Seeking Alpha

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

  • 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)
Comments (1)
  • kp99
    , contributor
    Comment (1) | Send Message
     
    What's going to happen to the stock after this writedown?
    20 Oct 2013, 03:10 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs