Australia's Eagers Automotive faces operational hurdles after cyber security incident


FILE PHOTO A man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13 2017. REUTERSKacper PempelIllustrationFile Photo

FILE PHOTO: A man holds a laptop computer as cyber code is projected on him in this illustration picture taken on May 13, 2017. REUTERS/Kacper Pempel/Illustration/File Photo

(Reuters) - Australia's Eagers Automotive said on Friday a cyber incident impacting some of its IT systems is affecting the company's ability to finalise transactions for certain new vehicles, which have been sold and ready for delivery.

Corporate Australia has seen an alarming rise in cyber security breaches since last year, even prompting the country's government to reform cyber security rules. Australia set up an agency in February this year to oversee government investment and help coordinate responses to hacker attacks.

Eagers said the extent of the operational impact varied across regions and business units in Australia and New Zealand.

The financial impact of the cyber incident for fiscal 2023 primarily relates to the deferral in the recognition of these transactions across the last five days of December, the automotive retailer said in a statement.

The deferred transactions are expected to hit the company's statutory profit before tax for fiscal 2023, although it is not expected to be material, Eagers said.

"The deferred transactions are expected to be recognised in the 2024 financial year once they have been appropriately finalised within our systems," the company said.

Eagers, however, remains confident that it will deliver record underlying operating profit before tax for the 2023 financial year.

Tap into purity

(Reporting by Roushni Nair in Bengaluru; Editing by Shounak Dasgupta and Subhranshu Sahu)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a member? Log In