Post Holdings, reported that a Michael Foods plant fire and a boil water order for the town of where another Michael Foods plant operates had a $3.5 million impact on the company.
Post Holdings on August 2 reported the financial results for the third quarter of fiscal year 2018, and in the process related to shareholders the fiscal burden the company incurred as a result of those incidents.
Post Holdings had earlier reported that its financial results will likely be hampered by a fire that took place at the Michael Foods precooked egg facility in Klingerstown, Pennsylvania, and a water boil order that was issued by the municipal water association that services the Michael Foods precooked egg facility in Lenox, Iowa.
The fire, which occurred on May 24, resulted in about $2.5 million in damages, although nobody was injured. Post Holdings had earlier reported that the facility was taken offline, with some operations resuming earlier than others. It was announced then that the plant was expected to return to full production in July.
The boil water order was issued on June 1, which necessitated the suspension of operations at the Lenox plant. A partial return to operations was scheduled for June 7, with a return to full-scale operations scheduled for around June 11.
Quarterly financial results
Michael Foods is part of Post Holdings’ Refrigerated Food segment. The segment profit was $56.5 million for the third quarter, up from the $41.2 million reported in the third quarter of fiscal year 2017.
The segment’s net sales for the quarter were $613.1 million, an increase of 32 percent when compared to the same quarter of the 2017 fiscal year.
Michael Foods, headquartered in Minnetonka, Minnesota, is the world’s largest supplier of processed eggs, according to the WATTAgNet Top Poultry Companies Database.
Post Holdings acquired Michael Foods in 2014.
