Financial impact estimated to be $5-7 million.

June 18, 2018

1 Min Read
Water boil order, fire disruptions affecting Michael Foods

Post Holdings Inc., a consumer packaged goods holding company, previously reported that a fire took place at its Michael Foods precooked egg facility in Klingerstown, Pa., and that an unrelated water boil order was issued by the municipal water association servicing its Michael Foods Lenox, Iowa, precooked egg facility.

According to Post, the cause of the fire at Klingerstown continues to be investigated, while repairs to the roof and electrical infrastructure are currently in progress.

“The plant continues to operate, with additional production anticipated to return on June 19. Remaining oven production is expected to be brought back into service by mid-July, with the plant returning to full production then,” the company reported.

The Lenox facility restarted partial operations on June 7, with full production levels reached on June 11.

Post said while underlying egg product demand remains strong, this disruption has resulted in modest service level issues and lost sales revenue. Management estimates the financial impact of both incidents, inclusive of expenses and margin on lost sales revenue, to be between $5 million and $7 million to adjusted earnings before interest, taxes, depreciation and amortization (non-generally accepted accounting principles), which will be reflected in Post’s financial results for its third quarter of fiscal 2018. The financial impact of each incident is expected to be insured to the extent that each incident exceeds $2.5 million, with recovery occurring in the fourth quarter of fiscal 2018 or in early fiscal 2019.

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