Clorox said it expects to report a loss in the first quarter after a cyberattack in August caused product disruptions, processing delays and large-scale disruptions at the bleach maker.
Shares of the home furnishings maker fell 2% in extended trading as the company also expects net sales for the quarter ended Sept. 30 to decline 23% to 28% from a year earlier.
In August, the company said a cybersecurity breach had disrupted parts of its IT infrastructure, forcing it temporarily disable certain systems and switch to manual order processing.
Clorox now expects its loss per share to range from 35 cents to 75 cents in the first quarter. A year earlier, the company reported earnings of 68 cents per share in the same period.
Gross profit in the first quarter is also expected to decline year-on-year compared with the previous increase forecast as the consequences of a cyber attack more than offset the benefits of savings cost reduction and supply chain optimization, the company said.
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The operational impact of the incident is expected to be “persistent but will decrease” in the second quarter as the company returns to normal operations, it said.
“Clorox is in the process of assessing the impact of a cyber attack in fiscal year 2024 and beyond,” he said.
The company said last week that its manufacturing facilities had resumed operations and were ramping up production to replenish retailers’ inventories.
Reuters.
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.