IPSCO Inc.

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(refiled under U.S. GAAP - unaudited)

(thousands of United States Dollars except for share, per share and ton data)

		For the Three Months Ended						For the Six Months Ended
		June 30			June 30			June 30			June 30
		2005			2004			2005			2004
Plate and Coil Tons Produced (thousands)		857.7			813.6			1,675.2			1,605.0
Finished Tons Shipped (thousands)		803.5			884.2			1,659.3			1,821.3

Sales		$	687,674		$	566,446		$	1,454,412		$	1,070,313
Cost of sales
Manufacturing and raw material		437,033			408,713			916,382			810,313
Depreciation of capital assets		20,288			21,529			40,090			41,391
		457,321			430,242			956,472			851,704
Gross income		230,353			136,204			497,940			218,609
Selling, research and administration		16,141			15,210			34,478			30,956
Operating income		214,212			120,994			463,462			187,653
Other expenses (income):
Interest on long-term debt		9,675			13,752			20,403			29,069
Net interest income		(3,240		)	(404		)	(6,023		)	(1,102		)
Foreign exchange gain		(759		)	(396		)	(1,153		)	(230		)
Other (income) expenses		80			247			(15		)	729
Loss on early extinguishment of debt		10,249			—			10,249			—
Income before income taxes and cumulative effect of accounting change		198,207			107,795			440,001			159,187
Income tax expense		71,354			41,410			158,380			61,812
Income before cumulative effect of accounting change		126,853			66,385			281,621			97,375
Cumulative effect of accounting change, net of taxes		—			14,250			—			14,250
Net Income		$	126,853		$	80,635		$	281,621		$	111,625
Cumulative translation adjustment		(3,681		)	(12,345		)	(1,722		)	(31,850		)
Fair value of derivatives, net of tax		(956		)	—			(3,085		)	(90		)
Comprehensive Income		$	122,216		$	68,290		$	282,984		$	79,685

Earnings Per Common Share	- Basic	$	2.60		$	1.68		$	5.71		$	2.33
	- Diluted	$	2.57		$	1.47		$	5.64		$	2.02
Earnings Per Common Share impact of accounting change	- Basic	$	—		$	0.30		$	—		$	0.30
	- Diluted	$	—		$	0.25		$	—		$	0.25
Denominator for Basic Earnings per Common Share (thousands)		48,821			47,965			49,306			47,914
Denominator for Diluted Earnings per Common Share (thousands)		49,390			56,274			49,964			57,779

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (refiled under U.S. GAAP - unaudited)

(thousands of United States Dollars)

	For the Three Months Ended						For the Six Months Ended
	June 30			June 30			June 30			June 30
	2005			2004			2005			2004

Retained Earnings at Beginning of Period	$	1,021,299		$	468,634		$	884,859		$	439,453
Net Income	126,853			80,635			281,621			111,625
Common Share Repurchase	(83,698		)	—			(97,068		)	—
Dividends on Common Shares	(5,496		)	(1,771		)	(10,454		)	(3,580		)
Retained Earnings at End of Period	$	1,058,958		$	547,498		$	1,058,958		$	547,498

IPSCO Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (refiled under U.S. GAAP - unaudited)

(thousands of United States Dollars)

