Adrian Johnson
TLDR: Clorox and Johnson Controls, two industry giants, have reported financial losses resulting from cyberattacks. Clorox revealed in its earnings report that a cyberattack in August led to a decrease in sales volume and significant disruptions to its business operations, resulting in lower earnings. Johnson Controls similarly reported a cyber incident in September, with the attack costing the company $27 million. The financial losses were primarily due to expenses associated with the response and remediation of the cyber incident, which was confirmed to be a ransomware attack.
Key Points:
- Cyberattacks have a deep financial impact on a company’s bottom line.
- Clorox experienced lower sales volume and disruptions to its business operations due to a cyberattack.
- Johnson Controls incurred $27 million in financial losses as a result of a ransomware attack.
- Both companies are still investigating the incidents and analyzing the data accessed and stolen by the hackers.
Clorox reported a 6% decrease in sales volume over the last six months due to a cyberattack in August. The attack led to wide-scale disruptions in the company’s business operations, including order processing delays and significant product outages. Clorox had to hire consulting services, IT recovery firms, and forensic experts to investigate and remediate the attack. While the company has moved back to automated order processing, it is still experiencing operational impacts. Clorox has not yet received insurance payments to cover the attack and expects negative impacts on its fiscal year 2024 results.
Johnson Controls, a technology and industrial business multinational, incurred $27 million in financial losses as a result of a ransomware attack. The company has restored all impacted applications and systems but attributes the large financial losses to expenses associated with the response and remediation of the cyber incident. The $27 million figure does not include potential cyber insurance payouts, which may cover a substantial portion of the costs. Johnson Controls expects to incur additional expenses throughout the 2024 fiscal year.
The attacks on both Clorox and Johnson Controls highlight the significant financial consequences of cyber incidents. Companies not only face immediate costs associated with response and remediation but also potential long-term impacts on sales, earnings, and overall business operations. Cybersecurity incidents can lead to disruptions, delays, and decreased customer trust, all of which can significantly affect a company’s bottom line.
