(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, 2003

OR

[   ]

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 1-804

SEQUA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

13-1885030

(State or other jurisdiction of
incorporation or organization)

(IRS Employer Identification Number)

200 Park Avenue
New York, New York

10166

(Address of principal executive offices)

(Zip code)

(212) 986-5500

(Registrant's telephone number, including area code)

Yes

X

No

Yes

X

No

Class

Outstanding at October 31, 2003

Class A Common Stock, no par value

7,109,023

Class B Common Stock, no par value

3,329,772

For the Nine Months
Ended September 30,

For the Three Months
Ended September 30,

2003

2002 *

2003

2002 *

Sales

$

1,225,053

$

1,134,182

$

407,258

$

383,696

Costs and expenses

Cost of sales

1,022,335

944,029

334,254

315,678

Selling, general and administrative

159,721

155,966

53,637

53,962

1,182,056

1,099,995

387,891

369,640

Operating income

42,997

34,187

19,367

14,056

Other income (expense)

Interest expense

(50,292

)

(47,798

)

(17,970

)

(15,916

)

Interest income

1,749

2,455

355

790

Equity in income of
  unconsolidated joint ventures

7,802

976

2,094

1,091

Other, net

1,329

(231

)

44

(636

)

Income (loss) from continuing operations

before income taxes

3,585

(10,411

)

3,890

(615

)

Income tax (provision) benefit

(2,000

)

8,600

(2,200

)

1,300

Income (loss) from continuing operations

1,585

(1,811

)

1,690

685

Income (loss) from discontinued operations, net

of income taxes

5,465

(97,180

)

3,011

1,522

Income (loss) before the effect of a change

in accounting principle

7,050

(98,991

)

4,701

2,207

Effect of a change in accounting principle,

net of income taxes

-    

(12,965

)

-    

-    

Net income (loss)

7,050

(111,956

)

4,701

2,207

Preferred dividends

(1,548

)

(1,548

)

(516

)

(516

)

Net income (loss) available to common stock

$

5,502

$

(113,504

)

$

4,185

$

1,691

Basic and diluted income (loss) per share

Income (loss) from continuing operations

$

-  

$

(0.32

)

$

0.11

$

0.02

Income (loss) from discontinued operations

0.53

(9.34

)

0.29

0.14

Effect of a change in accounting principle

-  

(1.25

)

-  

-  

Net income (loss)

$

0.53

$

(10.91

)

$

0.40

$

0.16

Dividends declared per share

  Preferred

$

3.75

$

3.75

$

1.25

$

1.25

* See Notes 1 and 8 to the consolidated financial statements.

Sequa Corporation and Subsidiaries

Consolidated Balance Sheet

(Amounts in thousands)

ASSETS

(Unaudited)

September 30,

December 31,

2003

2002 *

Current assets

Cash and cash equivalents

$

118,638

$

138,814

Trade receivables (less allowances of $16,186
  and $15,483)

298,574

195,888

Inventories

397,801

372,141

Assets of discontinued operations

129,133

135,347

Deferred income taxes

56,891

56,785

Other current assets

34,844

36,206

  Total current assets

1,035,881

935,181

Investments

Investments and other receivables

95,555

66,434

Assets of discontinued operations

96,787

119,098

192,342

185,532

Property, plant and equipment, net

444,868

457,557

Other assets

Goodwill

147,630

146,298

Deferred income taxes

44,599

38,186

Deferred charges and other assets

29,668

29,831

221,897

214,315

Total assets

$

1,894,988

$

1,792,585

* See Notes 1 and 8 to the consolidated financial statements.

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,

2003

2002 *

Current liabilities

Current maturities of long-term debt

$

2,084

$

3,014

Accounts payable

157,603

138,771

Taxes on income

16,348

18,125

Liabilities of discontinued operations

28,303

33,220

Accrued expenses

166,308

191,525

  Total current liabilities

370,646

384,655

Noncurrent liabilities

Long-term debt

798,200

704,335

Liabilities of discontinued operations

9,073

34,803

Other noncurrent liabilities

190,638

168,943

997,911

908,081

Shareholders' equity

Preferred stock--$1 par value, 1,825,000
  shares authorized, 797,000 shares of $5
  cumulative convertible stock issued at
  September 30, 2003 and December 31, 2002
  (involuntary liquidation value--$17,181 at
  September 30, 2003)

797

797

Class A common stock--no par value, 50,000,000
  shares authorized, 7,321,000 shares issued at
  September 30, 2003 and December 31, 2002

7,321

7,321

Class B common stock--no par value, 10,000,000
  shares authorized, 3,727,000 shares issued at
  September 30, 2003 and December 31, 2002

3,727

3,727

Capital in excess of par value

290,043

290,216

Retained earnings

379,536

374,034

Accumulated other comprehensive loss

(77,102

)

(97,940

)

604,322

578,155

Less:  Cost of treasury stock

77,891

78,306

  Total shareholders' equity

526,431

499,849

Total liabilities and shareholders' equity

$

1,894,988

$

1,792,585

* See Notes 1 and 8 to the consolidated financial statements.

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,

2003

2002 *

Cash flows from operating activities:

Income (loss) from continuing operations before income taxes

$

3,585

$

(10,411

)

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

Depreciation and amortization

60,518

56,811

Provision for losses on receivables

2,980

1,667

Equity in income of unconsolidated joint ventures

(7,802

)

(976

)

Other items not providing cash

(5,138

)

(2,156

)

Changes in operating assets and liabilities:

Receivables

(17,399

)

9,748

Inventories

(19,137

)