Post Holdings and its subsidiary, Michael Foods, are assessing the financial impact of separate incidents that have recently disrupted production at two of its egg processing facilities.
One incident is a fire at the Michael Foods precooked egg plant in Klingerstown, Pennsylvania, while the other was a multi-county boil water order that affected operations at its precooked egg facility in Lenox, Iowa.
“Post management is in the process of assessing the financial impact of both incidents. While underlying egg product demand remains strong, the business disruption at the two facilities will result in some service level issues and ultimately lost sales revenue. These revenue losses will be mitigated to the extent possible by using existing product inventories, maximizing use of other precooked egg facility assets and collaborating with our customers,” the company stated.
Fire at Klingerstown, Pennsylvania
The Michael Foods facility in Klingerstown sustained more than $2.5 million in damages after a fire took place there on May 24.
While all employees were evacuated and nobody was injured, operations there were suspended.
The fire started in the duct work of an oven, but the situation remains under investigation.
Certain parts of the Klingerstown facility have return to production, but repairs are still being made in other areas of the plant, including the roof and electrical infrastructure in the oven area. According to a press release from Post Holdings, other oven production areas are expected to progressively be brough back into service, with completion expected by the middle of July.
Water issues at Lenox, Iowa
Post Holdings, in the same press release, stated that on June 1, a water boil order was issued by the municipal water association servicing the Michael Foods operation in Lenox, and that order necessitated the suspension of operations at the plant.
The boil water order affected eight counties.
A partial return to operations was scheduled for June 7 using a combination of heat treatment and water filtration, and normal municipal water service and full scale operations were planned to return around June 11.
