Orthopedic implants and instruments maker
) announced the break-out of a fire in its Sheffield, U.K.-based
manufacturing facility on Sep 13. The plant produces about 30% of
the company's global implant capacity. The company plans to
report the financial impact of the fire in its third-quarter 2013
results after further scrutiny of the situation.
Management reported that the fire had damaged only the Acid Shop
and no other operations had been affected. Fortunately, no
casualties were reported among the 250 employees working in the
The Acid Shop is used to remove materials from the forging
process through acidic baths, and hence operates in conjunction
with the forging unit at the Sheffield plant. However, gas,
electric, and water utilities serving the casting and forging
areas of the plant have been temporarily discontinued as a
measure of precaution. Management hopes to restore services to
the undamaged portion of the plant within a week.
In an effort to minimize customer disruptions, Symmetry has
deployed its Business Continuity Plan to ensure restoration of
smooth activity in the rest of the plant. Management has also
informed their customers regarding the unfortunate breach in
timely delivery of orders. Meanwhile, they expect SMA's other
global manufacturing facilities to replace the functions of the
impacted Acid Shop.
Symmetry has a Zacks Rank #4 (Sell). Although the company managed
to beat the Zacks Consensus Estimates on both fronts, both its
revenues and earnings failed to achieve growth in the second
quarter of 2013. The sudden turn of events in the high-margin
Surgical business from the beginning of 2013 is a cause of
concern. The company needs to resolve integration-related issues
of its latest acquisitions to avoid wastage of resources.
While we choose to avoid SMA until we see clear signs of
improvement in the underlying business, other medical products
companies that warrant a look include
), carrying a Zacks Rank #1 (Strong Buy), and
), both carrying a Zacks Rank #2 (Buy).
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