Amphenol announced that it has incurred damage at its manufacturing facility located in Sidney, New York, as a result of severe and sudden flooding in New York state during the period from June 28 to July 1. The company's Sidney facility primarily serves the aerospace and industrial markets.
According to a press release, the company is currently assessing the extent of property damage at the facility and the anticipated duration of business interruption. Preliminary estimates of flood related losses, in excess of related insurance coverage, are in the range of $15 to $30 million or $.11 to $.22 per share. Because of the recent occurrence of the flooding, 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 will reflect its best estimate of this loss in the results of its second quarter which ended June 30, 2006.
Significant cleanup and restoration efforts are 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 early next week and ramp up to substantially full production within 30 days. Customer service and other administrative functions have already resumed activity pursuant to emergency operating plans.
The company will provide an update on the impact of the flood, the status of its recovery activities, and related loss estimates at its regularly scheduled earnings conference call on July 19, 2006.
