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What Apple, Microsoft, GE and other -2-

-- Dow Inc. (DOW) expects the coronavirus to shave about $400 million (link) off first-quarter sales, after business in China saw a 20% to 30% dip in sales. CFO Howard Ungerleider told an industrials conference that the chemicals company expects some additional sales impact, but that it is difficult to quantify for now. "However, if I had to size the total impact of COVID on our first quarter based on what I know today, both the impact in China and the knock-on impacts around the world, I would arrange the total impact to the Dow in the first quarter in the $200 million range on Ebitda," the executive told attendees, according to a FactSet transcript.

-- Dunkin' Brands Group Inc. (DNKN) has limited service to drive-through, carryout and delivery, as a result of the COVID-19 pandemic. The coffee and doughnut seller will remove tables and chairs from all its restaurants and outdoor patios to prevent the congregation of customers.

-- Ecolab Inc.(ECL), a water technology company, said it anticipates a 5 cents hit to EPS as a result of the outbreak. CEO Douglas Baker told investors that if COVID-19 becomes seasonal, like the flu, it may change some behaviors. "If you think if you go back to H1N1, that was really the advent of all the hand sanitizers you see in lobbies of all commercial buildings," he said, on an earnings call. "Before that, it didn't exist. So it clearly changed the demand permanently for hand sanitizing products, etc. You may well see that kind of outcome as a consequence of the coronavirus, too."

-- Eli Lilly and Co. (LLY) doesn't expect any shortages (link) of medicine, including insulin, as a result of the coronavirus. The company has been monitoring its supply chain for potential impact, and doesn't source active pharmaceutical ingredients from China and insulin manufacturing sites in the U.S. and Europe have not been affected.

-- The Estée Lauder Cos. (EL) said the third quarter (link) will be most impacted by the sales decline of luxury beauty products in China. The company updated its sales outlook for the second half of the year, saying it now predicts an increase of up to 1%, compared with the same period a year ago.

-- Expedia Group Inc. (EXPE) is expecting a $30 million to $40 million impact on adjusted EBITDA in the first quarter as a result of the outbreak. It also expects "some impact beyond [the first quarter] in 2020 as well," CEO Barry Diller told investors. "But the exact amount will depend on how long it takes for travel trends to normalize."

-- Exxon Mobil Corp. (XOM) is "looking to significantly reduce spending" in the near-term as a result of market conditions caused by the pandemic and commodity price decreases. "We will outline plans when they are finalized," CEO Darren Woods said in a statement.

-- Foot Locker Inc. (FL) has closed stores across North America, Europe, Middle East and Asia and Malaysia through March 31. The athletic retailer has also withdrawn its full-year outlook and plans to provide an update with its first-quarter earnings announcement on May 22.

-- Fresh Del Monte Produce Inc. (FDP) CEO Mohammad Abu-Ghazaleh said port closures in China led to a slowdown in trucking and goods were left stacked up at ports over the extended Lunar New Year shutdown. He doesn't expect the outbreak to fade away before April. "Usually these viruses, they don't subside until the weather starts warming up, and then we will see the situation getting improved," Abu-Ghazaleh told investors.

-- General Electric Co. (GE) expects first-quarter adjusted earnings per share of 10 cents, below the FactSet consensus of 13 cents, and negative free cash flow of about $2 billion. GE said while COVID-19 is an "evolving variable," it currently expects a negative impact on first-quarter free cash flow of about $300 million to $500 million, and on operating income of $200 million to $300 million. The impacts are included in GE's 2020 outlook.

-- General Mills Inc. (GIS) said half of its Häagen-Dazs shops in greater China are closed, and the shops that remain open have "severely restricted hours." Greater China makes up 4% of General Mills' net sales, 40% of its sales in the region are at Häagen-Dazs shops and other restaurants. The company told investors it can't yet share how the closures will affect its numbers for fiscal 2020.

