Dozens of companies continue to report the impact that the coronavirus is leaving on their operations, which has made it essential to announce measures to try to survive in the midst of the crisis.
Automotive, airlines, e-commerce, entertainment and even the sale of food products have revealed the impact on their finances as a result of the outbreak.
Here are the latest announcements from multinationals.
Largest Pizza Hut franchise operator in the US files for bankruptcy
The largest Pizza Hut restaurant operator in the United States has filed for bankruptcy, underscoring the financial pressures the pandemic is exerting on fast food franchisees.
NPC International, which operates 1,225 Pizza Hut outlets as well as 385 Wendy’s, gave in under the weight of its debt after sales fell during the coronavirus blockade. It employs more than 37,000 people and is based near Kansas City.
The company, which opened its first Pizza Hut store in 1962, filed for Chapter 11 bankruptcy protection in Texas federal court on Wednesday.
Pizza Hut said in a statement: “We see it as an opportunity to create a better future for NPC Pizza Hut restaurants.”
Volkswagen cancels plans to build plan in Turkey after sales decline
Volkswagen will cancel plans to build a car plant in Turkey due to the severe slowdown in the global auto market, the German automaker confirmed today.
The factory, which was due to be built near Izmir, was suspended after members of Volkswagen’s supervisory board voiced concern over the construction of a base in Turkey after its foray into Syria last year.
The proposed plant was to produce up to 300,000 cars annually starting in 2022, and formed a vital part of German automakers’ plans to capitalize on rapid population growth in Eastern Europe and the Middle East.
However, car sales are expected to drop by at least a fifth worldwide in 2020 as a result of Covid-19. Volkswagen delivered 30% fewer vehicles in Eastern Europe and the Middle East in the first five months of the year.
GM’s US car sales fell 34% in Q2
General Motors reported that vehicle sales in the United States fell 34% in the second quarter compared to the previous year, as the pandemic hit both supply and demand from automakers.
The Detroit company delivered 492,489 cars, trucks, vans, and SUVs between March and June. Full-size trucks continued to be popular with buyers.
“Our resilient sales reflect an improved demand curve and the strong efforts of GM and our retailers in unprecedented times,” said Kurt McNeil, vice president of US sales operations. “GM entered the quarter with very tight inventories. (…) Now, we are refilling the pipeline, returning production quickly and safely to pre-pandemic levels.”
GM said demand outstripped supply later in the quarter. It closed factories in March when the Covid-19 spread across the United States, and auto workers feared catching the disease near an assembly line. Now the full-size pick-up truck and SUV plants operate in three shifts, while “almost all” plants make cars and crossovers, vehicles that look and feel like an SUV, built on a car chassis, they operate in a pre-pandemic. Productivity levels.
Macy’s receives $ 3.1 billion impact from pandemic
Macy’s announced Wednesday that it recorded a hit of $ 3.1 billion in the first quarter, from the impact of the pandemic on retail, even as sales began to exceed projections early in the second quarter.
The department store chain assumed the pre-tax capital gain charge, in addition to an impairment charge of $ 80 million related to long-lived assets, after its long-term projections and market capitalization were affected by the Covid-19 pandemic that has affected traditional retailers around the world.
Net sales in the period ending May 2, or in the midst of the peak of the pandemic, were $ 3 billion, a 45% drop from the same period last year. He had previously revealed that number in a preliminary report. This was the third department store chain sales update in as many months as the retailer attempts transparency in an effort to calm Wall Street about the impact of the closings.
The news of the charge sent the shares down in the first operations. Shares fell as much as 3.3% in New York before regular operations began.
Microsoft to Offer Digital Skills Training to 25 Million People Worldwide
Microsoft aims to provide free digital skills training to 25 million people worldwide this year, as it predicts an increase in global unemployment as a result of the coronavirus crisis.
