½/2ÿ ñ HC    d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ;ñ'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES"ñ'CONSOLIDATED BALANCE SHEETS7ñ'(In millions except share and per share amounts)ñ^June 30,ñ^December 31, ñ^2000 ñ^1999ñ^(Unaudited) ñ 'ASSETS ñ 'Cash and cash equivalentsñ "$ 41.5ñ "$ 50.7ñ 'Accounts receivable ñ "347.1 ñ "341.2ñ 'Inventories ñ "619.4 ñ "558.3ñ'Deferred income taxes ñ"47.4 ñ"62.60ñ'Prepaid expenses and other current assets ñ"19.6 ñ"20.7ñ'Total Current Assetsñ"1,075.0ñ"1,033.5$ñ'Property, plant and equipment ñ"904.6 ñ"912.4ñ'Prepaid pension cost ñ"567.5 ñ"503.7,ñ'Cost in excess of net assets acquired ñ"196.0 ñ"204.2ñ'Other assets ñ"90.6 ñ"96.8ñ'Total Assetsñ"$2,833.7ñ"$2,750.6+ñ'LIABILITIES AND STOCKHOLDERS' EQUITYñ'Accounts payableñ"$ 192.4ñ"$ 172.9ñ'Accrued liabilities ñ"212.6 ñ"214.47ñ'Short-term debt and current portion of long-term ñ'debt ñ"28.7 ñ"152.7 ñ!'Total Current Liabilities ñ!"433.7 ñ!"540.0ñ"'Long-term debt ñ""529.7 ñ""200.3&ñ#'Accrued postretirement benefits ñ#"537.7 ñ#"544.8 ñ$'Other ñ$"275.2 ñ$"265.3ñ&'Total Liabilitiesñ&"1,776.3ñ&"1,550.4ñ)'STOCKHOLDERS' EQUITY:4ñ*'Preferred value, par value $0.10: authorized-%ñ+'50,000,000 shares; issued-None ñ+"-- ñ+"--<ñ,'Common stock, par value $0.10, authorized-500,000,0008ñ-'shares; issued-98,951,490 shares at June 30, 2000;ñ.'and December 31, 1999; outstanding-81,665,235 shares0ñ/'at June 30, 2000 and 90,368,196 shares atñ0'December 31, 1999 ñ0"9.9 ñ0"9.9!ñ1'Additional paid-in capital ñ1"481.1 ñ1"481.0ñ2'Retained earningsñ2"1,041.3 ñ2"994.59ñ3'Treasury stock: 17,286,255 shares at June 30, 20000ñ4'and 8,583,294 shares at December 31, 1999ñ4"(459.5)ñ4"(288.7)*ñ5'Foreign currency translation losses ñ5"(16.9) ñ5"(3.7)%ñ6'Unrealized gains on securities ñ6"1.5 ñ6"7.2!ñ8'Total Stockholders' Equityñ8"1,057.4ñ8"1,200.21ñ:'Total Liabilities and Stockholders' Equityñ:"$2,833.7ñ:"$2,750.6Gñ='The accompanying notes are an integral part of these statements.;ñ@'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES(ñA'CONSOLIDATED STATEMENTS OF INCOME-ñB'(In millions except per share amounts)ñC'(Unaudited)ñE^Three Months EndedñE^Six Months EndedñF^June 30,ñF^June 30,ñF^June 30,ñF^June 30, ñH^2000 ñH^1999 ñH^2000 ñH^1999 ñK'Sales ñK"$638.3 ñK"$572.7ñK"$1,263.7ñK"$1,158.2ñM'Costs and expenses:ñN'Cost of sales ñN"514.8 ñN"458.4ñN"1,025.5 ñN"921.3*ñO'Selling and administrative expenses ñO"53.0 ñO"50.6 ñO"104.0 ñO"102.4ñP'Interest expense, net ñP"7.4 ñP"8.4 ñP"14.3 ñP"17.4 ñR"575.2 ñR"517.4ñR"1,143.8ñR"1,041.1#ñT'Earnings before other income ñT"63.1 ñT"55.3 ñT"119.9 ñT"117.1ñU'Other income ñU"5.5 ñU"2.8 ñU"13.9 ñU"3.2(ñX'Income from continuing operationsñY'before income taxes ñY"68.6 ñY"58.1 ñY"133.8 ñY"120.3!