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 Nine Months Ended
		Sept 30			Sept 30			Sept 30			Sept 30
		2005			2004			2005			2004
Plate and Coil Tons Produced (thousands)		759.3			826.7			2,434.5			2,431.7
Finished Tons Shipped (thousands)		847.8			844.1			2,507.1			2,665.4

Sales		$	726,079		$	660,001		$	2,180,491		$	1,730,314
Cost of sales
Manufacturing and raw material		481,303			418,647			1,397,685			1,228,960
Depreciation of capital assets		19,901			20,566			59,991			61,957
		501,204			439,213			1,457,676			1,290,917
Gross income		224,875			220,788			722,815			439,397
Selling, research and administration		23,075			14,942			57,553			45,898
Operating income		201,800			205,846			665,262			393,499
Other expenses (income):
Interest on long-term debt		8,784			13,078			29,187			42,147
Net interest income		(4,456		)	(698		)	(10,479		)	(1,800		)
Foreign exchange gain		(18,080		)	(5,959		)	(19,233		)	(6,189		)
Gain on sale of assets held for sale		(1,863		)	—			(1,863		)	—
Other expenses (income)		96			158			81			887
Loss on early extinguishment of debt		690			—			10,939			—
Income before income taxes and cumulative effect of accounting change		216,629			199,267			656,630			358,454
Income tax expense		82,602			55,070			240,982			116,882
Income before cumulative effect of accounting change		134,027			144,197			415,648			241,572
Cumulative effect of accounting change, net of taxes		—			—			—			14,250
Net Income		$	134,027		$	144,197		$	415,648		$	255,822
Cumulative translation adjustment		(3,617		)	(5,196		)	(5,339		)	(26,654		)
Fair value of derivatives, net of tax		4,235			—			7,320			(90		)
Comprehensive Income		$	134,645		$	149,393		$	417,629		$	229,078
Earnings Per Common Share	- Basic	$	2.81		$	2.98		$	8.52		$	5.32
	- Diluted	$	2.78		$	2.76		$	8.44		$	4.74
Earnings Per Common Share impact of accounting change	- Basic	$	—		$	—		$	—		$	0.30
	- Diluted	$	—		$	—		$	—		$	0.26
Denominator for Basic Earnings per Common Share (thousands)		47,764			48,364			48,786			48,065
Denominator for Diluted Earnings per Common Share (thousands)		48,162			52,801			49,256			55,413

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

(thousands of United States Dollars)

	For the Three Months Ended						For the Nine Months Ended
	Sept 30			Sept 30			Sept 30			Sept 30
	2005			2004			2005			2004
Retained Earnings at Beginning of Period	$	1,058,958		$	547,498		$	884,859		$	439,453
Net Income	134,027			144,197			415,648			255,822
Common Share Repurchase	(9,018		)	—			(106,086		)	—
Dividends on Common Shares	(5,706		)	(1,894		)	(16,160		)	(5,474		)
Retained Earnings at End of Period	$	1,178,261		$	689,801		$	1,178,261		$	689,801

