US steel processing company Worthington Steel is expected to write down its inventory value by $100 million, which would be the largest write down in the company’s history, in its next earnings report for the quarter which ended November 30.
A Worthington Steel spokesperson, Cathy M. Lyttle, told press that the scheduled earnings report would demonstrate how much the company has been affected by the drop in steel prices; however, she expects other companies to begin reporting similar inventory losses.
Worthington Steel chairman and chief executive, John P. McConnell, said in a statement, “We have been reducing our inventories and generating cash, but the current global economic crisis has dramatically slowed demand in our markets, particularly automotive and construction, making this action necessary."
The $100 million write down would be in addition to the company's announcement in October that it would lay off 300 workers and close plants in Louisville, Kentucky, and Renton, Washington.