Lennox Sees Special Pre-Tax Charges Related to Tornado of About $80 Million in 2018
August 20 2018 - 7:11PM
Dow Jones News
By Stephen Nakrosis
Lennox International Inc. (LII) on Monday gave the estimated
financial impacts and insurance offsets it is expecting after a
July 19 tornado damaged the company's Marshalltown, Iowa,
manufacturing facility.
The maker of climate-control products said it estimated about
$100 million in lost revenue in its Residential Heating and Cooling
Business for the second half of this year. The company also said it
expects approximately $55 million in lost profit for the second
half of 2018.
Lennox also said "In addition to the lost-revenue impact, the
company currently estimates special pre-tax charges related to the
tornado of approximately $80 million in 2018, including site
clean-up costs, asset write-offs, and factory-inefficiency
costs."
Lennox said the timing of business interruption insurance
payments are assumed to impact 2018 earnings per share, but will
benefit 2019 earnings per share. On Monday, Lennox said 2018
guidance has been updated, with new GAAP earnings per share seen at
$8.38 to $8.78, down from an earlier estimate of $9.43 to $9.83. On
an adjusted basis, the company offered new guidance of $8.90 to
$9.30, lower than an earlier estimate of $9.95 to $10.35.
The company also updated 2018 guidance for GAAP revenue growth
from 4%-6% to 2%-4%.
On July 19, Lennox said its manufacturing facility in
Marshalltown, Iowa, was damaged by a tornado. At the time, the
company said "there were no reported injuries to our on-site
employees. The extent of damage to the facility is currently being
assessed."
The company also said it has a supply of more than 40 days of
equipment in more than 235 distribution centers and stores.
Shares of Lennox closed Monday trading at $225.32, up 1.19%. In
after-hours trading, Lennox shares were down 0.14% at $225.
Company website:
http://www.lennoxinternational.com/index.html
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
August 20, 2018 18:56 ET (22:56 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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