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FedEx says no insurance in place to cover cyber attack

Posted On: Jul. 17, 2017 9:44 AM CST

FedEx says no insurance in place to cover cyber attack

(Reuters) — Package delivery company FedEx Corp. said it did not have insurance in place that covered the impact from last month’s cyber attack, which will hurt its fiscal 2018 results.

Those results would be hurt in part due to disruption of operations in its Netherlands-based TNT Express unit, which is still experiencing widespread service delays following the attack, FedEx said in a regulatory filing on Monday.

FedEx said it was unable to estimate when services at the unit would be fully restored.

FedEx added that no data breach or data loss to third parties is known to have occurred as of July 17.

The company said it was evaluating the financial impact of the cyber attack, but it was likely to be "material."

Shares of FedEx fell as much as 2.7% to $213.07 in early trading.

In June, a new cyber virus spread from Ukraine to wreak havoc around the globe, crippling thousands of computers.

FedEx said it has experienced loss of revenue due to decreased volumes at TNT Express, incremental costs from contingency plans and remediation of affected systems.