ñ['Provision for income taxes ñ["24.9 ñ["21.5 ñ["48.8 ñ["43.3(ñ_'Income from continuing operations ñ_"43.7 ñ_"36.6 ñ_"85.0 ñ_"77.0+ña'Income from discontinued operations,ñb'net of tax ñb"-- ñb"20.7 ñb"-- ñb"40.9ñf'Net income ñf"$ 43.7 ñf"$ 57.3ñf"$ 85.0ñf"$ 117.9)ñi'Basic net income per common share:(ñj'Income from continuing operations ñj"$ 0.53 ñj"$ 0.38ñj"$ 1.00ñj"$ 0.80*ñk'Income from discontinued operations ñk"-- ñk"0.22 ñk"-- ñk"0.42(ñm'Basic net income per common share ñm"$ 0.53 ñm"$ 0.60ñm"$ 1.00ñm"$ 1.22+ñp'Diluted net income per common share:(ñq'Income from continuing operations ñq"$ 0.53 ñq"$ 0.38ñq"$ 1.00ñq"$ 0.79*ñr'Income from discontinued operations ñr"-- ñr"0.21 ñr"-- ñr"0.42*ñt'Diluted net income per common share ñt"$ 0.53 ñt"$ 0.59ñt"$ 1.00ñt"$ 1.21*ñw'Dividends declared per common share ñw"$ 0.20 ñw"$ 0.32ñw"$ 0.40ñw"$ 0.64Gñ{'The accompanying notes are an integral part of these statements.;ñ~'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES,ñ'CONSOLIDATED STATEMENTS OF CASH FLOWSñ€'(In millions)ñ'(Unaudited)ñƒ^Six Months Endedñ„^June 30,ñ„^June 30, ñ†^2000 ñ†^1999ñˆ'OPERATING ACTIVITIES:ñ‰'Net incomeñ‰"$ 85.0ñ‰"$ 117.96ñŠ'Adjustments to reconcile net income to net cash(ñ‹'provided by operating activities:$ñŒ'Depreciation and amortization ñŒ"49.9 ñŒ"47.2ñ'Deferred income taxes ñ"13.7 ñ"(2.0)3ñŽ'Gains on sales of investments and businesses ñŽ"(11.4) ñŽ"(0.2)6ñ'Income from discontinued operations, net of tax ñ"-- ñ"(40.9)2ñ'Change in operating assets and liabilities:ñ‘'Prepaid pension cost ñ‘"(63.7) ñ‘"(51.2)ñ’'Inventories ñ’"(54.9) ñ’"10.0ñ“'Accounts payable ñ“"19.5 ñ“"5.1ñ”'Accounts receivable ñ”"(5.9) ñ”"(20.8)ñ•'Accrued income taxes ñ•"0.1 ñ•"11.6 ñ–'Other ñ–"2.5 ñ–"2.0,ñ˜'CASH PROVIDED BY OPERATING ACTIVITIES ñ˜"34.8 ñ˜"78.7ñš'INVESTING ACTIVITIES:1ñ›'Purchases of property, plant and equipment ñ›"(28.0) ñ›"(42.8)9ñœ'Purchases of businesses and investment in ventures ñœ"(25.4) ñœ"(1.7)<ñ'Proceeds from the sales of investments and businesses ñ"16.7 ñ"6.01ñž'Disposals of property, plant and equipment ñž"4.0 ñž"7.3 ñŸ'Other ñŸ"(3.0) ñŸ"2.0(ñ¡'CASH USED IN INVESTING ACTIVITIES ñ¡"(35.7) ñ¡"(29.2)ñ£'FINANCING ACTIVITIES:-ñ¤'Net borrowings under credit agreements ñ¤"206.1 ñ¤"48.2#ñ¥'Borrowings on long-term debt ñ¥"2.4 ñ¥"--4ñ¦'Payments on long-term debt and capital leases ñ¦"(0.9) ñ¦"(1.2)ñ¨'Net increase in debt ñ¨"207.6 ñ¨"47.0"ñ©'Purchases of treasury stockñ©"(183.7)ñ©"(108.6)ñª'Cash dividends ñª"(33.8) ñª"(61.8)!ñ«'Exercises of stock options ñ«"1.6 ñ«"3.5(ñ­'CASH USED IN FINANCING ACTIVITIES ñ­"(8.3)ñ­"(119.9)/ñ¯'CASH PROVIDED BY DISCONTINUED OPERATIONS ñ¯"-- ñ¯"55.4,ñ±'DECREASE IN CASH AND CASH EQUIVALENTS ñ±"(9.2) ñ±"(15.0)9ñ³'CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR ñ³"50.7 ñ³"74.21ñ¶'CASH AND CASH EQUIVALENTS AT END OF PERIODñ¶"$ 41.5ñ¶"$ 59.2Wñ¹'Cash provided by operating activities in 2000 is net of payment of taxes on gainOñº'on sale of investments of $4.2 million. Excluding this tax payment, cash:ñ»'provided by operating activities was $39.0 million.Gñ½'The accompanying notes are an integral part of these statements.