A third Company owned chicken flock in
Nebraskahas tested positive for AI. This brings the total affected supply to approximately 35% of the Company’s volume commitments as determined prior to the recognition of force majeure.
As reported on
May 14, 2015, Post management has determined that the ongoing AI outbreak constitutes a force majeure event with respect to its Michael Foodsegg business, the effect of which renders Michael Foodsunable to fully perform under its existing supply agreements with customers.
Michael Foodscontinues to take various effective measures to partially mitigate the financial impact, including discontinuation of certain product lines and appropriate pricing actions.
- The financial impact of the above is being estimated at this time.
Certain matters discussed in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current expectations of Post and are subject to uncertainty and changes in circumstances. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. These risks and uncertainties include the recent avian influenza outbreak in the U.S. Midwest and the impact of the avian influenza incident described above on our financial results; our ability to continue to compete in our product markets and our ability to retain market position; changes in our cost structure, management, financing and business operations; significant volatility in the costs of certain raw materials, commodities, packaging or energy used to manufacture our products; our ability to maintain competitive pricing, introduce new products or successfully manage costs; our ability to successfully implement business strategies to reduce costs; changes in economic conditions and consumer demand for our products; labor strikes, work stoppages or unionization efforts; our reliance on third party manufacturers for certain of our products; disruptions or inefficiencies in supply chain; changes in weather conditions, natural disasters, disease outbreaks and other events beyond our control; business disruptions caused by information technology failures and/or technology hacking; and other risks and uncertainties described in the Company’s filings with the