Omnicom Says COVID-19 Impact May Be Material

Saudi Arabia Imposes Lockdown in Capital Riyadh, Two Holy Cities

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Saudi Arabia locked down its capital Riyadh and Islamic holy cities of Mecca and Medina to prevent the spread of the coronavirus.

People in the three cities will be prohibited entry or exit, while curfew hours there will be extended by four hours, state-run Saudi Press Agency reported. The country also imposed further travel restrictions on 13 regions.

Saudi King Salman Imposes Partial Curfew for 21 Days: SPA

Saudi Arabia has reported 767 confirmed cases of the virus, with one death.

Stuart Gordon Dies: Cult Horror Director Known For ‘Re-Animator’ & ‘From Beyond’ Was 72

U.S. filmmaker Stuart Gordon has died aged 72, his reps have confirmed. Cause of death was not disclosed.

Known for 1980’s cult horrors including Re-Animator and From Beyond, Gordon also worked in indie theater and founded the successful Organic Theater Company with his wife, Carolyn Purdy-Gordon.

Gordon was a co-creator of the Honey, I Shrunk the Kids franchise, producing the film’s sequel and writing on the TV series. He directed films including Christopher Lambert starrer Fortress, Stephen Dorff movie Space Truckers and William H Macy film Edmond. He wrote movies including Abel Ferrara’s Body Snatchers.

In his latter years, Gordon worked in LA theater, directing the solo show Nevermore…An Evening with Edgar Allen Poe, starring his Re-Animator lead Jeffrey Combs.

One of Gordon’s agents told us, “Stuart was a lovely man, a dear friend, a client for nearly a decade, and he will be greatly missed. He was an icon in the horror genre, a loved mentor and bright light that inspired and encouraged aspiring genre film makers to excel at their craft. He left his finger prints on the film industry for generations to come to enjoy.”

Coronavirus: UAE Cinema Staff Being Retrained To Help In Supermarkets

More than 1,000 entertainment industry staff in the United Arab Emirates are being retrained to help meet the rising demand in local supermarkets due to to the coronavirus outbreak.

A press release from Emirati retailer Majid Al Futtaim said that leisure, entertainment and cinema staff were being reskilled to join the Carrefour supermarket chain on a temporary basis to help with online orders, food packing and stock replenishment.

The re-assigned employees come from companies including VOX Cinemas, Magic Planet, Little Explorers and Ski Dubai. Local cinemas are among entertainment venues that have been closed as a result of the crisis.

The United Arab Emirates’ main airports in Dubai and Abu Dhabi said they would suspend all passenger flights from midnight last night as the coronavirus spreads in the region.

Eastman Chemical Sees Q1 EPS Above Prior Year

Eastman Chemical Co. (EMN) expects first-quarter 2020 earnings per share to be above the prior year period, higher than previous expectations.

The company said it is also taking additional actions to further support free cash flow in 2020, including reducing capital expenditures to between $325 million and $375 million from the previous expectation of between $450 million and $475 million.

In addition, the company expects working capital to be a source of more than $250 million of cash flow beyond previous expectations for full-year 2020, assuming raw material prices remain similar to current levels and that COVID-19 negatively impacts demand.

Paychex Slashes FY20 Outlook – Quick Facts

While reporting financial results for the third quarter on Wednesday, payroll and HR services provider Paychex Inc. (PAYX) slashed its earnings and revenue growth guidance for the full year 2020.

For fiscal 2020, the company now projects net income and earnings per share to grow about 7 percent and adjusted net income and adjusted earnings per share to grow about 6 percent on total revenue growth between 8 and 9 percent.

Previously, the company expected net income and earnings per share to grow in the range of 9 to 10 percent and adjusted net income and adjusted earnings per share to grow about 0 percent on total revenue growth between 10 and 11 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $3.08 per share on revenue growth of 9.5 percent to $4.13 billion for the year. Analysts’ estimates typically exclude special items.

The company’s outlook for the fiscal year ending May 31, 2020 incorporates known and some estimated impacts related to the COVID-19 virus, including the most recent reductions in the Federal Funds rate.

“Results for the third quarter largely predate the disruption caused by the COVID-19 outbreak. We are taking actions to maintain the safety of our employees and mitigate the impacts of this disruption on our clients,” said Martin Mucci, President and CEO.

Omnicom Says COVID-19 Impact May Be Material

Omnicom Group Inc. (OMC) said it is unable to predict the impact of COVID-19 on its operations and liquidity, and depending on the magnitude and duration of the COVID-19 pandemic, such impact may be material.

Travel restrictions, limitations on public gatherings, and mandatory closures pose a risk that clients may reduce their demand for services and could result in a reduction in revenue, which would adversely affect its operations.

The company expects to experience a decrease in its cash flow from operations as a result of the impact of COVID-19. But it has a $2.5 billion multi-currency revolving credit facility expiring February 2025.