Exhibit 99.1
United States Steel Corporation
Public Affairs
600 Grant Street
Pittsburgh, PA 15219-2800
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News
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[LOGO OF USS] Contacts: Media
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John Armstrong
(412) 433-6792
Investors/Analysts
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Nick Harper
(412) 433-1184
FOR IMMEDIATE RELEASE
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UNITED STATES STEEL CORPORATION REPORTS
2005 FOURTH QUARTER AND FULL-YEAR RESULTS
EARNINGS HIGHLIGHTS
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ADJUSTED * ADJUSTED
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(Dollars in millions except per share data) 4Q 2005 3Q 2005 4Q 2004 2005 2004 *
- ---------------------------------------------- ---------- ---------- ---------- ---------- ----------
NET SALES $ 3,470 $ 3,200 $ 3,890 $ 14,039 $ 13,975
========== ========== ========== ========== ==========
SEGMENT INCOME FROM OPERATIONS
Flat-rolled Products $ 36 $ 41 $ 375 $ 602 $ 1,185
U. S. Steel Europe 112 21 128 502 439
Tubular Products 149 124 114 528 197
Other Businesses 16 21 27 43 58
---------- ---------- ---------- ---------- ----------
TOTAL SEGMENT INCOME FROM OPERATIONS $ 313 $ 207 $ 644 $ 1,675 $ 1,879
Retiree benefit expenses (59) (55) (76) (267) (257)
Other items not allocated to segments (32) (4) (25) 31 3
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INCOME FROM OPERATIONS $ 222 $ 148 $ 543 $ 1,439 $ 1,625
========== ========== ========== ========== ==========
Interest and other financial costs 15 17 23 47 151
Foreign currency losses (gains) (1) 3 (36) 80 (36)
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NET INTEREST AND OTHER FINANCIAL COSTS 14 20 (13) 127 115
========== ========== ========== ========== ==========
INCOME TAX PROVISION 90 27 91 365 356
========== ========== ========== ========== ==========
NET INCOME $ 109 $ 93 $ 451 $ 910 $ 1,135
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- Per basic share $ 0.94 $ 0.77 $ 3.92 $ 7.87 $ 10.00
- Per diluted share $ 0.85 $ 0.71 $ 3.46 $ 7.00 $ 8.83
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* See Footnote (a) to Statement of Operations
PITTSBURGH, January 30, 2005 - United States Steel Corporation (NYSE: X)
reported fourth quarter 2005 net income of $109 million, or $0.85 per diluted
share, compared to third quarter 2005 adjusted net income of $93 million, or
$0.71 per diluted share, and fourth quarter 2004 adjusted net income of $451
million, or $3.46 per diluted share.
2
For full-year 2005, U. S. Steel reported net income of $910 million or
$7.00 per diluted share, compared to 2004 adjusted net income of $1,135 million,
or $8.83 per diluted share. Prior period results have been adjusted
retrospectively for a change in the method of accounting for inventories at
U. S. Steel Kosice (USSK) as discussed later.
Commenting on results, U. S. Steel President and CEO John P. Surma said,
"A strong fourth quarter operating performance contributed to making 2005 a very
good year. Our annual earnings were the second highest on record and we had
another year of solid return on capital employed. Importantly, our safety
performance improved substantially, thanks to the outstanding efforts of our
employees. Capital spending and repair and maintenance expenses were higher than
anticipated primarily because we expanded the scope of work and experienced
several delays related to the Gary No. 14 blast furnace project. We are
proceeding through the start-up process and expect to be producing at full
capacity of 9,200 tons of hot metal per day in a relatively short time."
The company reported fourth quarter 2005 income from operations of $222
million, compared with adjusted income from operations of $148 million in the
third quarter of 2005 and $543 million in the fourth quarter of 2004. For the
year 2005, income from operations was $1,439 million versus adjusted income from
operations of $1,625 million for the year 2004.
Results in fourth quarter 2005 included an income tax charge of $16
million resulting from the repatriation of $300 million of foreign earnings
pursuant to the American Jobs Creation Act of 2004, a pre-tax charge of $20
million for environmental remediation related to a former steel production site
that was sold years ago, and a pre-tax charge of $11 million for special
termination benefits under the voluntary early retirement program at USSK. These
items and another small item not allocated to segments reduced fourth quarter
2005 net income by $39 million, or 30 cents per diluted share. Other items not
allocated to segments reduced third quarter 2005 net income by $4 million, or 3
cents per diluted share. Net income in fourth quarter 2004 included tax benefits
totaling $30 million related to prior year research and development credits and
USSK debt repayment. These benefits and other items not allocated to segments
increased fourth quarter 2004 net income by $14 million, or 11 cents per diluted
share.
