(The Associated Press distributed the following article on October 28.)
WASHINGTON — CSX Corp. , operator of the largest rail system in the eastern United States, said Tuesday it increased its reserve for asbestos and other claims by $206 million.
The increase is to cover the estimate of claims to be filed during the next seven years, according to a regulatory filing Tuesday.
The Jacksonvile, Fla.-based company’s reserve for asbestos and other occupational claims totaled $350 million as of Sept. 26, compared with $171 million as of Dec. 27, 2002.
During the third quarter ended Sept. 26, CSX hired third parties to help estimate the number of asbestos and other occupational injury claims to be received over the next seven years and the related costs, the Securities and Exchange Commission filing said.
As of Sept. 26, CSX had 13,585 open asbestos claims, the filing said.
At the beginning of the quarter, 14,278 claims were open; 2,111 new claims were filed during the quarter; 2,582 claims were settled and 222 claims were dismissed during the quarter, the filing said.
Of the claims open at Sept. 26, roughly 5,500 of the asbestos claims are against a container-shipping business, Sea-Land, which CSX used to own.
Shares of CSX rose $1.27, or 4.3 percent, to close at $30.55 on the New York Stock Exchange.
CSX, with 2002 revenue of $8.15 billion, operates 23,000 miles of train tracks in the eastern United States.