Cyberataka has severely impacted the operations of Clorox, a leading manufacturer of household chemicals, resulting in a projected decline in sales by 23-28% for the quarter ending on September 30. The company now anticipates incurring losses instead of the anticipated profit of nearly $150 million, greatly disappointing investors.
The harmful effects of the cyber attack led to the company disabling critical information systems, causing disruptions and delays in order processing. Consequently, Clorox has struggled to maintain its product reserves. Furthermore, the attack adversely affected Clorox’s stock, with a decline of approximately 1% in trading.
In response to the attack, Clorox resorted to manual order processing. However, the company has announced its intention to restore automated order processing, according to a report. Clorox aims to regain its ability to supply retailers promptly.
This cyber attack is expected to have ongoing but diminishing consequences for Clorox throughout the second quarter starting from October 1. The company now projects earnings of $0.35 to $0.75 per share, while analysts had previously estimated a profit of $1.18 per share. Clorox, with a turnover of nearly $7.4 billion last year, faces a challenging period ahead.