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Key Points:
- Australia’s Eagers Automotive is facing operational hurdles after a cyber security incident impacted some of its IT systems.
- The incident is affecting the company’s ability to finalize transactions for certain new vehicles that have been sold and are ready for delivery.
Australia’s Eagers Automotive has announced that it is facing operational challenges after a cyber security incident impacted some of its IT systems. The incident is causing delays in finalizing transactions for certain new vehicles that have already been sold and are ready for delivery. Eagers Automotive is a major automotive retailer in Australia and New Zealand, and the cyber incident is expected to have an impact on the company’s financial performance for the fiscal year 2023.
Cybersecurity breaches have been on the rise in Australia, prompting the government to implement stricter rules and establish an agency to oversee cyber security efforts. Eagers Automotive did not provide specific details about the nature of the cyber incident or how it occurred.
The extent of the operational impact of the incident varies across different regions and business units of Eagers Automotive. The company stated that the financial impact primarily relates to the deferral in the recognition of transactions during the last five days of December. However, it does not expect the impact to be material to its statutory profit before tax for fiscal 2023.
Eagers Automotive reassured shareholders and customers that it remains confident in delivering a record underlying operating profit before tax for the fiscal year 2023. The deferred transactions are expected to be recognized in the 2024 financial year once they have been appropriately finalized within the company’s systems.
This incident highlights the ongoing and increasing threat of cyber security breaches in the corporate world. Companies across industries are becoming more vulnerable to cyber attacks, and it is crucial for organizations to invest in robust cyber security measures to protect their operations and customer data. Eagers Automotive’s experience serves as a reminder of the potential financial and operational impacts that a cyber incident can have on a business.
In summary, Eagers Automotive is facing operational hurdles after a cyber security incident impacted its IT systems. This is causing delays in finalizing transactions for certain new vehicles. The company expects the financial impact to be minimal and remains confident in delivering a record operating profit before tax for the fiscal year 2023.
