##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Amendment No. 1 to Form 10-K on


Form 10-K/A


|  |  |                                                                                             
|- |  | --------------------------------------------------------------------------------------------
|þ |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
| 
|  |  | For the Fiscal Year Ended December 31, 2005                                                 
| 
|o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
| 
|  |  | For the transition period
    from           to                                             

Commission file number: 001-15423


Grant Prideco, Inc.


(Exact name of registrant as specified in its charter)


|                                                                                                       |  |                                                   
|------------------------------------------------------------------------------------------------------ |  | --------------------------------------------------
|Delaware(State or Other Jurisdiction
    of Incorporation or Organization)                             |  | 76-0312499(I.R.S. Employer
    Identification No.)
|                                                                                                      
|400 N. Sam Houston Pkwy. East
    Suite 900
    Houston, Texas(Address of Principal Executive Offices) |  | 77060(Zip Code)                                   

(281) 878-8000


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of
the Act:


|                                        |  |                                          
|--------------------------------------- |  | -----------------------------------------
|Title of Each Class                     |  | Name of Each Exchange On Which Registered
|                                        |  |                                          
|Common Stock, par value $0.01 per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


None


þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2


þ o o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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TABLE OF CONTENTS  PART IVITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULESSIGNATURESEXHIBIT INDEXConsent of KPMG - Wirschaftsprufungs - und Steuerberatungs GmbHCertification of Michael McShaneCertification of Matthew D. FitzgeraldSection 906 Certification    Table of Contents  Explanatory Note: Grant Prideco, Inc. (the Company) is filing Amendment No. 1 to its Annual Report on Form 10-K for
the year ended December 31, 2005 to include, pursuant to Rule 3-09 of Regulation S-X, audited
balance sheets as of March 31, 2006 and 2005 and income
statements for each of the years in the three-year period ended
March 31, 2006, and related notes, for voestalpine TUBULARS GmbH & Co KG (VAT), an unconsolidated Austrian
partnership of which the Company owns a 50.01% interest. Additionally, as VATs financial
statements are prepared on a basis of accounting other than US GAAP and if VAT meets a 30% significance test,
the financial statements are to include
a reconciliation to US GAAP in accordance with Rule 3-09(d) and Item 17 of Form 20-F. VAT met the 30%
significance test only for the year ended March 31,
2004, therefore a reconciliation has been prepared as of March 31, 2004 and for the year then ended and is
included in Note 5
to the financial statements. These financial statements and notes are included in Item 15(a) 2 
Financial Statement Schedules  and a consent of KPMG
Wirtschaftsprüfungs-und Steuerberatungs GmbH, independent auditors,
is included as Exhibit 23.3. Additionally, in connection with the filing of this amendment and pursuant to SEC rules, the
Company is including currently dated certifications. This amendment does not otherwise update any exhibits as originally
filed and does not otherwise reflect events occurring after the original filing date of the Annual
Report on Form 10-K for the year ended December 31, 2005. 
 PART IV 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a) The following documents are filed as a part of this report or
incorporated herein by reference: 1. Our consolidated financial statements are listed on page 34* of this
report. 2. Financial statement schedules 
Financial statements of voestalpine TUBULARS GmbH & Co KG**: Independent Auditors Report
    
    A-2Balance Sheet
    
    A-3Income Statements
    
    A-4Notes to Financial Statements
    
    A-5
 3. This item is amended to add the
following exhibits filed with this report: 23.3
    
    Consent of KPMG
Wirtschaftsprüfungs-und Steuerberatungs GmbH31.3
    
    Certification of Michael McShane31.4
    
    Certification of Matthew D. Fitzgerald32.2
    
    Section 906 Certification
 NOTE *: The
page number indicated is that under which
such information was filed as part of the Companys
Report on Form 10-K on March 7, 2006. Such information
is not being amended by this Report on Form 10-K/A. NOTE**: The amounts shown in the voestalpine TUBULARS GmbH &
Co KG financial statements are stated in Euros. At
March 31, 2006, each Euro equaled US $1.20760. 2




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##### Table of Contents



SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized. GRANT PRIDECO, INC. By: /s/ MICHAEL MCSHANE   Chief Executive Officer, President, and Chairman of the Board
 Date: September 28, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following individuals on behalf of the
registrant and in the capacities indicated. Signature
    
    Capacity In Which Signed
    
    Date/s/ MICHAEL MCSHANE
    
    Chief Executive Officer,President and Chairman of the
    
    September 28, 2006Michael McShane
    
    Board(Principal Executive Officer)/s/ MATTHEW D. FITZGERALD
    
    Senior Vice President andChief Financial OfficerMatthew D. Fitzgerald
    
    (Principal Financial Officer)
    
    September 28, 2006/s/ GREG L. BOANE
    
    Corporate Controller(Principal Accounting Officer)
    
    September 28, 2006Greg L. Boane
 3




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Voestalpine TUBULARS GmbH & Co KG
Financial Statements
March 31, 2006 A-1




