Steelmakers See Weaker Demand Amid Pandemic -- Earnings at a Glance
April 24 2020 - 12:59PM
Dow Jones News
Demand for steel and copper weakened in the first quarter as the
Covid-19 pandemic weighed on industrial sectors.
Hyundai Steel Co.: The South Korean steelmaker swung to a net
loss in the first three months of the year, as the pandemic
depressed demand and the company's affiliates in China experienced
a slower-than-expected recovery.
Posco: The South Korean steelmaker's first-quarter net profit
dropped 44% due to weaker steel demand and lower product
prices.
Freeport-McMoRan Inc.: The mining company swung to a loss for
the first quarter, becoming the first big player in the sector to
detail the impact of the pandemic. The company lowered its estimate
for 2020 copper sales volumes by about 15%.
Auto-parts makers were feeling the pain as well.
Autoliv: The Swedish maker of airbags and safety belts posted a
lower first-quarter net profit but said its task force to manage
the situation in China was expanded globally with timely
cost-reduction actions to offset much of the headwinds from weak
light-vehicle production.
Gentex Corp.: The Zeeland, Mich.-based company, which makes
automotive components, reported a smaller profit in the first
quarter as the Covid-19 pandemic slowed global automobile
production.
Hyundai Mobis Co.: The South Korean auto parts maker's
first-quarter net profit fell 28% due to a slowdown in production
and sales in the wake of the coronavirus pandemic.
Other earnings reported Friday, at a glance:
American Express Co.: The financial-services company more than
tripled its provision for credit losses in the first quarter, and
its chief executive said volumes were heavily impacted by the
pandemic.
Barnes Group: The Bristol, Conn., provider of engineered
products and industrial technologies reported lower but
more-than-expected profit and sales for the first quarter as it
reduced its operations due to the pandemic toward the end of the
period. Barnes said it expects the current quarter to be
significantly affected by the global shutdown.
Kia Motors Corp.: The South Korean auto maker's first-quarter
net profit plunged 59% from a year earlier as it starts to feel the
pain from the coronavirus pandemic, which has forced the closure of
some plants.
Nestle SA: The Swiss food and beverage company's sales fell in
the first quarter but it backed its full-year guidance, saying it
is still early to assess the full impact of the coronavirus
pandemic. North America and Europe benefited from stockpiling in
ready-made dishes, pet care and coffee. Out-of-home consumption
channels reported a significant decline but e-commerce grew to
exceed 10% of total sales.
Sanofi SA: Stockpiling of prescription drugs and strong demand
for flu vaccination and over-the-counter cough and cold medication
in response to the coronavirus pandemic boosted the French
health-care company's sales in the first quarter.
Shinhan Financial Group Co.: The South Korean company's
first-quarter net profit fell 1.7% from a year earlier due to
weaker gains from its derivatives segment amid pandemic-driven
market volatility.
Synovus Financial Corp.: The regional-bank holding company
reported a smaller profit in the first quarter as it set aside more
money to cover credit losses related to the Covid-19 pandemic.
Verizon Communications Inc.: The largest U.S. wireless carrier
by subscribers said the coronavirus pandemic slowed its core
wireless business in the March quarter as Americans bought fewer
new smartphones amid widespread store closures.
Write to Rose Manzo at rose.manzo@wsj.com
(END) Dow Jones Newswires
April 24, 2020 12:44 ET (16:44 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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