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Global Companies Face Heavy Losses from Iran War
(MENAFN) The ongoing conflict involving Iran, the US, and Israel has already inflicted more than $25 billion in losses on businesses worldwide, according to reports citing an analysis of company disclosures from firms across the US, Europe, and Asia.
The review found that at least 279 companies have linked emergency business decisions to disruptions caused by the conflict, including supply chain instability and rising fuel expenses. Businesses in multiple sectors have responded by increasing prices, reducing production, suspending shareholder payouts, placing employees on furlough, introducing fuel surcharges, or requesting government assistance.
Whirlpool CEO Marc Bitzer compared current market conditions to the 2008 financial crisis after the company reduced its annual forecast by half and halted dividend payments. “Consumers are holding back on replacing products and, rather, repairing them,” Bitzer said.
According to reports, European corporations recorded the highest number of reduced forecasts, with 130 firms lowering expectations. Asia followed with 61 companies, while 59 businesses in the United States also downgraded projections.
Many of the affected European companies are located in the EU and the UK, where energy prices had already remained high following reductions in Russian oil and gas imports after the escalation of the Ukraine conflict several years ago.
McDonald's chief executive Chris Kempczinski stated that “elevated gas prices are the core issue we’re seeing right now,” while Newell Brands finance chief Mark Erceg said every additional $5 increase in oil prices raises company costs by around $5 million. Meanwhile, Continental AG executive Roland Welzbacher warned that the consequences could become “full-blown” during the latter half of the year.
Reports added that airlines have suffered the largest measurable financial impact from the conflict, with losses nearing $15 billion. Toyota reportedly warned of a potential $4.3 billion setback, while Procter & Gamble estimated the crisis could reduce post-tax profits by around $1 billion.
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