Filed by USX Corporation
Pursuant to Rule 425 under the Securities Act of 1933
And deemed filed pursuant to Rule 14a-12
Of the Securities Exchange Act of 1934
Subject Company: USX Corporation
Commission File No. 1-5153
[Slide 1] - United State Steel - Sheet Products - J. Paul Kadlic
[Slide 2] - Current Industry Recession - 1. Year-to-date shipments - 13% behind
same period a year ago; 2. Industry Capacity Utilization - running below 80%; 3.
Steel prices - lowest level of 20 year records
[Slide 3] - Area of Focus - Volume, Cost, Price
[Slide 4] - Value-Added Business Strategy - 1. Minimize exposure in highly
competitive, commodity markets; 2. Maximize facility and systems capabilities -
focus capital spending, continuing improvement in costs, efficiency is
imperative
[Slide 5] - Value-Added Business Strategy - Commercial Department - 1.
Automotive; 2. Appliance, Tubular, Drums; 3. Steel Framing, Steel Roofing; 4.
Agricultural equipment, mining equipment, electrical, service centers
[Slide 6] - Value-Added Business Strategy - Commercial Department - 1.
Automotive; 2. Appliance, Tubular, Drums; 3. Steel Framing, Steel Roofing; 4.
Agricultural equipment, mining equipment, electrical, service centers -
Strategies developed by multi-functional teams - sales, planning, marketing,
engineering, operating, logistics, metallurgy - To address the needs of each
industry
[Slide 7] - Value-Added Business Strategy
2000 Domestic Steel Shipments by Markets
- 22% Service Centers
- 16% Processing Joint Ventures
- 14% Transportation
- 11% Converters
- 9% Construction
- 9% Oil, Gas & Petrochemicals
- 8% Other
- 6% Containers
- 5% Export
[Slide 8] - Value-Added Business Strategy - Commercial Department -
1.Automotive; 2.Appliance, Tubular, Drums; 3.Steel Framing, Steel Roofing;
4.Agricultural equipment, mining equipment, electrical, service centers - Market
Teams - formulate business strategies for a common focus and give direction to
capital spending
[Slide 9] - Value-Added Business Strategy - Automotive Investments - 1.Upgrading
Fairless Galvanizing Line; 2.Expansion of Pro-Tec Joint Venture - annual
capacity 1 MMT, total sales responsibility; 3.Automotive Center in Michigan -
formability research of high strength steels
[Slide 10] - Value-Added Business Strategy - USS Automotive - 1.Impressive
quality success; 2.A leader in this area; 3.Advanced high strength steels - 28
new grades, 16 currently under development
[Slide 11] - Value-Added Business Strategy - USS Automotive Shipments - bar
chart showing 000 tons for 1998, 1999, and 2000
[Slide 12] - Value-Added Business Strategy - 1.Key Customers are Global
Companies; 2. Challenging their suppliers to be global with them - we have
responded
[Slide 13] - Value-Added Business Strategy - 1.Increased our presence in Mexico
- stamping and assembly facilities serve North American markets
[Slide 14] - Value-Added Business Strategy - Growth in Mexico - Acero Prime -
Joint Venture with Ferralloy Corporation and Intacero de Mexico - high quality
slitting, packaging, logistical support
[Slide 15] - Value-Added Business Strategy - Acero Prime Location - Map of
Mexico showing a triangle between Monterrey, Silao, and Mexico City with San
Luis Potosi in the middle (location of Acero Prime)
[Slide 16] - Value-Added Business Strategy - Acero Prime Expansion - Major
Construction 60,000 Sq Ft - Doubling Facility Size & Warehouse Capability -
Second slitting line, automatic packaging machine
[Slide 17] - Value-Added Business Strategy - Acero Prime Expansion - Additional
70,000 Square Foot Facility Constructed in Ramos Arizpe - dedicated to storing
and managing coil inventories, expect further expansion
[Slide 18] - 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
[Slide 19] - Value-Added Business Strategy - Global Base in Europe - U. S. Steel
Kosice - Introduced to North American headquartered companies, present customers
seek increased participation
[Slide 20] - Value-Added Business Strategy - Global Base in Europe - For the
