/2H1 d 1 FIS_CASH_FLOWii$&%*#'ITEM 1. FINANCIAL STATEMENTS;'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES"'CONSOLIDATED BALANCE SHEETS7'(In millions except share and per share amounts)^September 30,^December 31, ^2001 ^2000^(Unaudited)^(Audited) 'ASSETS 'Cash and cash equivalents "$ 37.8 "$ 26.2 'Accounts receivable  "310.5  "325.3 'Inventories  "548.2  "585.7 'Deferred income taxes  "77.2  "61.20'Prepaid expenses and other current assets "27.5 "24.4'Total Current Assets"1,001.2"1,022.8)'Property, plant and equipment, net "883.5 "872.0'Prepaid pension cost "624.4 "593.6,'Cost in excess of net assets acquired "191.1 "194.5'Other assets "74.7 "93.3'TOTAL ASSETS"$ 2,774.9"$ 2,776.2+'LIABILITIES AND STOCKHOLDERS' EQUITY'Accounts payable"$ 176.3"$ 169.3'Accrued liabilities "190.1 "191.0*'Short-term debt and current portion'of long-term debt "384.2 "53.2 'Total Current Liabilities "750.6 "413.5 'Long-term debt  "200.5  "490.6&!'Accrued postretirement benefits !"513.4 !"525.9"'Deferred income taxes ""170.9 ""158.7 #'Other #"136.9 #"148.3%'TOTAL LIABILITIES%"1,772.3%"1,737.0''STOCKHOLDERS' EQUITY:4('Preferred stock, par value $0.10: authorized-%)'50,000,000 shares; issued-none )"-- )"--<*'Common stock, par value $0.10, authorized-500,000,000A+'shares; issued-98,951,490 shares at September 30, 2001 andD,'December 31, 2000; outstanding-80,260,713 shares at September:-'30, 2001 and 80,339,957 shares at December 31, 2000 -"9.9 -"9.9!.'Additional paid-in capital ."481.2 ."481.2/'Retained earnings/"1,020.0/"1,050.0+0'Treasury stock: 18,690,777 shares at/1'September 30, 2001 and 18,611,533 shares2'at December 31, 20002"(479.6)2"(482.3)&3'Accumulated other comprehensive4'loss, net of tax 4"(28.9) 4"(19.6)!6'Total Stockholders' Equity6"1,002.66"1,039.218'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY8"$ 2,774.98"$ 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 MonB^ths EndedB^Nine Months B^Ended C^SeptemC^ber 30,C^Septembe C^r 30, D^2001 D^2000 D^2001 D^2000 F'SalesF"$ 537.7F"$ 612.0F"$ 1,634.9F"$ 1,875.7H'Costs and expenses:I'Cost of sales I"470.3 I"490.5I"1,431.0I"1,516.0!J'Selling and administrativeK'expenses K"45.3 K"45.0 K"146.2 K"149.0$M'Income before interest, other'N'income(expense) and income taxes N"22.1 N"76.5 N"57.7 N"210.7Q'Interest expense, net Q"7.1 Q"11.0 Q"22.7 Q"25.3R'Other income (expense) R"(0.5) R"0.8 R"0.5 R"14.7!U'Income before income taxes U"14.5 U"66.3 U"35.5 U"200.1!W'Provision for income taxes W"6.5 W"24.2 W"14.9 W"73.0Z'Net incomeZ"$ 8.0Z"$ 42.1Z"$ 20.6Z"$ 127.1']'Basic and diluted net income per^'common share^"$ 0.10^"$ 0.52^"$ 0.26^"$ 1.52*a'Dividends declared per common sharea"$ 0.20a"$ 0.20a"$ 0.60a"$ 0.60;d'ALLEGHENY TECHNOLOGIES INCORPORATED AND SUBSIDIARIES,e'CONSOLIDATED STATEMENTS OF CASH FLOWSf'(In millions)g'(Unaudited)j^Nine Months Endedj^Nine Months Endedk^September 30,k^September 30, l^2001 l^2000n'OPERATING ACTIVITIES:o'Net incomeo"$ 20.6o"$ 127.16p'Adjustments to reconcile net income to net cash(q'provided by operating activities:$r'Depreciation and amortization r"74.7 r"75.65s'Non-cash write-off of MetalSpectrum investment s"5.5s"-$t'Gains on sales of investments t"(2.7) t"(11.1)u'Deferred income taxes u"(0.8) u"51.62v'Change in operating assets and liabilities:w'Inventories w"37.5 w"(43.2)x'Prepaid pension cost x"(30.8) x"(96.7)y'Accounts receivable y"14.8 y"(3.8)z'Accounts payable z"7.0 z"(7.5)${'Accrued liabilities and other {"(31.4) {"(41.3),}'CASH PROVIDED BY OPERATING ACTIVITIES }"94.4 }"50.7'INVESTING ACTIVITIES:1'Purchases of property, plant and equipment "(78.3) "(45.1),'Proceeds from the sale of investments "7.2 "16.71'Disposals of property, plant and equipment "2.6 "4.59'Purchases of businesses and investment in ventures "(0.5) "(25.4) 'Other "(1.9) "(8.0)('CASH USED IN INVESTING ACTIVITIES "(70.9) "(57.3)'FINANCING ACTIVITIES:-'Net borrowings under credit facilities "35.0 "251.4#'Borrowings on long-term debt "4.5 "4.84'Payments on long-term debt and capital leases "(0.5) "(1.1)'Net increase in debt "39.0 "255.1'Dividends paid "(48.1) "(50.0) 'Purchases of common stock "(3.0)"(207.3)!'Exercises of stock options "0.2 "1.7('CASH USED IN FINANCING ACTIVITIES "(11.9) "(0.5)7'INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS "11.6 "(7.1)9'CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR "26.2 "50.75'CASH AND CASH EQUIVALENTS AT END OF THE PERIOD"$ 37.8"$ 43.6G'The accompanying notes are an integral part of these statements.