Lakeland Industries, Inc. (NASDAQ:LAKE) revealed that it secured one million orders for Ebola protective suits and other products such as hoods, foot coverings and globes. Specifically the company stated:
Through its direct sales force and numerous distribution partners throughout the world, Lakeland has secured new orders relating to the fight against the spread of Ebola. Orders have been received from government agencies around the world as well as other public and private sector customers. Certain of these contracts require weekly delivery guarantees or shipments through the first calendar quarter of 2015. The aggregate of orders won by Lakeland that are believed to have resulted from the Ebola crisis amount to approximately 1 million suits with additional orders for other products, such as hoods, foot coverings and gloves. Lakeland started shipping such orders only in October, which is the end of its fiscal 2015 third quarter reporting period.
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The stock price of Lakeland Industries, Inc. (NASDAQ:LAKE) surged more than 22% to $14.24 per share following its announcement on Thursday.
Lakeland Industries, Inc. (NASDAQ:LAKE) said it started shipping the orders for in October, the end of its reporting period for its third quarter fiscal 2015. According to the company, the primary impact of the orders for products related to the Ebola crisis will not be realized until the end of its fourth quarter reporting period on January 31, 2015.
Lakeland’s balance sheet and operating conditions improved
Christopher Ryan, CEO of Lakeland Industries, Inc. (NASDAQ:LAKE) said the recent developments allowed the company to strengthen its balance sheet and increase its forward cash flow from the elimination of interest service on expensive debts.
Ryan added that the company also managed to increase its production capacity to help prevent the spread of Ebola virus, which led to a material improvement of Lakeland’s business.
Furthermore, Ryan said the operating conditions of Lakeland Industries, Inc. (NASDAQ:LAKE) improved globally. “I am very proud of the way the worldwide team of Lakeland Industries has responded to the Ebola crisis while continuing to provide the highest level of service and quality garments to our traditional customers,” said Ryan.
Lakeland intends to increase production capacity by 100%
Last month, Lakeland Industries, Inc. (NASDAQ:LAKE) announced its intention to increase its manufacturing capacity for specialty protective suits used by health care workers and others exposed to the Ebola virus.
According to the company, it is receiving significant interest for its ChemMax and MicroMAX protective suits around the world.
Lakeland Industries, Inc. (NASDAQ:LAKE) increased its monthly production capacity for the two protective suits by almost 50% on August until October 2014. The company said it was on track to a 100% by January next year. It intends to increase its production capacity further if necessary.
“The expanded capacity is necessary in order to meet obligations for both traditional customers as well as for protection against the spread of Ebola,” according to Lakeland Industries, Inc. (NASDAQ:LAKE).