27   I5 Arial5! Arial5" Arial5# Arial5$ Arial5% Arial Unicode MS5& Arial Unicode MS5'  Arial5(  Arial5) Arial5* Arial5+Arial !!""            !!!"!#!$!%%&  '& (% ) *%+%,& -% . /'0'1( 2' 3'4)5)6* 7) 8)9):);*<*=*>*?)@) @@@ @@@ @@@ @@ @ @  @ @  @ @   @@  @ @ @ @ @@ @ @ @  @  @  @  @  @ @ @  @  @@  @  @  @@  @ @ @  @  @  @ @ ! @ "@ @ # @ $ @ % @@ & @ ' @@ ( @@ ) @@ * @ + @ , @ - @@ . @@ / @ 0 @@1 @@2@ @@3 @@4@ @@5 @@ 6@@ 7 @@ 9@@@ :@@@ ;@@@ <@@ =@@@ ?@ @  @@ @  A@ @  B@ @ C @ E @@ F @ G @@ H @ I@ @ J @@ K @ M @ N @ P @ R @ T @ V @@ W @ Y @ Z@@ [ @@ ]@@@ ^@@@ _@@@ `@@@ b@ @  c@ @  d@ @  e@ @  f @@ g @ h @@ i @@ j @ k @ l @ m @ n @@ o @ p @ q @ r @ s @ t @ u @ v @ x @@ y @ z @ {@ @ | @ ~ @@  @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @ @@ @ q@' q@' q@'q0*:'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES!'CONSOLIDATED BALANCE SHEETS7'(In millions, except share and per share amounts)^June 30,^December 31, ^2002 ^2001^(Unaudited)^(Audited) 'ASSETS'Cash and cash equivalents"$ 70.2"$ 33.7 'Accounts receivable, net "265.2 "274.6 'Inventories, net "424.5 "508.4 'Deferred income taxes "51.0 "33.5+ 'Income tax refunds, prepaid expenses, 'and other current assets "25.6 "75.9'Total Current Assets "836.5 "926.1('Property, plant and equipment, net "811.6 "828.9'Prepaid pension cost "638.0 "632.9+'Cost in excess of net assets acquired "189.7 "188.4'Other assets "67.7 "66.9'TOTAL ASSETS"$2,543.5"$2,643.2*'LIABILITIES AND STOCKHOLDERS' EQUITY'Accounts payable"$ 168.6"$ 155.3'Accrued liabilities "164.6 "168.2)'Short-term debt and current portion'of long-term debt "14.8 "9.2'Total Current Liabilities "348.0 "332.7'Long-term debt "494.6 "573.0%'Accrued postretirement benefits "503.0 "506.1 'Deferred income taxes "170.5 "153.7 !'Other !"117.3 !"133.0#'TOTAL LIABILITIES #"1,633.4 #"1,698.5$'STOCKHOLDERS' EQUITY:3%'Preferred stock, par value $0.10: authorized-$&'50,000,000 shares; issued-none&"--&"--;''Common stock, par value $0.10, authorized-500,000,000N('shares; issued-98,951,490 shares at June 30, 2002 and December 31, 2001;J)'outstanding-80,592,383 shares at June 30, 2002 and 80,314,624 shares*'at December 31, 2001 *"9.9 *"9.9 +'Additional paid-in capital +"481.2 +"481.2,'Retained earnings ,"903.9 ,"957.5*-'Treasury stock: 18,359,107 shares at).'June 30, 2002 and 18,636,866 shares/'at December 31, 2001 /"(470.7) /"(478.2)%0'Accumulated other comprehensive1'loss, net of tax 1"(14.2) 1"(25.7) 3'Total Stockholders' Equity 3"910.1 3"944.705'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY5"$2,543.55"$2,643.2F7'The accompanying notes are an integral part of these statements.:9'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES+:'CONSOLIDATED STATEMENTS OF OPERATIONS,;'(In millions except per share amounts)='(Unaudited)?^Three Months Ended?^Three Months Ended?^Six Months Ended?^Six Months Ended@^June 30,@^June 30,@^June 30,@^June 30, A^2002 A^2001 A^2002 A^2001 C'SalesC"$ 491.2C"$ 554.7C"$ 984.3C"$ 1,097.2E'Costs and expenses:F'Cost of sales F"444.1 F"483.8 F"896.8 F"960.7 G'Selling and administrativeH'expenses H"49.3 H"52.5 H"99.8 H"100.9$J'Income (loss) before interest,#K'other income and income taxes K"(2.2) K"18.4 K"(12.3) K"35.6M'Interest expense, net M"7.9 M"7.6 M"17.8 M"15.6N'Other income (expense) N"(0.4) N"(0.2) N"1.6 N"1.0'P'Income (loss) before income taxes P"(10.5) P"10.6 P"(28.5) P"21.0$R'Income tax provision (benefit) R"(3.0) R"4.4 R"(9.9) R"8.4T'Net income (loss)T"$ (7.5)T"$ 6.2T"$ (18.6)T"$ 12.6"V'Basic and diluted net incomeW'(loss) per common shareW"$ (0.09)W"$ 0.08W"$ (0.23)W"$ 0.16)Y'Dividends declared per common shareY"$ 0.20Y"$ 0.20Y"$ 0.40Y"$ 0.40F['The accompanying notes are an integral part of these statements.:]'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES+^'CONSOLIDATED STATEMENTS OF CASH FLOWS_'(In millions)`'(Unaudited)b^Six Months Endedb^Six Months Endedc^June 30,c^June 30, d^2002 d^2001f'OPERATING ACTIVITIES:g'Net income (loss) g"$(18.6) g"$ 12.6<h'Adjustments to reconcile net income (loss) to net cash'i'provided by operating activities:#j'Depreciation and amortization j"45.4 j"49.64k'Non-cash write-off of MetalSpectrum investmentk"-- k"5.5l'Deferred income taxes l"2.7 l"(5.0)2m'Gains on sales of investments and businesses m"(2.4) m"(2.7)1n'Change in operating assets and liabilities:o'Inventories o"83.8 o"23.1p'Accrued income taxes p"45.6p"--q'Accounts payable q"13.7 q"4.8r'Accounts receivable r"9.6 r"(8.3)s'Prepaid pension cost s"(5.2) s"(12.8)#t'Accrued liabilities and other t"(3.7) t"(16.3)+v'CASH PROVIDED BY OPERATING ACTIVITIES v"170.9 v"50.5x'INVESTING ACTIVITIES:0y'Purchases of property, plant and equipment y"(25.5) y"(49.6) z'Other z"2.1 z"7.3'|'CASH USED IN INVESTING ACTIVITIES |"(23.4) |"(42.3)~'FINANCING ACTIVITIES:9'Net borrowings (repayments) under credit facilities "(71.3) "18.5"'Borrowings on long-term debt"-- "4.53'Payments on long-term debt and capital leases "(7.5) "(0.3)%'Net increase (decrease) in debt "(78.8) "22.7'Dividends paid "(32.2) "(32.1) 'Other"-- "(2.8)''CASH USED IN FINANCING ACTIVITIES "(111.0) "(12.2)6'INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS "36.5 "(4.0)8'CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR "33.7 "26.24'CASH AND CASH EQUIVALENTS AT END OF THE PERIOD "$ 70.2 "$ 22.2F'The accompanying notes are an integral part of these statements. 6Sheet1 6Sheet2 6Sheet3d_ ArialArial    O4!*d"""dFM3FM3 PropertyWK3WK3 Property  (/ d-/ /d- / /CMHdr(/