September 26, 2022

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Supply chain giant Expeditors is still recovering from cyberattack, expects ‘material adverse impact’

2 min read

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Global logistics giant Expeditors said it is still recovering from a targeted cyberattack and expects a “material adverse impact” on its business.

The Seattle-based publicly traded company, which helps companies move freight in more than 100 countries and posted $ 16.5 billion in revenue last year, first reported the attack Feb. 20. It shut down most of its operating systems globally as a result.

In a new investor filing posted Wednesday, Expeditors said it is now handling ships and providing services across most products but is not yet able to provide an estimate for resuming full operations.

Expeditors is incurring “significant expenses” to keep its business running and to investigate the attack.

From the filing: “The Company expects that the impact of the prior shutdown and the ongoing impacts of the cyber-attack will have a material adverse impact on its business, revenues, expenses, results of operations, cash flows and reputation. At this early stage, the Company is unable to estimate the ultimate direct and indirect financial impacts of this cyber-attack. ”

Expeditors also said it will delay the release of its annual 10-K financial report due to the hack, which affected its accounting systems.

Cyberattacks have escalated significantly over the past few years as companies look to address the growing challenge of cybersecurity. Other logistics businesses such as Hellman, Mabanaft, and Swissport were also hit recently.

Government officials and business leaders in the US and countries across Europe are bracing for cyberattacks amid the invasion of Ukraine.

Even with global supply chain disruptions caused by the pandemic, Expeditors saw revenue spike 81% in the fourth quarter of 2021 to $ 5.4 billion, with earnings per share of $ 2.66, up 129%. It was able to grow its employee base last year to nearly 20,000 people.

Expeditors is led by President and CEO Jeff Musser, who has spent nearly four decades at the company, which launched in 1979.

We’ve reached out to Expeditors for more information about the cyberattack and will update this story if we hear back.

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