October 18, 2013 / 10:16 PM / 4 years ago

U.S. Steel to write down $1.8 bln in value of units

Oct 18 (Reuters) - 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 on Friday.

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