Companies in various industries feel Hurricane Matthew’s impact

October 26, 2016

REUTERS/Andres Martinez CasaresHurricane Matthew, which pounded the U.S. southeastern coast in early October, adversely impacted companies across various industries, according to recent filings with the Securities and Exchange Commission.

The hurricane hit Haiti as a Category 5 storm, and it hit the coasts of Florida, Georgia and the Carolinas with winds of over 100 miles per hour Oct. 7 and 8 before making landfall in South Carolina as a Category 1 storm Oct. 8.

Recent Form 8-K filings of companies with operations on the east coast report the storm’s affect manufacturing, sales and insurance.

Georgia-based Oxford Industries Inc. said in its Oct. 19 filing that the company incurred operating losses as a result of the hurricane.

The international apparel design company specifically noted it was affirming previously issued guidance for the full fiscal 2016 year but expected a negative impact on its third-quarter financial performance partly as a result of Hurricane Matthew.

Oxford said the storm caused lost sales for its Tommy Bahama, Lilly Pulitzer and Southern Tide brands in Florida and the coastal regions of Georgia, South Carolina and North Carolina, but did not quantify the amount lost.

Insurance company National Security Group Inc. reported in a Form 8-K filed Oct. 19 that Hurricane Matthew and its tropical storm force winds adversely impacted policyholders in Georgia and South Carolina.

Alabama-based National Security said it has received over 1,200 claims from policyholders as a result of the storm. The company estimates that gross losses incurred by policyholders ranges from $3.5 million to $4.5 million.

Keryx Biopharmaceuticals Inc. warned in an Oct. 17 SEC filing that one of its manufacturers was adversely impacted by the hurricane.

Massachusetts-based Keryx entered into a manufacturing agreement Oct. 12 with North Carolina-based Patheon Manufacturing Services LLC, under which Patheon will produce commercial supplies for tablets of Keryx’s Auryxia kidney disease treatment drug.

However, Patheon reported in its own securities filing Oct. 14 that it was experiencing temporary work stoppages at three of its facilities, including its Greenville, North Carolina, facility due to power outages and adverse weather events.

The pharmaceutical supplier said Hurricane Matthew caused flooding on roads near the Greenville facility, causing a temporary closure. While the facility did not suffer any damage, Patheon said closing the space was necessary to ensure the safety of employees traveling to and from work.

Hurricane Matthew devastated some countries, causing almost 900 deaths in Haiti and mass evacuations along the Atlantic Coast, according to a Reuters report. As such, it is likely more companies will disclose new information about how the storm hurt their businesses.

Oxford Industries Inc. Form 8-K, 2016 WL 06085037 (Oct. 19, 2016).

National Security Group Inc. Form 8-K, 2016 WL 06090433 (Oct. 19, 2016).

Keryx Biopharmaceuticals Inc. Form 8-K, 2016 WL 06067720 (Oct. 17, 2016).