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 Nine Months Ended
	Sept 30			Sept 30			Sept 30			Sept 30
	2005			2004			2005			2004
Operating Activities
Net income	$	134,027		$	144,197		$	415,648		$	255,822
Adjustments to reconcile net income to net cash flows from operating activities
Gain on sale of assets held for sale	(1,863		)	—			(1,863		)	—
Unrealized foreign exchange gain	(18,714		)	—			(20,653		)	—
Loss on early extinguishment of debt	690			—			10,939			—
Stock-based compensation	2,300			366			3,281			661
Depreciation of capital assets	19,901			20,566			59,991			61,957
Amortization of deferred charges	409			312			1,284			953
Deferred income taxes	17,935			12,649			62,357			63,392
Changes in operating assets and liabilities
Accounts receivable, less allowances	(27,533		)	(18,959		)	57,915			(98,627		)
Inventories	29,674			(72,390		)	(24,831		)	(89,717		)
Other	249			78			4,391			116
Accounts payable and accrued charges	29,142			14,196			(39,132		)	7,780
Change in deferred pension liability	(660		)	(144		)	(315		)	(1,087		)
Income taxes recoverable/payable	33,521			22,536			21,155			36,753
Net cash provided by operations	219,078			123,407			550,167			238,003
Investing Activities
Expenditures for capital assets	(21,091		)	(8,690		)	(43,262		)	(21,532		)
Proceeds from sale of capital assets	1,546			—			1,546			—
Proceeds from (issuance of) mortgage receivable, net	1,955			(278		)	3,782			(4,412		)
Investments	293			(484		)	194			(753		)
Net cash used for investing activities	(17,297		)	(9,452		)	(37,740		)	(26,697		)
Financing Activities
Common share dividends	(5,706		)	(1,894		)	(16,160		)	(5,474		)
Common shares issued pursuant to share option plan	4,387			7,821			20,810			11,843
Common share repurchase	(11,564		)	—			(132,721		)	—
Retirement of preferred shares	—			—			—			(108,996		)
Repayment of long-term debt	(2,458		)	768			(130,295		)	(38,107		)
Net cash provided by (used for) financing activities	(15,341		)	6,695			(258,366		)	(140,734		)
Effect of exchange rate changes on cash and cash equivalents	2,742			(3,639		)	4,248			(2,068		)
Increase in Cash and Cash Equivalents	189,182			117,011			258,309			68,504
Cash and Cash Equivalents at Beginning of Period	423,901			82,852			354,774			131,359
Cash and Cash Equivalents at End of Period	$	613,083		$	199,863		$	613,083		$	199,863

IPSCO Inc.

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

(thousands of United States Dollars)

	Sept 30 2005			December 31 2004

Current Assets
Cash and cash equivalents	$	613,083		$	354,774
Accounts receivable, less allowances	299,739			339,821
Inventories	468,864			434,436
Deferred income taxes	35,621			45,212
Other	3,864			8,212
	1,421,171			1,182,455
Non-Current Assets
Capital assets	1,055,334			1,068,589
Other	37,448			40,421
	1,092,782			1,109,010
Total Assets	$	2,513,953		$	2,291,465

Current Liabilities
Accounts payable and accrued charges	$	212,158		$	247,281
Income and other taxes payable	114,450			90,656
Current portion of long-term debt	4,114			18,107
	330,722			356,044
Long-Term Liabilities
Long-term debt	409,386			513,651
Other	31,934			31,934
Deferred income taxes	164,884			103,979
	606,204			649,564
Shareholders’ Equity
Common shares	419,016			424,826
Contributed surplus	3,086			1,489
Retained earnings	1,178,261			884,859
Accumulated other comprehensive loss	(23,336		)	(25,317		)
	1,577,027			1,285,857
Total Liabilities and Shareholders’ Equity	$	2,513,953		$	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 third 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 consolidate 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

	September 30 2005		December 31 2004
Finished goods	$	174,314	$	133,250
Work-in-process	142,502		156,531
Raw materials	86,995		86,218
Supplies	65,053		58,437
	$	468,864	$	434,436

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

	For the Three Months Ended				For the Nine Months Ended
	Sept 30		Sept 30		Sept 30		Sept 30
	2005		2004		2005		2004
Defined benefit plans	$	2,492	$	2,386	$	7,348	$	7,015
Defined contribution plans	1,010		913		3,251		2,707
	$	3,502	$	3,299	$	10,599	$	9,722

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. A portion of the performance units are accounted for as liabilities due to a cash settlement feature. The fair value of the grants is being amortized to compensation expense over the vesting period. In addition, the mark-to-market adjustment of the liability is also charged to compensation expense each period. Compensation expense of $2,300 and $366 has been recorded in the three month periods ended September 30, 2005 and 2004, respectively. Compensation expense of $3,281 and $661 has been recorded in the nine month periods ended September 30, 2005 and 2004, respectively.

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

	Outstanding	Vested
Common shares	48,036,319
Common shares - year-to-date weighted average	48,786,256
Common share stock options	192,525	190,857
Restricted shares	210,003	—
Performance units	242,766	—

The Company issued 176,645 common shares in the quarter ended September 30, 2005 and 530,035 common shares in the quarter ended September 30, 2004, as a result of option exercises. In addition, the Company issued 38,499 and 84,847 shares of restricted stock in the quarters ended September 30, 2005 and 2004, respectively and 98,031 and 55,940 performance units in the quarters ended September 30, 2005 and 2004, respectively.

