Eigen RadarEconomics
Archive
Analysis

Integra cuts its annual outlook as flood damage disrupts production

Integra LifeSciences reduced its annual revenue and adjusted earnings outlook after July flooding disrupted its Cincinnati manufacturing facility. The company expects further revenue losses in the final quarter and a return to full manufacturing operations during the second quarter of next year. Preliminary quarterly figures remain unaudited, while management expects insurance coverage to substantially reduce the financial impact of the flooding.

Economics & Markets··Morning
Idle equipment in a surgical-products work area affected by flooding.

Integra lowers its annual outlook after production disruption

Integra LifeSciences, a maker of surgical medical products, cut its full-year revenue and adjusted earnings outlook on 2 October. The company attributed the revision to production disruption after July flooding at its facility in Cincinnati, in the United States.[1], [2], [3]

Annual revenue guidance fell to between 1,634 million and 1,654 million dollars, compared with the previous range of 1,654 million to 1,695 million dollars. The adjusted earnings per share range dropped to between 2.30 dollars and 2.40 dollars, down from 2.40 dollars to 2.50 dollars. These are management’s revised expectations for the year.[1]

Flood-related revenue losses continue into the final quarter

Flooding damaged equipment, inventory and property used in the specialty surgical products operation. Integra estimates a third-quarter revenue impact of approximately 7 million dollars and a further 15 million to 20 million dollars in the fourth quarter. The company expects full manufacturing operations to return during the second quarter of next year.[1]

Integra is using available inventory and pursuing alternative supply options to support customers during the restoration. It expects insurance coverage to substantially reduce the financial impact of the flooding.[1]

Preliminary quarterly results remain unaudited

Integra expects quarterly revenue of 410 million to 412 million dollars and adjusted earnings per share of 0.55 dollars to 0.59 dollars. These preliminary figures remain unaudited. Preliminary third-quarter operating cash flow is expected to exceed 85 million dollars; management kept its full-year operating cash flow outlook at 190 million to 200 million dollars.[1]

References

  1. News sourceIntegra LifeSciencesIntegra cuts annual guidance after flood-related disruption↩1↩2↩3↩4↩5
  2. News sourceStreetInsiderIntegra lowers its outlook after the Cincinnati flood↩
  3. News sourceRTTNewsIntegra cuts annual guidance after flood damage↩
Chip wars and the supply chainCentral banks and the rate cycleEnergy transition and climate

More analysis from this desk

View all Brief analyses from the Economics & Markets desk →