RONKONKOMA, N.Y., Oct. 29, 2014 /CNW/ -- Lakeland Industries,
Inc. (NASDAQ: LAKE), a leading global manufacturer of industrial
protective clothing for industry, municipalities, healthcare and to
first responders on the federal, state and local levels, today
provided the following update on recent business activities and
corporate developments.
In anticipation of the worsening of the Ebola crisis, on
September 12 the Company announced
its intent to increase manufacturing capacity for specialty
protective suits to be worn by healthcare workers and others being
exposed to Ebola. The Company has been experiencing
significant interest globally for its ChemMAX® and MicroMAX®
protective suit lines. Manufacturing of select lines of
these garments involves proprietary processes for specialized seam
sealing, a far superior technology for protecting against viral
hazards including infected body fluids than non-sealed
products. Lakeland accelerated its capital investment program
for new machinery to accommodate higher levels of output and
increased its spending for raw materials and the hiring and
training of manufacturing personnel to address the increase in
product demand.
"Recent developments have enabled us to strengthen our balance
sheet, increase forward cash flow from the elimination of interest
service on expensive debt, and increase production capacity to
contribute to the fight against the spread of Ebola which has led
to a material improvement in our business," said Christopher J. Ryan, CEO of Lakeland Industries,
Inc. "At the same time, we have also been experiencing an
improvement in operating conditions for the balance of our business
globally. I am very proud of the way the worldwide team of
Lakeland Industries has responded to the Ebola crisis while
continuing to provide the highest level of service and quality
garments to our traditional customers."
Monthly production capacity for sealed seam ChemMAX and MicroMAX
protective suit lines has increased by nearly 50% from August 2014, prior to Ebola-related product
demand, to October 2014, and is on
track for a 100% increase from that level by January 2015, with the ability for additional
increases as needed. Substantially all of the available
production capacity in August 2014
had been allocated to purchases by the Company's industrial
customers (for non-Ebola related purposes). The Company will
continue to service its industrial customers who are dependent upon
Lakeland to conduct their work safely. The expanded capacity
is necessary in order to meet obligations for both traditional
customers as well as for protection against the spread of
Ebola.
Through its direct sales force and numerous distribution
partners throughout the world, Lakeland has secured new orders
relating to the fight against the spread of Ebola. Orders
have been received from government agencies around the world as
well as other public and private sector customers. Certain of
these contracts require weekly delivery guarantees or shipments
through the first calendar quarter of 2015. The aggregate of
orders won by Lakeland that are believed to have resulted from the
Ebola crisis amount to approximately 1 million suits with
additional orders for other products, such as hoods, foot coverings
and gloves. Lakeland started shipping such orders only in
October, which is the end of its fiscal 2015 third quarter
reporting period. The main impact from Ebola-related orders
received to date will not be realized until the Company's fiscal
2015 fourth quarter ended January 31,
2015.
Furthermore, the Company is presently participating in bidding
on numerous customer requests for additional quantities. This
additional amount may not reflect any of the global requirements
for preparedness strategies to be implemented by governments and
healthcare organizations resulting from the crisis in anticipation
of future contagion scenarios. It is important to note that
product demand in crisis and emergency situations is very difficult
to predict, and the Company makes no assurances of its ability to
win additional business.
Lakeland remains committed to participating in the fight against
the spread of Ebola. The Company's global workforce and
management team have been vigilant in responding to an
unprecedented level of inquiries and in ramping production to meet
delivery requirements. For additional product information or
to place an order, please visit www.lakeland.com or contact
customer service:
United States at
256-350-3873
Argentina at +54-11-4897-5760
Brazil at +55-11-3613-3700
Canada at 800-489-9131
Chile at +562-551-8562
China at +010-6437-9226
India at +91-8447556757
Mexico at 800-837-9236
Russia at +7-495-775-72-64
UK at +44-14304-78140
About Lakeland Industries, Inc.:
Lakeland Industries,
Inc. (NASDAQ: LAKE) manufactures and sells a comprehensive line of
safety garments and accessories for the industrial protective
clothing market. The Company's products are sold by a direct
sales force and through independent sales representatives to a
network of over 1,200 safety and mill supply distributors. These
distributors in turn supply end user industrial customers such as
chemical/petrochemical, automobile, steel, glass, construction,
smelting, janitorial, pharmaceutical and high technology
electronics manufacturers, as well as hospitals and laboratories.
In addition, Lakeland supplies federal, state, and local government
agencies, fire and police departments, airport crash rescue units,
the Department of Defense, the Centers for Disease Control and
Prevention, and many other federal and state agencies. For
more information concerning Lakeland, please visit the Company
online at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Forward-looking statements involve risks,
uncertainties and assumptions as described from time to time in
Press Releases and Forms 8-K, registration statements, quarterly
and annual reports and other reports and filings filed with the
Securities and Exchange Commission or made by management. All
statements, other than statements of historical facts, which
address Lakeland's expectations of sources or uses for capital or
which express the Company's expectation for the future with respect
to financial performance or operating strategies can be identified
as forward-looking statements. As a result, there can be no
assurance that Lakeland's future results will not be materially
different from those described herein as "believed," "projected,"
"planned," "intended," "anticipated," "estimated" or "expected," or
other words which reflect the current view of the Company with
respect to future events. We caution readers that these
forward-looking statements speak only as of the date hereof.
The Company hereby expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
such statements to reflect any change in the Company's expectations
or any change in events conditions or circumstances on which such
statement is based.
Any customers referenced or implied through reference in this
press releases does not represent an endorsement of Lakeland
Industries or its products.
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SOURCE Lakeland Industries, Inc.