7 October 1998: US-based Owens Corning said it is comfortable with analysts“ estimates for the third quarter of 1998, which range from US$ 1.20 to US$ 1.35 per share, the company said in a recent pre…
7 October 1998: US-based Owens Corning said it is comfortable with analysts“ estimates for the third quarter of 1998, which range from US$ 1.20 to US$ 1.35 per share, the company said in a recent press release. The First Call mean is currently US$ 1 .27 per share. The company also said it is neutral on the outcome of a pending US Supreme Court review of a Global Settlement which, if upheld, would resolve the asbestos liability of its Fibreboard subsidiary, a business acquired by Owens Corning in 1997. The firm purchased Fibreboard after Fibreboard had entered into a Global Settlement of all of its asbestos-related personal injury claims, both pending and future, to be paid with confirmed insurance funds. The US Supreme Court has said it will hear arguments in early December in Ortiz vs. Fibreboard to determine the validity of the Global Settlement. A decision is not expected until the second quarter of 1999. In the event that the Supreme Court strikes down the Global Settlement, a separate insurance settlement is expected to pay approximately US$ 1.8 billion to Fibreboard in a trust to be used to resolve all remaining Fibreboard asbestos claims. The insurance settlement is final and not subject to further appeal, the report said. If the class action settlement is rejected by the Supreme Court, Owens Corning said the company will jointly manage claims against Owens Corning and Fibreboard. The company expects that this joint management by Owens Corning will result in substantial reductions in per-case settlement and defense costs for both companies. Regardless of the outcome of the Supreme Court decision, the report said, Owens Corning and Fibreboard are negotiating long-term agreements with major plaintiff firms with substantial numbers of identical cases against both companies. These agreements would provide for resolution of pending cases and a case processing arrangement for resolution of future claims without litigation.