Coronavirus: Companies feel impact of Virus outbreak in China

Some companies have warned that a coronavirus outbreak in China that has killed more than 200 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.

** 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.

** 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 canceled 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 overall impact on profits would be “fairly small” if the virus stayed contained in China.

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** Remy Cointreau warned that a potential impact from the outbreak would be significant because of its big exposure to China.Royal Caribbean Cruises, which canceled 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.

** 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.

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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 stays 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.

Reporting by Reuters bureaux, Writing by Sayantani Ghosh and Josephine Mason; Editing by Aditya Soni and Timothy Heritage