Lennox International announces financial impact of tornado
Company estimates $100 million in lost revenue for the second half of 2018
DALLAS — The Lennox International location on the northeast side of Marshalltown was hit hard by the July 19 tornado and the company estimated an impact in the millions of dollars as a result.
In a statement released Monday, the company announced an estimated $100 million in lost revenue as a result of the damage to the Marshalltown plant. That loss is expected in Lennox’s residential heating and cooling segment.
Additionally, the company expects to lose about $55 million in profits as a result of the damage.
Dealing with the storm’s aftermath is also set to be costly.
“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,” according to the statement.
It goes on to state that the company is set to have its financial losses balance out due to insurance money.
“Over the course of 2018 and 2019, Lennox International expects business interruption and property insurance proceeds to offset both the earnings impact from lower revenue and the special non-core charges resulting from the tornado,” according to the statement.
Lennox is headquartered in Dallas, Texas and is a manufacturer of heating, air conditioning and refrigeration products, among others. The company has stated its intention to rebuild the plant in Marshalltown after the tornado.
Read the full statement on the company’s website.
Contact Adam Sodders at (641) 753-6611 or email@example.com