US RPM mulls final asbestos payment

21 July 2008 17:11  [Source: ICIS news]

HOUSTON (ICIS news)--RPM could make one more payment into its asbestos fund, the US coatings and adhesives producer said on Monday in a conference call following its fourth-quarter results.

The payment should address any future asbestos liabilities, said CEO Frank Sullivan.

The company had already paid $288.1m (€181.5m) during the quarter ended 31 May, the company said. The additional money extends the company's accrual for asbestos liabilities to 20 years.

Any additional payment would likely be less than the $288.1m figure, Sullivan said.

In fact, there is a chance that RPM could suspend any additional payments to the fund, he said.

RPM has a federal lawsuit pending against insurance carriers, he said.

If RPM receives a favourable ruling, the company could have the majority of its potential asbestos costs covered, eliminating the need to put additional money into the asbestos fund.

($1 = €0.63)

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By: Al Greenwood
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