Virus hits Asian energy, exporters hardest, as analysts cut outlook

(03) 5375 6693 Wyatt Claypool (2020-11-08)

May 11 (Reuters) - Concerns that extended factory lockdowns and social distancing rules will dent company profits prompted analysts to cut forecasts for Asian companies' 2020 earnings by around 5.4% over the last month, Refinitiv data showed.

The reductions take the total cut in earnings estimates to 14.8% so far this year.

The companies most affected are those reliant on exports and on energy, following a collapse in oil prices and in fuel demand because of lockdown restrictions and border closures.

In the last month, companies dependent on the energy sector faced a 17.8% cut in 2020 forecasts.

Companies in export-reliant economies, South Korea and Thailand, were also hit hard as their profit forecasts were reduced by about 9% and 8.3% respectively.

Both economies shrank in the last quarter, with South Korea recording its biggest contraction since 2008 as self-isolation measures reduced consumption and global trade slumped.

The profit forecast downgrades followed poor first-quarter earnings results for many Asian companies, which reported a 19% year-on-year fall in bottom line, 에그벳카지노 Refinitiv data found.

The consumer discretionary sector, which includes companies selling non-essential durable items such as televisions and automobiles, also faced big downgrades, the data showed.

(Reporting by Gaurav Dogra and Patturaja Murugbaoopathy in Bengaluru; editing by Barbara Lewis)

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