FedEx, the package delivery company, disclosed on Monday that the cyber attack against its TNT Express unit “likely” had a material impact, with customers “still experiencing widespread service and invoicing delays”.
The Memphis, Tennessee-based company said in a filing with US securities regulators that it had “experienced [a] loss of revenue due to decreased volumes at TNT and incremental costs associated with the implementation of contingency plans and the remediation of affected systems”.
“We cannot yet estimate how long it will take to restore the systems that were impacted, and it is reasonably possible that TNT will be unable to fully restore all of the affected systems and recover all of the critical business data that was encrypted by the virus,” FedEx said, adding that it does not have “cyber or other insurance in place that covers this attack”.
FedEx said that it was impacted by the Petya virus, which began in Ukraine on June 27 before spreading to 60 countries. The malicious program encrypts, or scrambles, data, making it very difficult or sometimes impossible to restore it. Numerous other companies were also hit, including Mondelez and WPP, the advertising shop.
In the case of the TNT attack, FedEx said that it was infected through a Ukrainian tax software product.
TNT Express, which FedEx acquired towards the end of last year, is an international express transportation, ground delivery and freight transportation group. It operates in more than 200 countries.