Sale of Division to Reduce LTV Earnings

LTV Corp., the nation’s second-largest steelmaker, which is in bankruptcy proceedings, said Tuesday that it would sell its steel bar division--a move that will result in a substantial charge against the company’s third-quarter earnings.

The division’s 5,400 workers produce about 1.2 million tons of steel annually. LTV said the division is one of the nation’s leading producers of high-quality carbon and alloy steel bars.

LTV, a diversified manufacturing company involved in steel, aerospace/defense and energy products, filed for Chapter 11 bankruptcy protection in July, 1986. The move was caused by growing problems in its steel and energy businesses and stiff competition from imports.

The company said the decision to sell the bar division is part of LTV’s efforts to concentrate its resources in flat rolled and tubular products as it reorganizes under Chapter 11 of the bankruptcy code.

“We have concluded that LTV Steel must focus its resources on its large, modern flat-rolled facilities in order to maintain a leadership position in production of high-quality, value-added steels for critical engineering applications,” said Raymond Hay, chairman and chief executive, in a statement.

The same rationale, Hay noted, led to the sale of LTV’s Warren, Ohio, plant and Republic Drainage Products Co.

The bar division’s facilities in Canton, Ohio, provide steel to LTV plants in Massillon, Ohio; Gary, Ind.; Willimantic, Conn.; Beaver Falls, Pa., and to the company’s special metals plant, which is also in Canton.

LTV had second-quarter earnings of $157.6 million on sales of $2.06 billion.