CSX TAKES $300-MILLION CHARGE ON SEA-LAND SALE
CSX Corp. said that it will take of third-quarter
pre-tax charge of about $300 million related to the sale of the international shipping
activities of its subsidiary Sea-Land Service.
CSX agreed last month to sell the international shipping business of
Sea-Land to Denmark’s A.P. Moller for $800 million.
CSX said that it has to write down the value of Sea-Land’s assets
because they must now be reclassified as assets for sale and revalued.
This means that the agreed sale’s price, after transaction costs,
is below the current book value of Sea-Land’s assets, a spokesman for CSX told American
Shipper.
Having taken the write-down charge in the third quarter, CSX will not
incur a capital loss on the sale when it is completed in or around the fourth quarter.