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##### Table of Contents



Independent Auditors Report
 
    
   
 KPMG
Wirtschaftsprüfungs- und Steuerberatungs
GmbH
 /s/ Mag. Helmut Kerschbaumer /s/ Lieve Van Utterbeeck


A-2



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##### Table of Contents



voestalpine
Tubulars GmbH & Co KG  Balance Sheets as of March 31, 2006
and 2005
(Austrian GAAP - in EUR)
 Assets
 March 31, 2006
    
    
    March 31, 2005A. FIXED ASSETSI.   Intangible assets
    
    
    1,390,463
    
    
    
    1,804,328II.  Property, plant and equipment
    
    
    33,060,507
    
    
    
    33,455,505III. Financial assets
    
    
    5,022,340
    
    
    
    5,057,70539,473,310
    
    
    
    40,317,538B. CURRENT ASSETSI. Inventories1. Raw materials and supplies
    
    
    14,570,246
    
    
    
    15,808,8052. Unfinished goods
    
    
    15,788,150
    
    
    
    9,558,3723. Finished goods
    
    
    22,237,189
    
    
    
    12,030,80252,595,585
    
    
    
    37,397,979II. Receivables and other assets1. Accounts receivable from trade
    
    
    47,471,860
    
    
    
    33,131,2442. Receivables from affiliated and associated companies
    
    
    12,419,609
    
    
    
    688,4963. Other receivables and assets
    
    
    114,648,122
    
    
    
    19,748,952174,539,591
    
    
    
    53,568,692III. Cash and cash equivalents1. Cash in hand
    
    
    13,507
    
    
    
    11,1362. Cash at banks
    
    
    154,815
    
    
    
    2,230,633168,322
    
    
    
    2,241,769227,303,498
    
    
    
    93,208,440C. DEFERRED CHARGES1. Employee
stock participation program
    
    
    1,031,087
    
    
    
    1,291,5552. Other prepaid expenses
    
    
    588,797
    
    
    
    01,619,884
    
    
    
    1,291,555Total Assets
    
    
    268,396,692
    
    
    
    134,817,533
 Liabilities and
Partners Capital
 March 31, 2006
    
    
    March 31, 2005A. PARTNERS CAPITALI. Unlimited partners share
    
    
    1,817
    
    
    
    1,817II. Limited partners share1. Stipulated deposit
    
    
    17,986,526
    
    
    
    17,986,526III. Additional paid-in capital1. Not designated capital reserves
    
    
    477,294
    
    
    
    477,294IV. Retained earnings1. Other reserves
    
    
    28,894,047
    
    
    
    28,894,047V. Net profit
    
    
    139,613,756
    
    
    
    20,010,835thereof profit carried forward
    
    
    10,835
    
    
    
    6,019186,973,440
    
    
    
    67,370,519B. PROVISIONS1. Accrued post employment benefits
    
    
    14,980,284
    
    
    
    10,582,8592. Pensions liabilities
    
    
    727,096
    
    
    
    558,4623. Accrued anniversary bonuses
    
    
    3,610,569
    
    
    
    3,207,4704.  Accrued vacations
    
    
    2,898,456
    
    
    
    2,324,7795. Other provisions and accruals
    
    
    5,917,870
    
    
    
    7,458,52328,134,275
    
    
    
    24,132,093C. LIABILITIES1. ERP loans
    
    
    605,873
    
    
    
    1,817,0392.
Liabilities to banks
    
    
    921,595
    
    
    
    997,9803. Advance payments
    
    
    2,130,913
    
    
    
    3,238,9894. Accounts payable from trade
    
    
    37,728,098
    
    
    
    8,930,0205. Accounts payable to affiliated  and associated
companies
    
    
    98,043
    
    
    
    21,242,8076. Other liabilities
    
    
    11,310,392
    
    
    
    6,785,473thereof for taxes
    
    
    966,633
    
    
    
    614,588thereof social security contributions
    
    
    2,100,160
    
    
    
    1,038,70252,794,914
    
    
    
    43,012,308D.
DEFERRED CREDIT
    
    
    494,063
    
    
    
    302,613Total
Liabilities and  Partners Capital
    
    
    268,396,692
    
    
    
    134,817,533Contingent obligations
    
    
    2,009,098
    
    
    
    8,225,998
 A - 3




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voestalpine Tubulars GmbH & Co KG
INCOME STATEMENTS
(Austrian GAAP  in EUR)
 Year Ended March 31,2006
    

    2005


    20041.
    
    Salesa)   Sales in Austria
    
    
    48,248,791
    
    
    
    36,291,059
    
    
    
    25,350,086b)   Sales abroad
    
    
    449,946,711
    
    
    
    248,584,547
    
    
    
    171,456,064498,195,502
    
    
    
    284,875,606
    
    
    
    196,806,1502.
    
    Changes in unfinished and finished goods
    
    
    16,436,164
    
    
    
    9,138,219
    
    
    
    870,9093.
    
