An outbreak of a new type of coronavirus that has killed hundreds of people and infected thousands in China is expected to have a “relatively modest” impact on operations and revenues in China and other markets during the first quarter of this year.
Cummins has extended shutdowns at its China facilities, including those in Wuhan, where the company has six operations. The company plans to reopen the six facilities, as well as four other facilities in Hubei Province and other areas of China, sometime between Feb. 10 and 14, depending on the province.
Cummins Chairman and CEO Tom Linebarger told financial analysts during a conference call on Tuesday that company officials estimated the impact could be “relatively modest” with revenues expected to bounce back over the course of the year if the facilities reopen as currently planned.
So far, losses due to the outbreak have largely been delayed because Chinese factories were closed anyway to let workers travel home for the week-long Lunar New Year holiday.
For more on this story, see Wednesday’s Republic.