U. S. Steel Corrects Erroneous Dow Jones Pension Fund Article
In light of erroneous news reports resulting from a Dow Jones News article, United States Steel Corporation (NYSE: X) reemphasized today certain disclosures from its recently filed 10-Q for the second quarter of 2002. Due to the sharp decline in the value of the equity holdings of the company's major pension trusts, the December 31, 2002 market value of the assets in the U. S. Steel pension plan for union employees could be lower than previously anticipated and may be lower than the accumulated benefit obligation (ABO) by a broadly estimated amount of $400 million based on current asset values. U. S. Steel also disclosed that it does not currently anticipate any required cash contributions to its major pension plans during 2002 or 2003, even in light of recent equity market declines.
U. S. Steel also disclosed that it may record a charge against equity of up to $700 million at the end of the year as part of the adjustments necessary to recognize the minimum liabilities as required under current accounting rules. U. S. Steel emphasizes that the $700 million would be a balance sheet adjustment only and would not affect income.
The actual return on plan assets during the second half of 2002 could materially affect the company's current estimates and could make the charge to equity unnecessary. The next measurement date of the pension plan's assets is December 1, 2002.
SOURCE: United States Steel Corporation
CONTACT: Mike Dixon, +1-412-433-6860, or John Armstrong,
Web site: http://www.ussteel.com/
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