The wife of late asbestos campaigner Bernie Banton has urged victims not to panic after James Hardie announced it would not make payments into the compensation fund next year.

The announcement follows news that James Hardie has suffered a 44 per cent fall in profits due to the collapse of the US housing market, which accounts for three quarters of its revenue.

Up to 35 per cent of James Hardie's annual cash flow is handed over to the Asbestos Injuries Compensation Fund, to compensate people for diseases caused by exposure to asbestos during the company's mining and manufacturing operations.

Karen Banton says the news is not surprising but she is confident appropriate compensation will be achieved.

"While today's news is very disappointing it isn't unexpected given the global financial crisis," Mrs Banton said

"The most important thing is that no one panics."

"The prime minister has already indicated it is important that asbestos victims continue to receive compensation.

"I'm confident that if Hardies, governments and victims work together, a workable solution can be found quickly."

In an actuarial report released on Wednesday, James Hardie's total asbestos compensation liabilities totalled more than $1.78 billion at the end of March, up from $1.426 billion at the corresponding at the same time last year.

James Hardie said the AICF sees it as "reasonably foreseeable" that it will run out of money for asbestos compensation within two years.

Mrs Banton said victims should draw on the memory of her husband Bernie and remain strong in the face of this latest hurdle in the fight for compensation.

"The struggle for asbestos compensation has been a long battle and we have faced many challenges in the past. Victims have dealt with each one as they have come along," she said in a statement.

"My late husband worked tirelessly with others over many years to secure an agreement with James Hardie to meet future asbestos claims. It took a heavy toll on him."

"I'm sure he would agree that we have been in worse situations and managed to find our way through."

Compensation claims reached their highest level yet in the financial year 2008-09, with 607 claims and $96.2 million paid out.

AAP