-- Gilead Sciences Inc. (GILD) is working with Chinese authorities to test its investigational antiviral remdesivir as a treatment for people with the new coronavirus. The drug maker plans to conduct a randomized, controlled trial in China as part of those plans, saying that remdesivir has shown "in vitro and in vivo activity in animal models against the viral pathogens" Middle East respiratory syndrome (MERS) and SARS, both of which are also coronaviruses.

-- Hasbro Inc. (HAS) continues "to have office and third-party factory closures" in China as a result of the outbreak. The company said that China is responsible for about two-thirds of its global sourcing. "The biggest unknown right now is how quickly the manufacturing factories can get their production ramp back up," said Hasbro CFO Deborah Thomas. "Travel is limited, [and] places are still closed."

-- Hewlett Packard Enterprise Co. (HPE) told investors it no longer expects revenue to grow in fiscal 2020, with one executive telling MarketWatch that he blames a 16% year-over-year decline in compute revenue ($3 billion) and 9% decline in total revenue on "microenvironment" issues such as supply-chain disruption and the coronavirus.

-- Hilton Worldwide Holdings Inc. (HLT) said about 150 hotels, totaling approximately 33,000 rooms, are closed in China as a result of the coronavirus outbreak.

-- Hormel Foods Corp. (HRL) expects its international business to have a "very difficult" second quarter as a result of COVID-19. The company said Thursday there has been a slowdown in sales in China, with many restaurants closed, but sales of pantry items like Skippy peanut butter and canned pork Spam have increased. "Similar to other companies in China, all aspects of our in-country supply chain are operating more slowly and at higher cost than normal," CEO James Snee told investors.

-- HP Inc. (HPQ) said it expects a "negative impact to our top line, bottom line and [free cash flow]," citing delayed production and manufacturing timelines. The technology giant said when taking into account the outbreak, it now anticipates earnings per share of 46 cents to 50 cents and adjusted EPS of 49 cents to 53 cents.

-- HSBC Holdings PLC (HSBA.LN) expects a weaker first-half performance in 2020, due to the downturn in Hong Kong and virus-related credit losses in the first quarter, it said. "The most extreme downside scenario in there I would say makes an assumption that the coronavirus is still continuing in the second half of this year," an executive said on an earnings call. "If you look at that and that was to become the central scenario, there would be about $600 million of additional loan losses provisions required."

-- InterContinental Hotels Group PLC (IHG.LN) said 160 hotels are closed in China or closed to new guests. The company's fee business is expected to take a $5 million hit in February in China, as a result of the outbreak. Its Chinese operations make up less than 10% of group operating profit. CEO Keith Barr told investors that the postponement and cancellation of conferences will have an impact on its operations, too. "What I saw during H1N1 and other times in China, the key thing to remember is the Chinese government's ability to stimulate economic growth and activity is unlike any other country," he said, on an earnings call.

-- Interpublic Group of Companies Inc. (IPG) and Meredith Corp. (MDP) separately told investors that the advertising is seeing a small slowdown. "We've seen a slight pullback in luxury advertising related to the travel category, a couple of airlines, not domestic airlines, but actually international airlines pulled back a little bit," Meredith's CEO Thomas Harty said at an investor conference. IPG's Michael Roth said at the same event that the ad giant has "seen cutbacks before on the project side of the business." He also noted that the temporary move to a work-from-home culture may lead to additional business. "Clients are going to need our expertise in allocating media dollars where the clients are, whether they're working at home or whether the consumers are working at home, and how you address the marketplace that's different," he said.

See:Coronavirus is disrupting tech conferences across the globe -- what to know (link)

-- IQVIA Inc. (IQV), which runs clinical trials, including in China, said it expects a $25 million impact in the first quarter as a result of the outbreak. "The patients who are enrolled in a trial are simply not going to visit the hospitals where all the sites are in China because that's kind of the more dangerous spot right now," CEO Ari Bousbib told investors.

-- ITT Inc. (ITT) updated its 2020 guidance, providing a downbeat outlook that included an estimated impact from the outbreak. For 2020, the manufacturer currently expects adjusted EPS of $3.87, and offered a wider range of $3.72 to $4.02, compared with the FactSet consensus of $3.99.

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03-22-20 1015ET

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