US Steel's 3Q results to include $1.8B charge
Sluggish economy, excess global steel capacity lead US Steel to book $1.8 billion charge in 3Q
PITTSBURGH (AP) -- U.S. Steel Corp. says its third-quarter financial results will include a non-cash "goodwill" impairment charge of $1.8 billion, reflecting an adjustment in the value of its steel-making operations.
The Pittsburgh-based company said Friday that the move is driven primarily by the impact of the lengthy economic recovery, excess global steelmaking capacity and lower prices for steel products.
The charge applies to US Steel's North American flat-rolled and Texas Operations units.
U.S. Steel says that the charge will not affect its liquidity or compliance with debt covenants.
Companies are required to take a goodwill charge if they determine that the carrying value of an asset exceeds its fair value.
U.S. Steel shares fell 5 cents in extended trading after closing up 32 cents at $23.98.
