(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, 2004

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 29, 2004

Class A Common Stock, no par value

7,150,460

Class B Common Stock, no par value

3,329,772

For the Nine Months
Ended September 30,

For the Three Months
Ended September 30,

2004

2003 *

2004

2003 *

Sales

$

1,417,079

$

1,196,170

$

493,068

$

396,688

Costs and expenses

Cost of sales

1,162,143

997,671

399,492

325,148

Selling, general and administrative

188,640

158,540

66,428

53,188

1,350,783

1,156,211

465,920

378,336

Operating income

66,296

39,959

27,148

18,352

Other income (expense)

Interest expense

(53,904

)

(50,292

)

(18,059

)

(17,969

)

Interest income

2,843

1,749

1,093

354

Equity in income of
  unconsolidated joint ventures

5,874

7,802

2,256

2,095

Other, net

(5,502

)

1,329

(1,774

)

43

Income from continuing operations

before income taxes

15,607

547

10,664

2,875

Income tax provision

(3,600

)

-   

(2,100

)

(900

)

Income from continuing operations

12,007

547

8,564

1,975

Income (loss) from discontinued operations,

net of income taxes

3,113

6,503

(272

)

2,726

Net income

15,120

7,050

8,292

4,701

Preferred dividends

(1,548

)

(1,548

)

(516

)

(516

)

Net income available to common
    stock

$

13,572

$

5,502

$

7,776

$

4,185

Basic and diluted income per share

Income (loss) from continuing operations

$

1.00

$

(0.10

)

$

0.77

$

0.14

Income (loss) from discontinued operations

0.30

0.62

(0.03

)

0.26

Net income

$

1.30

$

0.52

$

0.74

$

0.40

Dividends declared per share

  Preferred

$

3.75

$

3.75

$

1.25

$

1.25

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

*See Notes 1 and 9 to the consolidated financial statements.

Sequa Corporation and Subsidiaries

Consolidated Balance Sheet

(Amounts in thousands)

ASSETS

(Unaudited)

September 30,

December 31,

2004

2003*

Current assets

Cash and cash equivalents

$

144,903

$

184,293

Trade receivables (less allowances of $11,643
   and $15,321 as of September 30, 2004 and    December 31, 2003, respectively)

380,530

315,210

Inventories

428,854

379,168

Assets of discontinued operations

12,422

50,903

Deferred income taxes

50,344

50,071

Other current assets

36,038

37,579

  Total current assets

1,053,091

1,017,224

Investments

Investments and other receivables

104,746

90,552

Assets of discontinued operations

69,449

76,751

174,195

167,303

Property, plant and equipment, net

434,203

449,909

Other assets

Goodwill

145,640

145,566

Deferred income taxes

21,788

15,097

Deferred charges and other assets

91,597

97,225

259,025

257,888

Total assets

$

1,920,514

$

1,892,324

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

*See Notes 1 and 9 to the consolidated financial statements.

Sequa Corporation and Subsidiaries

Consolidated Balance Sheet

(Amounts in thousands, except share data)

LIABILITIES AND SHAREHOLDERS' EQUITY

(Unaudited)

September 30,

December 31,

2004

2003*

Current liabilities

Current maturities of long-term debt

$

474

$

2,508

Accounts payable

191,907

167,190

Taxes on income

21,063

21,363

Liabilities of discontinued operations

-   

8,782

Accrued expenses

167,657

167,992

  Total current liabilities

381,101

367,835

Noncurrent liabilities

Long-term debt

798,113

798,166

Liabilities of discontinued operations

1,681

1,787

Other noncurrent liabilities

128,050

126,445

927,844

926,398

Shareholders' equity

Preferred stock--$1 par value, 1,825,000
  shares authorized, 797,000 shares of $5
  cumulative convertible stock issued at
  September 30, 2004 and December 31, 2003
  (involuntary liquidation value--$17,181 at
  September 30, 2004)

797

797

Class A common stock--no par value, 50,000,000
  shares authorized, 7,349,000 shares issued at
  September 30, 2004 and 7,321,000 shares issued at
  December 31, 2003

7,349

7,321

Class B common stock--no par value, 10,000,000
  shares authorized, 3,727,000 shares issued at
  September 30, 2004 and December 31, 2003

3,727

3,727

Capital in excess of par value

291,139

290,043

Retained earnings

396,980

383,408

Accumulated other comprehensive loss

(10,944

)

(9,398

)

689,048

675,898

Less:  Cost of treasury stock

77,479

77,807

  Total shareholders' equity

611,569

598,091

Total liabilities and shareholders' equity

$

1,920,514

$

1,892,324

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

*See Notes 1 and 9 to the consolidated financial statements.

Sequa Corporation and Subsidiaries

Consolidated Statement of Cash Flows

(Amounts in thousands)

(Unaudited)

For the Nine Months
Ended September 30,

2004

2003*

Cash flows from operating activities:

Income from continuing operations before income taxes

$

15,607

$

547

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

Depreciation and amortization

65,755

58,945

Provision for losses on receivables

(413

)

2,850

Equity in income of unconsolidated joint ventures

(5,874

)

(7,802

)

Other items not providing cash

1,840

(5,138

)

Changes in operating assets and liabilities:

Receivables

(64,655

)

(16,948

)

Inventories

(49,371

)

(18,142

)

Other current assets

(111

)

2,768

Accounts payable and accrued expenses

22,549

(14,378

)

Other noncurrent liabilities

(612

)

5,809

Net cash (used for) provided by continuing operations before
  income taxes

(15,285

)

8,511

Net cash provided by discontinued
  operations before income taxes

9,950

11,800

Income taxes paid, net

(14,109

)

(11,371

)

Net cash (used for) provided by operating activities

(19,444

)

8,940