A tornado that damaged a Lennox International Inc. facility in Marshalltown, Iowa, in July caused about $100 million in lost revenue and another $80 million in clean-up expenses, asset write-offs and other costs, but insurance will offset the hit to earnings and special charges, the manufacturer said Monday.
Richardson, Texas-based Lennox, which makes heating, air conditioning and refrigeration equipment, said it expects its profit to be about $55 million lower because of damage from the twister.
The losses are expected to be offset during 2018 and 2019, however, by proceeds from the company’s business interruption and property insurance, the statement said.
The property insurance payments are expected in 2018 and proceeds from business interruption insurance are expected in either the second half of 2018 or in 2019, the statement added.
According to the National Weather Service, 19 tornados formed in central Iowa on July 19 with the most extensive damage reported in Pella, Bondurant and Marshalltown.
A draft report released late last month by a federal agency calls for national standards for building design and construction, public shelters and emergency communications to reduce the human and economic costs of tornadoes.