Contents 8 Annual Report 2003 ATI Management’s Discussion and Analysis of Financial Condition and Results of Operations 9 Overview 9 Results of Operations 10 Financial Condition and Liquidity 17 Critical Accounting Policies 20 Quantitative and Qualitative Disclosures About Market Risk and Other Matters 26 Consolidated Statements of Operations 31 Consolidated Balance Sheets 32 Consolidated Statements of Cash Flows 33 Consolidated Statements of Stockholders’ Equity 34 Report of Ernst & Young LLP, Independent Auditors 35 Notes to Consolidated Financial Statements 36 Note 1. Summary of Significant Accounting Policies 36 Note 2. Inventories 40 Note 3. Debt 41 Note 4. Supplemental Financial Statement Information 42 Note 5. Accumulated Other Comprehensive Income (Loss) 43 Note 6. Stockholders’ Equity 44 Note 7. Income Taxes 46 Note 8. Pension Plans and Other Postretirement Benefits 48 Note 9. Acquisitions and Divestitures 51 Note 10. Business Segments 52 Note 11. Restructuring and Other Charges 54 Note 12. Financial Information for Subsidiary Guarantors 55 Note 13. Earnings Per Share Information 61 Note 14. Commitments and Contingencies 61 Note 15. Selected Quarterly Financial Data (Unaudited) 64 Note 16. Subsequent Event 65 Management’s Report 66 Common Stock Prices 67 Selected Financial Data 67