FedEx says financial drain from cyber attack to linger through 2018

Monday, 25 September 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters : Package delivery company FedEx Corp said last week a June cyber attack on its Dutch unit will continue to hurt revenue through its second fiscal quarter and fiscal full-year 2018 and force bigger investments in information technology.

FedEx joins a string of companies that reported big drops in earnings because of the NotPetya virus, which hit on June 29, crippling Ukraine businesses before spreading worldwide to shut down shipping ports, factories and corporate offices.

FedEx Corp reported a lower-than-expected quarterly net profit due to the cyber attack, the impact of Hurricane Harvey and higher costs, and also lowered its full-year earnings forecast.

While the Memphis-based company has made progress restoring operations at TNT Express, which it acquired last year for $4.8 billion, its revenues, volumes and profits remain below pre-attack levels, FedEx said. It said it expects ongoing, but diminishing, financial impacts through the remainder of 2018.

FedEx also said in filings its second-quarter 2018 results will be hurt by the integration of TNT Express and disruptions to its service from hurricanes that unleashed damage across the southern United States in recent weeks.