© Plexus Electronics Production | March 03, 2020
Plexus updates its financial outlook due to COVID-19
Plexus is updating its fiscal second quarter revenue outlook due to evolving business and financial implications relating to the COVID-19 outbreak.
While the situation relating to COVID-19 and its effects on the company, its customers, suppliers and logistics providers remains fluid, Plexus currently estimates that its fiscal second quarter revenue will be negatively impacted by approximately USD 40 million primarily due to workforce disruptions within its supply chain. The negative impact may result in revenue for the second quarter to fall below the low end of our guidance range of USD 790 million to USD 830 million as provided by the company on January 22, 2020. Operating margin within the fiscal second quarter is also expected to be negatively impacted due to inefficiencies in our global manufacturing facilities as a result of the supply chain disruptions. “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,” says Todd Kelsey, President and CEO, in an update.