inMotion MAR 05 LatestReleased P 536525

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From the Desk of Jim Baber Dear Colleagues, It’s hard to believe the 2nd Quarter of Fiscal ’05 is almost over. I guess it’s true... “Busy bodies build strong minds and makes time fly.” I am happy to report ThyssenKrupp Materials NA companies are having a good year. But more importantly, all companies are taking advantage of the good economy and are using LEAN tactics to build a strong company base. Copper and Brass Sales is aggressively pursuing acquisitions (most recently Slitco in Chicago-and other individual sites in Austin and Houston, Texas). Ken-Mac reports success in their new Macon, GA facility. Our good friend Nick Tolerico from TK Steel Services reports business is growing rapidly, and in every new move he takes TKX Logistics with him. (Thanks, Nick!) Juergen Funke and the TMX Aerospace team are helping with the TK AG aerospace division in South America, and AIN Plastics appears to be turning the corner and will soon report positive results. As for us at TKX Logistics -we need to continue to do the things we do right, we need to stop doing the things we do wrong, and we need to pray every day that we know the difference. This quarterly edition of in Motion reveals a lot of the great things happening in TKX. I hope you enjoy reading it. I also want to point out that Safety must always remain first and foremost in our operation. We continue to experience a high degree of incidents which hurts in more ways than one. I believe you realize by now I have a great amount of respect for each of you, and together we will build a great company. With that said, I would like to share this story: The great architect Sir Christopher Wren designed and built the beautiful Cathedral in London, England. One day while visiting the job site, Sir Christopher asked a young man carrying bricks how he was doing. The young man responded by saying his back ached, his hands hurt and it was the worst job he ever had. Sir Christopher walked up to another man laying bricks and asked the same question. This man responded that he, his brothers and his father all worked at the site and that it was the best pay they had ever received. Sir Christopher walked up to a third man cutting marble and repeated his previous question. The man jumped up and said, “I’m doing great!” A startled Sir Christopher asked another question this time, “What are you doing?” The man responded, “I’m helping Sir Christopher Wren build a beautiful cathedral!” I hope if you are ever asked how you are doing at TKX, you can respond like the marble cutter. Peace, New Co-workers: ThyssenKrupp Logistics, Inc. March 2005 03/21/05 Warehouse - Days Mercurio, Neil 02/03/05 Driver - OTR-Chicago Doerr, Carl 03/28/05 Driver - OTR Conners, James 02/14/05 Local Driver - Chicago Pemberton, Bruce 01/10/05 Warehouse - Leadman Pauken, Mark 03/07/05 Local Driver - Chicago Mitchell, Vincent 03/14/05 Local Driver-Mt. Vernon Harris, Guy 02/01/05 Warehouse - Driver Griss, Don 01/19/05 Driver - OTR Ferrell, James 02/16/05 Driver - OTR Adams, Larry Hire Date Position Name AIW Activity 2005 During the months of February and March, TKX was both host and participant at 4 separate AIW’s. The focus during both weeks of activity was centered on TKX-TK Steel Services Trading operations and covered such topics as: Invoicing, Improving Communication, Brokerage Productivity, and Trading Standardization. Representatives from TKSS-Trading included: Paul Cottrell, Jutta Kohl, Christiane Stuart, Andrew Blair and Judy Carter. Joining them were representatives from Human Resources, Corporate Finance, Information Management, Copper and Brass Sales, and our very own TKX employees. February AIW Two teams of LEAN champions worked toward a goal of increased efficiency, decreased errors, and standardized information between groups.  Great strides were made in simplifying the invoicing and communication between TKX -continued on Page 3 TKX/Trading Invoicing Team Improving Communication Team and the Trading Group. The end result will be a quicker and more accurate billing system. By combining and also centralizing the information that TKX and the Trading Group use for freight shipments, errors and processing delays will be minimized. With only 3 weeks to go, the TKX Bowling Crew remain tied for 3rd Place in their first season of the Arrowhead Park Bowling League. -Knock ‘em down, Crew!! Hey! Look at this recent TKX freight move! Yep, anything that can ship on a truck probably does. Recently, 3 Mini-Coopers were moved on one trailer. These popular cars were headed for a Red Bull Energy Drink promotion on the East Coast. Mini-Mini-Mini Freight 02/04/05 Driver - OTR Wood, Don