    Own work capitalised
    
    
    (135,432
    )
    
    
    96,139
    
    
    
    178,8204.
    
    Other operating income
    
    
    2,121,694
    
    
    
    2,886,922
    
    
    
    2,569,104a)   Gains from the disposals of
intangible and tangible fixed assets
    
    
    3,317
    
    
    
    833
    
    
    
    28,342b)   Income from the reversal of provisions
    
    
    1,134,046
    
    
    
    1,512,154
    
    
    
    1,740,212c)    Other
    
    
    984,331
    
    
    
    1,373,935
    
    
    
    800,5505.
    
    Cost of materials and services received
    
    
    (249,338,504
    )
    
    
    (174,978,011
    )
    
    
    (111,357,609
    )a)   Cost of materials
    
    
    237,918,212
    
    
    
    167,166,765
    
    
    
    104,488,714b)   Cost of services received for manufacturing
    
    
    11,420,292
    
    
    
    7,811,246
    
    
    
    6,868,8956.
    
    Personnel expenses
    
    
    (61,774,848
    )
    
    
    (52,121,843
    )
    
    
    (37,679,860
    )a)   Wages
    
    
    35,277,898
    
    
    
    29,537,484
    
    
    
    22,591,175b)   Salaries
    
    
    8,442,647
    
    
    
    7,869,680
    
    
    
    6,540,849c)   Expenses for post employment
benefits and contributions to special post employment funds
    
    
    4,129,688
    
    
    
    3,938,006
    
    
    
    (483,444
    )d)   Pension expense
    
    
    892,302
    
    
    
    214,151
    
    
    
    513,192e)   Expenses for statutory social
security and payroll related taxes and contributions
    
    
    12,911,865
    
    
    
    10,430,708
    
    
    
    8,375,120f)   Other social benefits
    
    
    120,448
    
    
    
    131,814
    
    
    
    142,9687.
    
    Amortization and depreciationa)   of intangible and tangible fixed assets
    
    
    (5,854,354
    )
    
    
    (5,718,702
    )
    
    
    (5,154,036
    )8.
    
    Other operating expenses
    
    
    (59,870,750
    )
    
    
    (43,230,934
    )
    
    
    (37,677,113
    )a)   Taxes, other than income taxes
    
    
    (474,037
    )
    
    
    1,585,269
    
    
    
    712,369b)   Other
    
    
    60,344,787
    
    
    
    41,645,665
    
    
    
    36,964,7449.
    
    Subtotal from line 1 to 8 (Earnings before interest and taxes)
    
    
    139,779,472
    
    
    
    20,947,396
    
    
    
    8,556,36510.
    
    Income from other long term securities and loans
    
    
    131,810
    
    
    
    143,772
    
    
    
    166,77611.
    
    Income from interest and similar income
    
    
    1,101,170
    
    
    
    380,976
    
    
    
    527,75412.
    
    Income from revaluation of financial assets
    
    
    46,007
    
    
    
    28,754
    
    
    
    46,00713.
    
    Interest and similar expenses
    
    
    (1,455,538
    )
    
    
    (1,496,082
    )
    
    
    (1,391,857
    )14.
    
    Subtotal from line 10 to 13 (Financial Earnings)
    
    
    (176,551
    )
    
    
    (942,580
    )
    
    
    (651,320
    )15.
    
    Net Income
    
    
    139,602,921
    
    
    
    20,004,816
    
    
    
    7,905,04516.
    
    Reversal of untaxed reservesa)   Investment allowance
    
    
    0
    
    
    
    178,361
    
    
    
    189,11517.
    
    Reversal of free retained earnings
    
    
    0
    
    
    
    0
    
    
    
    5,000,00018.
    
    Allocation to retained earningsa)   Other reserves
    
    
    0
    
    
    
    (178,361
    )
    
    
    (189,115
    )19.
    
    Profit carried forward
    
    
    10,835
    
    
    
    6,019
    
    
    
    97420.
    
    Net profit
    
    
    139,613,756
    
    
    
    20,010,835
    
    
    
    12,906,019
 A - 4




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 NOTES TO THE FINANCIAL STATEMENTS
 1. GENERAL INFORMATION
     2. ACCOUNTING PRINCIPLES
 2.1. Changes in accounting principles:
           A - 5




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 2.2. Detailed principles:
  a)
    
    Intangible fixed assets are stated at acquisition cost and are amortized by straight line
method over the useful economic life as follows:
 
 b)
    
    Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is
calculated on a straight line basis. The following rates were applied:
 
 In case of an impairment, intangible and tangible assets are written down to fair value.
Existence of an impairment is presumed if the fair value falls significantly below the carrying
value of an asset and recovery of such condition is not expected in the near future.Pursuant to section 13 of the Income Tax Act 1988, assets costing less than 400 EUR are fully
depreciated in the year of acquisition. In the table analysis of fixed assets (refer to
Attachment 1 to the notes) such assets are presented in the columns Additions, Disposals and
Depreciation of the period.c)
    
