Shares in building materials group Hanson fell 10%, after efforts to soothe investors over asbestos claims fell on deaf ears.

Hanson said it faced cases bought by 75,000 claimants in the US related to asbestos, a mineral once prized for its heat resistance, but now identified as a cause of cancer and fatal respiratory illness.

Any mention of the word asbestos normally gets these stocks moving at least 5% down

City trader

Some 3,400 cases, representing about 13,100 claimants, had been filed in 2002, and Hanson said $125m had been set aside to cover payouts and costs.

But it added that it did not expect the claims to affect results.

"Product liability insurance has met substantially all of the amounts US subsidiaries of Hanson have incurred to date for settled claims and defence costs," Thursday's statement said.

It added: "Historic dismissal rates illustrate that in a considerable number of cases, claimants are unable to demonstrate specific exposure to the above products, or any specific illness or disability"

Investor reaction

Hanson said that it was difficult to assess its claims position after 2010, while saying it did not expect liabilities to hurt its finances significantly.

But the statement failed to reassure investors, with Hanson stock falling 23p to 258.25p in early trade.

"Any mention of the word asbestos normally gets these stocks moving at least 5% down," a City trader said.

The shares stood 7% down at 266.75p in late morning trade.

Asbestos products

The claims relate to Kaiser Cement, which Hanson bought in 1988, and Beazer, acquired in 1991.

Both had stopped making asbestos products at the time of takeover, Hanson said.

Products involved in the claims include roofing material, hot top rings and textured paints.

Relying on the weather

Hanson warned in August that it was cautious about any recovery in trading in the US.

It confirmed on Thursday that trading had been mixed in the US but said it had also been disappointing in the UK.

But the company said that as long as weather patterns remained normal and there was no more US dollar weakness, it expected its profits for 2002 to hit expectations of �345m.