Industrial group James Hardie Industries now faces an estimated $1.68 billion in asbestos liabilities in future financial accounts. News of the new liability came yesterday as the company announced a better-than-expected $127.9 million annual profit.

The legal bill from the company’s inquiry has ballooned to $37 million with a new estimate by KPMG for all future asbestos-related claims payments to be worth $1.68 billion at March 31 this year – $140 million higher than estimates at June 30 last year.

The increase was attributed to the addition of potential claims from the northern NSW town of Baryulgil, as well as other minor changes to settlements with people suffering from asbestos-related diseases.

James Hardie expects it will sign a final compensation settlement next month, with shareholders due to meet in late July to approve the funding arrangements.