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

Reuters

Oct 18 (Reuters) - United States Steel Corp said itexpects to write down the value of two of its North Americanunits by up to $1.8 billion, hurt by a prolonged slump in steelprices due to overcapacity and a weak global economy.

The goodwill impairment charge will lead to a bigthird-quarter loss. The company is scheduled to report resultsfor the period on Oct. 29.

Analysts on average were expecting net loss of $72.7million, or 44 cents per share, for the quarter, according toThomson 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 billionin value, the company said.

The non-cash charge will not affect the company's liquidityor compliance with debt covenants, U.S. Steel said in astatement on Friday.

U.S. Steel shares were little changed in post-markettrading, after closing at $23.98 on the New York Stock Exchangeon Friday.

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