3
Foreign currency gains in the fourth quarter of 2005 were $1 million,
compared to losses of $3 million in the third quarter of 2005 and gains of $36
million in the fourth quarter of 2004. The losses for the full-year 2005
primarily reflect accounting remeasurement losses from the appreciation of the
U.S. dollar functional currency versus the euro and other local currencies.
Effective January 1, 2006, the functional currency for our European operations
was changed to the euro, which should reduce future period remeasurement gains
and losses.
REPORTABLE SEGMENTS AND OTHER BUSINESSES
Management believes segment income from operations is a key measure to
evaluate ongoing operating results and performance. U. S. Steel's reportable
segments and Other Businesses reported segment income from operations of $313
million, or $63 per ton, in the fourth quarter of 2005, compared with $207
million, or $44 per ton, in the third quarter of 2005 and $644 million, or $120
per ton, in the fourth quarter of 2004.
Segment income from operations for full-year 2005 was $1,675 million, or
$85 per ton, compared with $1,879 million, or $86 per ton for 2004.
The increase in fourth quarter 2005 European income from operations
compared to the third quarter primarily reflected lower raw material and outage
costs and operating efficiencies due to higher operating levels. The improvement
in fourth quarter versus third quarter Tubular results was largely due to higher
prices and shipment volumes. Flat-rolled's fourth quarter results were in line
with the third quarter as higher prices and shipment volumes were offset by
increased costs for natural gas and electricity and higher project costs related
to the Gary No. 14 blast furnace.
4
OUTLOOK
Commenting on U. S. Steel's outlook, Surma said, "The first quarter of
2006 looks good for our domestic and European markets. Service center and end
customer inventories are balanced and we expect continued strength in the energy
markets served by our Tubular segment."
For Flat-rolled, first quarter 2006 shipments are expected to improve
compared to the fourth quarter of 2005 due to the restart of the Gary No. 14
blast furnace, and prices should remain at about the fourth quarter level. We
expect higher raw material costs to be partially offset by reduced outage costs.
For U. S. Steel Europe (USSE), first quarter shipments are expected to
increase and average realized prices and costs should be consistent with fourth
quarter levels; however, the effect of natural gas supply disruptions that have
recently curtailed Serbian operations is uncertain.
Shipments and average realized prices for the Tubular segment in the first
quarter of 2006 are expected to be in line with the fourth quarter.
First quarter 2006 results for Other Businesses should decline from the
fourth quarter due primarily to normal seasonal variations at our iron ore
operations in Minnesota.
Capital expenditures for 2006 are expected to total approximately $700
million, reflecting domestic spending of approximately $440 million and European
spending of approximately $260 million.
5
PENSIONS AND BENEFITS
During 2005, U. S. Steel made a first quarter voluntary cash contribution
of $130 million to its main defined benefit pension plan and a fourth quarter
voluntary cash contribution of $50 million to a qualified trust for payment of
future retiree medical expenses.
At year-end 2005, U. S. Steel's main defined benefit pension plan was
measured and it was again determined that an additional minimum liability is
required for this plan. The reestablishment of this liability net of associated
tax effects resulted in a net charge to equity of approximately $1.4 billion and
had no effect on income or cash flow.
Total costs for pension plans and other postretirement benefits are
expected to be approximately $300 million in 2006, compared to $390 million in
2005.
COMMON STOCK REPURCHASE PROGRAM
On July 26, 2005, U. S. Steel announced that its Board of Directors had
approved the repurchase of up to eight million shares of its common stock.
During 2005, 5.8 million shares were repurchased under this program for a total
cost of $254 million, including 4.6 million shares repurchased in the fourth
quarter for a total cost of $202 million.
