U.S. Steel to take $1.8B in writedowns in Q3

|By:, SA News Editor

U.S. Steel (X) expects to book $1.8B in goodwill impairment charges in Q3 on its North American flat-rolled and Texas operations.

However, the company said the action will not affect its liquidity or compliance with debt covenants.

U.S. Steel is writing down the flat-rolled unit by $1B, mainly due to the slow economic recovery and excess global capacity.

The company is taking an $800M hit on the Texas operations because of price and volume pressures "from an increased supply of welded tubular products." (PR)