In March 2005, the Company filed a normal course issuer bid which entitles the Company to repurchase approximately 4.2 million of its common shares between March 16, 2005 and March 15, 2006. All share repurchases 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 September 30, June 30 and March 31, 2005, 258,500, 2,199,400 and 294,000 common shares were purchased for $11.6, $104.9 and $16.3 million, respectively.

5. In the third quarter 2005, the Company purchased for cancellation $2.9 million of the 8.75% Senior Notes due June 1, 2013, on the open market. The debt repayments resulted in a loss of approximately $0.7 million.

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 due December 1, 2006, on the open market. The debt repayments resulted in a loss of approximately $10.2 million.

In October 2005, the Company announced the redemption in full of the CDN $98 million balance outstanding of the 7.8% Debentures due December 1, 2006, and purchased for cancellation $5.7 million of the 8.75% unsecured notes due June 1, 2013, on the open market. The debt repayments will result in a loss of approximately $4.7 million which will be recognized in the fourth quarter of 2005.

6. The Company is organized and managed as a single business segment, being steel products, and 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 Nine Months Ended
	Sept 30		Sept 30		Sept 30		Sept 30
	2005		2004		2005		2004
Sales
Canada	$	266,721	$	203,126	$	683,945	$	549,633
United States	459,358		456,875		1,496,546		1,180,681
	$	726,079	$	660,001	$	2,180,491	$	1,730,314

	Sept 30 2005		December 31 2004
Capital Assets
Canada	$	212,643	$	216,254
United States	842,691		852,335
	$	1,055,334	$	1,068,589

	For the Three Months Ended				For the Nine Months Ended
	Sept 30		Sept 30		Sept 30		Sept 30
	2005		2004		2005		2004
Sales information by product group is as follows:
Steel mill products	$	379,507	$	424,521	$	1,329,861	$	1,069,953
Tubular products	346,572		235,480		850,630		660,361
	$	726,079	$	660,001	$	2,180,491	$	1,730,314

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 OPERATIONS (unaudited)

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

		For the Nine Months ended September 30, 2005											For the Nine Months ended September 30, 2004
		U.S. GAAP				Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Plate and Coil Tons Produced (thousands)		2,434.5								2,434.5			2,431.7							2,431.7
Finished Tons Shipped (thousands)		2,507.1								2,507.1			2,665.4							2,665.4

Sales		$	2,180,491			(a)	$	(62,617	)	$	2,117,874		$	1,730,314		(a)	$	(57,268	)	$	1,673,046
Cost of sales
Manufacturing and raw material		1,397,685				(a)	(62,617		)	1,345,438			1,228,960			(a)	(57,268		)	1,182,515
						(b)	10,413									(b)	10,413
						(c)	(43		)							(c)	410
Depreciation of capital assets		59,991				(b)	(6,671		)	58,344			61,957			(b)	(6,675		)	57,933
						(c)	119									(d)	2,651
						(d)	4,905
		1,457,676					(53,894		)	1,403,782			1,290,917				(50,469		)	1,240,448
Gross income		722,815					(8,723		)	714,092			439,397				(6,799		)	432,598
Selling, general and administration		57,553								57,553			45,898							45,898
Operating income		665,262					(8,723		)	656,539			393,499				(6,799		)	386,700
Other expenses (income):
Interest on long-term debt		29,187				(b)	(6,564		)	22,623			42,147			(b)	(6,786		)	35,361
Net interest income		(10,479			)	(c)	5			(10,474		)	(1,800		)	(c)	3			(1,797			)
Foreign exchange gain		(19,233			)					(19,233		)	(6,189		)					(6,189			)
Gain on sale of assets held for sale		(1,863			)					(1,863		)	—							—
Other (income) expenses		81				(c)	(81		)	—			887			(c)	(413		)	—
																(h)	(474		)
Loss on early extinguishment of debt		10,939					—			10,939			—				—			—
Income before income taxes and cumulative effect of accounting change		656,630					(2,083		)	654,547			358,454				871			359,325
Income tax expense		240,982				(b)	1,016			240,232			116,882			(b)	930			117,133
						(d)	(1,766		)							(d)	(806		)
																(h)	127
Net income before cumulative effect of accounting change		415,648					(1,333		)	414,315			241,572				620			242,192
Cumulative effect of accounting change, net of taxes		—					—			—			14,250			(j)	(14,250		)	—
Net Income		$	415,648				$	(1,333	)	$	414,315		$	255,822			$	(13,630	)	$	242,192
Earnings Per Common Share	- Basic	$		8.52						$	8.49		$	5.32						$	5.04
	- Diluted	$	8.44							$	8.41		$	4.74						$		4.49
Denominator for Basic Earnings per Common Share (thousands)		48,786								48,786			48,065							48,065
Denominator for Diluted Earnings per Common Share (thousands)		49,256								49,256			55,413							55,413

