FedEx financial performance hit by TNT cyber attack
17 / 07 / 2017
Express firm FedEx said today that its financial results will be affected by the Petya cyber attack that hit subsidiary TNT. The company continues to be affected by the virus.
In a stock exchange announcement, the express giant said it was still evaluating the financial impact of the attack, but it is likely it will have a material effect on its results as revenues have taken a hit.
"We do not have cyber or other insurance in place that covers this attack," FedEx said. "Although we cannot currently quantify the amounts, we have experienced loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems."
TNT services are available, but customers are still experiencing widespread service and invoicing delays, and manual processes are being used to facilitate a "significant portion" of TNT operations and customer service functions.
FedEx said it could not estimate when services would be fully restored but contingency plans that make use of both FedEx and TNT networks remain in place to minimise the impact to customers.
The company said its IT teams have been focused on the recovery of critical systems and continue to make progress in resuming full services.
"We are currently focused on restoring remaining operational systems, along with finance, back-office and secondary business systems," FedEx said.
"We cannot yet estimate how long it will take to restore the systems that were impacted, and it is reasonably possible that TNT will be unable to fully restore all of the affected systems and recover all of the critical business data that was encrypted by the virus.
The Petya cyber-attack, using ransomware, has caused disruption around the world and infected companies in 64 countries, including banks in Ukraine, Russian oil giant Rosneft, British advertising company WPP, Maersk and US law firm DLA Piper.
Victims of the attack are asked to pay for the release of business data that has been encrypted and frozen by the hackers on company computer systems.
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