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Key Points:
- Australia’s Eagers Automotive is facing operational hurdles after a cyber security incident that has affected its ability to finalize transactions for certain new vehicles.
- The cyber incident has had varying impacts across different regions and business units in Australia and New Zealand.
- The financial impact for fiscal 2023 is primarily the deferral in the recognition of these transactions, but it is not expected to be material.
- Eagers remains confident that it will deliver record underlying operating profit before tax for the 2023 financial year.
Australia’s Eagers Automotive has encountered operational challenges following a cyber security incident affecting its IT systems. The incident has specifically impacted the company’s ability to finalize transactions for certain new vehicles that have been sold and are ready for delivery.
Over the past year, Australia has experienced a significant increase in cyber security breaches, leading the government to introduce reforms to strengthen cyber security rules. To address these challenges, the government established an agency in February to oversee government investment and coordinate responses to cyber attacks.
Eagers Automotive stated that the operational impact of the cyber incident has varied across different regions and business units in Australia and New Zealand. The company expects the financial impact for fiscal 2023 to primarily be the deferral in the recognition of these transactions during the last five days of December. However, it does not anticipate this deferral to have a significant material impact on its statutory profit before tax for the year.
The automotive retailer reassured stakeholders that the deferred transactions will be appropriately finalized within their systems and recognized in the 2024 financial year. Despite the cyber incident, Eagers remains confident in its ability to deliver a record underlying operating profit before tax for the 2023 financial year.
This incident highlights the increasingly prevalent threat of cyber security breaches for businesses, particularly in critical industries such as automotive. It serves as a reminder for organizations to prioritize and enhance their cyber security measures to safeguard sensitive data and ensure uninterrupted operations.
In response to the rise in cyber security breaches, governments and regulatory bodies around the world have been implementing stricter rules and regulations to protect businesses and individuals from cyber threats. It is crucial for organizations to stay updated on these regulations and invest in robust cyber security strategies to mitigate risks.
In conclusion, Eagers Automotive’s operational hurdles following a cyber security incident underscore the importance of robust cyber security measures in today’s digital landscape. The incident serves as a reminder for businesses to prioritize cyber security and take proactive measures to safeguard their operations and customer data.
