New Zealand's corporate world hit by coronavirus outbreak

Aofrio

15/03/2020 23:05

March 16 (Reuters) - The fast-spreading coronavirus has
shaken the corporate world in New Zealand, with a growing number
of companies suspending their earnings outlooks, and others
reeling from the economic unknowns facing them.
    The country's central bank stunned markets by slashing its
official cash rate early on Monday morning. It said the impact
from the virus on the economy was, and would remain,
significant.  urn:newsml:reuters.com:*:nL4N2B80EZ
    Shortly afterwards and adding to the list of firms forced to
suspend their earnings forecasts, Auckland International Airport
 AIA.NZ  and Serko Ltd  SKO.NZ  did so, pointing to the
stringent border controls imposed by New Zealand over the
weekend.  urn:newsml:reuters.com:*:nL4N2B80FA
    The extreme measures, which Prime Minister Jacinda Ardern
said were needed to prevent the rapid spread of the virus,
requires all incoming travellers, including New Zealand
citizens, to self-isolate for two weeks starting from midnight
on Sunday.  urn:newsml:reuters.com:*:nL4N2B705A
    There are so far eight confirmed cases of the coronavirus in
New Zealand.
    Companies highly exposed to travel and tourism have been hit
hard.
    Air New Zealand  AIR.NZ , which withdrew its full-year
guidance last week, further slashed capacity on Monday and said
it was looking to lay off some permanent staff. Its directors
also agreed to a 15% pay cut until the end of the year.
 urn:newsml:reuters.com:*:nL4N2B80FE urn:newsml:reuters.com:*:nL4N2B10CU
    "These are unprecedented times," said the airline's chief
executive officer, Greg Foran.
    Tourism Holdings Ltd  THL.NZ  said there "are too many
uncertainties" to keep its profit forecast. Investor Good
Spirits Hospitality  GSH.NZ  withdrew its 2020 earnings guidance
on Monday.
    The world's biggest dairy exporter, Fonterra  FSF.NZ 
 FCG.NZ  will report half-year results on Wednesday and its
outlook will be closely watched.
    The New Zealand Exchange said companies must "promptly"
disclose if the coronavirus was having any material financial or
operating impact. 
    The government plans to announce a business continuity plan
on Tuesday with a fiscal package to provide both targeted and
broad-based economic stimulus.

 (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by
Peter Cooney)
 ((NikhilKurian.Nainan@thomsonreuters.com; Twitter:
@NikhilKurianN; +91 806 182 2724))