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In what may be a sign to come for manufacturers, Neenah’s Plexus Corp. reported its fiscal second quarter revenue will sustain a hit of about $40 million because of the coronavirus outbreak.
Plexus, a contract manufacturer of electronics that provides product development services for customers, said the outbreak of COVID-19 is disrupting the workforce in its supply chain, which will result in the expected revenue shortfall. The company has more than 19,000 employees at facilities in seven countries, including multiple plants in China, where the COVID-19 outbreak began.
Revenue for the fiscal second quarter ending is now expected to fall below the low end of the company’s guidance range of $790 million to $830 million.
“Our top priority remains protecting the well-being of our employees and supporting our customers as the COVID-19 situation continues to evolve,” said Plexus President and CEO Todd Kelsey.
Kelsey said management remains unsure how long the impact of the coronavirus will last. He said the company remains optimistic for the long-term outlook.