I wrote – Yasmine Selim:
The fallout from the Corona Virus and what it inflicted on the global economy has eaten the profits of major companies around the world during the first quarter of this year.
And the major companies operating in the auto, oil and financial institutions announced that they suffered losses or decreased profits due to the effects of the Corona virus during the first quarter, although these figures only reflect three weeks of data from the time the World Health Organization announced the outbreak of the Corona virus.
A survey of the European Central Bank said that the eurozone companies recorded a large increase in the demand for borrowing, as the pandemic of the Corona virus affected the economy.
On the other hand, companies operating in the field of Internet commerce have made a leap in their revenues due to the high demand on the Internet, with many countries around the world entering the home quarantine for fear of spreading the Corona virus.
The automotive sector
The auto sector was badly affected by the closure of factories in both China and America due to the Corona virus pandemic, and this damage was evident with the results of the major companies ’business during the first quarter.
And the US automaker, Ford Motor Company, reported a loss of $ 2 billion in the first quarter due to the aftermath of the Corona pandemic.
It said it expected to double its losses in the second quarter, as it was hit by the shutdown of its North American factories.
Nearly all auto production in the United States stopped in March, amid a rapid growth in the number of HIV infections.
The Japanese company Nissan Motor also expected to record the first operating loss in 11 years, with car sales declining, at a value of 45 billion yen (419.7 million dollars), a decrease of operating profits of 54 billion yen in the company’s previous forecast last February.
The company expects to incur a net loss of 95 billion yen, compared to previous profit forecasts of 65 billion yen.
Nissan is headed for the worst financial performance since the global financial crisis in 2008, according to data announced.
oil companies
Oil companies suffered from a double crisis during the first quarter of this year after oil prices tumbled to record levels and the Corona Virus pandemic caused a decline in oil demand, which caused huge losses.
And Exxon Mobil, the American oil company, reported a quarterly loss in the first quarter compared to profits in the same period a year ago due to write off the longest stock by about three billion dollars due to lower oil prices.
The big American oil company incurred a loss of $ 610 million, or 14 cents per share, in the quarter, compared to a profit of $ 2.35 billion, or 55 cents per share, a year earlier.
The Austrian energy group OMV also incurred a net loss in the first quarter of the year due to large inventory costs.
OM said It lost 68 million euros (74 million dollars) in the three months ended March, after a profit of 496 million in the same period last year.
British oil company BP’s profits tumbled two-thirds in the first quarter to net income of $ 800 million, compared to $ 2.4 billion a year earlier.
Financial institutions
Financial institutions were not immune to the losses incurred by most companies as a result of the closure that affected the world.
Deutsche Bank announced its turnaround for the loss in the first quarter of the year, and said it incurred a loss attributable to shareholders of 43 million euros (46.64 million dollars) in the first quarter, compared to profits of 97 million euros a year earlier.
Barclays has set aside 2.1 billion pounds ($ 2.6 billion) to cover a possible increase in loan losses.
The British Investment Bank made profits in the first quarter, before taxing 923 million pounds, down 38% from 1.5 billion pounds in the first quarter of 2019.
Standard Chartered Bank announced that the increase in credit and provisions decrease in the expected increase in loan losses pushed pre-tax profits for the period from January to March to 12% lower compared to the same period a year ago to $ 1.22 billion.
The results came a day after HSBC Holdings, the largest rival in the same locations for Standard Chartered Bank, announced that its first-quarter earnings fell nearly half, as bad loan provisions jumped to 3 billion.
HSBC Holdings’ profits fell by nearly half in the first quarter of this year.
Profits before tax were calculated at $ 3.2 billion in the January-March period, down from $ 6.2 billion a year earlier.
Berkshire Hathaway, owned by billionaire Warren Buffett, posted record losses in the first quarter of $ 49.75 billion, which reflects huge unrealized losses on common stock holdings such as Bank of America Corp (BAC.N) and Apple Inc (AAPL.O) during the market crash. .
The misfortunes of the people
Corona virus appears to have benefited some companies, especially e-commerce companies, because dozens of countries have taken home quarantine decisions.
And Amazon.com, the world’s largest retailer, announced a 26% rise in first-quarter revenue to $ 75.5 billion, with a sudden rise in demand due to anti-virus measures.
The company said it may incur its first quarterly loss in five years because it is spending at least $ 4 billion in response to the Corona virus pandemic, including plans to conduct Covid-19 tests for its workers, provide them with protective tools, and pay higher wages.
Carrefour, the largest food retailer in Europe by sales, grew in revenue during the first quarter of this year.
Sales in the first quarter amounted to 19.445 billion euros ($ 21.07 billion), driven by strong performance in January and February, and purchases for storage from households in March, according to data announced by the company.
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