Symmetry Medical, Inc.
) - a leading manufacturer of medical device solutions and
surgical instruments - has confirmed reports published earlier
regarding the outbreak of a minor electrical fire at its
Sheffield, UK manufacturing plant on Mar 8, 2014.
Luckily, the fire remained confined to the temporary Acid Shop at
the plant, damaging only 3 tanks out of a line of 9. All other
sections of the plant remained out of the fire's reach. As per
the local authorities' confirmation, the structure of the
temporary Acid Shop remains unaffected. With the fire brought
under control promptly, none of the Symmetry Medical employees or
first responders was injured in the incident.
Symmetry's shares, which are down around 7% over a year, gained
3.4% yesterday to close at $10.23. The Acid Shop functions
alongside the forging operation of Symmetry Medical at the
After forging is done, parts are immersed in acid baths to
remove materials from the forging process. Management believes
that though operations will not be hampered at the plant,
throughput may be delayed owing to the ongoing validation of the
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With refurbishment work already in process, the line of tanks
should be repaired, validated and rendered operational by early
April. Management projects little financial impact other than
revenues of around $1 million being deferred from the first
quarter to the second quarter of 2014.
According to Thomas J. Sullivan, President and CEO of Symmetry,
it was the joint effort of Symmetry Medical's security team and
the local fire fighters that let the fire remain contained to one
of the lines in the Acid Shop and did not allow it to spread
On Mar 10, management notified Sheffield customers that they are
working to minimize customer disruption through SMA's business
continuity plan. Moreover, all the customers will continue to
receive timely updates from the Symmetry Medical team. The line
is expected to be back in service within a relatively short
period, pending any necessary customer validation.
Symmetry Medical currently holds a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the medical
products industry include
). While Enzymotec carries a Zacks Rank #1 (Strong Buy), Covidien
and SurModics carry a Zacks Rank #2 (Buy).