The extremely transmissible Omicron variant has prompted companies in the manufacturing and resource sectors to downgrade their earnings forecasts amid the ongoing uncertainty.
The cut at Cascades followed an announcement last week from
Sick leave along with labour shortages and inflation all make for angst-inducing variables over the first half of 2022.
"If people are sick due to coronavirus and take extended time off, the company may not be able to mine the volumes that they had expected to," said
Parts of the technology and transport sectors may have cause for concern as well.
"During this period of stricter lockdowns, people stayed at home. They did their work, and they needed the technology in order to do that," Chopra noted.
"But now as people go back to work, go back to the office, that trend — it just won't be the same. You just don't have that big forecast or spend that you can see happening."
Airlines continue to be battered by low demand prompted by the spread of Omicron, lockdown restrictions and government advisories against international travel.
However,
Demand largely depends on whether a more deadly or contagious variant emerges, she said.
"But if Omicron starts to show signs of fading and the demand picture remains strong, we think some of the cyclical parts of the transport market can do well," she said.
Cascades said it now expects fourth-quarter adjusted operating income before depreciation and amortization to come in at
On
Cascades said the COVID-19 variant has compounded existing constraints on labour and transportation, especially in its containerboard and tissue segments. The shortages have led to higher costs and unplanned downtime, the company said, on top of inflationary costs in logistics and energy.
Its Canadian operations were hit especially hard after the relentless rainfall in B.C. late last year.
This report by
Companies in this story: (TSX:CAS, TSX:TECK.B, TSX:AC, TSX:TRZ)
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