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Home » Cyber Security News » Australia’s Eagers Automotive faces operational hurdles after cyber security incident

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

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

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 firms in Australia have 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.

 

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