Hardie avoids compensation fund contribution
A $US45 million ($58 million) loss in net operating cash flow has allowed James Hardie to avoid contributing to the Asbestos Injuries Compensation Fund this year.
Although the construction materials company booked a $US96.9 million ($124.3 million) net operating profit, it is bound only by a 2004 agreement to pay 35% of annual cash flow to the scheme.
CFO Russell Chenu says the company won’t therefore contribute to the fund in the next financial year.
James Hardie relocated from Australia to the Netherlands in 2001, separating off a $293 million fund to compensate former workers and relatives who were exposed to asbestos.
Just two years later it was revealed the fund faced a shortfall of more than $1 billion. James Hardie reached an agreement in 2004 to make an annual payment linked to the company cash flow.
There is increasing speculation that the fund will soon require support from state and federal governments, with the next James Hardie payment not due until July 2011.
Although the construction materials company booked a $US96.9 million ($124.3 million) net operating profit, it is bound only by a 2004 agreement to pay 35% of annual cash flow to the scheme.
CFO Russell Chenu says the company won’t therefore contribute to the fund in the next financial year.
James Hardie relocated from Australia to the Netherlands in 2001, separating off a $293 million fund to compensate former workers and relatives who were exposed to asbestos.
Just two years later it was revealed the fund faced a shortfall of more than $1 billion. James Hardie reached an agreement in 2004 to make an annual payment linked to the company cash flow.
There is increasing speculation that the fund will soon require support from state and federal governments, with the next James Hardie payment not due until July 2011.