Accident at Kinston, N.C., plant could cost West $6 million

LIONVILLE, Pa. (Feb. 20)—The Jan. 29 explosion and fire at West Pharmaceutical Services Inc.'s Kinston, N.C., plant cost the company as much as $6 million, and temporarily is reducing its sales by $5 million. The firm also reported it reversed losses in the fourth quarter and for 2002 compared with its 2001 results. West said it expects to incur pretax costs of about $4 million to $6 million net of insurance recoveries during 2003 as a result of the accident that took five lives. About $5 million in sales that will be delayed in the first half because of the disruption substantially will be recovered in the second half of the year, however. In its financial report, West said it had net income of $3.4 million in the fourth quarter compared with a $19.6 million net loss in 2001, as sales climbed 14 percent to $106.5 million. For the year, net profits climbed to $18.4 million compared to a net loss of $5.2 million in 2001, and sales rose 7 percent to $419.7 million.