Clorox Reports Ongoing Production Disruptions from Recent Cyberattack
Clorox, a household product manufacturer known for its bleach products and Pine-Sol, has issued a warning about the significant financial repercussions resulting from continued production disruptions caused by a cyberattack that occurred last month.
The company revealed that it does not yet have an estimate for when it can fully resume its operations.
These disruptions, stemming from a cybersecurity breach, will impact Clorox's fiscal first-quarter results due to product outages and delays. Despite the challenges, the company stated that it believes the threat is now contained and anticipates gradually restoring its systems to normal operation starting next week. However, the process of returning to full production will take time.
Clorox initially disclosed the cyberattack on August 14, acknowledging that its systems had been breached. In response, the company took its systems offline and engaged with law enforcement agencies to address the situation.
One month later, the cyberattack continues to cause "widescale disruption" to Clorox's operations, as indicated in a securities filing. While system repairs are ongoing, the company has resorted to manual procedures for many of its operations. Consequently, Clorox has scaled back its order processing, resulting in fewer products being available on store shelves.
Clorox is not the only company grappling with cyberattacks. Las Vegas casino giants MGM and Caesars are also dealing with their own cybersecurity incidents. MGM, in particular, warned of a potential material impact on its financial results.
The news of Clorox's ongoing production disruptions led to a roughly 1% decrease in the company's stock price on Monday.