TAIPEI (Reuters) – Apple supplier Foxconn (2317.TW) said it would resume normal production in China by the end of the month and that more than half its seasonal workforce in the country had restarted work following the coronavirus outbreak.

The Taiwanese firm, which assembles Apple’s (AAPL.O) iPhones, however, said it was unable to predict the virus’ actual impact on its full-year results.

“Prevention of outbreak, resumption of work and production are our top priority,” Chairman Liu Young-Way told an online investor conference on Tuesday.

The flu-like virus, which originated in China late last year and can be transmitted from person to person, has spread to more than 60 countries. It has infected over 86,000 people and killed more than 3,000 people, the majority in China.

Foxconn is among manufacturers worldwide who are grappling with virus-related curbs that have upended supply chains and hurt demand. This week, Hyundai Motor (005380.KS) reported its worst monthly sales in a decade after earlier highlighting problems in parts supply from China.

Apple, Foxconn’s top client, rescinded its March quarter sales guidance due to a slower-than-expected ramp up of manufacturing sites in China amid travel restrictions and an extended Lunar New Year break.

But on Tuesday, Young sought to reassure investors and said there were no big problems with the supply chain and that Foxconn was helping suppliers resume work.

Foxconn, the world No. 1 contract manufacturer, said late last month that it had started cautiously restarting production at its main plants in China but that the epidemic would take a toll on its revenue for the year.

The warning from Foxconn, formally called Hon Hai Precision Industry Co Ltd, is likely to cloud Apple’s timeline for new phones. Foxconn tends to handle the introduction of new iPhones as its capabilities are the most advanced, supply chain experts say, but the timeline is under threat given the travel curbs.

Apple engineers usually jet off to Asia in the first few months of the year to perfect the production of new models, former employees and supply chain experts said.

Foxconn shares have dropped more than 10% so far this year.

Reporting By Yimou Lee; Editing by Himani Sarkar

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Healthcare stocks show their defensive allure in ailing market

NEW YORK (Reuters) – The coronavirus pandemic is throwing a spotlight on stocks in the U.S. healthcare sector, home to the companies that could develop treatments, vaccines and improved diagnostics needed to tackle the greatest public health crisis in a…

Dow has biggest daily jump since 2009 as Wall Street buys the dip

(Reuters) – The Dow Jones Industrial Average surged over 5% on Monday while the S&P 500 and Nasdaq each jumped more than 4% in a major rebound following last week’s steep sell-off sparked by fears about the coronavirus. After the…

Airbus examining restructuring including job cuts: sources

PARIS/TOULOUSE (Reuters) – Airbus (AIR.PA) is drawing up plans for restructuring involving “deep” job cuts, but has not taken a final decision, industry sources said. If the move is confirmed, the European planemaker is expected to brief unions on the…

Canada panel urges taxes and domestic content rules for Netflix, other U.S. firms

TORONTO (Reuters) – Ottawa should require U.S. tech companies such as Netflix (NFLX.O), Amazon (AMZN.O) and Facebook (FB.O) to collect the same taxes as Canadian companies and also be subject to the same requirements for supporting domestically produced content, a…