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Baxter International Inc. (NYSE:BAX) has provided an update on the impact of Hurricane Helene on its North Cove facility in Marion, N.C. The facility is currently closed for production due to flooding, and the company is working closely with various government agencies to assess the damage and resume operations. Key points:
1. Baxter is implementing measures to minimize supply disruptions, including managing inventory and using a protective allocation process.
2. The company will leverage its global manufacturing network to mitigate potential supply impacts.
3. The Baxter International Foundation has committed $1.5 million in donations for recovery efforts and is matching employee donations 2:1.
4. Baxter anticipates a negative impact on its financial results due to the disruption and plans to provide an update in its third quarter earnings announcement.
Baxter International Inc. (NYSE:BAX) ha fornito un aggiornamento sull’impatto dell’uragano Helene sulla sua struttura North Cove a Marion, N.C. Attualmente, la struttura è chiusa per la produzione a causa delle inondazioni, e l’azienda sta lavorando a stretto contatto con diverse agenzie governative per valutare i danni e riprendere le operazioni. Punti chiave:
1. Baxter sta attuando misure per ridurre al minimo le interruzioni nella fornitura, inclusa la gestione dell’inventario e l’uso di un processo di allocazione protettivo.
2. L’azienda sfrutterà la sua rete di produzione globale per mitigare i potenziali impatti sulla fornitura.
3. La Baxter International Foundation ha impegnato 1,5 milioni di dollari in donazioni per gli sforzi di recupero e sta pareggiando le donazioni dei dipendenti 2:1.
4. Baxter prevede un impatto negativo sui risultati finanziari a causa dell’interruzione e prevede di fornire un aggiornamento durante l’annuncio dei guadagni del terzo trimestre.
Baxter International Inc. (NYSE:BAX) ha proporcionado una actualización sobre el impacto del huracán Helene en su instalación North Cove en Marion, Carolina del Norte. Actualmente, la instalación está cerrada para la producción debido a inundaciones, y la empresa está trabajando en estrecha colaboración con varias agencias gubernamentales para evaluar los daños y reanudar las operaciones. Puntos clave:
1. Baxter está implementando medidas para minimizar las interrupciones en el suministro, incluyendo la gestión de inventarios y un proceso de asignación protectora.
2. La compañía aprovechará su red de fabricación global para mitigar los posibles impactos en el suministro.
3. La Baxter International Foundation se ha comprometido a donar 1.5 millones de dólares para los esfuerzos de recuperación y está igualando las donaciones de los empleados 2:1.
4. Baxter anticipa un impacto negativo en sus resultados financieros debido a la interrupción y planea proporcionar una actualización en el anuncio de ganancias del tercer trimestre.
Baxter International Inc. (NYSE:BAX)는 노스코브 시설이 위치한 노스캐롤라이나주 마리온에서 헬렌 허리케인의 영향에 대한 업데이트를 제공했습니다. 현재 이 시설은 홍수로 인해 생산이 중단된 상태이며, 회사는 다양한 정부 기관과 긴밀히 협력하여 피해를 평가하고 운영을 재개하고자 하고 있습니다. 주요 사항:
1. Baxter는 재고 관리와 보호적인 할당 프로세스를 포함하여 공급 중단을 최소화하기 위한 조치를 취하고 있습니다.
2. 회사는 잠재적인 공급 영향을 완화하기 위해 글로벌 제조 네트워크를 활용할 것입니다.
3. Baxter International Foundation은 복구 노력을 위한 기부금으로 150만 달러를 약속하고 있으며, 직원 기부금의 2배를 매칭합니다.
4. Baxter는 중단으로 인해 재무 결과에 부정적인 영향을 예상하고 있으며, 3분기 수익 발표에서 업데이트를 제공할 계획입니다.
Baxter International Inc. (NYSE:BAX) a fourni une mise à jour sur l’impact de l’ouragan Helene sur son installation North Cove à Marion, Caroline du Nord. L’installation est actuellement fermée pour la production en raison des inondations, et l’entreprise travaille en étroite collaboration avec diverses agences gouvernementales pour évaluer les dommages et reprendre ses activités. Points clés :
1. Baxter met en œuvre des mesures pour minimiser les perturbations d’approvisionnement, y compris la gestion des stocks et un processus d’allocation protecteur.
2. L’entreprise exploitera son réseau de fabrication mondial pour atténuer les impacts potentiels sur l’approvisionnement.
3. La Baxter International Foundation s’est engagée à fournir 1,5 million de dollars en dons pour les efforts de récupération et égalera les dons des employés à un ratio de 2:1.
4. Baxter prévoit un impact négatif sur ses résultats financiers en raison de l’interruption et prévoit de fournir une mise à jour lors de l’annonce de ses résultats du troisième trimestre.
