Reckitt’s baby formula sales to take hit after tornado hits warehouse

(Reuters) – Reckitt said on Wednesday short-term sales of its Mead Johnson baby formula powder are likely to be affected after a tornado struck a third-party warehouse in Indiana that sustained significant damages.

The Mount Vernon warehouse, currently not operational after the tornado struck on July 9, is an important site for Mead Johnson Nutrition business that contains both raw materials and finished products, Reckitt said.

All employees are safe, the company said, adding that it has diverted all inbound deliveries to other warehousing facilities in the United States.

“Reckitt holds comprehensive property damage and business interruption insurance, which we currently expect will largely offset the impact on earnings.”