	For the Three Months Ended						For the Six Months Ended
	June 30			June 30			June 30			June 30
	2005			2004			2005			2004
Operating Activities
Net income	$	126,853		$	80,635		$	281,621		$	111,625
Adjustments to reconcile net income to net cash flows from operating activities
Loss on early extinguishment of debt	10,249			—			10,249			—
Unrealized foreign exchange gain	(1,939		)	—			(1,939		)	—
Stock-based compensation	523			127			981			295
Depreciation of capital assets	20,288			21,529			40,090			41,391
Amortization of deferred charges	505			309			875			641
Deferred income taxes	4,833			38,948			44,422			50,743
Changes in operating assets and liabilities
Accounts receivable, less allowances	59,922			(31,505		)	85,448			(79,668		)
Inventories	(60,921		)	(12,567		)	(54,505		)	(17,327		)
Other	1,562			227			4,142			38
Accounts payable and accrued charges	(29,780		)	(32,398		)	(68,274		)	(6,416		)
Change in deferred pension liability	(747		)	(1,771		)	345			(943		)
Income taxes recoverable/payable	48,484			13,546			(12,366		)	14,217
Net cash provided by operations	179,832			77,080			331,089			114,596
Investing Activities
Expenditures for capital assets	(8,813		)	(4,520		)	(22,171		)	(12,842		)
Proceeds from (issuance of) mortgage receivable, net	370			1,717			1,827			(4,134		)
Investments	71			(60		)	(99		)	(269		)
Net cash used for investing activities	(8,372		)	(2,863		)	(20,443		)	(17,245		)
Financing Activities
Common share dividends	(5,496		)	(1,771		)	(10,454		)	(3,580		)
Common shares issued pursuant to share option plan	5,494			3,469			16,423			4,022
Common share repurchase	(104,896		)	—			(121,157		)	—
Retirement of preferred shares	—			(108,996		)	—			(108,996		)
Repayment of long-term debt	(123,248		)	(34,286		)	(127,837		)	(38,875		)
Net cash used for financing activities	(228,146		)	(141,584		)	(243,025		)	(147,429		)
Effect of exchange rate changes on cash and cash equivalents	(935		)	(2,934		)	1,506			1,571
Increase (decrease) in Cash and Cash Equivalents	(57,621		)	(70,301		)	69,127			(48,507		)
Cash and Cash Equivalents at Beginning of Period	481,522			153,153			354,774			131,359
Cash and Cash Equivalents at End of Period	$	423,901		$	82,852		$	423,901		$	82,852

IPSCO Inc.

CONSOLIDATED BALANCE SHEETS (refiled under U.S. GAAP - unaudited)

(thousands of United States Dollars)

	June 30			December 31
	2005			2004
Current Assets
Cash and cash equivalents	$	423,901		$	354,774
Accounts receivable, less allowances	256,527			339,821
Inventories	486,846			434,436
Deferred income taxes	47,261			45,212
Other	3,925			8,212
	1,218,460			1,182,455
Non-Current Assets
Capital assets	1,045,266			1,068,589
Other	38,276			40,421
	1,083,542			1,109,010
Total Assets	$	2,302,002		$	2,291,465

Current Liabilities
Accounts payable and accrued charges	$	177,184		$	247,281
Income and other taxes payable	77,373			90,656
Current portion of long-term debt	4,223			18,107
	258,780			356,044
Long-Term Liabilities
Long-term debt	407,095			513,651
Other	31,934			31,934
Deferred income taxes	149,534			103,979
	588,563			649,564
Shareholders’ Equity
Common shares	417,174			424,826
Contributed surplus	2,481			1,489
Retained earnings	1,058,958			884,859
Accumulated other comprehensive loss	(23,954		)	(25,317		)
	1,454,659			1,285,857
Total Liabilities and Shareholders’ Equity	$	2,302,002		$	2,291,465

IPSCO Inc.

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (unaudited)

(thousands of United States Dollars)

1. Effective with the fourth quarter of 2005, the Company prepares its financial statements in accordance with the generally accepted accounting principles (GAAP) of the United States. The 2005 second quarter consolidated financial statements and notes are refiled in U.S. GAAP in accordance with regulatory requirements. A reconciliation of the differences between GAAP in Canada and the United States as they apply to the Company is provided in note 8.

These unaudited consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Company’s 2005 Annual Report on Form 10-K. In the opinion of the Company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.

