Malaysia

Kossan forecasts earnings hit after 427 staff test positive for Covid-19

Glovemaker expects 1% of total annual output to be affected

Updated 3 years ago · Published on 16 Dec 2020 10:41AM

Kossan forecasts earnings hit after 427 staff test positive for Covid-19
Kossan Rubber Industries says it has screened 7,004 workers for the coronavirus from December 4 to 10. – Kossan pic, December 16, 2020

by Emmanuel Samarathisa

KUALA LUMPUR – Kossan Rubber Industries Bhd is projecting an impact on earnings this year after hundreds of its workers tested positive for Covid-19.

The glovemaker told analysts yesterday that 427 workers were positive for the coronavirus, adding it screened its 7,004 workers from December 4 to 10.

“The company has transported the positive cases to hospitals as per the Health Ministry’s instruction. A thorough disinfection of all areas where the affected individuals have been present has also been carried out. 

“For those under quarantine due to close contact, a second PCR test will be done on December 16 and 17, with the result to be known on December 18,” said the brief, as sighted by The Vibes.

Kossan plans “to test 20% of its workers every two weeks going forward” as all its Covid-19 positive employees are asymptomatic.

It is also expecting 1% of total annual out volume to be affected, citing mandatory self-isolation, which will in turn affect 25% of its capacity for the next two weeks.

“This works out to be around 0.96% of total annual output. Earnings impact is estimated to be around 2% of FY20 earnings.”

As for accommodation space at workers’ hostels, Kossan said they exceed International Labour Organisation (ILO) standards where the average space per worker is 46 per sq ft. 

“This is above the requirement of 38.75 sq ft per worker set by ILO.”

The brief, however, does not state which factory was affected but analysts who attended the session said that only one out of the six factories was affected.

Kossan's headquarters is in Jalan Sg Putus, Klang, with the location being the same name of a cluster that, to date, has 434 cases.

The glovemaker’s share price opened 4.49% higher at 10.23am, giving it a market value of RM13.1 billion. – The Vibes, December 16, 2020

Related News

Malaysia / 1w

Four years ago today - the first lockdown due to Covid-19

Malaysia / 2mth

Four new deaths, 50% surge in Covid-19 variant infections in S’wak

Malaysia / 2mth

No new variants, Covid-19 infection rate under control: Dr Dzul

Malaysia / 3mth

Herd immunity against Covid-19 in place but precautions still needed, warns former Health DG

Malaysia / 3mth

Agong cautions public to prepare for another round of Covid

Malaysia / 3mth

Anthony Loke encourages wearing face masks on public transport

Spotlight

Events

UK alumni lauded for stellar achievements as British Council observes 75 years in Malaysia

Malaysia

Don’t let politicians, activists stir up hatred against KK Mart, PBK tells cops

By The Vibes Team

Malaysia

7.7 mil people registered in Padu, 2.5 mil cyberattacks, but not one success: Rafizi

By Stephen Then

Malaysia

Farewell Aunty Bersih, you will be missed

By Ian McIntyre

Malaysia

Couple make two trips to workshop to find trapped kitten in car

Malaysia

KK Mart founder, director charged with wounding religious feelings of others over 'Allah' socks

By The Vibes Team

You may be interested

Malaysia

Penang’s iconic Komtar set to undergo major make-over

By Ian McIntyre

Malaysia

Forest fires at Sarawak-Brunei border the size of 220 football fields

By Stephen Then

Malaysia

Unfair for government to deny rakyat subsidies based on Padu registration, says SUPP youth

By Stephen Then

Malaysia

Nuzul Al-Quran: PM calls on Muslims to analyse, interpret the Quran

Malaysia

Muhyiddin files for leave to review Court of Appeal ruling reinstating power abuse charges

Malaysia

Anwar receives courtesy call from Indian External Affairs Minister

Malaysia

Petrol bomb incident an irresponsible act of violence, says DAP youth

By The Vibes Team

Malaysia

MCA Youth latest to condemn petrol bomb attack at KK Mart outlet

By The Vibes Team