2005 Financial Review

MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

2005

Operating cash flow from continuing operations increased by $27.9 million in 2005 compared to 2004 primarily due to lower contributions to U.S. pension plans and VEBA in 2005. This was partially offset by lower operating profit and more cash used for working capital needs as a result of increased receivables.

2004

Operating cash flow from continuing operations increased by $7.7 million in 2004 from the prior period primarily as a result of improved cash flow from operating performance of the Company’s business segments. Partially offsetting this increase was a $50 million contribution to the VEBA in 2004. Contributions to the VEBA were classified as investing activities in 2003.

Operating cash flow from discontinued operations decreased by $26.5 million in 2004 from the prior period primarily as a result of the Company’s natural resource business generating less cash in 2004, since these businesses were sold in 2003 and early 2004.