China Lockdowns Pose Earnings Risk For Major Industrial Stocks and Autos like Tesla
Author: Anusuya Lahiri | April 27, 2022 07:39am
- Industrial firms warned against China's strict COVID-19 curbs, intensifying supply chain disruptions and rising uncertainty about the business outlook, Reuters reports.
- Even as companies shuffled to keep up with soaring costs of everything from labor to raw materials, the Russian invasion of Ukraine and related Western sanctions drove up energy prices.
- General Electric Company (NYSE:GE) did not see the inflation offset in 2022 and became more decentralized to improve prices.
- 3M Company (NYSE:MMM), already struggling with chip shortages and high raw materials costs, looked to continue to increase prices to offset inflationary and supply chain costs echoing that GE had already raised prices.
- SK Hynix Inc (OTC:HXSCL) saw China's lockdown as the most significant risk driving weaker chip demand in mobile and personal computers.
- LG Display Co, Ltd (NYSE:LPL) said supply chain problems caused by the lockdowns affected panel production and shipments in the March quarter.
- Texas Instruments Incorporated (NASDAQ:TXN) and STMicroelectronics N.V. (NYSE:STM) flagged disruptions due to China's curbs.
- Mercedes Benz Group AG (OTC:DMLRY) saw supply chain bottlenecks and chip shortages hurt its business throughout the year due to China's lockdowns. Tesla, Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM) increased prices to offset inflationary costs.
- Price Action: TXN shares traded lower by 3.82% at $162 in the premarket on the last check Wednesday.
- Photo by Gerd Altmna via Pixabay
Posted In: DMLRY GE GM HXSCL LPL MMM STM TSLA TXN