    Financial assetsInvestments are recorded at cost. In case of an impairment, investments are written down to
their fair value. Existence of an impairment is presumed if the fair value falls significantly
below the carrying value of an investment and recovery of such condition is not expected in the
near future.Marketable securities are recorded at the lower of
acquisition costs and market value on
the balance sheet date.Loans are stated at acquisition cost, less repayments.
   A - 6




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
          Year ended March 31,2006
    
    2005
    
2004Interest rate
    
    
    4.5
    %
    
    
    5.5
    %
    
    
    5.5
    %Salary increases
    
    
    3.0
    %
    
    
    3.0
    %
    
    
    3.0
    %Pension increases
    
    
    2.5
    %
    
    
    2.5
    %
    
    
    3.0
    %Retirement age  female employees
    
    max 60 years
    
    
    max 60 years
    
    
    max 60 yearsRetirement age  male employees
    
    max 65 years
    
    
    max 65 years
    
    
    max 65 years
    A - 7




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
           
  A - 8




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
   A - 9




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 3. NOTES TO THE BALANCE SHEET
 A S S E T S
 A. FIXED ASSETS
  I. Intangible assets
  II. Property, plant and equipment
  Land
    
    730.4 TEURLand unimproved
    
    4.6 TEUR
  III. Financial assets
   B. CURRENT ASSETS
 Inventories
  A - 10




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Accounts receivable and other assets
 The details with respect to maturity of the accounts receivable and other assets is presented
as follows:
 March 31, 2006
    
    March 31, 2005Residual term
    
    
    
    
    
    Residual termup to
    
    more than
    
    
    
    
    
    up to
    
    more thanTEUR
    
    Book value
    
    1 year
    
    1 year
    
    Book value
    
    1 year
    
    1 yearAccounts receivable from
trade
    
    
    47,472
    
    
    
    47,472
    
    
    
    0
    
    
    
    33,131
    
    
    
    33,131
    
    
    
    0Accounts receivable from
affiliated and associated companies
    
    
    12,420
    
    
    
    12,420
    
    
    
    0
    
    
    
    688
    
    
    
    688
    
    
    
    0Other receivables- financing
    
    
    107,072
    
    
    
    107,072
    
    
    
    0
    
    
    
    13,110
    
    
    
    13,110
    
    
    
    0- other
    
    
    7,576
    
    
    
    7,576
    
    
    
    0
    
    
    
    6,640
    
    
    
    6,640
    
    
    
    0Total other receivables
    
    
    114,648
    
    
    
    114,648
    
    
    
    0
    
    
    
    19,750
    
    
    
    19,750
    
    
    
    0TOTAL
    
    
    174,540
    
    
    
    174,540
    
    
    
    0
    
    
    
    53,569
    
    
    
    53,569
    
    
    
    0
  -financing
 -other
 A - 11




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 III.
    
    Disclosure of allowances for accounts receivable pursuant to the
requirement of section 226 (5) ACCReceivables are stated at face value. Individual valuation
allowances are provided for identifiable risks such as insolvency,
legal proceedings, etc.
  C. DEFERRED CHARGES
  LIABILITIES AND PARTNERS CAPITAL
 A. PARTNERS CAPITAL
  voestalpine Tubulars GmbH (unlimited partner)
    
    
    2 TEURvoestalpine
Bahnsysteme Vermögens verwaltungs GmbH (limited partner)
    
    
    8,991 TEURGrant Prideco European Holding LLC (limited partner)
    
    
    8,995 TEURTotal
    
    
    17,988 TEUR
 A - 12




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 B. PROVISIONS AND ACCRUALS
  March 31, 2006
    
    March 31, 2005Tax value
    
    
    
    
    
    Tax valueTEUR
    
    Book value
    
    (§14 ITA 1988)
    
    Book value
    
    (§14 ITA 1988)Accrued post
employment benefits
    
    
    14,980
    
    
    
    8,891
    
    
    
    10,583
    
    
    
    8,036Pensions
    
    
    727
    
    
    
    133
    
    
    
    558
    
    
    
    343Accrued anniversary bonuses
    
    
    3,611
    
    
    
    2,169
    
    
    
    3,207
    
    
    
    1,995Accrued
vacations
    
    
    2,898
    
    
    
    2,898
    
    
    
    2,325
    
    
    
    2,325Other
provisions and accruals
    
    
    5,918
    
    
    
    3,486
    
    
    
    7,459
    
    
    
    6,077TOTAL
    
    
    28,134
    
    
    
    17,577
    
    
    
    24,132
    
    
    
    18,776
  March 31, 2006
    
    March 31, 2005TEUR
    
    Book value
    
    Book valueAccrued commissions
    
    
    426
    
    
    
    697Provision for warranties
    
    
    3,181
    
    
    
    2,601Accrued personnel expense
    
    
    1,234
    
    
    
    3,091Others
    
    
    1,077
    
    
    
    1,070TOTAL
    
    
    5,918
    
    
    
