Companies feel impact of coronavirus outbreak in China
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.
** Airbnb has suspended bookings in Beijing until Feb. 29.
** Amazon has pulled out of this month’s Mobile World Congress in Barcelona, following Ericsson and LG Electronics
** The Pentagon shrunk the size of its delegation travelling to the Singapore Airshow and U.S. defence firms Lockheed Martin and Raytheon said they would not attend.
** Chinese gaming giant Tencent has asked its employees to continue working from home until Feb. 21, extending the period from Feb. 14 announced previously.
** Singapore’s central bank said it had advised financial institutions in the city-state to take additional measures and precautions after the government raised its coronavirus alert level.
** State carrier Air China said late on Saturday it will “adjust” its flights between China and the U.S.
** Apple is extending its retail store closures in China, even as it worked toward opening its corporate offices and contact centres.
** Taiwan’s Foxconn hopes to resume half of its production in China by month-end, a source told Reuters, as the supplier to Apple and others reopens plants.
** Facebook said production of its Oculus virtual reality headset would be hit.
** French oil major Total rejected a force majeure notice from a liquefied natural gas buyer in China.
** Civil aviation training company CAE had to pull about 20 workers out of China and had some customers who were forced to cancel their training.
** Royal Caribbean Cruises said it would ban guests holding China, Hong Kong or Macau passports from boarding its ships.
** Canada Goose Holdings forecast a hit to its annual profit and revenue.
** Burberry said the outbreak was hitting luxury demand in China and Hong Kong.
** Vans sneaker maker VF Corp said about 60% of the company’s owned and partner stores in China have been temporarily closed.
** Several fashion retailers that manufacture clothing in coronavirus-hit China are in talks with Turkish firms about shifting production to Turkey, two sector officials told Reuters.
** Macau casino operator Melco Resorts & Entertainment is pulling the plug on a stake purchase in Australia’s Crown Resorts, citing a plunge in traveller numbers and casino closures.
** Amazon.com Inc sellers are bracing for product shortages as Chinese workers may be unable or unwilling to return to idled factories.
** L’Oreal said the spread of the virus would have an impact on demand in the coming weeks.
** Hong Kong Airlines said it will slash 400 jobs and cut operations given weak travel demand.
** Suzuki Motor Corp said it was considering sourcing vehicle components from outside China.
** A Chinese credit rating service backed by Alibaba affiliate Ant Financial stopped updating scores as of Wednesday, saying many users could miss payments because of the outbreak.
** The outbreak is throwing the global container shipping trade out of sync, with lines re-routing cargoes and reducing calls to Chinese ports, ** industry sources said.
** A number of Chinese manufacturers including a subsidiary of Apple partner Foxconn have refitted production lines to make masks and medical clothing.
** 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.
** 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.
** 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.
** 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.
** Gucci-owner Kering has temporarily shut half of its stores in China, and shelved new openings and advertising campaigns there.
** PVH Corp said it had temporarily closed majority of its Calvin Klein and Tommy Hilfiger stores in China
** Volkswagen has postponed restarting production at most China plants in its JV with SAIC Motor and the Tianjin plant in its JV with FAW Group until Feb. 17.
** U.S. electric carmaker Tesla’s factory in Shanghai will resume production on Feb. 10 with assistance to help it cope the outbreak, a Shanghai government official said.
** French carmaker Renault said its South Korean subsidiary RSM would suspend production at its Busan site for four days from Feb. 11 due to supply chain disruptions in China.
** Specialty steelmaker Voestalpine has temporarily closed its nine production plants in China due to the outbreak for which it has said it is too early to quantify the economic impact.
** Toyota Motor said production at all of its China plants would remain suspended through Feb. 16.
** 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.
** Toyota Motor shut factories in China through Feb. 9.
Source: Reuters (Reporting by Reuters bureaux; Writing by Sayantani Ghosh, Josephine Mason, Shounak Dasgupta and Shailesh Kuber)