2. Inventories

	June 30 2005		December 31 2004
Finished goods	$	195,668	$	133,250
Work-in-process	147,092		156,531
Raw materials	80,524		86,218
Supplies	63,562		58,437
	$	486,846	$	434,436

3. Pension cost attributable to the Company’s pension plans is as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30		June 30		June 30		June 30
	2005		2004		2005		2004
Defined benefit plans	$	2,109	$	2,183	$	4,856	$	4,629
Defined contribution plans	947		911		2,241		1,794
	$	3,056	$	3,094	$	7,097	$	6,423

4. The restricted shares and performance units vest at the end of three years based on continued employment and achievement of certain Company performance objectives. Restricted shares are entitled to dividends declared on common shares during the vesting period and, upon vesting, performance units are entitled to an amount equal to dividends declared during the vesting period. The fair value of the grants is being amortized to compensation expense over the vesting period. Compensation expense of $523 and $127 has been recorded in the three month periods ended June 30, 2005 and 2004, respectively. Compensation expense of $981 and $295 has been recorded in the six month periods ended June 30, 2005 and 2004, respectively.

The following table summarizes information on share capital and related matters at June 30, 2005:

	Outstanding	Vested
Common shares	48,079,675
Common shares - year-to-date weighted average	49,305,862
Common share stock options	369,170	367,502
Restricted shares	175,904	—
Performance units	145,985	—

The Company issued 301,800 and 224,684 common shares in the quarters ended June 30, 2005 and 2004, respectively, as a result of option exercises. In addition, the Company issued 15,740 shares of restricted stock in the quarter ended June 30, 2004 and 12,000 performance units in the quarters ended June 30, 2005 and 2004.

In March 2005, the Company filed a normal course issuer bid which entitles the Company to acquire approximately 4.2 million of its common shares between March 16, 2005 and March 15, 2006. All purchases will be made on the open market at the market price at the time of the purchase. All shares purchased under the bid will be cancelled. During the quarters ended June 30 and March 31, 2005, 2,199,400 and 294,000 common shares were purchased for $104.9 and $16.3 million, respectively. Through July 26, 2005, an additional 258,500 shares have been purchased under this program.

5. In the second quarter 2005, the Company repaid in full the $71.4 million balance outstanding of the 7.32% Series B Senior Notes due April 1, 2009, including prepayment of $57.1 million, and purchased for cancellation $41.2 million of the 8.75% unsecured notes due June 1, 2013 and CDN $2.0 million of the 7.8% debentures, on the open market. The debt repayments resulted in a loss of approximately $10.2 million.

6. The Company is organized and managed as a single business segment, being steel products, and the Company is viewed as a single operating segment by the chief operating decision maker for the purposes of resource allocation and assessing performance.

Financial information on the Company’s geographic areas follows. Sales are allocated to the country in which the third party customer receives the product.

	For the Three Months Ended				For the Six Months Ended
	June 30		June 30		June 30		June 30
	2005		2004		2005		2004
Sales
Canada	$	171,715	$	131,427	$	417,224	$	346,507
United States	515,959		435,019		1,037,188		723,806
	$	687,674	$	566,446	$	1,454,412	$	1,070,313

	June 30		December 31
	2005		2004
Capital Assets
Canada	$	206,219	$	216,254
United States	839,047		852,335
	$	1,045,266	$	1,068,589

	For the Three Months Ended				For the Six Months Ended
	June 30		June 30		June 30		June 30
	2005		2004		2005		2004
Sales information by product group is as follows:
Steel mill products	$	449,865	$	363,261	$	950,354	$	645,432
Tubular products	237,809		203,185		504,058		424,881
	$	687,674	$	566,446	$	1,454,412	$	1,070,313

Tubular product sales volume in the first and second quarters can be negatively impacted by weather conditions in Western Canada.

7. Certain prior period amounts have been reclassified to conform with the current presentation.

8. Differences between United States and Canadian generally accepted accounting principles

Reconciliation of the line items of the consolidated statements of income and cash flows and the consolidated balance sheets from U.S. GAAP to Canadian GAAP follows. Information on the nature of these adjustments is provided in Note 21 to the Company’s 2005 consolidated financial statements.

