(Adds Chesapeake, Darden Restaurants, FedEx Corp, D.R. Horton)
Sept 26 (Reuters) - Hurricane Harvey, which tore through Corpus Christi in southern Texas on
Aug. 25 and drenched the Houston area with historic rains, killed over 60 people and displaced
more than 1 million people.
The impact knocked out nearly a fifth of U.S. oil-refining capacity. Hundreds of companies,
including airlines, home builders, insurers, oil refiners and retailers were hit, and many of
them are struggling to get back on their feet.
Harvey was the most powerful storm to hit Texas in more than 50 years, causing some $180
billion in damage.
Two weeks later, Hurricane Irma swept through the Florida Keys, submerging about 25 percent
of all dwellings in the region and killing at least 36 people in the United States. Irma caused
about $25 billion in insured losses, including $7 billion in the Caribbean, catastrophe modeler
Karen Clark & Co estimated on Sept. 13.
The following table lists the effects of the two storms on some major U.S. companies:
ENERGY & UTILITIES:
COMPANY IMPACT FULL STORY
Exxon The world's largest publicly traded oil producer had to shut
Mobil operations at its 560,500-barrel-per-day refinery in Baytown,
among others, while allocating resources to supply impacted areas
with gasoline and diesel.
"It's very difficult to predict exactly when all those units
will be back up and we'll be back on our full load," Chief
Executive Darren Woods told CNBC earlier this month.
The company said it has not yet calculated Harvey's impact on
third-quarter earnings.
Phillips Said its 247,000 barrels-per-day Sweeny, Texas refinery suffered
66 minimum damage from Harvey and has resumed operations.
Valero The company is restarting its crude distillation unit at its
Energy 335,000 barrel-per-day Port Arthur, Texas refinery, which it shut
Corp on Aug. 30.
Florida Florida's largest utility said it saw outages of more than 3.6
Power & million on Sept. 11, a day after Irma made landfall.
Light The company said it expects to restore power to all customers
on the east coast by Sept. 17, and on the west coast, by Sept.
22.
More on utility companies:
Hess Corp The company said downtime associated with Harvey resulted in lost
production of several thousand barrels of oil equivalent per day
in the current quarter.
Chesapeake The oil and gas producer said it expected a 15 percent drop in
Energy third-quarter output, partly blaming Hurricane Harvey, which
Corp forced the company to stop work in the Eagle Ford shale region of
Texas.
INSURERS:
COMPANY IMPACT FULL STORY
Travelers The company estimates losses related to Hurricane Harvey to be in
Cos Inc the range of $375 million to $750 million pretax.
Federated The company sees gross liabilities due to Hurricane Irma at about
National $300 million; losses, net of reinsurance, will not exceed first
Holding Co event pretax retention of $18 million.
Universal The insurer said losses from Hurricane Irma were below limits of
Insurance the catastrophe reinsurance program
Assurant Expects $134 million to $140 million pretax of reportable
Inc catastrophe losses, net of reinsurance, and reinstatement
premiums from Harvey.
Gross losses from Irma will exceed retention of $125 million
pretax but will remain within company's comprehensive reinsurance
program.
CONSUMER COMPANIES:
COMPANY IMPACT FULL STORY
Starbucks The coffee chain closed more than 700 stores across the Southeast Company
and Puerto Rico, preceding Hurricane Irma. statement to
It expects store closures, dislocations, extraordinary Reuters
hurricane-related expenses to have some impact on current-quarter
financial results.
Dunkin The company said about 900 franchised restaurants, primarily in Company
Brands Florida, were forced to temporarily close during the peak of the statement to
Group storm. Reuters
The company did not say if the closures would affect results.
Target The retailer said on Sept. 11 that 127 stores and 4 distribution bit.ly/2fddU0j
Corp facilities closed across Florida, Georgia, Alabama and South
Carolina due to Irma.
Francesca' The retailer said corporate headquarters, e-commerce fulfilment
s Holdings and distribution centers, and about 40 boutiques located in
Corp Houston or neighbouring areas were directly impacted by Harvey.
It forecast a third-quarter profit well below analysts'
estimates and said supply-chain disruptions were affecting all
its boutiques.
Newell Newell Brands' resin suppliers with facilities in Texas and
Brands Inc Louisiana declared force majeure after Harvey's landfall.
Facilities in Texas and Louisiana shut down for more than a
week. The company also cut its adjusted profit forecast for 2017
to $2.95 to $3.05 per share, from $3.00 to $3.20.
Darden The Olive Garden restaurant chain parent said it expects the hit
Restaurant from Hurricane Irma on its sales and profit to be double that of
s Inc Hurricane Harvey.
The company expects same-store sales to be reduced by 30
basis points and earnings per share by 1.5 cents.
AIRLINES:
COMPANY IMPACT FULL STORY
American The No. 1 U.S. airline cut its Q3 forecast for total unit revenue
Airlines to about flat to up 1 percent, from up 0.5-2.5 percent, citing
Group Irma.
The airline cancelled more than 5,000 flights due to Irma,
which closed 40 airports in Florida and the Caribbean, including
Miami International Airport.
JetBlue The airline reaffirmed its Q3 unit revenue forecast, excluding
Airways the impact of Irma.
The airline expects third-quarter revenue per available seat
mile (RASM) to range between a drop of 1 percent and an increase
of 1 percent. RASM guidance does not include any impact of Irma.
Southwest The company expects financial impact from Harvey to be about $40
Airlines million to $60 million. The airline expects a similar impact from
Irma.
HOMEBUILDERS:
COMPANY IMPACT FULL STORY
Lennar The company expects to delay hundreds of home deliveries in
Corp Florida, Georgia and South Carolina - which account for about 40
percent of its annual homebuilding revenue - due to Irma.
It expects deliveries of about 700 homes to be pushed from
its fiscal fourth quarter ending Nov. 30 to the next fiscal year.
"We expect that the rebuilding effort will result in
increased economic activity and an increased demand for new homes
which will result in a broader spectrum of opportunity for us as
we look towards 2018," Lennar CEO Stuart Miller said.
D.R. The U.S. homebuilder cut its 2017 forecast for cash flow from
Horton Inc operations to $150 million, from about $300 million.
LOGISTICS:
COMPANY IMPACT FULL STORY
FedEx Corp The package delivery company said it took a 2-cent hit to its
first-quarter EPS due to Harvey.
(Compiled by Bengaluru newsroom)