425 1 r4251009.txt 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