LTV Posts $1.24-Billion Loss in Third Quarter

LTV Corp., the nation’s second-largest steel company, reported a third-quarter net loss Monday of $1.24 billion because of Chapter 11 bankruptcy costs and an accounting change.

A year earlier, the Dallas-based firm posted a profit of $109.7 million. Sales fell in the most recent quarter to $1.71 billion from $1.75 billion a year earlier.

Without the bankruptcy charge and accounting change, LTV said, it would have earned $132.2 million for the third quarter. The charges in the quarter include $950 million for Chapter 11 claims and $350 million for certain other costs, including the sale of LTV Steel Co.’s steel bar business.

“The October announcement offering the bar segment of our steel business for sale was the final significant operating decision necessary to proceed with our reorganization,” according to Raymond Hay, LTV chairman. “In addition, negotiations with many of the major claimants have commenced and, in some cases, have been completed.”

LTV filed for Chapter 11 bankruptcy protection in 1986 citing growing problems in its steel and energy businesses and stiff competition from exports.