Oct 18 United States Steel Corp said it
expects to write down the value of two of its North American
units by up to $1.8 billion, hurt by a prolonged slump in steel
prices due to overcapacity and a weak global economy.
The goodwill impairment charge will lead to a big
third-quarter loss. The company is scheduled to report results
for the period on Oct. 29.
Analysts on average were expecting net loss of $72.7
million, or 44 cents per share, for the quarter, according to
Thomson Reuters I/B/E/S.
U.S. Steel's North American flat-rolled unit will write down
$1 billion and its Texas operations will write down $0.8 billion
in value, the company said.
The non-cash charge will not affect the company's liquidity
or compliance with debt covenants, U.S. Steel said in a
statement on Friday.
U.S. Steel shares were little changed in post-market
trading, after closing at $23.98 on the New York Stock Exchange