A string of Georgia-based companies on Wednesday reported just how bad of a financial beating they’ve taken during the coronavirus pandemic. The takeaway: It’s getting worse.
In late April and early May, many publicly traded companies report earnings for the first three months of the year. Several said they first felt the economic squeeze in March and are warning about stark declines in the April-June quarter.
Earlier, Coca-Cola Company reported a 25% slide in April's volume of drinks sold globally and UPS withdrew its annual profit and revenue guidance because of uncertainty.
On Wednesday, Roswell-based SiteOne Landscape Supply, with more than 550 locations nationally for landscape professionals, reported that sales have dropped 11% so far this month. It has furloughed workers, borrowed $100 million and postponed pending acquisitions. Its situation has worsened since the first three months of the year, when its sales were up and losses had declined.
Railroad giant Norfolk Southern, which plans to move its headquarters from Virginia to Atlanta, reported operating revenues sagged 8% in the first quarter compared with the same period a year earlier.
Troubles are growing. So far, Norfolk Southern’s volumes have plummeted 30% in the current quarter. It joined UPS and others in withdrawing its previous financial projections for the year.
Atlanta-based RPC, which provides equipment and services to the oilfield industry, reported first-quarter revenue sank 27% from a year earlier and postponed the full release of its financial picture as it tries to assess the damage. It cut executive pay and reduced the size of its workforce by 25% through layoffs and furloughs in the last few weeks as the pandemic slashes demand for fuel even as some production increased.
Atlanta-based pest control company Rollins saw first-quarter revenues rise and profits dip. Concerns about the economy have sparked furloughs and some executive pay cuts, but Rollins has been able to operate throughout its territory as it enters its prime termite and mosquito season.
Aflac, the Columbus-based insurer famous for its duck mascot, reported a 9% drop in first-quarter revenues and a 39% fall in profits. It primarily blamed investment losses, according to a company filing.
Chief Executive Officer Dan Amos cautioned in the filing that what he called “sales production” started to slide in March and the drop has since accelerated. He predicted depressed sales at least as long as pandemic restrictions are in place in the U.S. as well as Japan, where the bulk of Aflac’s sales are generated.
He said the company was withdrawing its earlier financial guidance for the year.
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