USG to take $904 million charge on asbestos, restructuring initiatives

CHICAGO -- USG Corp. has released details of two major initiatives developed to help clarify the company's financial performance and further strengthen its competitive position. USG is now able to estimate its financial exposure for asbestos cases filed through 2003, based on a recently completed independent review of its asbestos liability. In addition, USG has taken steps to restructure its operations to improve business efficiency. The initiatives and plans for associated charges were outlined in a Form 8-K filing on Dec. 27.

USG will take year-end charges totaling $904 million, or $557 million net of tax benefits, for costs associated with the two initiatives. The charges will reduce fourth quarter and twelve months earnings per share by $12.83 and $12.11, respectively.