    7,459
 A - 13




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voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 C. LIABILITIES
 The following table presents the maturity of liabilities:
 March 31, 2006
    
March 31, 2005Book
    
    Residual term in years
    
    Book
    
    Residual term in yearsvalue
    
    
    
    
    
    
    
    valueTEUR
    
    
    
    up to 1
    
    1 to 5
    
    more than 5
    
    
    
    up to 1
    
    1 to 5
    
    more than 5European
Recovery Program (ERP)Bank loans
    
    
    606
    
    
    
    606
    
    
    
    0
    
    
    
    0
    
    
    
    1,817
    
    
    
    1,211
    
    
    
    606
    
    
    
    0Liabilities to banks
    
    
    922
    
    
    
    6
    
    
    
    0
    
    
    
    916
    
    
    
    999
    
    
    
    1
    
    
    
    0
    
    
    
    998Advance payments
    
    
    2,131
    
    
    
    2,131
    
    
    
    0
    
    
    
    0
    
    
    
    3,239
    
    
    
    3,239
    
    
    
    0
    
    
    
    0Trade accounts payable- 3rd party
    
    
    37,728
    
    
    
    37,728
    
    
    
    0
    
    
    
    0
    
    
    
    8,930
    
    
    
    8,930
    
    
    
    0
    
    
    
    0Accounts payable
to affiliated and associated companies
    
    
    98
    
    
    
    98
    
    
    
    0
    
    
    
    0
    
    
    
    21,243
    
    
    
    21,243
    
    
    
    0
    
    
    
    0Other liabilities- financing
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    605
    
    
    
    605
    
    
    
    0
    
    
    
    0- other
    
    
    11,310
    
    
    
    11,310
    
    
    
    0
    
    
    
    0
    
    
    
    6,180
    
    
    
    6,180
    
    
    
    0
    
    
    
    0thereof for taxes
    
    
    967
    
    
    
    967
    
    
    
    0
    
    
    
    0
    
    
    
    615
    
    
    
    615
    
    
    
    0
    
    
    
    0thereof for social security
    
    
    2,100
    
    
    
    2,100
    
    
    
    0
    
    
    
    0
    
    
    
    1,039
    
    
    
    1,039
    
    
    
    0
    
    
    
    0Total other liabilities
    
    
    11,310
    
    
    
    11,310
    
    
    
    0
    
    
    
    0
    
    
    
    6,785
    
    
    
    6,785
    
    
    
    0
    
    
    
    0TOTAL
    
    
    52,795
    
    
    
    51,879
    
    
    
    0
    
    
    
    916
    
    
    
    43,012
    
    
    
    41,409
    
    
    
    606
    
    
    
    998
  in TEUR
    
    March 31, 2006
    
    March 31, 2005Wages and Salaries
    
    
    4,455
    
    
    
    1,493Taxes and dues
    
    
    967
    
    
    
    615Social security contributions
    
    
    2,100
    
    
    
    1,039Expense for early retirement plan
    
    
    907
    
    
    
    729Expense for paid absence and accrued Christmas
and vacation remunerations
    
    
    1,536
    
    
    
    1,341
 D.
DEFERRED CREDIT
  A - 14




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Contingent Obligations
  4. NOTES TO THE STATEMENT OF INCOME
 Sales
 Year Ended March 31,2006
    
    2005
    
    2004(TEUR)Sales  domestic
    
    
    48,249
    
    
    
    36,291
    
    
    
    25,350Sales  export
    
    
    449,947
    
    
    
    248,585
    
    
    
    171,456- thereof European Union
    
    
    91,502
    
    
    
    56,770
    
    
    
    19,068- thereof Other Europe
    
    
    6,052
    
    
    
    5,244
    
    
    
    2,334- thereof CIS
    
    
    65,679
    
    
    
    36,014
    
    
    
    40,762- thereof USA
    
    
    177,916
    
    
    
    105,926
    
    
    
    67,326- thereof Others
    
    
    157,047
    
    
    
    80,922
    
    
    
    67,316TOTAL
    
    
    498,196
    
    
    
    284,876
    
    
    
    196,806
   Year Ended March 31,2006
    
    2005
    
    2004TEURWarranty
expense
    
    
    565
    
    
    
    269
    
    
    
    526Other
expenses
    
    
    170
    
    
    
    971
    
    
    
    330Other
    
    
    399
    
    
    
    272
    
    
    
    884TOTAL
    
    
    1,134
    
    
    
    1,512
    
    
    
    1,740
 A - 15




---



##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Personnel expenses
  Year Ended March 31,2006
    
    2005
    
    2004Blue collar workers
    
    
    853
    
    
    
    727
    
    
    
    677White collar workers
    
    
    138
    
    
    
    134
    
    
    
    128TOTAL
    
    
    991
    
    
    
    861
    
    
    
    805Contracted
labor (blue collar workers)
    
    
    
    
    
    
    12
    
    
    
