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FACTBOX-Effect of hurricanes Harvey and Irma on key U.S. companies
September 14, 2017 / 5:10 PM / 2 months ago

FACTBOX-Effect of hurricanes Harvey and Irma on key U.S. companies

 (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)
  

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