Lennox loses $100M in revenue from Marshalltown tornado
A July 19 tornado left Lennox International with a multi-million dollar revenue loss after its local plant on Marshalltown’s northeast side was shuttered following the disaster.
The company said in a statement this week it estimates $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.
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.
For more information and to read the full statement, visit www.lennoxinternational.com and click the link “Lennox International Announces Estimated Financial Impacts from Tornado and Offsets from Insurance Coverage,” which can be found under “News Releases” on the home page.
Contact Adam Sodders at
(641) 753-6611 or firstname.lastname@example.org