/2H? d 1$&%*#'ITEM 1. FINANCIAL STATEMENTS;'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES"'CONSOLIDATED BALANCE SHEETS7'(In millions except share and per share amounts)^September 30,^December 31, ^2000 ^1999^(Unaudited) 'ASSETS 'Cash and cash equivalents "$ 43.6 "$ 50.7 'Accounts receivable  "345.0  "341.2 'Inventories  "608.5  "558.3 'Deferred income taxes  "59.9  "62.60'Prepaid expenses and other current assets "18.7 "20.7'Total Current Assets"1,075.7"1,033.5$'Property, plant and equipment "898.9 "912.4'Prepaid pension cost "600.5 "503.7,'Cost in excess of net assets acquired "194.8 "204.2'Other assets "92.0 "96.8'Total Assets"$ 2,861.9"$ 2,750.6+'LIABILITIES AND STOCKHOLDERS' EQUITY'Accounts payable"$ 165.4"$ 172.9'Accrued liabilities "190.6 "214.47'Short-term debt and current portion of long-term 'debt "6.1 "152.7 'Total Current Liabilities "362.1 "540.0 'Long-term debt  "599.9  "200.3&!'Accrued postretirement benefits !"530.2 !"544.8 "'Other ""306.4 ""265.3$'Total Liabilities$"1,798.6$"1,550.4''STOCKHOLDERS' EQUITY:4('Preferred stock, par value $0.10: authorized-%)'50,000,000 shares; issued-none )"-- )"--<*'Common stock, par value $0.10, authorized-500,000,000N+'shares; issued-98,951,490 shares at September 30, 2000 and December 31,O,'1999; outstanding-80,651,597 shares at September 30, 2000 and 90,368,196"-'shares at December 31, 1999 -"9.9 -"9.9!.'Additional paid-in capital ."481.1 ."481.0/'Retained earnings/"1,066.9 /"994.5+0'Treasury stock: 18,299,893 shares at.1'September 30, 2000 and 8,583,294 shares2'at December 31, 19992"(481.6)2"(288.7)*3'Foreign currency translation losses 3"(16.6) 3"(3.7)%4'Unrealized gains on securities 4"3.6 4"7.2!6'Total Stockholders' Equity6"1,063.36"1,200.218'Total Liabilities and Stockholders' Equity8"$ 2,861.98"$ 2,750.6G;'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^Nine Months EndedC^September 30,C^September 30,C^September 30,C^September 30, D^2000 D^1999 D^2000 D^1999 G'SalesG"$ 612.0G"$ 562.5G"$ 1,875.7G"$ 1,720.7I'Costs and expenses:J'Cost of sales J"490.5 J"471.3J"1,516.0J"1,392.6*K'Selling and administrative expenses K"45.0 K"56.7 K"149.0 K"159.1L'Interest expense, net L"11.0 L"2.3 L"25.3 L"19.7 N"546.5 N"530.3N"1,690.3N"1,571.4#P'Earnings before other income P"65.5 P"32.2 P"185.4 P"149.3Q'Other income Q"0.8 Q"0.4 Q"14.7 Q"3.6(T'Income from continuing operationsU'before income taxes U"66.3 U"32.6 U"200.1 U"152.9!W'Provision for income taxes W"24.2 W"11.7 W"73.0 W"55.0(['Income from continuing operations!\'before extraordinary gains \"42.1 \"20.9 \"127.1 \"97.9+^'Income from discontinued operations,_'net of tax _"-- _"17.1 _"-- _"58.0&`'Extraordinary gains on sales ofa'operations, net of tax a"-- a"129.6 a"-- a"129.6d'Net incomed"$ 42.1d"$ 167.6d"$ 127.1d"$ 285.5)g'Basic net income per common share:(h'Income from continuing operations!i'before extraordinary gainsi"$ 0.52i"$ 0.22i"$ 1.52i"$ 1.02*j'Income from discontinued operations j"-- j"0.18 j"-- j"0.60&k'Extraordinary gains on sales ofl'operations l"-- l"1.36 l"-- l"1.35(n'Basic net income per common sharen"$ 0.52n"$ 1.76n"$ 1.52n"$ 2.97+q'Diluted net income per common share:(r'Income from continuing operations!s'before extraordinary gainss"$ 0.52s"$ 0.21s"$ 1.52s"$ 1.01*t'Income from discontinued operations t"-- t"0.18 t"-- t"0.60&u'Extraordinary gains on sales ofv'operations v"-- v"1.36 v"-- v"1.34*x'Diluted net income per common sharex"$ 0.52x"$ 1.75x"$ 1.52x"$ 2.95*{'Dividends declared per common share{"$ 0.20{"$ 0.32{"$ 0.60{"$ 0.96G'The accompanying notes are an integral part of these statements.;'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(In millions)'(Unaudited)^Nine Months Ended^Nine Months Ended^September 30,^September 30, ^2000 ^1999'OPERATING ACTIVITIES:'Net income"$ 127.1"$ 285.56'Adjustments to reconcile net income to net cash('provided by operating activities:6'Extraordinary gains on sales of operations, net "--"(129.6)6'Income from discontinued operations, net of tax "-- "(58.0)$'Depreciation and amortization "75.6 "71.5'Deferred income taxes "51.6 "4.13'Gains on sales of investments and businesses "(11.1) "--2'Change in operating assets and liabilities:'Prepaid pension cost "(96.7) "(77.6)'Inventories "(43.2) "(0.9)'Accounts payable "(7.5) "21.8'Accounts receivable "(3.8) "(27.5)'Accrued income taxes "0.1 "40.2 'Other "(41.4) "47.4,'CASH PROVIDED BY OPERATING ACTIVITIES "50.7 "176.9'INVESTING ACTIVITIES:1'Purchases of property, plant and equipment "(45.1) "(57.6)9'Purchases of businesses and investment in ventures "(25.4) "(6.9)<'Proceeds from the sales of investments and businesses "16.7 "1.31'Disposals of property, plant and equipment "4.5 "8.7 'Other "(8.0) "0.9('CASH USED IN INVESTING ACTIVITIES "(57.3) "(53.6)'FINANCING ACTIVITIES:8'Net borrowings (payments) under credit agreements "251.4"(196.6)#'Borrowings on long-term debt "4.8 "--4'Payments on long-term debt and capital leases "(1.1) "(1.5)&'Net increase (decrease) in debt "255.1"(198.1)"'Purchases of treasury stock"(207.3)"(148.3)'Cash dividends "(50.0) "(92.2)!'Exercises of stock options "1.7 "6.4('CASH USED IN FINANCING ACTIVITIES "(0.5)"(432.2)/'CASH PROVIDED BY DISCONTINUED OPERATIONS "-- "283.7,'DECREASE IN CASH AND CASH EQUIVALENTS "(7.1) "(25.2)9'CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR "50.7 "74.21'CASH AND CASH EQUIVALENTS AT END OF PERIOD"$ 43.6"$ 49.0G'The accompanying notes are an integral part of these statements.