9/20/2017 12:00:00 AM | less than a minute read

FedEx Unit slashes profit following cyber attack

Brownlee Law

A FedEx Unit cut its profit by $300 million following an attack by the NotPetya virus. This equates to a loss of $0.79 per share, which is 40 times the loss attributed to devastating flooding caused by Hurricane Harvey.

The company says it is now considering cyber insurance.

(Reuters) — Package delivery company FedEx Corp. said on Tuesday a June cyber attack on its Dutch unit, for which it did not have insurance, slashed $300 million from its quarterly profit, and the company lowered its full-year earnings forecast. The company said it is “re-examining” buying cyber insurance as a result of the attack. The company said the cyber attack slashed 79 cents per share from its profit — nearly 40 times the 2-cents-a-share impact from deadly Hurricane Harvey, which brought catastrophic flooding to southeastern Texas. 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.

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