(Reuters) – Industrial conglomerate 3M CO on Wednesday warned of a $300 million hit to income within the present quarter as COVID lockdowns in China slam demand and worsen provide chain points.

The corporate additionally expects an influence of 30 cents to per-share earnings within the second quarter, Chief Govt Michael Roman mentioned on the Bernstein Strategic Choices Convention.

China’s “zero Covid” coverage to fight the Omicron variant triggered recent lockdowns and shut factories, hurting the gross sales prospects of companies worldwide as shoppers dialed again spending on the planet’s second-biggest financial system.

“COVID shutdowns in China impacted our manufacturing operations within the nation,” Roman mentioned.

The feedback come over a month after 3M mentioned China’s lockdowns and the Ukraine disaster had slowed gross sales in April.

The diversified producer, which makes every thing from Submit-It notes to industrial sandpaper, additionally flagged impacts to the automotive and electronics finish markets because of chip shortages pushed by provide chain snags.

“The outlook for automotive construct charges is about 4% year-over-year enchancment. We began the 12 months at 9%,” Roman mentioned.

Nonetheless, 3M expects some restoration in June whilst inflation soars.

“We’re in a position to offset it (inflation) with worth and sourcing actions and productiveness and yield, and that is how we’re managing it,” Roman mentioned.

In a vivid spot, Shanghai earlier this week introduced an finish to its two-month lengthy COVID-19 lockdown.