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(thousands of United States Dollars except for share, per share and ton data)

		For the Six Months Ended June 30, 2005										For the Six Months Ended June 30, 2004
		U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Plate and Coil Tons Produced (thousands)		1,675.2							1,675.2			1,605.0							1,605.0
Finished Tons Shipped (thousands)		1,659.3							1,659.3			1,821.3							1,821.3

Sales		$	1,454,412		(a)	$	(41,703	)	$	1,412,709		$	1,070,313		(a)	$	(39,130	)	$	1,031,183
Cost of sales
Manufacturing and raw material		916,382			(a)	(41,703		)	881,601			810,313			(a)	(39,130		)	778,641
					(b)	6,942									(b)	6,942
					(c)	(20		)							(c)	516
Depreciation of capital assets		40,090			(b)	(4,447		)	38,913			41,391			(b)	(4,450		)	38,709
					(d)	3,270									(d)	1,768
		956,472				(35,958		)	920,514			851,704				(34,354		)	817,350
Gross income		497,940				(5,745		)	492,195			218,609				(4,776		)	213,833
Selling, general and administration		34,478							34,478			30,956							30,956
Operating income		463,462				(5,745		)	457,717			187,653				(4,776		)	182,877
Other expenses (income):
Interest on long-term debt		20,403			(b)	(4,373		)	16,030			29,069			(b)	(4,524		)	24,545
Net interest income		(6,023		)	(c)	5			(6,018		)	(1,102		)	(c)	(2		)	(1,104		)
Foreign exchange gain		(1,153		)		—			(1,153		)	(230		)		—			(230		)
Other (income) expenses		(15		)	(c)	15			—			729			(c)	(514		)	—
															(h)	(215		)
Loss on early extinguishment of debt		10,249				—			10,249			—				—			—
Income before income taxes and cumulative effect of accounting change		440,001				(1,392		)	438,609			159,187				479			159,666
Income tax expense		158,380			(b)	676			157,879			61,812			(b)	620			61,951
					(d)	(1,177		)							(d)	(538		)
															(h)	57
Net income before cumulative effect of accounting change		281,621				(891		)	280,730			97,375				340			97,715
Cumulative effect of accounting change, net of taxes		—				—			—			14,250			(j)	(14,250		)	—
Net Income		$	281,621			$	(891	)	$	280,730		$	111,625			$	(13,910	)	$	97,715
Earnings Per Common Share	- Basic	$	5.71						$	5.69		$	2.33						$	2.04
	- Diluted	$	5.64						$	5.62		$	2.02						$	1.78
Denominator for Basic Earnings per Common Share (thousands)		49,306							49,306			47,914							47,914
Denominator for Diluted Earnings per Common Share (thousands)		49,964							49,964			57,779							57,779

(a) Freight invoiced to customers

(b) 2000 sale-leaseback transaction

(d) Amortization of difference in amounts capitalized

(e) Translation of convenience

(f) Capitalization of interest

(g) Capitalization of commissioning costs

(h) Derivatives

(i) Minimum pension liability

(j) Change in accounting policy

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

(thousands of United States Dollars except for share, per share and ton data)

		For the Three Months Ended June 30, 2005													For the Three Months Ended June 30, 2004
		U.S. GAAP				Ref	Amount				Canadian GAAP				U.S. GAAP				Ref		Amount				Canadian GAAP
Plate and Coil Tons Produced (thousands)		857.7									857.7				813.6										813.6
Finished Tons Shipped (thousands)		803.5									803.5				884.2										884.2

