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Factbox-From Apple to Tesla and Starbucks, companies count the costs of Shanghai lockdown

Factbox-From Apple to Tesla and Starbucks, companies count the costs of Shanghai lockdown

FILE PHOTO: Residents line up for nucleic acid tests on a street during lockdown, amid the coronavirus disease (COVID-19) pandemic, in Shanghai, China, May 19, 2022. REUTERS/Aly Song

China's uncompromising "zero-COVID" policy has placed hundreds of millions under stringent lockdowns and disrupted a global rebound in production of everything from mobile phones and apparel to electric vehicles and chips.

In discussions about their quarterly results, C-suite executives gave a glimpse of the pain their businesses are facing during nearly seven weeks of severe restrictions on movement in China.

The list below shows some companies bearing the brunt of China's efforts to tackle its biggest COVID-19 outbreak:

COMPANY IMPACT WHAT THEY SAID

Apple Inc Q3 sales to Supply-chain issues would hurt

be hurt by sales "substantially larger" than

US$4 billion the hit in Q2

to US$8

billion

Tesla Inc Lost about a Halted most of its production at

month of Shanghai plant due to problems

build volume securing parts for its electric

out of its vehicles

Shanghai China sales slumped 98per cent in April

factory due from a month earlier

to the

shutdowns

Texas Reduced Issues arising from lockdowns were

Instruments midpoint of primarily due to disruptions at

its the factories of its customers and

second-quart not due to shipping or

er revenue distribution problems

estimates by

10per cent

Amkor Sees revenue Expects its Shanghai factory to

Technology impact of return to normal production during

around US$120 the second half of Q2

million

Infineon Sees a Further material shortages and

Technologies revenue supply chain disruptions are

AG shortfall in looming; see shortages affecting

Q3; says many of customers

there is a

"net

double-digit

-million

euro impact"

Starbucks Suspends "Have virtually no ability to

Corp guidance for predict our performance in China

rest of in back half of the year" -

fiscal 2022 Starbucks China CEO Sees "even

greater impact" to Q3 results due

to timing of Shanghai lockdowns

and resurgence of virus in

Beijing, other cities

Walmart Inc Cuts FY, Q2 China gross profit decreased in

EPS forecast quarter to end-April due to

for 2022 markdowns from slower growth;

Pivoted focus to delivery,

ecommerce due to lockdowns

Under Armour AsiaPac Store closures and restricted

Inc sales fell hours caused "significant

14per cent in March reductions in retail

quarter; traffic";Lockdowns hit

issues weak transportation, affecting ability

2022 profit "to get product to the right place

forecast at the right time within

China"Expects emergent COVID

impacts in China to lessen as the

year progresses

Tapestry Inc Sees 35per cent By end-March, 40per cent of mainland

revenue China stores closed or operating

decline in at reduced hours and Shanghai

Greater distribution center shut

China in Q4 downLockdowns in Greater China

assuming having "greater impact than

Shanghai previously anticipated" -

lockdowns CFODespite restrictions, "purchase

lifted in intent" for handbags remains

June; 25-35 "high"

cent EPS hit

to 2022

outlook

JD.com Sees weak "In April, the order cancellation

demand on rate was significantly higher than

big-ticket last year due to logistical

products. disruptions" - CEO

Customer "Consumers are facing loss in

spending per income and confidence, and overall

transaction consumption is sluggish" - CEO

falls in

April and

May

Coty Inc Raises FY Travel retail business in Hainan

forecast for is compensating for net revenue

year losses incurred due to mainland

China lockdowns in Q3 ended

MarchExpects to have "very"

limited recovery in China in Q4

Yum China Q1 operating "This latest outbreak and the

profit challenges we face are

decreased unprecedented" - statement

44per cent; In March and April same-store

net income sales declined by more than 20per cent

decreased year on year

57per cent

Tencent Ad sales COVID-19 lockdowns have hurt

Holdings slumped 18per cent, advertiser sentiment - Chief

COVID Strategy Officer

impacts how The COVID-19 lockdown in Shanghai

quickly ad significantly hampered

income will multinational corporations'

start to advertising budgets

recover

Foxconn April COVID-19 controls in China only

revenue down had limited impact on production

4.1per cent month but demand suffered

on month, or "There are many uncertainties in

down 2.8per cent the market at the moment" -

year on year chairman

(Reporting by Tiyashi Datta and Chavi Mehta in Bengaluru, Siddharth Cavale in New York and Sophie Yu in Beijing; Editing by Sriraj Kalluvila and Maju Samuel)

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