SOME companies have warned that the novel coronavirus (2019-nCoV) outbreak in China that has killed more than 250 people and infected nearly 12,000 could disrupt supply chains or hurt bottom lines as factories and shops shut and airlines suspend flights.
FINANCIAL IMPACT:
* 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.
* 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.
* McDonald’s, which closed several hundred of its roughly 3,300 stores in China, said overall impact on profits would be “fairly small” if the virus stayed contained in China.
* 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.
* 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.
* Sangyong 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.
* 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.
* 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.
STORE/FACTORY CLOSURES:
* Alphabet’s Google temporarily shut all offices in China, Hong Kong and Taiwan.
* 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. - REUTERS