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Here's how 5 industry giants are warning coronavirus will harm operations in 2020

Apple

Here's how 5 industry giants are warning coronavirus will harm operations in 2020

Tesla

Tesla

Tesla CEO Elon Musk celebrated the first Model 3 deliveries from a new Shanghai Gigafactory on January 7. One month later, a company vice president warned deliveries will be delayed through early February as government guidelines force the factory to remain closed until the outbreak subsides.

The new plant was set to drive major market share gains for Tesla in China, but shareholders will likely need to wait longer for the investment to pay off as the outbreak halts vehicle production and deliveries. The coronavirus shutdown could hit Tesla's profitability in the near-term but a quick containment should allow its Shanghai factory to efficiently bounce back, the company's chief financial officer said.

"We are also in the early stages of understanding if and to what extent we may be temporarily impacted by the coronavirus," Chief Financial Officer Zachary Kirkhorn said in a quarterly earnings call. "This may slightly impact profitability for the quarter but is limited as the profit contribution from Model 3 Shanghai remains in the early stages."

Disney

Disney

Disney's theme parks in Hong Kong and Shanghai were forced to close as the virus spread, and the closure's timing comes at a particularly bad time for the media giant.

"The current closure is taking place during the quarter in which we typically see strong attendance at occupancy levels due to the timing of the Chinese New Year holiday," Chief Financial Officer Christine McCarthy said in a February 4 analyst call, adding that the financial impact is dependent on the length of the closures and how quickly the parks can return to normal operations.

Nike

Nike

Nike issued a standalone statement on February 4 informing investors of the outbreak's impact on operations in China. About half of the company's stores in the country were temporarily closed, and Nike expects to operate with reduced hours and lower traffic in the stores remaining open.

"In the short term, we expect the situation to have a material impact on our operations in Greater China," the company said.

Nike didn't provide an update to its established next-quarter guidance, and said it would issue new forecasts in its upcoming report as "dynamics continue to evolve" around the outbreak.

Starbucks

Starbucks

Starbucks has been expanding operations in China over the last two decades, and the coronavirus pandemic marks a major hurdle for its continued growth in the country. The company closed more than half of its locations in China and is modifying the operating hours of its remaining stores, according to a January 28 earnings call.

The company didn't revise its forward-looking guidance, noting that the "dynamic situation unfolding with the coronavirus" is hindering its ability to predict the outbreak's fallout.

"The magnitude of the impact will depend on the duration of store closures as we work with local authorities to manage the situation and protect our partners and customers. At present, we are unable to reasonably estimate the impact to the business," Chief Financial Officer Patrick Grismer said in the call.

Now read more markets coverage from Markets Insider and Business Insider:

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An Airbnb cofounder explained the strategy behind its success in China, a market where most US companies have failed


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