Sales		$	687,674			(a)	$	(20,962		)	$	666,712			$	566,446			(a)		$	(18,171		)	$	548,275
Cost of sales
Manufacturing and raw material		437,033				(a)	(20,962			)	419,660				408,713				(a)		(18,171			)	394,374
						(b)	3,471												(b)		3,471
						(c)	118												(c)		361
Depreciation of capital assets		20,288				(b)	(2,223			)	19,662				21,529				(b)		(2,225			)	20,188
						(c)	(38			)									(d)		884
						(d)	1,635
		457,321					(17,999			)	439,322				430,242						(15,680			)	414,562
Gross income		230,353					(2,963			)	227,390				136,204						(2,491			)	133,713
Selling, general and administration		16,141									16,141				15,210										15,210
Operating income		214,212					(2,963			)	211,249				120,994						(2,491			)	118,503
Other expenses (income):
Interest on long-term debt		9,675				(b)	(2,179			)	7,496				13,752				(b)		(2,251			)	11,501
Net interest income		(3,240			)						(3,240			)	(404			)	(c)		(2			)	(406			)
Foreign exchange gain		(759			)						(759			)	(396			)							(396			)
Other (income) expenses		80				(c)	(80			)	—				247				(c)		(359			)	—
																			(h)		112
Loss on early extinguishment of debt		10,249					—				10,249				—						—				—
Income before income taxes and cumulative effect of accounting change		198,207					(704			)	197,503				107,795						9				107,804
Income tax expense		71,354				(b)	335				71,101				41,410				(b)		307				41,418
						(d)	(588			)									(d)		(269			)
																			(h)		(30			)
Net Income before cumulative effect on accounting change			126,853					(451		)		126,402				66,385						1		)		66,386
Cumulative effect of accounting change, net of taxes		—					—				—				14,250				(j)		(14,250			)	—
Net Income		$		126,853			$		(451	)	$		126,402		$		80,635			$			(14,249	)	$		66,386
Earnings Per Common Share	- Basic	$	2.60								$	2.59			$	1.68									$	1.38
	- Diluted	$	2.57								$	2.56			$	1.47									$	1.22
Denominator for Basic Earnings per Common Share (thousands)		48,821									48,821				47,965										47,965
Denominator for Diluted Earnings per Common Share (thousands)		49,390									49,390				56,274										56,274

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(thousands of United States Dollars)

	For the Six Months Ended June 30, 2005										For the Six Months Ended June 30, 2004
	U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Operating Activities
Net income	$	281,621			$	(891	)	$	280,730		$	111,625			$	(13,910	)	$	97,715
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation of capital assets	40,090				(1,177		)	38,913			41,391				(2,682		)	38,709
Amortization of deferred charges	875							875			641							641
Stock based compensation	981							981			295							295
Deferred income taxes	44,422			(b)	676			43,921			50,743			(b)	620			44,449
				(d)	(1,177		)							(d)	(538		)
														(h)	57
														(j)	(6,433		)
Unrealized foreign exchange gain	(1,939		)					(1,939		)	—							—
Loss on early extinguishment of debt	10,249							10,249			—							—
Changes in operating assets and liabilities
Accounts receivable	85,448			(c)	31			85,479			(79,668		)	(c)	(358		)	(80,026		)
Inventories	(54,505		)	(c)	17			(54,488		)	(17,327		)	(c)	(64		)	(17,391		)
Other current assets	4,142							4,142			38							38
Accounts payable and accrued charges	(68,274		)	(b)	(2,020		)	(70,328		)	(6,416		)	(b)	(2,171		)	16,562
				(c)	(34		)							(c)	308
														(h)	(215		)
														(j)	25,056
Change in deferred pension liability	345							345			(943		)					(943		)
Income and other taxes payable	(12,366		)					(12,366		)	14,217			(j)	(3,699		)	10,518
Net cash provided by operations	331,089				(4,575		)	326,514			114,596				(4,029		)	110,567
Investing Activities
Expenditures for capital assets, net of litigation settlement	(22,171		)	(c)	(94		)	(22,265		)	(12,842		)	(c)	(334		)	(13,176		)
Proceeds from (issuance of) mortgage receivable, net	1,827							1,827			(4,134		)					(4,134		)
Investments	(99		)	(c)	99			—			(269		)	(c)	269			—
Net cash used for investing activities	(20,443		)		5			(20,438		)	(17,245		)		(65		)	(17,310		)
Financing Activities
Common shares issued pursuant to share option plan	16,423							16,423			4,022							4,022
Common share dividends	(10,454		)					(10,454		)	(3,580		)					(3,580		)
Common share repurchase	(121,157		)					(121,157		)	—							—
Retirement of preferred shares	—			—				—			(108,996		)					(108,996		)
Repayment of long-term debt	(127,837		)	(b)	4,589			(123,248		)	(38,875		)	(b)	4,589			(34,286		)
Net cash (used for) provided by financing activities	(243,025		)		4,589			(238,436		)	(147,429		)		4,589			(142,840		)
Effect of exchange rate changes on cash and cash equivalents	1,506							1,506			1,571			(j)	(674		)	897
Increase (decrease) in Cash and Cash Equivalents	69,127				19			69,146			(48,507		)		(179		)	(48,686		)
Cash and Cash Equivalents at Beginning of Period	354,774			(c)	303			355,077			131,359			(c)	208			131,567
Cash and Cash Equivalents at End of Period	$	423,901			$	322		$	424,223		$	82,852			$	29		$	82,881