    25
  Year Ended March 31,2006
    
    2005
    
    2004Post
    
    
    
    
    
    Post
    
    
    
    
    
    Postemployment
    
    
    
    
    
    employment
    
    
    
    
    
    employmentTEUR
    
    benefits
    
    Pensions
    
    benefits
    
    Pensions
    
    benefits
    
    PensionsBoard Members and key
account managers
    
    
    224
    
    
    
    150
    
    
    
    203
    
    
    
    -109
    
    
    
    
    
    
    
    Other staff
    
    
    4,568
    
    
    
    773
    
    
    
    4,289
    
    
    
    352
    
    
    
    -332
    
    
    
    622Subtotal
    
    
    4,792
    
    
    
    923
    
    
    
    4,492
    
    
    
    243
    
    
    
    -332
    
    
    
    622- less interest component
    
    
    -662
    
    
    
    -30
    
    
    
    -554
    
    
    
    -29
    
    
    
    -151
    
    
    
    -109TOTAL
    
    
    4,130
    
    
    
    893
    
    
    
    3,938
    
    
    
    214
    
    
    
    -483
    
    
    
    513
   Financial results
  A - 16




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 Other information
   in TEUR
    
    Fair Value
    
    maturityForeign currency forward
transactions
    
    
    1,614
    
    
    < 1 year
  A - 17




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 5. NOTES TO THE RECONCILIATION OF THE FINANCIAL STATEMENTS FROM AUSTRIAN GAAP TO US-GAAP
AS OF MARCH 31, 2004 AND FOR THE YEAR THEN ENDED
   Year endedMarch 31, 2004(EUR)Net income in accordance with Austrian GAAP
    
    
    
    
    
    
    7,905,045Inventories
    
    
    a
    )
    
    
    233,482Pensions
    
    
    b
    )
    
    
    (270,332
    )Postemployment benefits
    
    
    c
    )
    
    
    (1,120,507
    )Anniversary bonuses
    
    
    d
    )
    
    
    (48,589
    )Provisions for losses on inventory
    
    
    e
    )
    
    
    149,113Unrealized gain/loss on available-for-sale securities
    
    
    g
    )
    
    
    (46,007
    )Net income in accordance with US-GAAP
    
    
    
    
    
    
    6,802,205As of March 31, 2004(EUR)Partners Capital in accordance with Austrian GAAP
    
    
    
    
    
    
    60,087,342Untaxed reserves
    
    
    h
    )
    
    
    178,36160,265,703Inventories
    
    
    a
    )
    
    
    1,476,401Pensions
    
    
    b
    )
    
    
    181,505Postemployment benefits
    
    
    c
    )
    
    
    (3,406,417
    )Anniversary bonuses
    
    
    d
    )
    
    
    (208,351
    )Financial Instruments
    
    
    f
    )
    
    
    (95,177
    )Partners Capital in accordance with US-GAAP
    
    
    
    
    
    
    58,213,664
 A - 18




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 
 
  a) Inventories
  b)
Provisions for defined benefit pension plan1)
 Defined benefit pension plan:
  A - 19




---



##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
    c)
Provisions for post employment benefits 1)
    d) Accrued anniversary bonuses 1)
     1)
    For differences arising from changes in accounting policy in
the financial statements according to Austrian GAAP refer to
Note 2.1. A - 20




---



##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 e) Inventories -Anticipated losses from firm purchase commitments
   f) Financial instruments
   
 g) Unrealized gain/loss on available for sale securities
  A - 21




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##### Table of Contents



voestalpine Tubulars GmbH & Co KG  Notes to the Financial Statements
 h) Untaxed reserves
  
 6.
Statements of Cash Flows (in accordance with International Accounting
Standard No. 7)
 
 For the year ended March 31,2006
    
    
    2005
    
    
    2004EUR
    
    
    EUR
    
    
    EURCash flows from operating activitiesNet income for the year
    
    
    139,602,921
    
    
    
    20,004,816
    
    
    
    7,905,045Adjustments to reconcile net income to net cash provided in operating activities:Loss/gain on sale of assets
    
    
    18,399
    
    
    
    (755
    )
    
    
    (28,342
    )Depreciation and Amortization
    
    
    5,854,354
    
    
    
    5,718,702
    
    
    
    5,154,036Revaluation of financial assets
    
    
    (46,007
    )
    
    
    (28,754
    )
    
    
    (46,007
    )Changes in current assets and liabilities:Accounts receivable
    
    
    (26,071,730
    )
    
    
    (29,843,044
    )
    
    
    4,135,616Inventories
    
    
    (15,197,606
    )
    
    
    (15,893,794
    )
    
    
    (1,145,665
    )Other current assets
    
    
    (936,435
    )
    
    
    (2,655,204
    )
    
    
    (432,185
    )Other assets
    
    
    (136,879
    )
    
    
    558,462
    
    
    
    261,364Advance payments
    
    
    (1,108,076
    )
    
    
    2,527,930
    
    
    