Automotive Industry - extensive trials & quality systems qualifications are
required, process has begun with major auto companies
[Slide 21] - Value-Added Business Strategy - Enhanced Business Systems -
Continued investment in our systems - help reduce costs, customers view this as
leadership
[Slide 22] - Value-Added Business Strategy - Enhanced Business Systems - OPEX -
Order Processing Excellence - Increase production efficiency, improves customer
service
[Slide 23] - Value-Added Business Strategy - Enhanced Business Systems - OPEX -
Order Processing Excellence - EXTRANET - Between USS and Customer - customers
electronically interface, more accurate real-time information
[Slide 24] - Value-Added Business Strategy - Enhanced Business Systems - OPEX -
Order Processing Excellence - EXTRANET - Between USS and Customer - SCM - Supply
Chain Management - reduces steel products inventory
[Slide 25] - Value-Added Business Strategy - Enhanced Business Systems - Supply
Chain Management - Pro-tec has reduced coated inventory (50,000 MNT since
January), major service center customer (reduced 43% inventory this year)
[Slide 26] - Value-Added Business Strategy - Enhanced Business Systems - bar
chart showing SCM bookings in tons for 2H 1999, 1H 2000, remaining months of
2000, and January through August 2001
[Slide 27] - Value-Added Business Strategy - Continuous Cost Reduction -
Increasing our reliability and flexibility - right product each and every time,
responding to customer's needs
[Slide 28] - Value-Added Business Strategy - Continuous Cost Reduction - Problem
Solving Teams - root causes, corrective actions, continuous improvement programs
[Slide 29] - Value-Added Business Strategy - Automotive Rejections - graph
showing PPM performance for 1998, 1999, 2000, and 1st half 2001 decreasing
[Slide 30] - Value-Added Business Strategy - Continuous Improvement - We have
identified $30/ton of cost reductions and increased efficiencies in our U. S.
operations over the next three years.
Table showing Selective Initiative and Expected $/ton impact
Improved Productivity & Process Improvements $10
Improved Cost of Quality & Material Yields $6
Reduced Purchased Products & Services $5
Energy Conservation $3
Labor & Staffing Efficiencies $3
Reduced Property Taxes & Royalties $3
Total $30
Over $300 Million in Annual Operating Cost Savings
[Slide 31] - Value-Added Business Strategy - Continuous Improvement - Cost
Improvement Programs - enhanced productivity, improve quality, reduce energy and
materials
[Slide 32] - Value-Added Business Strategy - Continuous Improvement -
1.Fairfield Blast Furnace - coal injection, reduce material and oxygen costs;
2.Gary and Mon Valley's Hot Strip Mills - hot charge slabs, reduce fuel usage
[Slide 33] - Value-Added Business Strategy - Natural Gas - Avg. Price - $/mmbtu
for 1999, 1Q 2000, 2Q 2000, 3Q 2000, 4Q 2000, 1Q 2001, and 2Q 2001 - Source:
NYMEX
[Slide 34] - Value-Added Business Strategy - Continuous Improvement - 1.Extreme
Gas Price Hikes - reduce usage of natural gas by 25% (increased efficiencies in
our burners, reduced waste, replacing with coke oven gas), expect further
improvements
[Slide 35] - Value-Added Business Strategy - Continuous Improvement -
1.Implement more computer based inspection systems - APEX quality program,
automation, detect and correct quality more expeditiously, enhances service
[Slide 36] - Value-Added Business Strategy - Capital Spending - 1.Projects
already in place - assets in Mexico, assets in Kosice, expansion of Pro-tec
galvanizing facility, automotive center in Detroit
[Slide 37] - Value-Added Business Strategy - Capital Spending - 1.Current
capital maintenance projects - rebuilding Gary's No. 2 stove at No. 6 Blast
Furnace, reline Mon Valley's No. 3 Blast Furnace - To increase our
competitiveness
[Slide 38] - Conclusion - Managing through 2001 - 1.Facing a tough market;
2.Remaining focused on strategies (maximize value-added volume and mix,
continuous cost improvements)
[Slide 39] - Pictures of mill workers