CHANGE TO FIFO METHOD FOR USSK
During the fourth quarter of 2005, U. S. Steel changed its method of
determining the cost of USSK inventories from the last-in, first-out (LIFO)
method to the first-in, first-out (FIFO) method. Management considers the FIFO
method to be preferable to the LIFO method for USSK because it creates
consistency of the valuation method used for inventories within the USSE
reportable segment and provides for comparability of the USSE segment with major
international competitors. In accordance with Statement of Financial Accounting
Standards No. 154, prior period results have been adjusted to apply the new
method retrospectively. This change had an unfavorable effect on fourth quarter
and full-year 2005 USSE segment operating results of $22 million and $17
million, respectively. After including effects of foreign currency remeasurement
and tax provisions, the unfavorable net income effect of this change on U. S.
Steel's fourth quarter and full-year 2005 results was $35 million and $41
million, respectively. See Appendix A.
*****
6
This release contains forward-looking statements with respect to market
conditions, operating costs, shipments, prices, capital spending and employee
benefit costs. Some factors, among others, that could affect market conditions,
costs, shipments and prices for both domestic operations and USSE include global
product demand, prices and mix; global and company steel production levels;
plant operating performance, including the start up of the recently completed
blast furnace projects; the timing and completion of facility projects; natural
gas prices, usage and supply disruptions such as are occurring in Serbia; raw
materials availability and prices; changes in environmental, tax and other laws;
employee strikes; power outages; and U.S. and global economic performance and
political developments. Domestic steel shipments and prices could be affected by
import levels and actions taken by the U.S. Government. Economic conditions and
political factors in Europe that may affect USSE's results include, but are not
limited to, taxation, nationalization, inflation, currency fluctuations,
increased regulation, export quotas, tariffs, and other protectionist measures.
Factors that may affect the amount of net periodic benefit costs include, among
others, changes to laws affecting benefits, pension fund investment performance,
liability changes and interest rates. In accordance with "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995, cautionary
statements identifying important factors, but not necessarily all factors, that
could cause actual results to differ materially from those set forth in the
forward-looking statements have been included in the Form 10-K of U. S. Steel
for the year ended December 31, 2004, and in subsequent filings for U. S. Steel.
*****
7
A Statement of Operations (Unaudited), Cash Flow Statement (Unaudited),
Condensed Balance Sheet (Unaudited) and Preliminary Supplemental Statistics
(Unaudited) for U. S. Steel are attached. We have also attached Appendix A
detailing the income effects in 2005 and 2004 of the change in the method of
determining the cost of USSK inventories.
The company will conduct a conference call on fourth quarter earnings on
Tuesday, January 31, at 2 p.m. EST. To listen to the webcast of the conference
call, visit the U. S. Steel web site, www.ussteel.com, and click on the
"Investors" button.
For more information on U. S. Steel, visit its web site at
www.ussteel.com.
-oOo-
2006-002
UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
-----------------------------------
Quarter Ended
------------------------------------ Year Ended
Adjusted(a) December 31
----------------------- ------------------------
Dec. 31 Sept. 30 Dec. 31 Adjusted(a)
(Dollars in millions) 2005 2005 2004 2005 2004
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NET SALES .............................................. $ 3,470 $ 3,200 $ 3,890 $ 14,039 $ 13,975
OPERATING EXPENSES (INCOME):
Cost of sales (excludes items shown below) ........... 2,974 2,819 3,076 11,601 11,368
Selling, general and administrative expenses ......... 192 161 218 698 739
Depreciation, depletion and amortization ............. 92 88 95 366 382
Income from investees ................................ (2) (2) (20) (30) (57)
Net gains on disposal of assets ...................... (4) (7) (11) (21) (57)
Other income, net .................................... (4) (7) (11) (14) (25)
---------- ---------- ---------- ---------- -----------
Total operating expenses .......................... 3,248 3,052 3,347 12,600 12,350
---------- ---------- ---------- ---------- -----------
INCOME FROM OPERATIONS ................................. 222 148 543 1,439 1,625
Net interest and other financial costs ................. 14 20 (13) 127 115
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INCOME BEFORE INCOME TAXES, MINORITY INTERESTS AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE ............................................. 208 128 556 1,312 1,510
Income tax provision ................................... 90 27 91 365 356
Minority interests ..................................... 9 8 14 37 33
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INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE ........................ 109 93 451 910 1,121
Cumulative effect of change in accounting principle, net
of tax ................................................ - - - - 14
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NET INCOME ............................................. 109 93 451 910 1,135
Dividends on preferred stock ........................... (5) (4) (5) (18) (18)
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NET INCOME APPLICABLE TO COMMON STOCK .................. $ 104 $ 89 $ 446 $ 892 $ 1,117
========== ========== ========== ========== ===========
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(a) During the fourth quarter of 2005, the method of determining the cost of
USSK inventories was changed from the last-in, first-out method to the
first-in, first-out method. Results have been adjusted from those
originally reported to apply this change retrospectively. See Appendix A.