    (764,546
    )Accounts payable
    
    
    7,653,314
    
    
    
    12,410,591
    
    
    
    1,425,876Other current liabilities
    
    
    4,162,972
    
    
    
    5,387,463
    
    
    
    (1,160,768
    )Other long term liabilities
    
    
    4,969,158
    
    
    
    5,136,083
    
    
    
    (169,284
    )Cash provided by operating activities
    
    
    118,764,386
    
    
    
    3,322,494
    
    
    
    15,135,140Cash flows from investing activitiesSale of
assets  proceeds
    
    
    101,460
    
    
    
    755
    
    
    
    28,342Additions to property, plant and equipment, net
    
    
    (4,992,399
    )
    
    
    (893,912
    )
    
    
    (7,304,562
    )Additions to intangible assets
    
    
    (172,951
    )
    
    
    (574,182
    )
    
    
    (657,553
    )Decrease / increase in financial assets
    
    
    81,372
    
    
    
    (997,540
    )
    
    
    162Cash used in investing activities
    
    
    (4,982,518
    )
    
    
    (2,464,879
    )
    
    
    (7,933,611
    )Cash flows from financing activitiesDividends paid
    
    
    (20,000,000
    )
    
    
    (12,900,000
    )
    
    
    (23,330,000
    )Repayment of long-term debt
    
    
    (1,287,551
    )
    
    
    (247,332
    )
    
    
    (5,170,437
    )Repayment of other liabilities  financing
    
    
    (605,029
    )
    
    
    (1,331,063
    )
    
    
    (1,331,063
    )Cash used in financing activities
    
    
    (21,892,580
    )
    
    
    (14,478,395
    )
    
    
    (29,831,500
    )INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
    
    
    91,889,288
    
    
    
    (13,620,780
    )
    
    
    (22,629,970
    )voestalpine group treasury, beginning of year
    
    
    13,109,521
    
    
    
    28,873,360
    
    
    
    50,627,164Cash, beginning of year
    
    
    2,241,769
    
    
    
    98,710
    
    
    
    974,877voestalpine group treasury, end of year
    
    
    (107,072,255
    )
    
    
    (13,109,521
    )
    
    
    (28,873,361
    )Cash, end of year
    
    
    168,322
    
    
    
    2,241,769
    
    
    
    98,710
 7.
Statements of Partners Capital (Austrian GAAP)
 
 Unlimited partners'
    
    
    Limited partners'
    
    
    Additional
    
    
    Retained
    
    
    Netshare
    
    
    share
    
    
    paid-in capital
    
    
    earnings
    
    
    profit
    
    
    TOTALEUR
    
    
    EUR
    
    
    EUR
    
    
    EUR
    
    
    EUR
    
    
    EURBalance, March 31, 2003
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    33,526,570
    
    
    
    23,330,974
    
    
    
    75,323,181Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,905,045
    
    
    
    7,905,045Reversal of retained earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,000,000
    )
    
    
    5,000,000Dividends paid 2002/03
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23,330,000
    )
    
    
    (23,330,000
    )Allocation to retained earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    189,115
    
    
    
    
    
    
    
    189,115Balance, March 31, 2004
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,715,685
    
    
    
    12,906,019
    
    
    
    60,087,341Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20,004,816
    
    
    
    20,004,816Dividends paid 2003/04
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (12,900,000
    )
    
    
    (12,900,000
    )Allocation to retained earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    178,361
    
    
    
    
    
    
    
    178,361Balance, March 31, 2005
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,894,047
    
    
    
    20,010,835
    
    
    
    67,370,519Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    139,602,921
    
    
    
    139,602,921Dividends paid 2004/05
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (20,000,000
    )
    
    
    (20,000,000
    )Balance, March 31, 2006
    
    
    1,817
    
    
    
    17,986,526
    
    
    
    477,294
    
    
    
    28,894,047
    
    
    
    139,613,756
    
    
    
    186,973,440
 Dipl. Ing. Hubert WASTL
    
    Hilkka WITT
  A - 22




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##### Table of Contents



Attachment I voestalpine Tubulars GmbH & Co KG
    
    DEVELOPMENT OF FIXED ASSETS
 Purchase-/Production CostPosition on
    
    
    
    
    
    Reclassi-
    
    Position on
    
    Depreciation
    
    Revaluation
    
    Book Value
    
    Book Value
    
    DepreciationApril 1, 2005
    
    Additions
    
    Disposals
    
    fication
    
    March 31, 2006
    
    (cumulative)
    

for the period
    
    March 31, 2006
    
    March 31, 2005
    

for the periodEUR
    
    
    
    EUR
    
    
    
    EUR
    
    
    
    EUR
    
    
    EUR
    
    
    EUR
    
    
    
    EUR
    
    
    
    EUR
    
    
    
    EUR
    
    
    
    EURSoftware
    
    
    3,000,692
    
    
    
    97,285
    
    
    
    5,555
    
    
    
    
    
    
    
    3,092,422
    
    
    
