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Last Updated : Feb 01, 2020 08:33 AM IST | Source: Reuters

Coronavirus Outbreak: Here is a look at the likely impact on companies

Various businesses across sectors have felt the impact of the coronavirus. Here are a few:

Reuters
Representative image
Representative image

Some companies have warned that a coronavirus outbreak in China that has killed more than 250 people and infected thousands could disrupt supply chains or hurt bottom lines as factories and shops shut and airlines suspend flights.

FINANCIAL IMPACT:

- Electrolux said the epidemic could have a material impact if its Chinese suppliers were further affected and that it was implementing contingency plans.

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- H&M said store closures in China - about 45 - hurt sales in January. The company said it sources "a lot" from China but its flexible supply chain had contained disruptions so far.

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- Hyundai Motor said it planned to halt South Korean production of a sport utility vehicle this weekend to cope with a supply disruption caused by the virus outbreak.

- Jaguar and Land Rover parent Tata Motors expects the outbreak to hamper production in China and hit profits.

- Japan Airlines Co said a quarter of reservations for China flights were cancelled in the past 10 days.

- Levi Strauss shut about half its stores in China and said it will take a near-term hit.

- LG Display said it had not yet closed any of factories in China but warned the outbreak increased uncertainty for suppliers.

- McDonald's, which closed several hundred of its roughly 3,300 stores in China, said the overall impact on profits would be "fairly small" if the virus stayed contained in China.

- Remy Cointreau warned that a potential impact from the outbreak would be significant because of its big exposure to China.

- Royal Caribbean Cruises, which cancelled three trips of its China-based cruise liner, trimmed its 2020 earnings forecast by about 10 cents per share and said it would take a further 10-cent hit if travel restrictions continued until the end of February.

- Ssangyong Motor said it would idle its plant in the South Korean city of Pyeongtaek from Feb. 4 to Feb. 12 for the same reason.

- Samsung Electronics said it had extended a holiday closure for some factories in line with Chinese government guidance but declined to comment on the impact.

- Samsung affiliate and battery maker Samsung SDI, which counts Volvo among its customers, warned of a hit to its March-quarter earnings.

- SK Hynix, which has a chip plant in the eastern Chinese city of Wuxi, said the outbreak had not yet disrupted production but that could change if the situation was prolonged.

- Starbucks, which closed more than half its roughly 4,300 stores in China, delayed a planned update to its 2020 forecast and said it expects a material but temporary hit.

- Tesla warned a 1-1.5 week delay in the ramp of Shanghai-built Model 3 cars could slightly hurt March-quarter profit after China ordered a shutdown of the factory. Tesla is also evaluating whether the supply chain for cars built in its California plant will be affected.

STORE/FACTORY CLOSURES:

- Alphabet's Google temporarily shut all offices in China, Hong Kong and Taiwan.

- Deere & Co said it has temporarily closed its facilities in China until the company determines it appropriate to reopen.

- US makers of surgical masks including 3M, Owens & Minor and Alpha Pro Tech are ramping up manufacturing because of surging demand in China and around the world in response to the outbreak.

- Toyota Motor shut factories in China through Feb. 9.

- Walt Disney shut its resorts and theme parks in Shanghai and Hong Kong.

- Fast Retailing closed about 100 Uniqlo stores in Hubei.

- IKEA closed all 30 stores in China.

- Swatch closed five stores in Wuhan, Yum China closed some KFC and Pizza Hut stores in the city, Luckin Coffee closed its cafes and AB Inbev suspended production at its brewery.

- Imax delayed film releases in China.

HOTELS, BOOKING PLATFORMS, AGENCIES:

- InterContinental Hotels and Hyatt Hotels said they would allow customers to cancel for free reservations booked for China for specific dates..

- Ctrip, China's largest online booking platform, said more than 300,000 hotels on its platform had agreed to refunds on bookings between Jan. 22 and Feb. 8.

- Fliggy, Alibaba's booking site, offered similar refunds, as did several Chinese and European tour operators.

LIMITING TRAVEL TO CHINA:

- Walmart Inc said it is temporarily limiting "non-business critical travel" to, from, and within mainland China amid the outbreak, while Chevron Corp asked its staff to postpone all non-essential travel to China.
First Published on Feb 1, 2020 08:05 am
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