It's likely a cyber-attack on FedEx's Europe-based TNT Express unit in June will have a material impact on financial results, the company said Monday.
TNT Express is still feeling effects of Petya, an information technology virus that was spread to TNT and other companies through a Ukrainian tax software product, FedEx said in a release.
No data breach or data loss to third parties is known to have occurred at this time, but TNT customers are still experiencing service and invoicing delays.
FedEx reported the cyber-attack June 28 and suspended trading of shares on the New York Stock Exchange for less than an hour that day.
"As of the date of this press release, all TNT depots, hubs and facilities are operational and most TNT services are available, but customers are still experiencing widespread service and invoicing delays, and manual processes are being used to facilitate a significant portion of TNT operations and customer service functions," FedEx said.
"We cannot estimate when TNT services will be fully restored. Contingency plans that make use of both FedEx Express and TNT networks remain in place to minimize the impacts to customers," a release added.
TNT Express, based in The Netherlands, was among European-based companies that reported interference with computer systems starting June 27.
FedEx bought TNT Express in 2016 for $4.9 billion, its largest ever acquisition.
FedEx said in its annual report, filed Monday, "While TNT Express operations have been restored and most TNT services are currently available, as of the date of this filing, we cannot estimate when TNT Express services will be fully restored."
"In addition, we cannot estimate how long it will take to restore the systems that were impacted and it is reasonably possible that TNT Express will be unable to fully restore all of the affected systems and recover all of the critical business data that was encrypted," FedEx said.
The Petya attack followed an attack by a ransomware called WannaCry on some FedEx computers in May, which did not cause a significant disruption.
Despite the potential setback, FedEx reaffirmed its commitment to boost FedEx Express operating income by $1.2 billion to $1.5 billion over three years as TNT Express's global operating is fully integrated with FedEx.
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