 X"$ 41.34['Basic and diluted net income per common share \"$ 0.08 \"$ 0.47G_'The accompanying notes are an integral part of these statements.;a'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES,b'CONSOLIDATED STATEMENTS OF CASH FLOWSc'(In millions)d'(Unaudited)f^Three Months Endedf^Three Months Endedg^March 31,g^March 31, h^2001 h^2000j'OPERATING ACTIVITIES:k'Net income k"$ 6.4k"$ 41.36l'Adjustments to reconcile net income to net cash(m'provided by operating activities:$n'Depreciation and amortization n"24.8 n"24.8o'Deferred income taxes o"(7.6) o"15.83p'Gains on sales of investments and businesses p"-- p"(10.5)2q'Change in operating assets and liabilities:r'Accounts payable r"28.4 r"12.4s'Prepaid pension cost s"(23.9) s"(32.5)t'Inventories t"8.1 t"1.9u'Accounts receivable u"7.6 u"(15.3)$v'Accrued liabilities and other v"(16.8) v"(8.1),y'CASH PROVIDED BY OPERATING ACTIVITIES y"27.0 y"29.8{'INVESTING ACTIVITIES:1|'Purchases of property, plant and equipment |"(24.7) |"(12.2)1}'Disposals of property, plant and equipment }"0.9 }"1.79~'Purchases of businesses and investment in ventures ~"(0.5) ~"--,'Proceeds from the sale of investments "-- "14.2 'Other "(0.3) "(0.6)6'CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES "(24.6) "3.1'FINANCING ACTIVITIES:-'Net borrowings under credit facilities "9.6 "115.6#'Borrowings on long-term debt "4.5 "2.44'Payments on long-term debt and capital leases "(0.2) "(0.7)'Net increase in debt "13.9 "117.3 'Purchases of common stock "(3.0)"(130.6)'Dividends paid "(16.0) "(17.3)!'Exercises of stock options "-- "0.2('CASH USED IN FINANCING ACTIVITIES "(5.1) "(30.4)7'INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS "(2.7) "2.59'CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR "26.2 "50.71'CASH AND CASH EQUIVALENTS AT END OF PERIOD "$ 23.5"$ 53.2<'Cash provided by operating activities in 2000 is net :'of payment of taxes on gain on sale of investments 4'of $3.8 million. Excluding this tax payment, ?'cash provided by operating activities was $33.6 million.G'The accompanying notes are an integral part of these statements.