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 bottom lines as factories and shops shut and airlines suspend flights.
**Apple (AAPL.O) 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 Wuhan had been moved to Feb. 10 from the end of January.
**Baidu (BIDU.O) postponed the announcement of its fourth-quarter results.
**Carlsberg (CARLb.CO) expects the virus to hurt business, but said it was too early to give an estimate.
**Electrolux (ELUXb.ST) said the epidemic could have a material impact if its Chinese suppliers were further affected and that it was implementing contingency plans.
**Foxconn’s (2317.TW) shipments to customers including Apple could be disrupted if a Chinese factory halt extends into a second week, a source said. Foxconn has halted almost all its production in China, the person said.
**H&M (HMb.ST) said store closures in China - about 45 - hurt sales in January. The company said its flexible supply chain had limited disruptions.
**Jaguar and Land Rover parent Tata Motors (TAMO.NS) expects the outbreak to hamper production in China and hit profits.
**Levi Strauss (LEVI.N) shut about half its stores in China and said it will take a near-term hit.
**LG Display (034220.KS) said it had not closed any factories in China but warned the outbreak increased uncertainty for suppliers.
**McDonald’s (MCD.N), which closed several hundred of its roughly 3,300 outlets in China, said the overall impact on profits would be “fairly small” if the virus stayed contained in China.
**Japanese trading house Mitsui (8031.T) expects manufacturing activities to slow in automobile and other sectors, and possibly reduce steel product demand.
**Pandora (PNDORA.CO) said the virus had led to an “unprecedented” decline in consumer traffic in China and Hong Kong and that it was unable to estimate impact immediately.
**Remy Cointreau (RCOP.PA) warned that a potential impact from the outbreak would be significant because of its big exposure to China.
**Royal Caribbean Cruises (RCL.N), which canceled three trips of its China-based cruise liner, trimmed its 2020 earnings forecast, adding it would take a further hit if travel restrictions continued until the end of February.
**Samsung Electronics (005930.KS) extended a holiday closure for some factories in line with Chinese government guidance but declined to comment on the impact.
**Sony (6758.T), which raised its annual profit outlook, said impact from the virus could offset the revision.
**SK Hynix (000660.KS), which has a chip plant in the eastern Chinese city of Wuxi, said the outbreak had not disrupted production but that could change if the situation was prolonged.
**Starbucks (SBUX.O), 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 (TSLA.O) warned a 1-1.5 week delay in the ramping up of production of its 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.
**Fast Retailing (9983.T) closed about 280 of its 750 Uniqlo stores in China.
**Hyundai Motor (005380.KS) said it will suspend production in South Korea due to the coronavirus outbreak disrupting parts supply, becoming the first major automaker to do so outside of China. [L4N2A41I5]
**Swatch (UHR.S) closed five stores in Wuhan, Yum China (YUMC.N) closed some KFC and Pizza Hut stores in the city, Luckin Coffee (LK.O) closed its cafes and AB Inbev (ABI.BR) suspended production at its brewery.
**Toyota Motor (7203.T) shut factories in China through Feb. 9.
**Walt Disney (DIS.N) shut its resorts and theme parks in Shanghai and Hong Kong.
HOTELS, BOOKING PLATFORMS, AGENCIES:
**Hyatt (H.N) and Shangri-La said they will allow travelers from China to cancel hotel bookings for free through Feb. 29.
**InterContinental Hotels (IHG.L) said it would allow customers to cancel for free reservations made 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 (BABA.N) booking site, offered similar refunds, as did several Chinese and European tour operators.