FedEx Corporation (FDX) Stock Feeling Impact of Petya Cyber Attack
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FedEx Corporation (NYSE:FDX) stock was down today on news of the impact that the Petya cyber attack had on it.
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FedEx Corporation computers weren’t specifically hit by the Petya cyber attack. However its TNT Express subsidiary was targeted by the attack earlier this year. This resulted in TNT Express’ computers being encrypted and it losing access to much of its information.
The problems at TNT Express from the Petya cyber attack are still unresolved, and that is part of what is hurting FDX stock. The company is expecting to lose some information due to the attack, but it does note that customer information hasn’t been stolen.
FedEx Corporation says that the problems at TNT Express from the Petya cyber attack will hurt its earnings in some way. The company also notes that it doesn’t have cyber or another type on insurance that covers the attack. To top off the bad news for FDX stock, it says that these issues may cause delays in its disclosure and financial reporting procedures in the future.
“Our 2018 results will be negatively affected by our TNT Express integration and restructuring activities, as well as the impact of the TNT Express cyber-attack,” FedEx Corporation said in a filing with the U.S. Securities and Exchange Commission.
FedEx Corporation also notes that it doesn’t know when it will have the mess caused by the Petya cyber attack sorted out. Until it can overcome the issue, TNT Express has taken to manual processes in an effort to keep the issues from affecting customers.
FDX stock was down 3% as of noon Monday, but is up 13% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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