    2,369,578
    
    
    
    
    
    
    
    722,845
    
    
    
    960,352
    
    
    
    334,792Energy easement
    
    
    1,924,487
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,924,487
    
    
    
    1,924,487
    
    
    
    
    
    
    
    
    
    
    
    Sourcing rights
    
    
    2,262,253
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,262,253
    
    
    
    1,894,058
    
    
    
    
    
    
    
    368,195
    
    
    
    620,219
    
    
    
    252,024Payments on account and software
not yet in use
    
    
    223,758
    
    
    
    75,666
    
    
    
    
    
    
    
    
    
    
    
    299,423
    
    
    
    
    
    
    
    
    
    
    
    299,423
    
    
    
    223,758
    
    
    
    Intangible Assets
    
    
    7,411,190
    
    
    
    172,951
    
    
    
    5,555
    
    
    
    
    
    
    
    7,578,586
    
    
    
    6,188,123
    
    
    
    
    
    
    
    1,390,463
    
    
    
    1,804,328
    
    
    
    586,816Built-up
land with residential buildingsValue of buildings with industrial and office buildings
    
    
    3,600
    
    
    
    
    
    
    
    3,600
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Property value
    
    
    730,615
    
    
    
    
    
    
    
    234
    
    
    
    
    
    
    
    730,381
    
    
    
    
    
    
    
    
    
    
    
    730,381
    
    
    
    730,615
    
    
    
    Value of buildings
    
    
    48,555,504
    
    
    
    1,211
    
    
    
    
    
    
    
    
    
    
    
    48,556,714
    
    
    
    42,421,845
    
    
    
    
    
    
    
    6,134,869
    
    
    
    6,937,470
    
    
    
    803,811Vacant land
    
    
    4,633
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,633
    
    
    
    
    
    
    
    
    
    
    
    4,633
    
    
    
    4,633
    
    
    
    Land
and buildings
    
    
    49,294,352
    
    
    
    1,211
    
    
    
    3,834
    
    
    
    
    
    
    
    49,291,728
    
    
    
    42,421,845
    
    
    
    
    
    
    
    6,869,883
    
    
    
    7,672,718
    
    
    
    803,811Machinery and equipment
    
    
    166,744,463
    
    
    
    1,557,364
    
    
    
    147,144
    
    
    
    354,984
    
    
    
    168,509,667
    
    
    
    146,833,865
    
    
    
    
    
    
    
    21,675,802
    
    
    
    23,120,954
    
    
    
    3,356,568Fixtures and fittings, tools
and equipment
    
    
    16,103,485
    
    
    
    1,056,214
    
    
    
    241,342
    
    
    
    32,729
    
    
    
    16,951,085
    
    
    
    14,813,874
    
    
    
    
    
    
    
    2,137,212
    
    
    
    2,155,620
    
    
    
    1,107,159Payments on account and tangible
assets in course of construction
    
    
    506,213
    
    
    
    2,377,610
    
    
    
    118,500
    
    
    
    (387,713
    )
    
    
    2,377,610
    
    
    
    
    
    
    
    
    
    
    
    2,377,610
    
    
    
    506,213
    
    
    
    Property, plant and equipment
    
    
    232,648,512
    
    
    
    4,992,399
    
    
    
    510,821
    
    
    
    
    
    
    
    237,130,091
    
    
    
    204,069,584
    
    
    
    
    
    
    
    33,060,507
    
    
    
    33,455,505
    
    
    
    5,267,538Investments
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    
    
    
    
    
    
    
    
    44
    
    
    
    44
    
    
    
    Loans receivable
    
    
    1,020,655
    
    
    
    
    
    
    
    104,487
    
    
    
    
    
    
    
    916,168
    
    
    
    
    
    
    
    
    
    
    
    916,168
    
    
    
    997,540
    
    
    
    Securities (loan stock rights) held
as fixed assets
    
    
    4,179,327
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,179,327
    
    
    
    119,206
    
    
    
    46,007
    
    
    
    4,106,128
    
    
    
    4,060,121
    
    
    
    Financial Assets
    
    
    5,200,027
    
    
    
    
    
    
    
    104,487
    
    
    
    
    
    
    
    5,095,540
    
    
    
    119,206
    
    
    
    46,007
    
    
    
    5,022,340
    
    
    
    5,057,705
    
    
    
    Total Assets
    
    
    245,259,729
    
    
    
    5,165,349
    
    
    
    620,862
    
    
    
    
    
    
    
    249,804,216
    
    
    
    210,376,913
    
    
    
    46,007
    
    
    
    39,473,310
    
    
    
    40,317,538
    
    
    
    5,854,354




---



##### Table of Contents



EXHIBIT INDEX Exhibit Number
    
    Description23.3
    
    Consent of KPMG Wirtschaftsprüfungs- und Steuerberatungs GmbH31.3
    
    Certification of Michael McShane31.4
    
    Certification of Matthew D. Fitzgerald32.2
    
    Section 906 Certification