(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 OPERATIONS (unaudited)

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

		For the Three Months ended September 30, 2005										For the Three Months ended September 30, 2004
		U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Plate and Coil Tons Produced (thousands)		759.3							759.3			826.7							826.7
Finished Tons Shipped (thousands)		847.8							847.8			844.1							844.1

Sales		$	726,079		(a)	$	(20,914	)	$	705,165		$	660,001		(a)	$	(18,138	)	$	641,863
Cost of sales
Manufacturing and raw material		481,303			(a)	(20,914		)	463,837			418,647			(a)	(18,138		)	403,874
					(b)	3,471									(b)	3,471
					(c)	(23		)							(c)	(106		)
Depreciation of capital assets		19,901			(b)	(2,224		)	19,431			20,566			(b)	(2,225		)	19,224
					(c)	119									(d)	883
					(d)	1,635
		501,204				(17,936		)	483,268			439,213				(16,115		)	423,098
Gross income		224,875				(2,978		)	221,897			220,788				(2,023		)	218,765
Selling, general and administration		23,075							23,075			14,942							14,942
Operating income		201,800				(2,978		)	198,822			205,846				(2,023		)	203,823
Other expenses (income):
Interest on long-term debt		8,784			(b)	(2,191		)	6,593			13,078			(b)	(2,262		)	10,816
Net interest income		(4,456		)	(c)	—			(4,456		)	(698		)	(c)	5			(693		)
Foreign exchange gain		(18,080		)		—			(18,080		)	(5,959		)		—			(5,959		)
Gain on sale of assets held for sale		(1,863		)		—			(1,863		)	—				—			—
Other (income) expenses		96			(c)	(96		)	—			158			(c)	101			—
															(h)	(259		)
Loss on early extinguishment of debt		690				—			690			—				—			—
Income before income taxes		216,629				(691		)	215,938			199,267				392			199,659
Income tax expense		82,602			(b)	340			82,353			55,070			(b)	310			55,182
					(d)	(589		)							(d)	(268		)
															(h)	70
Net Income		$	134,027			$	(442	)	$	133,585		$	144,197			$	280		$	144,477
Earnings Per Common Share	- Basic	$	2.81						$	2.80		$	2.98						$	2.99
	- Diluted	$	2.78						$	2.77		$	2.76						$	2.76
Denominator for Basic Earnings per Common Share (thousands)		47,764							47,764			48,364							48,364
Denominator for Diluted Earnings per Common Share (thousands)		48,162							48,162			52,801							52,801

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(thousands of United States Dollars)

