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Bloomberg
FedEx Corp.’s TNT unit is still slogging through some transactions by hand and information systems may never fully recover from a June cyberattack that
is expected to deal a blow to
earnings.
The shares fell the most in two months after the courier said customers continue to experience widespread service and invoicing delays. While TNT facilities are functioning, they have been forced to rely on manual processes for a significant portion of operations, FedEx said.
The difficulty could reduce FedEx’s earnings by 50 cents to $1 a share for the year through next May, Citigroup Inc. analyst Christian Wetherbee said.
The FedEx statement underscored the fallout from the June attack, in which the perpetrators demanded $300 in cryptocurrency to unlock infected computer networks. Unlike traditional forms of ransomware, the hack appeared to focus on crippling systems rather than obtaining payments.
FedEx acquired Dutch shipping company TNT Express for $4.8 billion last year to gain an extensive parcel delivery system in Europe and compete with United Parcel Service Inc. and Deutsche Post AG’s DHL.
The email address posted on users’ locked screens to receive decryption keys was swiftly shut down by the email provider.