CONSOLIDATED STATEMENTS OF CASHFLOWS (unaudited)

(thousands of United States Dollars)

	For the Three Months Ended June 30, 2005										For the Three Months Ended June 30, 2004
	U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Operating Activities
Net income	$	126,853			$	(451	)	$	126,402		$	80,635			$	(14,249	)	$	66,386
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation of capital assets	20,288				(626		)	19,662			21,529				(1,341		)	20,188
Amortization of deferred charges	505							505			309							309
Stock based compensation	523							523			127							127
Deferred income taxes	4,833			(b)	335			4,580			38,948			(b)	307			32,523
				(d)	(588		)							(d)	(269		)
														(h)	(30		)
														(j)	(6,433		)
Unrealized foreign exchange gain	(1,939		)					(1,939		)	—							—
Loss on early extinguishment of debt	10,249							10,249			—							—
Changes in operating assets and liabilities
Accounts receivable	59,922			(c)	(124		)	59,798			(31,505		)	(c)	(286		)	(31,791		)
Inventories	(60,921		)	(c)	(15		)	(60,936		)	(12,567		)	(c)	(32		)	(12,599		)
Other current assets	1,562							1,562			227							227
Accounts payable and accrued charges	(29,780		)	(b)	1,292			(28,329		)	(32,398		)	(b)	1,220			(5,825		)
				(c)	159									(c)	185
														(h)	112
														(j)	25,056
Change in deferred pension liability	(747		)					(747		)	(1,771		)					(1,771		)
Income and other taxes payable	48,484			(c)	(155		)	48,329			13,546			(j)	(3,711		)	9,835
Net cash provided by operations	179,832				(173		)	179,659			77,080				529			77,609
Investing Activities
Expenditures for capital assets, net of litigation settlement	(8,813		)	(c)	(46		)	(8,859		)	(4,520		)	(c)	(39		)	(4,559		)
Proceeds from (issuance of) mortgage receivable, net	370							370			1,717							1,717
Investments	71			(c)	(71		)	—			(60		)	(c)	60			—
Net cash used for investing activities	(8,372		)		(117		)	(8,489		)	(2,863		)		21			(2,842		)
Financing Activities
Common shares issued pursuant to share option plan	5,494							5,494			3,469							3,469
Common share dividends	(5,496		)					(5,496		)	(1,771		)					(1,771		)
Common share repurchase	(104,896		)					(104,896		)	—							—
Retirement of preferred shares	—							—			(108,996		)					(108,996		)
Repayment of long-term debt	(123,248		)					(123,248		)	(34,286		)					(34,286		)
Net cash (used for) provided by financing activities	(228,146		)		—			(228,146		)	(141,584		)		—			(141,584		)
Effect of exchange rate changes on cash and cash equivalents	(935		)					(935		)	(2,934		)	(j)	(674		)	(3,608		)
Increase (decrease) in Cash and Cash Equivalents	(57,621		)		(290		)	(57,911		)	(70,301		)		(124		)	(70,425		)
Cash and Cash Equivalents at Beginning of Period	481,522			(c)	612			482,134			153,153			(c)	153			153,306
Cash and Cash Equivalents at End of Period	$	423,901			$	322		$	424,223		$	82,852			$	29		$	82,881

