NEENAH, WI -- Plexus today became the latest EMS company to downgrade its financial outlook due to the COVID-19 virus outbreak.
The company said the situation remains fluid, but estimates its fiscal second quarter revenue will be negatively impacted by approximately $40 million primarily due to workforce disruptions within the company’s supply chain.
The negative impact may result in revenue for the second quarter to fall below the low end of previous company guidance range of $790 million to $830 million, issued Jan. 22. Operating margin within the fiscal second quarter is also expected to be negatively impacted, Plexus said.
In a statement, Todd Kelsey, president and CEO, said, “Our top priority remains protecting the well-being of our employees and supporting our customers as the COVID-19 situation continues to evolve. I would like to commend our people within the global supply chain and Asia-Pacific regional teams for their extraordinary efforts to fulfill customer demand within the quarter, including the delivery of life-preserving medical products used in diagnosing the virus. Their focus on customer service excellence has been unwavering and provides an example of our exceptional culture. While there is uncertainty surrounding the continuing impact this virus may have to the supply chain and our operations, we remain optimistic in our long-term outlook.”
The Company will provide additional updates during a live webcast on Wednesday, March 4, 2020 at the 41st Annual Institutional Investors Conference hosted by Raymond James. Story continues