Shares of Amphenol (APH) fell Monday after the electrical connector maker added itself to the heap of industrial suppliers that are suffering earnings woes from the coronavirus.
The company said that because of disruptions in China caused by the virus, it doesn’t expect to meet guidance for first-quarter sales and adjusted earnings per share that it offered Jan. 22.
It then predicted that first-quarter 2020 revenue would total $1.96 billion to $2 billion and adjusted earnings per share would register 85 cents to 87 cents.
“Given the uncertainty around the timing of a return to full production in China and the lack of visibility with respect to demand from customers in China … the company is currently unable to quantify the full impact of Covid-19 [the coronavirus],” the company said in a statement.
“We are experiencing a slower return to normal business conditions than we originally anticipated,” the company added. That stems from the limited availability of the company’s workforce and supplier constraints, along with reduced demand from customers within China who haven’t yet returned to expected production levels.
Amphenol said that all of its China operations have now re-opened, and more than 60% of its China-based employees have returned to work.
Outside China, customer demand is meeting forecasts, the company said. “Our company continues to be fundamentally strong, and we believe that this disruption to our China-related business is only temporary.”
Economists said that drawn-out industrial paralysis in China could send the global manufacturing sector reeling and trim worldwide GDP by up to $1 trillion.
At last check, Amphenol traded at $96.76, down 4.9%.