FedEx reported today in its 10-K financial filing that last month's NotPetya malware attack on its TNT Express subsidiary will negatively impact the corporation's financial results for fiscal 2017.
The delivery company stated that while it cannot quantify the financial impact NotPetya will have on its bottom line, it will suffer a loss of revenue directly attributable to the attack due to fewer shipments taking place, along with the cost of implementing the company's contingency plan and repairing affected systems. FedEx said it did not carry cyber insurance to help offset any portion of the losses incurred.
“Given the recent timing and magnitude of the attack, in addition to our initial focus on restoring TNT operations and customer service functions, we are still evaluating the financial impact of the attack, but it is likely that it will be material,” the company wrote in its Security and Exchange Commission filing.
TNT Express was one of many companies knocked offline on June 28 when NotPetya began spreading with the malware encrypting the company's data, effectively shutting it down. Even though its parent FedEx immediately put a contingency plan into operation, TNT faced significant issues at that time and the company and its customers are still experiencing widespread service and invoicing delays.
“Our information technology teams have been focused on the recovery of critical systems and continue to make progress in resuming full services and restoring critical systems. We are currently focused on restoring remaining operational systems, along with finance, back-office and secondary business systems,” the company wrote.
FedEx said it has no estimate on when TNT's systems will be fully functional and that there is a “reasonably” strong chance it will be unable to fully restore the affected systems.
Part of the company's contingency plan was instituting manual processes to replace a significant portion of TNT operations and customer service functions, which as a consequence is causing the company to work at a slower pace.
