Quantcast

FedEx says cyber attack to hurt full-year results


Reuters

UPDATE 2-FedEx says cyber attack to hurt full-year results


(Adds details on cyber virus, updates shares)
    July 17 (Reuters) - Package delivery company FedEx Corp
<FDX.N> said a disruption in services in its TNT Express unit
following a cyber attack last month would hurt its full-year
results.
    FedEx's shares fell as much as 3.4 percent to $211.53 in
early trading as the company said the financial impact of the
disruption on its results was likely to be "material".
    The Netherlands-based TNT Express is still experiencing
widespread service delays following the attack, caused by the
Petya cyber virus that spread through a Ukrainian tax software
product, FedEx said.
    FedEx said it lost revenue due to decreased volumes at TNT
Express and incurred incremental costs from contingency plans
and remediation of affected systems.
    The company said it did not have an insurance in place that
covered the impact from the cyber attack.
    FedEx, which is evaluating the financial impact of the cyber
attack, said it was unable to estimate when services at TNT
Express would be fully restored. (http://bit.ly/2uAnQKG)
    The company also said no data breach or data loss to third
parties was known to have occurred as of July 17.
    The Petya cyber virus spread from Ukraine in June, crippling
thousands of computers around the globe, with the shipping and
logistics industry among those hit the hardest.
    The malicious code encrypted data on machines and demanded
victims $300 ransoms for recovery, similar to the extortion
tactic used in the global WannaCry ransomware attack in May.
[nL8N1JP55N] [nL3N1JP4SA]
    FedEx is scheduled to report its first-quarter results in
September.

 (Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel
and Saumyadeb Chakrabarty)
 ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6749 3067; Reuters Messaging:
ankit.ajmera.thomsonreuters.com@reuters.net))

Keywords: CYBER ATTACK/FEDEX (UPDATE 2)



This article appears in: Stocks , Politics
Referenced Symbols: FDX


More from Reuters

Subscribe






See headlines for FDX









Research Brokers before you trade

Want to trade FX?