Amphenol Corporation (NYSE: APH) announced that it has incurred flood damage at its Sidney, New York manufacturing facility, which primarily serves the military/aerospace market. The geographical region has been severely impacted by high rainfall from the back-to-back impacts of Hurricane Irene and Tropical Storm Lee, resulting in an unexpected and historic rise in water levels as well as pervasive flooding in the region.
Amphenol reports that it is currently assessing the extent of property damage at the Sidney facility and the anticipated duration of business interruption, including an estimate of the sales impact. Preliminary estimates of flood related losses, in excess of related insurance coverage, are in the range of $20 to $35 million or $.07 to $.13 per share. Because of the recent occurrence of the flooding, Amphenol says this estimate is preliminary and subject to change, as the company is able to develop better information on the extent of the loss and its insurance coverage. The company says it will reflect its best estimate of this loss in the results of its third quarter ending September 30, 2011.
According to a press release, significant abatement, cleanup and restoration efforts are well under way with full support from the company’s local employees and global operations, assisted by outside experts. The company says it is committed to restoring full service to its customers as quickly as possible. Based on preliminary estimates the company believes the facility will commence partial production as soon as this week and ramp up to substantially full production within approximately 30 days. Customer service and other administrative functions have already resumed activity pursuant to emergency operating plans.
Amphehol's Sidney facility incurred flood related damage in 2006 as a result of severe and sudden flooding in the area in June of that year. As a result of the 2006 event, which was considered historic and unprecedented in the region, significant flood abatement actions were taken by Amphenol and state and local governments; the company said in a statement that it believe these prior actions will help to mitigate the loss from this potentially even more severe flood.
The company says it will provide an update on the impact of the latest flooding, the status of its recovery activities and related loss estimates as soon as additional information is available, and at its regularly scheduled earnings conference call on October 19, 2011.
More Info: www.amphenol.com