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TKX-TK Elevator Partnership Grows Smooth acceleration, fine cornering, and quick braking define any great automobile. They can also be used to describe a successfully growing automobile fleet. In only 2 full years of existence, the TKX Logistics Leased Auto Fleet has grown from 250 autos to 700 leased vehicles for 30 different ThyssenKrupp USA companies. With a fleet of autos, vans, pickups and SUV’s from each of the “Big Three” auto manufacturers, TKX is reducing cost and increasing service to ThyssenKrupp companies of all sizes across the US and Canada. Ardene Reilly, TKX Auto Fleet Director, oversees all vehicle leasing, maintenance, and customer service. Newly-appointed Auto Fleet Supervisor, Darrin McCormick, along with Benjamin Tabarez , Fleet Safety Supervisor, and Noel Baber round out the TKX team that handles all monthly billing, vehicle registrations, plate renewals, fuel cards and clerical duty for the expanding fleet. TK USA has been a beneficiary of TKX services and has recommended that all TK USA companies look to TKX for their Leased Auto Fleet needs. In recent weeks, the TKMNA I.M. Department has completed several new projects that will assist with Fleet operations. The TKMNA Intranet site has been updated with links to allow simplified ordering of new autos by company management. Pictured at right are some of the vehicles available in the 2005 TKMNA Auto Fleet. This list is reviewed each year and approved by the TKMNA Executive Board. One recent Safety improvement was implemented for all new vehicle orders. Side-Impact Airbags will now be “standard fare” for all Fleet autos purchased for TKMNA drivers. This important Safety feature will potentially save lives in the event necessary. With hundreds of Sales, Management and Executive drivers on the road, these airbags are just one more way to keep our best corporate resource, our employees, on the road to success. Close-up of Moffitt lift truck transported for unloading As the Purchasing Synergies Manager for ThyssenKrupp USA, Michele Reynolds is always looking for ways to combine the purchasing power of over 70 ThyssenKrupp-owned companies. Over the past year, efforts have been underway to reduce shipping costs for Less-Than- Truckload (LTL) shipments by negotiating new contracts and reducing the number of carriers utilized in North America. A Logistics Synergies team was formed in 2003 to explore this possibility and the LTL portion was chaired by our own Jim Baber. By combining over 300 shipping locations and shipments from 50 participating companies, TKX and TKUSA were able to “pull their weight” with even the largest national carriers. With 5 contracts signed and companies now able to take advantage of lower LTL rates, cost savings have been realized in the hundreds of thousands of dollars. TKUSA companies have sent in hundreds of paid LTL invoices for cost comparisons to the new rates, and the results are starting to look good! Contracts have been signed with the following LTL carriers: Con-Way Transportation, Yellow Corp., New Penn, Alvan, and Service Transport. As TKUSA companies continue to use these carriers for reduced shipping rates, the combined savings will lead to even greater profitability and more centralized cost tracking. In the previous issue of in Motion the announcement of TKX Logistics as the Lead Logistics Provider for ThyssenKrupp Elevator USA was made. Since then elevators have made their way to the TKX Maumee warehouse for storage and distribution in the TKE Midwest market. With positive results in hand and customer deliveries proceeding, the relationship is expanding to include TKE-TKX distribution centers in Chicago, Memphis and Virginia Beach. These DC’s will help TK Elevator become even more competitive by providing on-time deliveries with specialized equipment, including trailer-mounted Moffitt lift trucks. Elevators in Maumee are staged for future delivery Unloading elevators at customer job-site March AIW A very dedicated team accomplished 5 days of AIW in only 4 days. This crew worked on creating improvement opportunities in our Brokerage and Trading departments. TKX Brokerage System and Revenue Enhancement identified ways to further automate the dispatching process, which will in turn speed up the task and eliminate inefficient call handling. The concept of using specialists within the department to better enhance service to our clients was also explored. Trading Part II (Defining Roles and Procedures) created a definition of roles and expectations within the Trading Group. The new process creates an opportunity to cross-train personnel to assist in the daily operations.  This team also focused on ways to better consolidate, capture, and create invoices. The new procedures will: allow for greater ease in maintaining backup paperwork, speed up the invoice process and enhance current reporting methods. GREAT JOB BY ALL! AIW Activity 2005 continued from Page 1 Brokerage Productivity Team Trading Procedures Team TKX and TKUSA Ink LTL $aving$