AutoNation cautions CDK cyber breach impacts quarterly profits.

AutoNation Cyberattack Impact on Quarterly Earnings

TLDR:

AutoNation estimates $1.50 per-share earnings impact from CDK cyberattack
The attack impacted dealer management systems at numerous auto dealerships

AutoNation, one of the nation’s largest car dealerships, disclosed in a filing with the Securities and Exchange Commission that the cyberattack against software provider CDK Global will result in a $1.50 per-share hit against AutoNation earnings for the second quarter. The attack, which occurred on June 19, impacted dealer management systems at various auto dealerships, including AutoNation, Sonic Automotive, Penske Automotive Group, and others. The financial impact on AutoNation includes lost productivity and one-time costs related to compensation for commission-based workers. Despite the short-term impact, AutoNation does not expect the incident to have a significant effect on its long-term financial status or operations.

Key Points from the Article:

AutoNation warns of $1.50 per-share earnings impact from CDK cyberattack

Impact on dealer management systems at various auto dealerships, including AutoNation, Sonic Automotive, Penske Automotive Group

Financial impact includes lost productivity and one-time costs related to compensation for commission-based workers

Restored dealer management systems and core functions, with lingering impacts to scheduling, ordering, payment, and reporting functions expected to be resolved by the end of July

AutoNation’s second quarter earnings are scheduled for release on July 31

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