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April 5, 2020, 10:29 a.m. EDT

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By Ciara Linnane, MarketWatch

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Here’s what companies said about the impact of COVID-19 on Friday:

• American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL -2.42%  will suspend 60% of its international capacity for the “peak” summer travel season compared with a year ago, in response to “record-low customer demand.” The suspensions include an 80% reduction in Pacific capacity, a 65% cut in Atlantic capacity and a 48% reduction in Latin America capacity. The air carrier is also suspending 25 summer seasonal flights until 2021 and delaying the launch of new routes.

• AutoNation Inc.’s /zigman2/quotes/208363778/composite AN +0.27% sales of new and used vehicles fell about 50% in the last two weeks of March. About 95% of the markets the company generates its revenue from are under lockdown orders from federal, state and local governments. The company has placed about 7,000 workers on unpaid leave, has cut pay and frozen all new hiring. It has cut its advertising spend for the second quarter by about 50% and postponed more than $50 million of discretionary spending. The company has cut the pay of its executive chairman, CEO and president by 50%, and the board of directors is waiving retainer fees temporarily. The company had about $1.1 billion of liquidity as of March 31, and about $700 million of availability under a revolving credit facility.

• Bloomin’ Brands Inc. /zigman2/quotes/205416549/composite BLMN -4.82% Chief Executive David Deno won’t be paid his base salary until further notice, while retaining his bonus. The board of directors will forgo any cash retainer until further notice. Bloomin’ Brands portfolio includes Outback Steakhouse and Bonefish Grill.

• Chico’s FAS Inc. /zigman2/quotes/203348060/composite CHS 0.00%  has adopted a short-term shareholder rights plan after stock price disruptions due to the pandemic. The plan aims to guard against any individual or group gaining control of the company in the open market without paying a premium.

• Cummins Inc. /zigman2/quotes/208385233/composite CMI +1.46%  is cutting pay for all its U.S. workers by 10% to 25%, in response to lower demand and customer shutdowns. The engine maker is reducing working hours for U.S. employees. Chief Executive Tom Linebarger’s salary will be reduced by 50%, and the compensation of its board of directors will be lowered by 25%.

• FedEx Corp. /zigman2/quotes/203047719/composite FDX -0.75% expects to remain in compliance with its debt covenants, but indicated there was risk that it may need to amend the covenants if additional financing is required and results deteriorate further. The package delivery service has seen increased demand for its FedEx Ground delivery service in the U.S., as shelter-in-place measures boost demand for e-commerce, but the shift in sales mix is expected to hurt margins and operating results. Results have also been impacted by “significantly weaker global economic conditions.” Separately, FedEx implemented temporary surcharges on all international shipments, and temporarily eliminated its money-back guarantee for all delivery services.

• Lowe’s Cos. /zigman2/quotes/205563664/composite LOW +0.06%  is raising wages by $2 an hour for all full-time, part-time and seasonal hourly workers for the month of April, throughout the U.S. and Canada. The home improvement retailer also said it will close all stores by 7 p.m., which is an hour later than rival Home Depot Inc. /zigman2/quotes/208081807/composite HD +0.14% Lowe’s will make masks and gloves available to all employees “who want them,” and has developed an app, which is available on employees’ hand-held devices, to implement a new customer limit protocol. The retailer also installed plexiglass shields at all points of sale and increased third-party cleaning shifts in the stores.

• Ocwen Financial Corp. /zigman2/quotes/209487504/composite OCN +1.70% , a nonbank mortgage servicer and originator, pulled financial guidance. The company has about $264 million in unrestricted cash and expects to be fully compliant with its financial covenants at the end of the first quarter. It also has undrawn credit availability of $104 million under its servicer advance funding facilities, $225 million under its MSR financing facilities, and $156 million under its mortgage warehouse funding facilities. For now, Ocwen has not laid off or furloughed any employees and has no plans to cut pay.

• Tupperware Brands Corp. /zigman2/quotes/209009040/composite TUP +0.18%  has drawn down $225 million from its credit agreement. The company is using $50 million for working capital in the second quarter, and the remaining $175 million is a proactive measure against the pandemic.

• Under Armour Inc. /zigman2/quotes/208967132/composite UA +0.35%  will incur pretax restructuring and related charges in the range of $475 million to $525 million in 2020 related to a plan that the athletic company announced on Feb. 11, before measures to manage the pandemic began. The charges include about $290 million to forego opening the New York City flagship store, $25 million in employee severance and benefit costs and $95 million in contract termination and other restructuring costs. The company expects to realize $40 million to $60 million in pretax benefits for the year and has withdrawn its first-quarter and full-year guidance. The company’s stores will remain closed indefinitely and staff at the full price and outlet stores as well as about 600 U.S. distribution facility workers will be temporarily laid off starting April 12.

