USG Plans to Take a Charge of $904 Million

Building-products manufacturer USG Corp. said it plans to take a $904-million pretax charge against its earnings in 2000 for costs associated with restructuring and with pending asbestos liability cases and lawsuits anticipated through 2003. The charge will reduce the company’s earnings by $12.83 a share for the fourth quarter and by $12.11 for the year. Of the $904-million charge, $850 million is for asbestos-related claims and $54 million is for restructuring costs associated with plant shutdowns, severance costs and inventory write-offs. The company, which makes the popular Sheetrock brand wallboard, estimates that the liability associated with asbestos cases ranges between $889 million and $1.28 billion and has established a reserve of $1.19 billion. USG shares closed off 6 cents at $21.69 on the NYSE.