	For the Nine Months ended September 30, 2005										For the Nine Months ended September 30, 2004
	U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Operating Activities
Net income	$	415,648			$	(1,333	)	$	414,315		$	255,822			$	(13,630	)	$	242,192
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation of capital assets	59,991				(1,647		)	58,344			61,957				(4,024		)	57,933
Amortization of deferred charges	1,284							1,284			953							953
Stock based compensation	3,281							3,281			661							661
Deferred income taxes	62,357			(b)	1,016			61,607			63,392			(b)	930			57,209
				(d)	(1,766		)							(d)	(807		)
														(h)	127
														(j)	(6,433		)
Gain on sale of assets held for sale	(1,863		)					(1,863		)	—							—
Unrealized foreign exchange gain	(20,653		)					(20,653		)	—							—
Loss on early extinguishment of debt	10,939							10,939			—							—
Changes in operating assets and liabilities
Accounts receivable	57,915			(c)	265			58,180			(98,627		)	(c)	(730		)	(99,357		)
Inventories	(24,831		)	(c)	4			(24,827		)	(89,717		)	(c)	(73		)	(89,790		)
Other current assets	4,391							4,391			116							116
Accounts payable and accrued charges	(39,132		)	(b)	28			(39,169		)	7,780			(b)	(194		)	32,491
				(c)	(65		)							(c)	323
														(h)	(474		)
														(j)	25,056
Change in deferred pension liability	(315		)					(315		)	(1,087		)					(1,087		)
Income and other taxes payable	21,155							21,155			36,753			(j)	(3,699		)	33,054
Net cash provided by operations	550,167				(3,498		)	546,669			238,003				(3,628		)	234,375
Investing Activities
Expenditures for capital assets, net of litigation settlement	(43,262		)	(c)	(101		)	(43,363		)	(21,532		)	(c)	(360		)	(21,892		)
Proceeds from sale of capital assets	1,546							1,546			—							—
Proceeds from (issuance of) mortgage receivable, net	3,782							3,782			(4,412		)					(4,412		)
Investments	194			(c)	(194		)	—			(753		)	(c)	753			—
Net cash used for investing activities	(37,740		)		(295		)	(38,035		)	(26,697		)		393			(26,304		)
Financing Activities
Common shares issued pursuant to share option plan	20,810							20,810			11,843							11,843
Common share dividends	(16,160		)					(16,160		)	(5,474		)					(5,474		)
Common share repurchase	(132,721		)					(132,721		)	—							—
Retirement of preferred shares	—							—			(108,996		)					(108,996		)
Repayment of long-term debt	(130,295		)	(b)	3,821			(126,474		)	(38,107		)	(b)	3,821			(34,286		)
Net cash (used for) provided by financing activities	(258,366		)		3,821			(254,545		)	(140,734		)		3,821			(136,913		)
Effect of exchange rate changes on cash and cash equivalents	4,248							4,248			(2,068		)	(j)	(674		)	(2,742		)
Increase (decrease) in Cash and Cash Equivalents	258,309				28			258,337			68,504				(88		)	68,416
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	$	613,083			$	331		$	613,414		$	199,863			$	120		$	199,983

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(thousands of United States Dollars)

	For the Three Months ended September 30, 2005										For the Three Months ended September 30, 2004
	U.S. GAAP			Ref	Amount			Canadian GAAP			U.S. GAAP			Ref	Amount			Canadian GAAP
Operating Activities
Net income	$	134,027			$	(442	)	$	133,585		$	144,197			$	280		$	144,477
Adjustments to reconcile net income to net cash flows
from operating activities
Depreciation of capital assets	19,901				(470		)	19,431			20,566				(1,342		)	19,224
Amortization of deferred charges	409							409			312							312
Stock based compensation	2,300							2,300			366							366
Deferred income taxes	17,935			(b)	340			17,686			12,649			(b)	310			12,760
				(d)	(589		)							(d)	(269		)
														(h)	70
Gain on sale of assets held for sale	(1,863		)					(1,863		)	—							—
Unrealized foreign exchange gain	(18,714		)					(18,714		)	—							—
Loss on early extinguishment of debt	690							690			—							—
Changes in operating assets and liabilities
Accounts receivable	(27,533		)	(c)	234			(27,299		)	(18,959		)	(c)	(372		)	(19,331		)
Inventories	29,674			(c)	(13		)	29,661			(72,390		)	(c)	(9		)	(72,399		)
Other current assets	249							249			78							78
Accounts payable and accrued charges	29,142			(b)	2,048			31,159			14,196			(b)	1,977			15,929
				(c)	(31		)							(c)	15
														(h)	(259		)
Change in deferred pension liability	(660		)					(660		)	(144		)					(144		)
Income and other taxes payable	33,521							33,521			22,536							22,536
Net cash provided by operations	219,078				1,077			220,155			123,407				401			123,808
Investing Activities
Expenditures for capital assets, net of litigation settlement	(21,091		)	(c)	(7		)	(21,098		)	(8,690		)	(c)	(26		)	(8,716		)
Proceeds from sale of capital assets	1,546							1,546			—							—
Proceeds from (issuance of) mortgage receivable, net	1,955							1,955			(278		)					(278		)
Investments	293			(c)	(293		)	—			(484		)	(c)	484			—
Net cash used for investing activities	(17,297		)		(300		)	(17,597		)	(9,452		)		458			(8,994		)
Financing Activities
Common shares issued pursuant to share option plan	4,387							4,387			7,821							7,821
Common share dividends	(5,706		)					(5,706		)	(1,894		)					(1,894		)
Common share repurchase	(11,564		)					(11,564		)	—							—
Repayment of long-term debt	(2,458		)	(b)	(768		)	(3,226		)	768			(b)	(768		)	—
Net cash (used for) provided by financing activities	(15,341		)		(768		)	(16,109		)	6,695				(768		)	5,927
Effect of exchange rate changes on cash and cash equivalents	2,742							2,742			(3,639		)					(3,639		)
Increase (decrease) in Cash and Cash Equivalents	189,182				9			189,191			117,011				91			117,102
Cash and Cash Equivalents at Beginning of Period	423,901			(c)	322			424,223			82,852			(c)	29			82,881
Cash and Cash Equivalents at End of Period	$	613,083			$	331		$	613,414		$	199,863			$	120		$	199,983

