FedEx Struggles to Bounce Back From Cyberattack
July 17 2017 - 10:56AM
Dow Jones News
By Imani Moise
Customers waiting for packages abroad are experiencing
significant delays as FedEx Corp. continues to reel from the
effects of a June 27 cyberattack.
The logistics company said Monday in a securities filing that
the global cyberattack known as Petya significantly affected the
operations of its TNT Express business, which has delivery
operations in the Middle East and Africa, Asia-Pacific, Europe and
South America.
FedEx said while TNT depots, hubs and facilities are
operational, it has resorted to manual processes to facilitate a
significant portion of operations and customer service
functions.
"We cannot estimate when TNT services will be fully restored,"
the company said.
The company said the cyberattack will have a "material"
financial impact on its operations. FedEx said it doesn't have
cyber insurance or any other insurance to cover the attack.
Shares in FedEx fell 2.6% to $213.38 in morning trading.
FedEx acquired TNT Express BV last year for $4.8 billion, with
the deal being the largest acquisition in FedEx's history. The
Ukraine-based TNT contributed 12% to FedEx's top line in the prior
fiscal year.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
July 17, 2017 10:41 ET (14:41 GMT)
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