[BreachExchange] FedEx says cyber attack to hurt full-year results

[Audrey McNeil]

http://www.reuters.com/article/us-cyber-attack-fedex-idUSKBN1A21D7

Package delivery company FedEx Corp (FDX.N) said a disruption in services
in its TNT Express unit following a cyber attack last month would hurt its
full-year results.

FedEx's shares fell as much as 3.4 percent to $211.53 in early trading as
the company said the financial impact of the disruption on its results was
likely to be "material".

The Netherlands-based TNT Express is still experiencing widespread service
delays following the attack, caused by the Petya cyber virus that spread
through a Ukrainian tax software product, FedEx said.

FedEx said it lost revenue due to decreased volumes at TNT Express and
incurred incremental costs from contingency plans and remediation of
affected systems.

The company said it did not have an insurance in place that covered the
impact from the cyber attack.

FedEx, which is evaluating the financial impact of the cyber attack, said
it was unable to estimate when services at TNT Express would be fully
restored.

The company also said no data breach or data loss to third parties was
known to have occurred as of July 17.

The Petya cyber virus spread from Ukraine in June, crippling thousands of
computers around the globe, with the shipping and logistics industry among
those hit the hardest.

The malicious code encrypted data on machines and demanded victims $300
ransoms for recovery, similar to the extortion tactic used in the global
WannaCry ransomware attack in May.

FedEx is scheduled to report its first-quarter results in September.
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