Aristocrat Leisure, Kathmandu, Ramsay Health, Mirvac and others on Wednesday scrapped earnings guidance while Ardent Leisure will close its US entertainment centres as the COVID-19 pandemic clouds the global economic outlook.
Troubled Dreamworld owner Ardent announced it will temporarily close its Main Event centres in the US as the country – much like Australia – announces new, stricter guidelines to stop the spread of coronavirus.
Meanwhile, private hospital operator Ramsay Health Care group managing director Craig McNally said while it was too early to determine the impact of COVID-19 in Australia, he expected the number of private patients to rise.
Some hospitals were fast-tracking elective surgery to minimise any future disruption, he said.
Property developer Mirvac also ditched its earnings expectations.
The buyer and builder of office, industrial and residential properties said the uncertainty from the pandemic made it appropriate to withdraw full year guidance.
Chief executive Susan Lloyd-Hurwitz said Mirvac wanted to provide transparency along with protecting its employees and stakeholders.
The virus is spreading across the world and has prompted bans on travel, mass gatherings and panic buying in many countries including Australia.
The World Health Organisation says 6,606 people have died.
Mirvac says it has only $200 million of debt maturing in the next 12 months and is able to repay it.
Gambling machine manufacturer Aristocrat Leisure has had some of its casino customers temporarily close.
It scrapped guidance as customers become more cautious about spending.
Adventure retailer Kathmandu says the coronavirus will deliver a second-half earnings blow but maintains the outbreak shouldn’t limit product availability in coming seasons.
The NZ-based owner of Rip Curl and Oboz on Wednesday said it was unable to provide full-year guidance as it prepares its first half results for March 30 and foot traffic plunges amid accelerating quarantine and social isolation protocols.
Travellers and consumers are eschewing outdoor pursuits, contributing to the deterioration of an early February trading update where chief executive Xavier Simontet said the impact on consumer demand was “currently not significant”.
“Due to the uncertainty around the spread of COVID-19 globally and impacts on demand, at this time, the group cannot forecast the extent to which COVID-19 will impact the business in the second half of this fiscal year,” Kathmandu said in a release to the ASX.
“However, there is likely to be a material adverse impact to earnings”.
The company said sufficient inventory levels are in place for the forthcoming season for all brands, assisted by the longer lead time of technical product categories, and a diversified supplier base.
Kathmandu also flagged that it is reducing operating expenses, deferring non-essential capital projects, optimising labour costs, managing inventory levels and implementing a travel and hiring freeze to combat the impacts of the virus.
AAP
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