- Clorox warned that quarterly sales and profit fell sharply primarily due to a cyberattack that significantly impacted operations.
- The Pine Sol and bleach maker said the aftermath of the attack would continue to affect production.
Clorox warned Wednesday that sales and profit fell sharply in the quarter ended Sept. 30, largely due to the aftermath of a cyberattack that significantly affected operations.
The bleach and cleaning products maker expects net sales to decline 23% to 28%. Clorox also estimates its gross margin for the quarter will be lower than the same period last year. A loss per share of 35 cents to 75 cents is expected. On an adjusted basis, a loss of up to 40 cents per share is forecast.
Clorox also said the cyberattack announced in August continues to affect production, although the impact is easing. “The company also expects to benefit from retailer inventory replenishment in the current quarter as it increases order fulfillment,” it said in a press release.
Clorox said it was still assessing what impact the hack might have on the current fiscal year and beyond.
The impact of the attack was far-reaching, the company said in a September securities filing. While operating systems were being repaired, Clorox resorted to manual procedures for many of its procedures, which slowed product fulfillment. Nevertheless, the company said the threat had been contained.
Bloomberg reported Wednesday that Scattered Spider, a group of hackers linked to recent cyberattacks on casino companies MGM and Caesars, is suspected of being linked to the August attack on Clorox. MGM also warned in September that the attack could have a significant impact on the company’s finances.