The coronavirus outbreak's had a bigger effect on Foxconn than expected. Reuters today reported that the company warned investors that its first quarter revenues will be lower than originally anticipated because of the virus' continued impact.
China ordered Foxconn to close its factories in January because of the coronavirus outbreak. Foxconn originally planned to resume work on February 10, but it still hasn't been able to resume normal production because of the outbreak.
Reuters said the problems are twofold. The first is that many Foxconn employees can't get to work because of travel restrictions, which means its output will be lower than anticipated, even though it was technically allowed to re-open its factories.
Article continues belowThose same travel restrictions have also made it more difficult for the company to ship the goods that it can produce. Which means that Foxconn can't get enough people into its factories and can't ship enough products from them either.
Foxconn didn't say how much lower it expects its first quarter revenues to be. But it's not the only company to warn investors of reduced earnings. Nvidia lowered its guidance by $100 million last week, and Apple also tempered expectations on Monday.