Bringing together insights from Microsoft’s core software and cloud computing business, as well as its affiliates from LinkedIn and GitHub, the initiative aims to identify the skills in greatest demand, offer free access to relevant learning programs and provide skills certification for as little as $ 15.
According to Microsoft’s own estimates, global unemployment could reach 250 million in 2020 as a result of the massive shock of demand in the economy. In the United States, according to the Congressional Budget Office, about 21 million people may lose their jobs this year, raising the unemployment rate from 3.5% to 15.8%.
The company hopes its “apprenticeship system” will help meet the demand for more timely and flexible training programs as the unemployed seek to acquire new skills and employees adapt to the post-pandemic economy and mass digitization of many industries.
Ryan Roslansky, CEO of LinkedIn, said that the 690 million people and 50 million companies that used his network were entering 5 million new data points per minute, providing real-time information on the skills they demanded the most. “Our goal is to try to get the right data to the right people to create the right learning path for them to acquire the skills they need,” he said.
Top 10 jobs identified by LinkedIn include software developers, sales representatives, IT administrators, data analysts, and graphic designers.
Shell to record depreciation of assets of up to US $ 22 billion due to coronavirus impact
Royal Dutch Shell said it will bear a loss in value of its assets of up to $ 22 billion, as the coronavirus crisis pushed down demand for oil and gas, and weakened the outlook for energy prices.
The loss in value comes after the Anglo-Dutch company’s decision to start ditching fossil fuels to reduce its greenhouse gas emissions to zero by 2050, as announced in April by CEO Ben van Beurden.
Global travel restrictions to prevent the spread of the virus affected more than 4 billion people at the time, taking cars off the road and leaving planes on the ground, depressing fuel demand.
Shell, the world‘s largest fuel retailer, said it expects a 40% year-over-year drop in its second-quarter sales to about 4 million barrels per day (bpd), although the volume is above its previous forecast of one down to 3.5 million bpd.
In its report ahead of its second-quarter results on July 30, Shell said it expects oil and gas production to average 2.35 million bpd in the three months to June, a decline from 2.71 million bpd. first quarter bpd.
Cineworld postpones reopening of theaters in the US and UK for the end of July
Cineworld has postponed the reopening of its theaters in the United States and the United Kingdom until the end of July, citing changes to the release dates of some of the great summer movies.
The UK-based company hoped to reopen theaters, which include Regal Cinemas in the United States, on July 10, but a number of major markets such as Los Angeles and New York have yet to give the go-ahead.
Hollywood studios have also delayed the release of new movies, such as “Mulan” and “Tenet,” which are slated for August.
Cineworld is the second largest cinema chain in the world after AMC Entertainment. AMC also postponed its US reopening date for two weeks to July 30.
The crisis has forced cinemas around the world to close their doors after governments imposed confinements to prevent the spread of the disease.
Although the cinemas are preparing to receive spectators again, the experience will be different since they must comply with the rules of social distancing.
Under Armor Withdraws From US College Sports Offerings
Under Armor underscored the challenges that the coronavirus pandemic has posed to America’s college sport, as it finalized equipment deals with two hundreds of millions of dollars worth of college programs.
The agreements with the University of California, Los Angeles, and the University of California, Berkeley, were part of an Under Armor marketing push in recent years to provide universities with a mix of cash and products in exchange for the right to equip to campus athletes.
However, the Covid-19 outbreak has destroyed the sport globally and has halted the US university sector that provides about $ 8 billion. Both universities said they would challenge Under Armor’s move to end the deals.
Gilead Sets Price of Potential Coronavirus Drug at $ 390
Gilead Sciences Inc announced Monday that it has priced its potential drug for Covid-19, remdesivir, at $ 390 per vial in the United States and other developed countries.
Based on current treatment patterns, the vast majority of patients are expected to receive a five-day treatment using six vials of remdesivir, which is equivalent to $ 2,340 per patient, the US company quoted by Reuters said.
Other announcements from multinational companies, here.