UNITED STATES STEEL CORPORATION
STATEMENT OF OPERATIONS (Unaudited)
(Continued)
-----------------------------------
Quarter Ended
------------------------------------ Year Ended
Adjusted(a) December 31
----------------------- ------------------------
Dec. 31 Sept. 30 Dec. 30 Adjusted(a)
COMMON STOCK DATA: 2005 2005 2004 2005 2004
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Per share:
Income before cumulative effect of
change in accounting principle:
- Basic ........................ $ .94 $ .77 $ 3.92 $ 7.87 $ 9.87
- Diluted ...................... $ .85 $ .71 $ 3.46 $ 7.00 $ 8.72
Cumulative effect of change in accounting
principle, net of tax:
- Basic ........................ $ - $ - $ - $ - $ .13
- Diluted ...................... $ - $ - $ - $ - $ .11
Net income:
- Basic ........................ $ .94 $ .77 $ 3.92 $ 7.87 $ 10.00
- Diluted ...................... $ .85 $ .71 $ 3.46 $ 7.00 $ 8.83
Weighted average shares, in thousands:
- Basic ........................ 111,739 113,980 113,853 113,470 111,838
- Diluted ...................... 128,151 130,339 130,322 129,970 128,643
Dividends paid per common share .......... $ .10 $ .10 $ .05 $ .38 $ .20
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(a) During the fourth quarter of 2005, the method of determining the cost of
USSK's inventories was changed from the last-in, first-out method to the
first-in, first-out method. Results have been adjusted from those
originally reported to apply this change retrospectively. See Appendix A.
UNITED STATES STEEL CORPORATION
CASH FLOW STATEMENT (Unaudited)
-------------------------------
Year Ended
December 31
----------------------------
Adjusted(a)
(Dollars in millions) 2005 2004
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Cash provided from operating activities:
Net income ................................................ $ 910 $ 1,135
Depreciation, depletion and amortization .................. 366 382
Pensions and other postretirement benefits ................ (86) (215)
Property tax settlement gain .............................. (95) -
Deferred income taxes ..................................... 43 360
Net gains on disposal of assets ........................... (21) (57)
Changes in: Current receivables ........................... 164 (550)
Inventories ................................... (161) 38
Current accounts payable and accrued expenses . 50 311
Other operating activities ................................ 50 (4)
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Total .................................................... 1,220 1,400
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Cash used in investing activities:
Capital expenditures ...................................... (741) (579)
Disposal of assets ........................................ 31 95
Other investing activities ................................ 5 -
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Total .................................................... (705) (484)
------------ ------------
Cash used in financing activities:
USSK credit facility, net ................................. 231 -
Borrowings and repayments of debt, net .................... (10) (571)
Common stock issued ....................................... 28 361
Common stock repurchased .................................. (254) -
Dividends paid ............................................ (60) (39)
Change in bank checks outstanding ......................... 37 73
Other financing activities ................................ (33) (27)
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Total .................................................... (61) (203)
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Effect of exchange rate changes on cash .................... (7) 8
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Total net cash flow ........................................ 447 721
Cash at beginning of the year .............................. 1,037 316
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Cash at end of the period .................................. $ 1,484 $ 1,037
============ ============
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(a) During the fourth quarter of 2005, the method of determining the cost of
USSK's inventories was changed from the last-in, first-out method to the
first-in, first-out method. Results have been adjusted from those
originally reported to apply this change retrospectively.