• Walt Disney Co. /zigman2/quotes/203410047/composite DIS -0.73% will begin furloughs on April 19. Disney has kept all of its workers on payroll despite closing theme parks and closing down movie shoots, but said that would end later this month.

• W.R. Grace & Co. /zigman2/quotes/202061502/composite GRA -0.71%  expects first-quarter adjusted earnings per share to be at the high end of the guidance range of 65 cents to 72 cents provided in early February. The specialty chemicals company said its outlook included a negative EPS impact of about 6 cents to 10 cents from the effects of the pandemic. The company is expected to report first-quarter earnings on April 30. W.R. Grace said it expects its full-year results to be negatively impacted by the pandemic, but said its manufacturing operations and supply chain have so far not been materially impacted. “Our businesses are designated as critical infrastructure by the U.S. Department of Homeland Security,” said Chief Executive Hudson La Force.

Additional reporting by Tonya Garcia, Tomi Kigore, Jaimy Lee, Claudia Assis, Jeremy Owens, Andrea Riquier and Jon Swartz.

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Coronavirus Update: ‘Hard Days’ Ahead and Global Deal-Making in Chaos

The White House projects up to 240,000 coronavirus-related deaths, the pandemic throws global deal-making into disarray and a poll shows widespread support for more aggressive measures to stop the virus. WSJ’s Shelby Holliday has the latest. Photo: Tom Brenner/Reuters

/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 12.50
-0.31 -2.42%
Volume: 85.93M
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$6.51 billion
Rev. per Employee
$345,547
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/zigman2/quotes/208363778/composite
US : U.S.: NYSE
$ 37.08
+0.10 +0.27%
Volume: 612,614
July 2, 2020 4:00p
P/E Ratio
26.95
Dividend Yield
N/A
Market Cap
$3.23 billion
Rev. per Employee
$823,569
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/zigman2/quotes/205416549/composite
US : U.S.: Nasdaq
$ 10.18
-0.52 -4.82%
Volume: 4.07M
July 2, 2020 4:00p
P/E Ratio
33.36
Dividend Yield
7.86%
Market Cap
$935.66 million
Rev. per Employee
$44,370
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/zigman2/quotes/203348060/composite
US : U.S.: NYSE
$ 1.33
0.00 0.00%
Volume: 1.44M
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$159.02 million
Rev. per Employee
$115,197
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/zigman2/quotes/208385233/composite
US : U.S.: NYSE
$ 173.45
+2.50 +1.46%
Volume: 792,910
July 2, 2020 4:02p
P/E Ratio
12.73
Dividend Yield
3.02%
Market Cap
$25.22 billion
Rev. per Employee
$379,668
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/zigman2/quotes/203047719/composite
US : U.S.: NYSE
$ 155.48
-1.18 -0.75%
Volume: 4.04M
July 2, 2020 4:00p
P/E Ratio
10.24
Dividend Yield
1.67%
Market Cap
$40.93 billion
Rev. per Employee
$304,846
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/zigman2/quotes/205563664/composite
US : U.S.: NYSE
$ 135.71
+0.08 +0.06%
Volume: 3.52M
July 2, 2020 4:02p
P/E Ratio
22.91
Dividend Yield
1.62%
Market Cap
$102.40 billion
Rev. per Employee
$230,029
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/zigman2/quotes/208081807/composite
US : U.S.: NYSE
$ 248.50
+0.35 +0.14%
Volume: 3.37M
July 2, 2020 4:00p
P/E Ratio
24.70
Dividend Yield
2.41%
Market Cap
$266.89 billion
Rev. per Employee
$261,993
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/zigman2/quotes/209487504/composite
US : U.S.: NYSE
$ 0.64
+0.01 +1.70%
Volume: 351,061
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$84.71 million
Rev. per Employee
$148,608
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/zigman2/quotes/209009040/composite
US : U.S.: NYSE
$ 5.59
+0.01 +0.18%
Volume: 2.79M
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$273.50 million
Rev. per Employee
$172,475
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/zigman2/quotes/208967132/composite
US : U.S.: NYSE
$ 8.68
+0.03 +0.35%
Volume: 4.75M
July 2, 2020 4:03p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.13 billion
Rev. per Employee
$346,212
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/zigman2/quotes/203410047/composite
US : U.S.: NYSE
$ 112.18
-0.83 -0.73%
Volume: 10.30M
July 2, 2020 4:02p
P/E Ratio
37.85
Dividend Yield
0.00%
Market Cap
$204.13 billion
Rev. per Employee
$295,532
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/zigman2/quotes/202061502/composite
US : U.S.: NYSE
$ 51.52
-0.37 -0.71%
Volume: 568,675
July 2, 2020 4:00p
P/E Ratio
23.98
Dividend Yield
2.33%
Market Cap
$3.43 billion
Rev. per Employee
$495,410
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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

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