Baxter International Inc. (NYSE:BAX) hat ein Update zu den Auswirkungen des Hurrikans Helene auf die North Cove-Anlage in Marion, North Carolina, gegeben. Die Anlage ist derzeit wegen Überschwemmungen geschlossen, und das Unternehmen arbeitet eng mit verschiedenen Regierungsbehörden zusammen, um die Schäden zu bewerten und die Produktion wieder aufzunehmen. Wichtige Punkte:
1. Baxter setzt Maßnahmen um, um Unterbrechungen der Versorgung zu minimieren, einschließlich der Verwaltung von Beständen und eines schützenden Zuteilungsprozesses.
2. Das Unternehmen wird sein globales Fertigungsnetzwerk nutzen, um potenzielle Auswirkungen auf die Versorgung zu mildern.
3. Die Baxter International Foundation hat sich verpflichtet, 1,5 Millionen Dollar für die Wiederherstellungsbemühungen zu spenden und gleicht die Mitarbeiter-Spenden im Verhältnis 2:1 aus.
4. Baxter erwartet aufgrund der Unterbrechung eine negative Auswirkung auf die finanziellen Ergebnisse und plant, in der Bekanntgabe der Erträge für das dritte Quartal ein Update zu geben.
Positive
- Proactive implementation of hurricane preparedness plan
- Close coordination with government agencies for rapid assessment and recovery
- $1.5 million committed for recovery efforts by Baxter International Foundation
- Employee donation matching program at 2:1 ratio
- Leveraging global manufacturing network to mitigate supply impact
Negative
- North Cove facility currently closed for production due to flooding
- Anticipated negative impact on financial results
- Potential supply disruptions for patients and providers
- Damage to site access bridges
Insights
The flooding-induced closure of Baxter’s North Cove facility in Marion, N.C., due to Hurricane Helene is a significant event with potential short-term negative implications for the company’s operations and financial performance. Key points to consider:
- Production disruption at a major facility could lead to supply chain issues and potential revenue loss.
- The $1.5 million commitment for disaster relief, while positive for corporate social responsibility, will impact expenses.
- Baxter’s proactive measures, including inventory management and leveraging its global manufacturing network, may help mitigate some negative effects.
- The company’s close coordination with regulatory agencies is important for navigating this crisis effectively.
- The full financial impact is yet to be determined, but Baxter anticipates a negative effect on its financial results, which will be detailed in the upcoming Q3 earnings announcement.
Investors should monitor the situation closely, as the speed of recovery and the extent of the damage will be critical factors in assessing the medium-term impact on Baxter’s performance.
The closure of Baxter’s North Cove facility presents significant supply chain challenges that require careful management:
- Implementing a protective allocation process by product line is a smart move to ensure equitable distribution and maintain customer relationships.
- Leveraging Baxter’s global manufacturing network to offset production losses is important but may incur additional costs and logistical complexities.
- The company’s proactive hurricane preparedness, including moving products to secure storage, may have mitigated some potential losses.
- Coordination with regulatory agencies like FDA and ASPR is essential for maintaining compliance and potentially expediting recovery efforts.
- The unknown timeline for resuming production creates uncertainty in supply planning, which could lead to market share losses if prolonged.
Baxter’s ability to quickly assess damage, restore operations and effectively communicate with stakeholders will be critical in minimizing long-term supply chain disruptions and maintaining market position.
- Baxter’s North Cove facility affected by flooding and currently closed for production as the company assesses extent of the impact
- Company is working closely with FDA, ASPR, HHS, FEMA, Department of Homeland Security and local and state officials
- Baxter and the Baxter International Foundation are committed to supporting recovery efforts in impacted local communities
DEERFIELD, Ill.–(BUSINESS WIRE)– Baxter International Inc. (NYSE:BAX), a global medtech leader, today shared updates regarding the impact of Hurricane Helene, which brought unprecedented rain and extensive flooding to Western North Carolina, on the operations of its North Cove facility in Marion, N.C.
Baxter’s North Cove site was affected by flooding due to the storm and is currently closed for production. The company is working around the clock in close coordination with local, state and federal officials to assess the extent of the damage and implement a plan to bring the plant back online as quickly as possible to help mitigate supply disruption to patients.
“Our hearts and thoughts are with all those affected by Hurricane Helene,” said José (Joe) E. Almeida, chair, president and chief executive officer at Baxter. “The safety of our employees, their families, and the communities in which we operate remains our utmost concern, and we are committed to helping ensure reliable supply of products to patients. Remediation efforts are already underway, and we will spare no resource – human or financial – to resume production and help ensure patients and providers have the products they need.”