UNITED STATES STEEL CORPORATION
CONDENSED BALANCE SHEET (Unaudited)
-----------------------------------
Adjusted(a)
Dec. 31 Dec. 31
(Dollars in millions) 2005 2004
- ------------------------------------------------------------------------------------------
Cash and cash equivalents .................................. $ 1,484 $ 1,037
Inventory .................................................. 1,466 1,305
Other current assets ....................................... 1,886 2,009
Property, plant and equipment - net ........................ 4,021 3,627
Pension asset .............................................. - 2,538
Intangible pension asset ................................... 251 1
Other assets ............................................... 714 547
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Total assets ............................................... $ 9,822 $ 11,064
============ ============
Short-term debt and current maturities of long-term debt ... $ 249 $ 8
Other current liabilities .................................. 2,516 2,527
Long-term debt ............................................. 1,363 1,363
Employee benefits .......................................... 1,992 2,125
Other long-term liabilities ................................ 346 939
Minority interests ......................................... 32 28
Stockholders' equity ....................................... 3,324 4,074
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Total liabilities and stockholders' equity ................. $ 9,822 $ 11,064
============ ============
- ----------
(a) During the fourth quarter of 2005, the method of determining the cost of
USSK's inventories was changed from the last-in, first-out method to the
first-in, first-out method. Results have been adjusted from those
originally reported to apply this change retrospectively.
UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
-----------------------------------------------
Quarter Ended
--------------------------------------- Year Ended
Adjusted(a) December 31
------------------------- ---------------------------
Dec. 31 Sept. 30 Dec. 31 Adjusted(a)
(Dollars in millions) 2005 2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------------------
INCOME (LOSS) FROM OPERATIONS
Flat-rolled Products .............................. $ 36 $ 41 $ 375 $ 602 $ 1,185
U. S. Steel Europe ................................ 112 21 128 502 439
Tubular Products .................................. 149 124 114 528 197
Other Businesses(b) ............................... 16 21 27 43 58
----------- ----------- ----------- ----------- -------------
Segment Income from Operations .................... 313 207 644 1,675 1,879
Retiree benefit expenses(c) ....................... (59) (55) (76) (267) (257)
Other items not allocated to segments:
Property tax settlement gain(d) ............... - - - 70 -
Stock appreciation rights ..................... (1) (1) (8) 1 (23)
Workforce reduction charges(e) ................ (11) (3) (17) (20) (17)
Environmental remediation charge .............. (20) - - (20) -
Income from sale of real estate interests ..... - - - - 43
----------- ----------- ----------- ----------- -------------
Total Income from Operations ............... $ 222 $ 148 $ 543 $ 1,439 $ 1,625
CAPITAL EXPENDITURES
Flat-rolled Products .............................. $ 157 $ 83 $ 86 $ 377 $ 253
U. S. Steel Europe ................................ 74 67 87 249 223
Tubular Products .................................. 1 1 - 5 8
Other Businesses .................................. 36 43 39 110 95
----------- ----------- ----------- ----------- -------------
Total ......................................... $ 268 $ 194 $ 212 $ 741 $ 579
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(a) During the fourth quarter of 2005, the method of determining the cost of
USSK's inventories was changed from the last-in, first-out method to the
first-in, first-out method. Results have been adjusted from those
originally reported to apply this change retrospectively. See Appendix A.
(b) Includes the results of the former Real Estate segment.
(c) Includes certain profit-based expenses for U. S. Steel retirees and
National retirees pursuant to provisions of the 2003 labor agreement with
the United Steelworkers of America.
(d) Reflects the portion of the Gary property tax settlement gain that is
included in cost of sales, and excludes $25 million that is included in net
interest and other financial costs.
(e) Reflects special termination benefits for a USSK voluntary early retirement
program.
UNITED STATES STEEL CORPORATION
PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited)
-----------------------------------------------
Year Ended
Quarter Ended December 31
--------------------------------------- ---------------------------
Dec. 31 Sept. 30 Dec. 31
(Dollars in millions) 2005 2005 2004 2005 2004
- ---------------------------------------------------------------------------------------------------------------------------
OPERATING STATISTICS
Average realized price: ($/net ton)
Flat-rolled Products(a)..................... $ 597 $ 586 $ 623 $ 617 $ 574
U. S. Steel Europe.......................... 550 562 619 610 529
Tubular Products............................ 1,456 1,393 1,083 1,326 863
Steel Shipments:(a)(b)
Flat-rolled Products........................ 3,346 3,191 3,747 13,296 15,635
U. S. Steel Europe.......................... 1,359 1,230 1,347 5,211 5,040
Tubular Products............................ 292 264 285 1,156 1,092
Raw Steel-Production:(b)
Domestic Facilities......................... 3,929 3,514 4,264 15,343 17,266
U. S. Steel Europe.......................... 1,649 1,200 1,474 5,883 5,685
Raw Steel-Capability Utilization:(c)
Domestic Facilities......................... 80.3% 71.9% 87.2% 79.1% 89.0%
U. S. Steel Europe.......................... 88.2% 64.1% 79.0% 79.2% 76.8%
Domestic iron ore production(b)................. 5,352 5,878 5,714 22,282 22,884
Domestic iron ore shipments(b)(d)............... 6,100 6,066 6,600 21,787 24,289
Domestic coke production(b)(e).................. 1,485 1,602 1,670 6,092 6,644
Domestic coke shipments(b)(e)(f)................ 177 192 700 855 2,699
- ----------
(a) Excludes intersegment transfers.
