Coronavirus Causes Shortage Of Raw Supplies For Hasbro And Other Toy Manufacturers
CNN Business has released an new article confirming that the Coronavirus outbreak is disrupting Hasbro’s supply chain. Could this cause a delay in new toys reaching the US this year? Read on for more details!
While the CNN Business article focuses a lot on Hasbro’s latest toy, Baby Yoda, it isn’t that far of a logical leap to see how this would affect all their brands, as even Mattel is having trouble with production during this pandemic crisis. While we are more concerned with the human suffering that this virus is causing, we here at the Allspark do want to bring up the point that this could affect Hasbro’s production as well as their financials. See an excerpt from the article below:
Hasbro (HAS) confirmed it has been forced to contend with coronavirus delays in an email to CNN Business.
“We are working to mitigate the impact of our manufacturing partner factories being closed longer than anticipated, as well as to reschedule the shipments we have not been able to make,” Hasbro CFO Deborah Thomas told investors and analysts on February 21.
In a regulatory filing released Thursday, Hasbro said that China’s coronavirus quarantines and travel restrictions have temporarily prevented workers at its Chinese source factories from assembling toys.
The company said the virus “could have a significant negative impact on our revenues, profitability and business.” (Jim) Silver said the most significant disruptions were to raw materials used to make the Hasbro toys. Most of the resin and plastics are almost exclusively available in China.
“There was difficulty in obtaining some of these raw materials or the same quantity they want to get,” Silver said.
Panjiva, the supply chain research unit of S&P Global Market Intelligence, sounded the alarm about Hasbro and Mattel (MAT) in a February 25 report. The firm said supply chains for both toy companies and the toy industry overall were “significantly disrupted” by China’s response to the coronavirus.
Thanks to Allspark Forum member Tripredacus for bringing this to our attention.
You can discuss this and more in our Forum thread, in our Discord server, @AllsparkNews on Twitter, or in our Facebook group!