Cochlear cuts profit outlook on Coronavirus fears

Hearing implant company Cochlear has become the latest to be hit by the global Coronavirus scare, cutting its profit outlook for the year.

From a profit outlook of between $290 and $300 million for the year, the company now expect profit to be as little as $270 million.

This would represent a rare stumble by the Sydney company and growth for the year of only two per cent, likely below the annual inflation rate.

CEO Dig Howitt said the company now expected a decline in sales with implant procedures already falling in the important China market in the current half year.

Howitt said: “It has become clear that the coronavirus will impact the number of cochlear implant surgeries in Greater China, a top 5 market for Cochlear.

“(And) we cannot predict how long surgeries will be delayed.”

Cochlear’s China sales were hit over a three month period during the SARS epidemic, though this was followed by an uplift as the surgery backlog was cleared.

The company has three month supply of components imported from China for manufacturing its sound processors, and does not at this stage expect any disruption to its supply chains.

Picture: Cochlear

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