(b) Thousands of net tons.
(c) Based on annual raw steel production capability of 19.4 million net tons
for domestic facilities and 7.4 million net tons for U. S. Steel Europe.
(d) Includes trade shipments and intersegment transfers.
(e) Includes the Clairton 1314B Partnership.
(f) Includes trade shipments only.
APPENDIX A
UNITED STATES STEEL CORPORATION
EFFECTS OF USSK CHANGE IN INVENTORY METHOD
($ Millions)
AS ORIGINALLY AS AS ORIGINALLY AS
REPORTED ADJUSTMENT ADJUSTED REPORTED ADJUSTMENT ADJUSTED
------------- ------------- ------------- ------------- ------------- -------------
QUARTER ENDED MARCH 31, 2005 QUARTER ENDED MARCH 31, 2004
--------------------------------------------- ---------------------------------------------
USSE Income from Opers. $ 212 $ 8 $ 220 $ 40 $ 13 $ 53
Total Income from Opers. 640 8 648 151 13 164
Net Int. and Fin. Costs * 22 3 25 52 - 52
Tax provision 155 1 156 51 1 52
Net income $ 455 $ 4 $ 459 $ 58 $ 12 $ 70
------------- ------------- ------------- ------------- ------------- -------------
QUARTER ENDED JUNE 30, 2005 QUARTER ENDED JUNE 30, 2004
--------------------------------------------- ---------------------------------------------
USSE Income from Opers. $ 141 $ 8 $ 149 $ 76 $ 29 $ 105
Total Income from Opers. 413 8 421 388 29 417
Net Int. and Fin. Costs * 63 5 68 86 (15) 71
Tax provision 93 (1) 92 86 - 86
Net income $ 245 $ 4 $ 249 $ 211 $ 44 $ 255
------------- ------------- ------------- ------------- ------------- -------------
QUARTER ENDED SEPT. 30, 2005 QUARTER ENDED SEPT. 30, 2004
--------------------------------------------- ---------------------------------------------
USSE Income from Opers. $ 32 $ (11) $ 21 $ 146 $ 7 $ 153
Total Income from Opers. 159 (11) 148 494 7 501
Net Int. and Fin. Costs * 16 4 20 4 1 5
Tax provision 28 (1) 27 126 1 127
Net income $ 107 $ (14) $ 93 $ 354 $ 5 $ 359
------------- ------------- ------------- ------------- ------------- -------------
ON AS AS ORIGINALLY AS
LIFO BASIS ADJUSTMENT REPORTED REPORTED ADJUSTMENT ADJUSTED
------------- ------------- ------------- ------------- ------------- -------------
QUARTER ENDED DEC. 31, 2005 QUARTER ENDED DEC. 31, 2004
--------------------------------------------- ---------------------------------------------
USSE Income from Opers. $ 134 $ (22) $ 112 $ 132 $ (4) $ 128
Total Income from Opers. 244 (22) 222 547 (4) 543
Net Int. and Fin. Costs * 1 13 14 (23) 10 (13)
Tax provision 90 - 90 88 3 91
Net income $ 144 $ (35) $ 109 $ 468 $ (17) $ 451
------------- ------------- ------------- ------------- ------------- -------------
YEAR ENDED DECEMBER 31, 2005 YEAR ENDED DECEMBER 31, 2004
--------------------------------------------- ---------------------------------------------
USSE Income from Opers. $ 519 $ (17) $ 502 $ 394 $ 45 $ 439
Total Income from Opers. 1,456 (17) 1,439 1,580 45 1,625
Net Int. and Fin. Costs * 102 25 127 119 (4) 115
Tax provision 366 (1) 365 351 5 356
Net income $ 951 $ (41) $ 910 $ 1,091 $ 44 $ 1,135
------------- ------------- ------------- ------------- ------------- -------------
* Reflects the adjustment for foreign currency remeasurement effects