Company profit warnings signal virus already is a global crisis

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Businesses that are exposed to travel are clear targets. FMTNews Coronavirus

United Airlines Holdings Inc has warned that sales and profit are getting hurt as the epidemic spreads.

The US credit-card network cut its revenue-growth forecast as the spread of infections puts off travellers. Singapore Airlines Ltd on Tuesday pulled more flights from its schedule through the end of May, adding to a long list of airlines led by Cathay Pacific Airways Ltd that are cutting capacity as demand craters.Increasingly, though, the coronavirus has become a concern for any industry fed by a global supply chain.

Royal Philips NV said Tuesday that it expects a hit in the first quarter as it sells fewer consumer appliances in China and its supply chain gets snarled. Adidas said last week that business slumped 85% in China since the end of the Lunar New Year holidays. The World Health Organisation called the increase in cases outside China “deeply concerning,” though stopped short of labelling the crisis a pandemic.

 

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