(Mark one)

[X]

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended

September 30, 2002

OR

[   ]

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from__________ to__________

Delaware
(State or other jurisdiction of
incorporation or organization)

13-1885030
(IRS Employer Identification Number)

200 Park Avenue
New York, New York
(Address of principal executive offices)

10166
(Zip code)

Yes

X

No

Class

Outstanding at October 31, 2002

Class A Common Stock, no par value

7,102,539

Class B Common Stock, no par value

3,329,772

For the Nine Months
Ended September 30,

For the Three Months
Ended September 30,

2002

2001

2002

2001

Sales

$

1,235,622

$

1,326,101

$

422,993

$

447,374

Costs and expenses

Cost of sales

1,027,566

1,093,218

348,511

371,733

Selling, general and administrative

166,659

184,527

57,713

60,116

1,194,225

1,277,745

406,224

431,849

Operating income

41,397

48,356

16,769

15,525

Other income (expense)

Interest expense

(47,845

)

(47,302

)

(15,928

)

(16,032

)

Interest income

2,552

4,110

826

1,365

Equity in income (loss) of
  unconsolidated joint ventures

976

(973

)

1,090

(976

)

Other, net

328

(6,943

)

(650

)

(3,752

)

(Loss) income before income taxes

and the effect of a change

in accounting principle

(2,592

)

(2,752

)

2,107

(3,870

)

Income tax benefit

5,400

400

100

1,100

Tax settlement

-   

36,000

-   

-   

Net income (loss) before the effect

of a change in accounting principle

2,808

33,648

2,207

(2,770

)

Effect of a change in accounting principle,

net of income taxes

(114,764

)

-   

-   

-   

Net (loss) income

(111,956

)

33,648

2,207

(2,770

)

Preferred dividends

(1,548

)

(1,548

)

(516

)

(516

)

Net (loss) income available to common stock

$

(113,504

)

$

32,100

$

1,691

$

(3,286

)

Basic (loss) earnings per share

Income (loss) before the effect of a change
  in accounting principle

$

..12

$

3.09

$

..16

$

(.32

)

Effect of a change in accounting principle

(11.03

)

-   

-   

-   

Total

$

(10.91

)

$

3.09

$

.16

$

(.32

)

Diluted (loss) earnings per share

Income (loss) before the effect of a change
  in accounting principle

$

..12

$

3.08

$

..16

$

(.32

)

Effect of a change in accounting principle

(11.03

)

-   

-   

-   

Total

$

(10.91

)

$

3.08

$

.16

$

(.32

)

Dividends declared per share

  Preferred

$

3.75

$

3.75

$

1.25

$

1.25

Sequa Corporation and Subsidiaries

Consolidated Balance Sheet

(Amounts in thousands)

ASSETS

(Unaudited)

September 30,

December 31,

2002

2001

Current assets

Cash and cash equivalents

$

121,968

$

127,103

Trade receivables (less allowances of $14,677 and $13,529)

212,736

217,064

Unbilled receivables (less allowances
  of $422 and $1,510)

33,700

34,379

Inventories

384,236

375,602

Deferred income taxes

55,811

55,704

Other current assets

38,343

34,098

  Total current assets

846,794

843,950

Investments

Investments and other receivables

57,314

64,473

Assets of discontinued operations

134,672

138,090

191,986

202,563

Property, plant and equipment, net

490,892

488,383

Other assets

Excess of cost over net assets of
  companies acquired

177,480

298,231

Deferred charges and other assets

43,721

42,754

221,201

340,985

Total assets

$

1,750,873

$

1,875,881

The accompanying notes are an integral part of the financial statements.

Sequa Corporation and Subsidiaries

Consolidated Balance Sheet

(Amounts in thousands, except share data)

LIABILITIES AND SHAREHOLDERS' EQUITY

(Unaudited)

September 30,

December 31,

2002

2001

Current liabilities

Current maturities of long-term debt

$

6,746

$

2,659

Accounts payable

133,088

132,569

Taxes on income

19,227

18,079

Accrued expenses

199,756

195,887

  Total current liabilities

358,817

349,194

Noncurrent liabilities

Long-term debt

706,334

707,986

Deferred income taxes

2,664

24,277

Other noncurrent liabilities

126,108

149,962

835,106

882,225

Shareholders' equity

Preferred stock--$1 par value, 1,825,000
  shares authorized, 797,000 shares of $5
  cumulative convertible stock issued at
  September 30, 2002 and December 31, 2001
  (involuntary liquidation value--$17,181 at
  September 30, 2002)

797

797

Class A common stock--no par value, 50,000,000
  shares authorized, 7,321,000 shares issued at
  September 30, 2002 and 7,284,000 shares issued at
  December 31, 2001

7,321

7,284

Class B common stock--no par value, 10,000,000
  shares authorized, 3,727,000 shares issued at
  September 30, 2002 and December 31, 2001

3,727

3,727

Capital in excess of par value

290,155

288,179

Retained earnings

379,135

492,640

Accumulated other comprehensive loss

(45,801

)

(69,503

)

635,334

723,124

Less:  Cost of treasury stock

78,384

78,662

  Total shareholders' equity

556,950

644,462

Total liabilities and shareholders' equity

$

1,750,873

$

1,875,881

The accompanying notes are an integral part of the financial statements.

Sequa Corporation and Subsidiaries

Consolidated Statement of Cash Flows

(Amounts in thousands)

(Unaudited)

For the Nine Months
Ended September 30,

2002

2001

Cash flows from operating activities:

(Loss) income before income taxes and the effect of a
  non-cash change in accounting principle

$

(2,592

)

$

(2,752

)

Adjustments to reconcile (loss) income to net cash
  provided by operating activities:

Depreciation and amortization

62,440

71,103

Provision for losses on receivables

2,268

3,755

Equity in (income) loss of unconsolidated joint ventures

(976

)

973

Gain on sale of business

(1,111

)

(4,250

)

Gain on sale of assets

(342

)

(127

)

Other items not (providing) requiring cash

(2,862

)

4,721

Changes in operating assets and liabilities, net of businesses
   purchased and sold:

Receivables

5,291

40,872

Inventories

5,709