Clorox says sales and profit took a big hit from cyberattack
- Clorox warned that its quarterly sales and profit took a big hit largely due to a cyberattack that significantly affected operations.
- The Pine-Sol and bleach maker said the attack's after effects continue to hurt production.
- Scattered Spider, a group of hackers tied to recent cyberattacks on casino companies MGM and Caesars, is suspected of being tied to the August attack on Clorox, Bloomberg reported Wednesday.
Clorox on Wednesday warned that its sales and profit took a big hit during the quarter ending Sept. 30, largely due to the after effects of a cyberattack that significantly affected operations.
The bleach and cleaning products maker said it expects net sales to decrease 23% to 28%. Clorox also estimates its gross margin for the quarter will be down from the year-ago period. It expects to post a per share loss of 35 cents to 75 cents. On an adjusted basis, it projects a loss of up to 40 cents a share.
Clorox also said the cyberattack, which it disclosed in August, continues to hurt production, although the effect is lessening. "The Company also expects to begin to benefit from the restocking of retailer inventories as it ramps up fulfillment" during the current quarter, it said in a release.
Clorox said it is still assessing what effect the hack could have on the current fiscal year and beyond.
The effects of the attack were widescale, the company disclosed in a September securities filing. While operational systems were repaired, Clorox resorted to going manual on many of its procedures, slowing down product fulfillment. Nonetheless, the company has said the threat is contained.
Scattered Spider, a group of hackers tied to recent cyberattacks on casino companies MGM and Caesars, is suspected of being tied to the August attack on Clorox, Bloomberg reported Wednesday. MGM also warned in September that the attack could have a material effect on company finances.