CLEVELAND – LESCO announced yesterday that the company incurred hurricane damages of an estimated $1.4 million at its Ohio and Florida blending facilities. These damages occurred during LESCO’s third quarter, ending Sept. 30. This has prompted the company to schedule a conference call and webcast with investors and other interested parties, Oct. 27 at 4:30 p.m. EST.
One million dollars worth of bulk urea and sulfur-coated urea inventory was lost when unsealed domes of the material located at a third-party terminal adjacent to the Ohio River were destroyed by floodwaters. In addition, hurricane winds caused $360,000 worth of damage to the roof of the company’s Florida mixing facility. The Associated Press reports that LESCO intends to seek help from the Federal Emergency Management Agency (FEMA) and exhaust all legal means to recover these losses.
Other expenses the company is incurring include LESCO’s upcoming relocation from Strongsville, Ohio to downtown Cleveland, scheduled to happen before mid-November at an estimated cost of $7.5 million, $4.3 million of which will be recorded on the company’s third quarter. The remaining $3.2 million will be reported as fourth-quarter expenses. Beginning in 2005, the financial effect of the relocation is expected to be accretive to earnings on an annual pretax basis by over $1 million.
In addition to the live web cast, more information can be found at www.lesco.com.