CONSOLIDATED BALANCE SHEETS (unaudited)

(thousands of United States Dollars)

	September 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	$	613,083		(c)	$	331		$	613,414	$	354,774		(c)	$	303		$	355,077
Accounts receivable, less allowances	299,739			(c)	50			286,568		339,821			(c)	315			338,590
				(h)	(13,221		)						(h)	(1,546		)
Inventories	468,864			(c)	86			468,950		434,436			(c)	90			434,526
Deferred income taxes	35,621							35,621		45,212							45,212
Other	3,864							3,864		8,212							8,212
	1,421,171				(12,754		)	1,408,417		1,182,455				(838		)	1,181,617
Non-Current Assets
Capital assets	1,055,334			(b)	(115,028		)	1,064,005		1,068,589			(b)	(121,699		)	1,075,512
				(c)	2,457								(c)	2,475
				(d)	(4,893		)						(d)	12
				(f)	13,902								(f)	13,902
				(g)	112,233								(g)	112,233
Other	37,448			(c)	(2,674		)	34,774		40,421			(c)	(2,661		)	37,760
	1,092,782				5,997			1,098,779		1,109,010				4,262			1,113,272
Total Assets	$	2,513,953			$	(6,757	)	$	2,507,196	$	2,291,465			$	3,424		$	2,294,889

Current Liabilities
Accounts payable and accrued charges	$	212,158		(b)	$	(7,867	)	$	204,541	$	247,281		(b)	$	(7,895	)	$	239,908
				(c)	250								(c)	522

Income and other taxes payable	114,450							114,450		90,656							90,656
Current portion of long-term debt	4,114			(b)	(4,114		)	—		18,107			(b)	(3,821		)	14,286
	330,722				(11,731		)	318,991		356,044				(11,194		)	344,850
Long-Term Liabilities
Long-term debt	409,386			(b)	(116,484		)	292,902		513,651			(b)	(120,598		)	393,053
Other	31,934			(i)	(31,934		)	—		31,934			(i)	(31,934		)	—
Deferred income taxes	164,884			(b)	4,892			223,149		103,979			(b)	3,876			167,348
				(d)	(2,170		)						(d)	(405		)
				(f)	5,172								(f)	5,172
				(g)	41,751								(g)	41,751
				(h)	(4,825		)						(h)	(470		)
				(i)	13,445								(i)	13,445
	606,204				(90,153		)	516,051		649,564				(89,163		)	560,401
Shareholders’ Equity
Common shares	419,016			(e)	(40,733		)	378,283		424,826			(e)	(40,733		)	384,093
Contributed surplus	3,086				—			3,086		1,489				—			1,489
Retained earnings	1,178,261			(b)	8,549			1,215,599		884,859			(b)	6,743			923,530
				(d)	(2,723		)						(d)	416
				(e)	(47,700		)						(e)	(47,700		)
				(f)	8,730								(f)	8,730
				(g)	70,482								(g)	70,482
Accumulated other comprehensive loss/	(23,336		)	(e)	88,433			75,186		(25,317		)	(e)	88,433			80,526
Cumulative translation adjustment				(h)	(8,396		)						(h)	(1,076		)
				(i)	18,485								(i)	18,486
	1,577,027				95,127			1,672,154		1,285,857				103,781			1,389,638
Total Liabilities and Shareholders’ Equity	$	2,513,953			$	(6,757	)	$	2,507,196	$	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 $5,786 at September 30, 2005 and for $54,034 at December 31, 2004.