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WiseTech downgrades as coronavirus drags on global trade

Aussie tech darling WiseTech blamed the coronavirus for its decision to downgrade its revenue and earnings forecasts for the 2020 financial year as the effective shutdown of China hits global trade.

WiseTech, which provides software services for the trillion-dollar global logistics industry, said the predicted early 2020 recovery from the US-China trade war was “in effect” in January when the virus hit.

“The unexpected outbreak of coronavirus and the effective shutdown of China, a critical driver of the global manufacturing supply chain and a 16 per cent contributor to global GDP, is creating negative flow-on effects to manufacturing, slowing supply chains and economic trade across the world,” said Wisetech founder Richard White on the conference call for its half-year results.

WiseTech chief executive and founder Richard White.

WiseTech chief executive and founder Richard White. Credit:Jesse Marlow

He said while the speed of recovery from the virus “will likely create a significant rebound in volumes” the delay may cause some transactional volumes to move into the next reporting period.

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