As the globe braces for the imminent spread of the coronavirus, its full impact on world markets remains to be seen. According to a report by Reuters, Philips CEO Frans van Houten says the health technology company is starting to see some respite as supply lines in China start to recover. In fact, Van Houten said the Amsterdam-based company has received dozens of additional orders for CT scanners, diagnostic equipment and respiratory devices. He does, however, warn that it’s much too early to tell what the final impact will be for H1 2020.
This new warning came after the Philips chief announced in February that the disturbance in operations, due to the virus, was certain to hurt Q1 2020 earnings. With its six Chinese factories operating at 80 percent of capacity, Q2 is now also in doubt. According to Reuters, Van Houten was quoted as saying, “The situation has improved, but it’s too early to say how March will develop.” Continuing, “If our factories stay at 80 percent, instead of going to full capacity, we’ll have a problem in the second quarter as our stocks will dry up.”