Filed by USX Corporation
Pursuant to Rule 425 under the Securities Act of 1933
And deemed filed pursuant to Rule 14a-6
Of the Securities Exchange Act of 1934
Subject Company: USX Corporation
Commission File No. 333-69090
[Slide 1] - Trying Times for Steel and the Nation - Roy Dorrance - Chicago
Chapter, AISE - October 9, 2001
[Slide 2] - Terrorists' Attack
- Too Early to Fully Assess Total Impact on the Economy
- Consumer Confidence & Spending will Dip
- However: Damage was Still Very Small Part of Economy; Can't Under Estimate
Resilience of U.S.A.
[Slide 3] - Gross Domestic Product
- Bar chart showing percentage annual change (-4 to 8) for 1980 through 2005
- in 2001 and forward, showing Sept. 1 and Post Sept. 11
Forecast Source: DRI-WEFA
[Slide 4] - Short Term Outlook
- Line chart showing percentage GDP annualized for:
- Actuals (Four quarters of 2000 and first two quarters of 2001)
- March 1 (2nd, 3rd, and 4th quarter 2001 and four quarters of 2002)
- September 1 (3rd and 4th quarter 2001 and 4 quarters of 2002)
- Post 9/11 (3rd and 4th quarter 2001 and 4 quarters of 2002)
Forecast Source: DRI-WEFA
[Slide 5] - Current Steel Industry Recession
- Year-to-Date Shipments - 10% Behind Same Period a Year Ago
- Industry Capacity Utilization - Running Below 80%
- Steel Prices - Lowest Level of 20 Year Records
[Slide 6] - Durable Goods - New Orders
- Line chart - millions of dollars (180 to 250) shown monthly for January
through December 2000 and January through July 2001
[Slide 7] - Durable Goods - Total Inventories
- Line chart - millions of dollars (285 to 315) shown monthly for January
through December 2000 and January through July 2001
[Slide 8] - Production Index - N.A.P.M.
- Bar chart - Index (20 to 70) shown monthly for June through December 1999,
January through December 2000, and January through July 2001
[Slide 9] - Industrial Production
- Line chart - Index 100=1992; Range from 135 to 160
- Actuals shown for 4 quarters of 1999 and 2000 and 1st and 2nd quarter of
2001
- July Forecast shown for 2nd, 3rd, and 4th quarter 2001 and 4 quarters of
2002
- August Forecast shown for 3rd and 4th quarter 2001 and 4 quarters of 2002
- September Forecast shown for 3rd and 4th quarter 2001 and 4 quarters of
2002
Forecast Source: Blue Chip
[Slide 10] - Domestic Steel Prices at 20-Year Lows
Hot Roll Price Trend at 2nd Quarter 2001 Averaged $230/Ton
Source: Purchasing Magazine
[Slide 11] - Government Trade Initiatives - On June 5, 2001 the Bush
Administration Announced a Three Part Program to Address Steel Imports
- Negotiations with Foreign Governments to Eliminate Inefficient Excess
production
- Negotiations with Foreign Governments to Establish Rules That Will Govern
Future Trade
- Investigation by the ITC Under Section 201 of the Trade Act of 1974
[Slide 12] - U. S. Steel's Business Strategy
- Continuously Reduce Costs
- Focus on Higher Value-Added Products
- Pursue Strategic Initiatives to Enhance Competitive Advantage and Reduce
Operating Costs
- Globalization Initiatives
- Improve Balance Sheet Leverage
[Slide 13] - Value-Added Business Strategy
- Minimize Exposure in Highly Competitive, Commodity Markets
- Maximize Facility and Systems Capabilities - Focus Capital Spending;
Continuing Improvement in Costs; Efficiency is Imperative
[Slide 14] - Value-Added Business Strategy
- Key Customers are Global Companies
- Challenging Their Suppliers to be Global With Them - We Have Responded
[Slide 15] - Value-Added Business Strategy
- Increased Our Presence in Mexico - Stamping and Assembly Facilities Serve
North American Markets
[Slide 16] - Value-Added Business Strategy - Global Base in Europe
- U. S. Steel Kosice - Our Success in Mexico Can be Replicated in Europe;
Steel Consuming Plants Within 500 Miles Radius of Kosice
- Map showing U. S. Steel Kosice and customers within the 500 mile radius
[Slide 17] - Tin Products - Acquisition of LTV Tin Business
- Increased Market Share From 18% to 25%
- Restructuring Domestic Industry Through Closure of Aliquippa and Fairless
Plants
[Slide 18] - Value-Added Business Strategy - Enhanced Business Systems
- Continued Investments in Our Systems - Help Reduce Costs; Customers View
This as Leadership
[Slide 19] - Value-Added Business Strategy - Enhanced Business Systems
- OPEX - Order Processing Excellence
- EXTRANET - USS to Customer and Customer to USS
- SCM - Supply Chain Management
[Slide 20] - Value-Added Business Strategy - Enhanced Business Systems
- Downstream Integration - Leveraging IT Strength; Based on Core Competence;
Move Closer to End-Use Customers
- STRAIGHTLINE
[Slide 21] - Downstream Integration - Leveraging IT Strengths
- Straightline to Coil Suppliers - Purchase Orders, Payments, etc.
- Coil Suppliers to Straightline - ASN, Inventory, Order Status, Invoices,
etc.
- Coil Suppliers to Intra-Network Freight Providers
- Intra-Network Freight Providers to Straightline - Delivery Confirmation,
Invoices, etc.
- Intra-Network Freight Providers to Processors - ASN, etc.
- Processors to Straightline - Order Status, Processing Capacity, Inventory,
Invoices, etc.
- Straightline to Processors - Work Orders, Payments, etc.
- Processors to Last-Mile Freight Providers - Transportation Orders, etc.
- Last-Mile Freight Providers to Straightline - Delivery Confirmation,
Invoices, etc.
- Last-Mile Freight Providers to Customers
- Customers to Straightline - Inquiries, Orders, Payments, etc.
- Straightline to Customers - Quotes, Order Confirmation and Status,
Invoices, etc.
[Slide 22] - USX Corporate Structure - USX Corporation is made up of the U. S.
Steel Group and the Marathon Group
[Slide 23] - Conclusion
- Economy Has Taken a Shock
- Facing a Tough Market
- USS Remains Focused on Strategies - Global Perspective; Maximize Value-
Added Volume and Mix; Continuous Cost Improvements