Ahead of the storm, Baxter implemented its hurricane preparedness plan, which included evacuation plans for colleagues, as well as proactively moving products to higher ground or secure storage where feasible. The heavy rain and storm surge triggered a levee breach, which led to water permeating the site. The bridges accessing the site have also been damaged.
Baxter is communicating with its customers about the actions the company is taking to minimize potential disruptions. These include actively managing inventory and implementing a protective allocation process by product line to help support supply continuity and equitable product distribution. The company will leverage Baxter’s global manufacturing network to help mitigate potential supply impact as it continues efforts to fully restore North Cove’s manufacturing operations.
The Baxter International Foundation has committed $1.5 million in donations to its humanitarian aid partners to help address recovery needs, including allocating additional funds to its Employee Disaster Relief Fund, and is matching employee donations $2:$1 to relief efforts.
Baxter is working diligently with and is grateful for the strong support of regulatory agencies, including HHS (Department of Health and Human Services), FDA (U.S. Food and Drug Administration), ASPR (Administration for Strategic Preparedness & Response), FEMA (Federal Emergency Management Agency), DHS (Department of Homeland Security), and local and state authorities, its partners on the ground, and the dedication and resilience of Baxter colleagues. Baxter will continue to provide updates as additional information becomes available and aims to provide an update on estimated timing to resume production as soon as it is able.
While the company is working expeditiously to restore its manufacturing operations and return to production, the disruption is anticipated to negatively impact the company’s financial results. Once the company can more fully assess the damage, it will be in a better position to estimate any expected impact and plans to provide an update in its third quarter earnings announcement.
About North Cove, N.C.
Opened in 1972, North Cove is Baxter’s largest manufacturing facility and includes more than 2,500 employees. The site primarily manufactures intravenous and peritoneal dialysis solutions and is the largest manufacturer of these solutions in the United States.
About Baxter
Every day, millions of patients, caregivers and healthcare providers rely on Baxter’s leading portfolio of diagnostic, critical care, kidney care, nutrition, hospital and surgical products used across patient homes, hospitals, physician offices and other sites of care. For more than 90 years, we’ve been operating at the critical intersection where innovations that save and sustain lives meet the healthcare providers who make it happen. With products, digital health solutions and therapies available in more than 100 countries, Baxter’s employees worldwide are now building upon the company’s rich heritage of medical breakthroughs to advance the next generation of transformative healthcare innovations. To learn more, visit www.baxter.com and follow us on X, LinkedIn and Facebook.
Forward-Looking Statements
This press release contains forward-looking statements related to the impact of Hurricane Helene on Baxter’s North Cove, N.C. facility and Baxter’s relief plans including Hurricane Helene’s anticipated negative financial impact, Baxter’s plans to provide further commentary during its third-quarter 2024 earnings announcement, Baxter’s use of resources to resume production and help ensure that patients and providers have required resources, Baxter’s actions and communication to minimize disruptions, mitigate the supply impact of Hurricane Helene and restore operations, Baxter’s commitment to provide updates regarding the timing to resume production and Baxter International Foundation’s commitment to help address recovery needs. These forward-looking statements are subject to risks and uncertainties that include, among other things, risks related to further disruption due to Hurricane Helene or other storm-related events and other risks identified in Baxter’s most recent filings on Form 10-K and Form 10-Q and other SEC filings, all of which are available on Baxter’s website. Actual results could differ materially from anticipated results. Baxter does not undertake to update its forward-looking statements or any of the statements contained in this press release.
Baxter is a registered trademark of Baxter International Inc. or its subsidiaries.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240929200201/en/
Media Contact
Stacey Eisen, (224) 948-5353
Investor Contact
Clare Trachtman, (224) 948-3020
Source: Baxter International Inc.
FAQ
How has Hurricane Helene affected Baxter’s North Cove facility in Marion, N.C.?
Hurricane Helene caused extensive flooding at Baxter’s North Cove facility, leading to its closure for production. The storm triggered a levee breach, allowing water to permeate the site, and damaged access bridges.
What measures is Baxter (BAX) taking to address potential supply disruptions?
Baxter is actively managing inventory, implementing a protective allocation process by product line, and leveraging its global manufacturing network to help mitigate potential supply impacts while working to restore North Cove’s operations.
How much has the Baxter International Foundation committed to Hurricane Helene recovery efforts?
The Baxter International Foundation has committed $1.5 million in donations to its humanitarian aid partners for recovery efforts, including allocating funds to its Employee Disaster Relief Fund and matching employee donations 2:1.
When will Baxter (BAX) provide an update on the financial impact of the Hurricane Helene disruption?
Baxter plans to provide an update on the estimated financial impact of the disruption in its third quarter earnings announcement, once it can more fully assess the damage to its North Cove facility.
