FedEx, without cyber coverage, signals Petya will hurt earnings
FedEx announced that the Petya ransomware attack that hit its subsidiary, TNT, will materially impact its financial results, as revenues have suffered. The firm said it had no insurance in place that covers the attack and could not estimate when, or even if, all services will be fully restored. Revenues have been impacted by decreased volumes at TNT, the cost of implementing contingency plans and efforts to get the affected systems back on track. Currently, while its services are available, widespread delays continue to plague TNT, which is said to be manually processing much of its operations and customer service functions.

FedEx said that it may not be able to recover all the systems affected by the Petya cyberattack and that the financial hit is unknown but "it is likely that it will be material" since the company didn't have cyber insurance.

On June 28, FedEx's global operations of its TNT unit were disrupted by the Petya attack. TNT operates in the European Union. Petya infiltrated FedEx via a Ukranian tax software product. FedEx said no data breach or data loss has occurred based on the company's current knowledge.

FedEx isn't the only company struggling to recover. Other enterprises also have recovered most systems, but may not fully restore the ones hit hardest by Petya.

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In FedEx's filing, the company said its TNT depots, hubs, and facilities are operational with most services, but customers are seeing service and invoicing delays. FedEx has had to use manual processes for a "significant portion of TNT operations and customer service functions." FedEx couldn't say when TNT services will be fully restored.

As for FedEx's recovery plan, the company said it focused on operations, finance, back-office, and secondary business systems. FedEx couldn't put a price tag on the attack fallout, but it did note:

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. We do not have cyber or other insurance in place that covers this attack. Although we cannot currently quantify the amounts, we have experienced 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.

The company said it is still committed to boosting operating income by $1.2 billion to $1.5 billion in fiscal 2020 relative to fiscal 2017.

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