(Reuters) - Companies around the world have warned that a coronavirus outbreak in China could disrupt supply chains or hurt their profits as factories and shops shut and airlines suspend flights.
FINANCIAL IMPACT:
- Swiss engineer ABB, which got 15% of its sales from China last year, said it expected to take a hit but could not quantify the impact yet.
- Apple gave a wider-than-usual revenue outlook range for the March quarter to factor in uncertainty. Apple, which has suppliers in Wuhan, the central Chinese city at the heart of the outbreak, said the reopening of some suppliers' factories outside the city had been moved to Feb. 10 from the end of January.
- Baidu postponed its quarterly results announcement.
- Electrolux said the epidemic could have a material impact if its Chinese suppliers were further affected.
- Ferrari said it can offset weakness in China if it was for a few months.
- Ford excluded any potential impact from its already weaker-than-expected forecast for the year, saying it was too early to make an estimate. The company is still hoping to resume large parts of its operations in China next week.
- Apple supplier Foxconn aims to gradually restart factories in China next week but it could take at least one to two weeks from then to resume full production, a source said.
- Mitsui expects automobile manufacturing activities and steel demand to slow.
- Remy Cointreau warned that a potential impact from the outbreak would be significant because of its big exposure to China.
- Royal Caribbean Cruises called off eight trips to China and expects cancellations to trim first-quarter earnings by 25 cents per share.
- Samsung Electronics extended a holiday closure for some factories in line with Chinese government guidance but declined to comment on the impact.
- Sony, which raised its annual profit outlook, said impact from the virus could offset the upgrade.
- ConocoPhillips warned oil demand growth could be hit by 100,000 to 200,000 barrel per day this year due to the outbreak.
- Tesla warned of a delay in production ramp up of its Shanghai-built Model 3 after China ordered a shutdown of the factory. It will also delay the delivery of some China-made cars planned for early February.
- Tapestry said second-half sales could be hit by up to $250 million due to the outbreak
- Walt Disney said the closure of its Shanghai park could hurt operating income in the second quarter by $135 million, if it is shuttered for two months.
- McDonald's, Starbucks, H&M and Nike have been forced to close stores, and expect varying degrees of impact to sales and profit.
- Carlsberg, Jaguar and Land Rover parent Tata Motors, Levi Strauss and battery maker Samsung SDI have all warned that profits will be hurt.
STORE/FACTORY CLOSURES:
- Ralph Lauren shut about half its 110 stores.
- IKEA closed all 30 stores in China and Tiffany closed several.
- Gap closed some stores and shortened operating hours of some stores, as did Hugo Boss.
- Luckin Coffee closed its cafes in Wuhan, Yum China closed some KFC and Pizza Hut in the city, Swatch closed five stores and AB Inbev suspended production at its brewery.
- Hyundai Motor said it would suspend production in South Korea due to the outbreak disrupting parts supply. [L4N2A41I5]
- Toyota Motor shut factories in China through Feb. 9.
(Reporting by Reuters bureaux; Writing by Sayantani Ghosh and Josephine Mason; Editing by Stephen Coates and Clarence Fernandez)
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