Economy

NotPetya cyber attack on TNT Express cost FedEx $300m

NotPetya cyber attack on TNT Express cost FedEx $300m”

Alan B. Graf, FedEx executive vice president and chief financial officer, commented: "The impact of the cyberattack on TNT Express and lower-than-expected results at FedEx Ground reduced our first quarter earnings". First-quarter revenue and operating income were slightly up from FY2017 at $4.64 billion and $626 million, respectively, but that growth resulted mainly from average daily package volume growth of 4 percent and higher base rates for FedEx's commercial service.

Shares of the Memphis, Tennessee-based company, often considered a bellwether for the US economy as are those of rival United Parcel Service Inc, dipped more than 2 percent in after-hours trading.

Excluding one-time items, the company reported earnings per share of $2.51. Wall Street analysts had expected earnings per share of US$3.09.

Excluding the impact of the cyber attack and Hurricane Harvey, FedEx said it would have posted EPS of $3.32, above analysts' expectations.

Parent group FedEx Corp said: "The worldwide operations of TNT Express were significantly affected during the first quarter by the June 27 NotPetya cyber attack".

FedEx did not have insurance protections in place that covered the cyber attack's impact and said the attack had caused the company to re-examine the cyber insurance market.

Most of the impact from the June "NotPetya" cyberattack on FedEx's TNT Express was lost revenue estimated by FedEx at about US$300 million of operating income.

FedEx lowered its 2018 adjusted full-year earnings per share forecast to a range of US$11.05 to US$11.85.

The company's operating margin fell to 7.3 percent from 8.6 percent.

In a statement released after-hours on Tuesday, the NYSE-listed firm said it earned US$596mln, or US$2.19 a share in the quarter, down from US$715mln, or US$2.65 a share at the same stage a year earlier.

In pre-market NY trading, FedEx shares were 1.4% lower at US$213.00.

Total group revenue was up to $15.3bn in the first quarter from $14.7bn past year.

"We are confident of our prospects for long-term profitable growth, and we reaffirm our commitment to improve operating income at the FedEx Express segment by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017". The company will increase its shipping rates by 4.9 percent beginning on January 1, 2018, for its Express, Ground and Freight segments.

FedEx and rival UPS usually unveil price increases for the coming year around this time.



Like this

loading...
loading...

Latest


20 September 2017
No holiday hiring for Wal-Mart
The Company's divisions include design and consulting services, construction services (CS) and management services (MS). Wells Fargo & Company reiterated a "hold" rating on shares of Wal-Mart Stores in a research note on Sunday, June 4th.

20 September 2017
Weatherford International plc (WFT) has a Market value of 4.38 Billion
Morgan Stanley accumulated 4.22M shares. (NYSE: SSNI ) closed at $16.13 by scoring 0.19%. 1,100 are held by Security Natl Trust. This movement could be bad/good signal for few investors as firm is showing performance for the quarter as 0.98%.

20 September 2017
First four episode titles of 'Star Trek: Discovery' are revealed!
Plus, newly-released titles for the first four episodes are serving up some much-needed clues as to what to expect. Star Trek: Discovery stars Sonequa Martin, Jason Isaacs , Michelle Yeoh , Doug Jones and Anthony Rapp .

20 September 2017
Buckeye Partners, LP (BPL) Closed its Previous Trade at $56.33
Zacks Investment Research cut Buckeye Partners L.P. from a "hold" rating to a "sell" rating in a report on Tuesday, July 11th. Following the purchase, the director now directly owns 9,000 shares of the company's stock, valued at approximately $523,710.

20 September 2017
Summit Global Investments Trims Stake in CH Robinson Worldwide,
On July 20 Bank of America maintained a company rating of "Underperform" but moved down the price target to $60.00 from $66.00. The company had revenue of $3.71 billion during the quarter, compared to the consensus estimate of $3.63 billion.

20 September 2017
Paramus Police Officer Reunites Woman With Missing Engagement Ring
Instead of calling AAA, the 27-year-old changed her own tire, but in the process she lost her diamond ring. She went back to area to conduct her own search in the meantime, but she still didn't find the ring.

20 September 2017
Intel delays Cannon Lake until late 2018
The reason behind this is claimed to be the problems that Intel is facing with its 10nm process. But, let's face it, it'll probably be delayed.

20 September 2017
Bollywood wishes Mahesh Bhatt on birthday
She shared some of his quotes from a 1998 interview and wrote, "These words spoken in 1998 resonate today". Pooja Bhatt wrote, "poojab1972Quote unquote! Thank u all for all your love!"

20 September 2017
Paul Manafort was wiretapped, has been told to expect an indictment
CBS News has learned that the surveillance on Manafort occurred during the 2016 presidential campaign. But if not for the Trump-Russia accusations, Manafort likely would not be subject to such efforts.

20 September 2017
Third suspect arrested in Friday's attack on London subway
Police had arrested another man there Tuesday night, and searches at the addresses of both arrest sites were ongoing Wednesday. The leader of the local authority was quoted as saying the 18-year-old was an Iraqi who had come to Britain as an orphan.