CONSOLIDATED BALANCE SHEETS (unaudited)

(thousands of United States Dollars)

	June 30, 2005									December 31, 2004
	U.S. GAAP			Ref	Amount			Canadian GAAP		U.S. GAAP			Ref	Amount			Canadian GAAP
Current Assets
Cash and cash equivalents	$	423,901		(c)	$	322		$	424,223	$	354,774		(c)	$	303		$	355,077
Accounts receivable, less allowances	256,527			(c)	284			250,262		339,821			(c)	315			338,590
				(h)	(6,549		)						(h)	(1,546		)
Inventories	486,846			(c)	73			486,919		434,436			(c)	90			434,526
Future income taxes	47,261							47,261		45,212							45,212
Other	3,925							3,925		8,212							8,212
	1,218,460				(5,870		)	1,212,590		1,182,455				(838		)	1,181,617
Non-Current Assets
Capital assets	1,045,266			(b)	(117,252		)	1,053,381		1,068,589			(b)	(121,699		)	1,075,512
				(c)	2,490								(c)	2,475
				(d)	(3,258		)						(d)	12
				(f)	13,902								(f)	13,902
				(g)	112,233								(g)	112,233
Other	38,276			(c)	(2,967		)	35,309		40,421			(c)	(2,661		)	37,760
	1,083,542				5,148			1,088,690		1,109,010				4,262			1,113,272
Total Assets	$	2,302,002			$	(722	)	$	2,301,280	$	2,291,465			$	3,424		$	2,294,889

Current Liabilities
Accounts payable and accrued charges	$	177,184		(b)	$	(9,915	)	$	167,471	$	247,281		(b)	$	(7,895	)	$	239,908
				(c)	202								(c)	522
Income and other taxes payable	77,373							77,373		90,656							90,656
Current portion of long-term debt	4,223			(b)	(4,223		)	—		18,107			(b)	(3,821		)	14,286
	258,780				(13,936		)	244,844		356,044				(11,194		)	344,850
Long-Term Liabilities
Long-term debt	407,095			(b)	(115,607		)	291,488		513,651			(b)	(120,598		)	393,053
Other	31,934			(i)	(31,934		)	—		31,934			(i)	(31,934		)	—
Future income taxes	149,534			(b)	4,552			210,485		103,979			(b)	3,876			167,348
				(d)	(1,581		)						(d)	(405		)
				(f)	5,172								(f)	5,172
				(g)	41,751								(g)	41,751
				(h)	(2,388		)						(h)	(470		)
				(i)	13,445								(i)	13,445
	588,563				(86,590		)	501,973		649,564				(89,163		)	560,401
Shareholders’ Equity
Common shares	417,174			(e)	(40,733		)	376,441		424,826			(e)	(40,733		)	384,093
Contributed surplus	2,481							2,481		1,489							1,489
Retained earnings	1,058,958			(b)	7,945			1,096,738		884,859			(b)	6,743			923,530
				(d)	(1,677		)						(d)	416
				(e)	(47,700		)						(e)	(47,700		)
				(f)	8,730								(f)	8,730
				(g)	70,482								(g)	70,482
Accumulated other comprehensive loss/	(23,954		)	(e)	88,433			78,803		(25,317		)	(e)	88,433			80,526
Cumulative translation adjustment				(h)	(4,161		)						(h)	(1,076		)
				(i)	18,485								(i)	18,486
	1,454,659				99,804			1,554,463		1,285,857				103,781			1,389,638
Total Liabilities and Shareholders’ Equity	$	2,302,002			$	(722	)	$	2,301,280	$	2,291,465			$	3,424		$	2,294,889

The Company has reclassified amounts previously reported as long-term deferred tax assets to long-term deferred tax liabilities. The reclassification was for $6,165 at June 30, 2005 and for $54,034 at December 31, 2004.