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.
ENI (NYSE:E)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more ENI Charts.
ENI (NYSE:E)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more ENI Charts.