Coronavirus leads to Amphenol downgrading Q1 guidance

Amphenol Corp
Interconnections supplier Amphenol Corp. has downgraded its Q1 2020 fiscal guidance due to coronavirus effects on its business. (Amphenol)

Interconnections supplier Amphenol Corp. is the latest company announcing that the COVID-19 (coronavirus) outbreak in China has created disruptions to its business. In a statement, Amphenol said it does not expect to meet its first quarter 2020 sales and adjusted diluted EPS guidance provided January 22.

“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, among other factors, the Company is currently unable to quantify the full impact of COVID-19,” Amphenol said in the statement.

Amphenol President and Chief Executive Officer R. Adam Norwitt, explained, “We are experiencing a slower return to normal business conditions than we originally anticipated, resulting from the limited availability of our workforce and supplier constraints, together with reduced demand from customers within China who have not yet returned to expected production levels. As of today, all of our China operations have re-opened, and more than 60% of our China-based employees have returned to work, despite ongoing significant restrictions on movement within China. Outside of China, customer demand remains in line with our expectations. Our company continues to be fundamentally strong, and we believe that this disruption to our China-related business is only temporary.”

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Amphenol Corporation designs electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. The company has plants in the Americas, Europe, Asia, Australia and Africa. End markets include automotive, broadband communications, commercial aerospace, industrial, information technology and data communications, military, mobile devices and mobile networks.

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