Mondelez Says Cyberattack Cost it Business

By Maria Armental Features Dow Jones Newswires

Mondelez International Inc.'s sales in the most-recent quarter took a hit from a cyberattack that wreaked havoc across Europe and the U.S. last week, the company said Thursday.

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While the full impact has yet to be assessed, Mondelez estimates its second-quarter growth rate would be lowered by at least 300 basis points and warned it would book "incremental one-time costs" in the second and third quarters related to the attack.

The snack company, whose brands include Oreo cookies and Triscuit crackers, didn't specify any dollar amounts or the projected impact on second-quarter results or financial targets for the year beyond saying it still expects revenue to increase at least 1% organically, which strips out such things as the impact of mergers or acquisitions.

The Illinois-based company is slated to release earnings next month.

Shares fell 1.3% to $42.50 in after-hours trading.

The attack, which security experts dubbed Petya, brought down its IT network, disrupting shipments and the ability to invoice sales during the last four days of the quarter. While some of those shipments are expected to be recorded in the third quarter, Mondelez estimates some of the projected sales were tied to the holiday and are, therefore, lost.

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Household products maker Reckitt Benckiser Group PLC also said Thursday the production disruption would cost it some lost business and lowered its like-for-like net revenue growth projection for the year to around 2%, down from 3%.

Meanwhile, FedEx Corp., which warned the financial impact would be "material," said delivery service TNT has all depots, hubs and facilities open again though the European parcel-delivery business is still trying to clear backlogs.

Paul Ziobro contributed to this article.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

July 06, 2017 19:24 ET (23:24 GMT)