LTV Blames Chapter 11 Charges as Loss Widens

LTV Corp. reported that its fourth-quarter loss widened to $453.4 million, because of $600 million in special charges relating to its filing last summer for protection under federal bankruptcy laws.

The company, which has interests in steel, aerospace and defense operations and energy, said its loss for the year widened to $3.25 billion, including a special charge of $3.24 billion.

In comparison, the steel, energy and aerospace company had 1985 losses of $75.7 million in the fourth quarter and $723.9 million for the full year.

Fourth-quarter revenue slipped to $1.9 billion from $2.1 billion in 1985. Revenue for the year fell to $7.3 billion from 1985’s $8.2 billion.

The Dallas-based company filed for protection from its creditors July 18,. under Chapter 11 of the bankruptcy laws, permitting it to continue operating while developing a reorganization plan under court supervision.

LTV said its non-cash special charges of $600 million in the fourth quarter were taken in recognition of special claims that may arise during its Chapter 11 proceedings from rejection of arrangements that it considers burdensome or non-essential.

LTV said that before the special charges, it earned $146.6 million in the fourth quarter.

Its operating income for the quarter amounted to $164 million in contrast with an operating loss of $4.4 million a year earlier.

The company said its steel operations improved in the fourth quarter, as it had operating income from steel of $130.5 million in contrast with an operating loss of $50.7 million in 1985’s final quarter.

Officials said the improvement resulted from reduced raw material costs due to not taking coal and ore under certain pre-Chapter 11 purchase contracts.