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Standex working to rebuild inventory levels at fire-hit refrigeration warehouse

Standex

Standex has warned that foodservice refrigeration sales will see lower annual comparables during its current quarter as it is still recovering from the fire that devastated its warehouse during the summer.

Inventory levels are currently being replenished to ensure it can supply customers.

The manufacturer – which disposed of its cooking equipment business to Middleby earlier this year – was rocked by a fire at its New Albany, Mississippi branch in July, suffering $8m in damage.

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The majority of the stock affected was finished goods, with around 15% related to ancillary equipment.

The site serves as the main production hub of Master-Bilt merchandisers, walk-in coolers, freezers, reach-ins, prep tables and ice cream cabinets.

And yesterday, the company said that it expects that commercial refrigeration sales will be lower year-over-year in its fiscal second quarter – which runs until the end of December – as finished goods inventory levels are further rebuilt to meet customer demand.

In its latest results, for the three months to 30 September, foodservice equipment represented 37% of overall company sales and 29% of segment operating income.

Refrigeration revenues grew 1% to $70m in the quarter, while operating income rose 26% to $8.4m. Operating margin increased from 9.2% to 11.5% year-on-year.

Standex president and CEO, David Dunbar, said: “In summary, despite the challenges we are experiencing from the macro environment that is impacting some of our end markets, we continue to make progress in transforming our higher margin businesses into significant platforms. 

“Our ongoing focus on company-wide productivity enhancements provides further opportunity to drive profitable growth.” 

Tags : fireRefrigerationStandex
Andrew Seymour

The author Andrew Seymour

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