Eagers Automotive in Australia has hit a bump due to a cyber security incident affecting its IT systems, causing disruptions in finalizing transactions for some new vehicles. These vehicles were sold and all set for delivery, but the glitch is stalling the process.
Cybersecurity breaches have been on the rise across various sectors in Australia, prompting the government to take action. They established an agency earlier this year to oversee cybersecurity measures and coordinate responses to such attacks.
Eagers Automotive clarified that the impact of this incident varied across different regions and business units in both Australia and New Zealand.
For the fiscal year 2023, the financial fallout from this cyber incident primarily involves deferring the recognition of these transactions over the last five days of December. While this will affect the company’s pre-tax profit for the year, it’s not expected to be significantly detrimental, according to the automotive retailer’s statement.
They anticipate resolving these deferred transactions in the 2024 financial year after proper processing within their systems.
Despite these challenges, Eagers Automotive expresses confidence in achieving a record underlying operating profit before tax for the 2023 financial year.