Seeka post-harvest shed destroyed in fire, earnings likely to be unaffected
The fire destroyed the shed and significantly affected a coolstore containing about 250,000 trays.
Seeka Kiwifruit Industries [NZX: SEK], the country's biggest kiwifruit grower, doesn't expect earnings to be materially affected by a fire that destroyed a shed at its Oakside post-harvest site in Tauranga, with insurance likely to cover the costs.
The fire destroyed the shed and significantly affected a coolstore containing about 250,000 trays, though more detailed investigations are under way, the Te Puke-based company said in a statement. Other central coolstores were partially affected by the blaze, which didn't injure anyone. The Oakside site is expected to process more than nine million kiwifruit trays in 2015 of the company's 24 million trays.
"The company will undertake the repairs and operational changes to enable the upcoming kiwifruit season to run without any adverse effect to our growers," it said in a statement. "Also at this stage Seeka does not anticipate any material affect to earnings, noting its comprehensive insurance cover."
Seeka reported a profit of $3.2 million in calendar 2014 on revenue of $115.7 million, though hasn't provided guidance for the current year.
The cause of the fire is still unknown.
Seeka shares last traded at $3.25, and have increased 0.6% this year.
(BusinessDesk)
Paul McBeth
Thu, 05 Mar 2015
Thu, 05 Mar 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Seeka post-harvest shed destroyed in fire, earnings likely to be unaffected
45748