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FedEx Corp. (NYSE: FDX) (“FedEx”) filed its anniversary address on Form 10-K for budgetary year 2017 with the Securities and Barter Commission. The filing includes added advice apropos the June 2017 cyber-attack on the common advice systems of TNT Accurate B.V. (“TNT”), the all-embracing accurate transportation, small-package arena charge and bales busline aggregation FedEx acquired in May 2016.

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TNT Accurate Cyber-Attack

On June 28, 2017, FedEx appear that the common operations of TNT were decidedly afflicted by the cyber-attack accepted as Petya, which complex the advance of an advice technology virus through a Ukrainian tax software product. The systems and abstracts of all added FedEx companies are currently artless by the attack. TNT operates in Ukraine and uses the software that was compromised, which accustomed the virus to access TNT systems and encrypt its data. While TNT operations and communications were decidedly affected, no abstracts aperture or abstracts accident to third parties is accepted to accept occurred as of the date of this columnist release.

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FedEx implemented accident affairs anon afterward the advance to balance TNT operations and communications systems. As of the date of this columnist release, all TNT depots, hubs and accessories are operational and best TNT casework are available, but barter are still experiencing boundless account and invoicing delays, and chiral processes are actuality acclimated to facilitate a cogent allocation of TNT operations and chump account functions. We cannot appraisal back TNT casework will be absolutely restored. Accident affairs that accomplish use of both FedEx Accurate and TNT networks abide in abode to abbreviate the impacts to customers.

Our advice technology teams accept been focused on the accretion of analytical systems and abide to accomplish advance in resuming abounding casework and abating analytical systems. We are currently focused on abating absolute operational systems, forth with finance, back-office and accessory business systems. We cannot yet appraisal how continued it will booty to restore the systems that were impacted, and it is analytic accessible that TNT will be clumsy to absolutely restore all of the afflicted systems and balance all of the analytical business abstracts that was encrypted by the virus.

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Given the contempo timing and consequence of the attack, in accession to our antecedent focus on abating TNT operations and chump account functions, we are still evaluating the banking appulse of the attack, but it is acceptable that it will be material. We do not accept cyber or added allowance in abode that covers this attack. Although we cannot currently quantify the amounts, we accept accomplished accident of acquirement due to decreased volumes at TNT and incremental costs associated with the accomplishing of accident affairs and the remediation of afflicted systems.

Additional after-effects and risks associated with the cyber-attack that could abnormally appulse our after-effects of operations and banking action are declared in the agnate accident agency included in the Management’s Discussion and Analysis area of our anniversary address on Form 10-K for budgetary year 2017, filed beforehand today. In accession to banking consequences, the cyber-attack may materially appulse our acknowledgment controls and procedures and centralized ascendancy over banking advertisement in approaching periods.

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Reaffirmation of FedEx Accurate FY2020 Operating Assets Guidance

FedEx reaffirms its charge to advance the operating assets at the FedEx Accurate Group by $1.2 billion to $1.5 billion in budgetary 2020 against budgetary 2017, d abstinent bread-and-er advance and accepted accounting and tax rules.

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Corporate Overview

FedEx Corp. (NYSE: FDX) provides barter and businesses common with a ample portfolio of transportation, e-commerce and business services. With anniversary revenues of $60 billion, the aggregation offers chip business applications through operating companies aggressive collectively and managed collaboratively, beneath the admired FedEx brand. Consistently ranked amid the world’s best admired and trusted employers, FedEx inspires its added than 400,000 aggregation associates to abide “absolutely, positively” focused on safety, the accomplished ethical and able standards and the needs of their barter and communities. To apprentice added about how FedEx connects bodies and possibilities about the world, amuse appointment about.fedex.com.

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Additional advice and operating abstracts are independent in the company’s anniversary report, Form 10-K, Form 10-Qs and Form 8-Ks.

The Investor Relations folio of our website, investors.fedex.com, contains a cogent bulk of advice about FedEx, including our Securities and Barter Commission (“SEC”) filings and banking and added advice for investors. The advice that we column on our Investor Relations website could be accounted to be absolute information. We animate investors, the media and others absorbed in the aggregation to appointment this website from time to time, as advice is adapted and new advice is posted.

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Certain statements in this columnist absolution may be advised advanced statements, such as statements apropos to management’s angle with account to approaching contest and banking performance. Such advanced statements are accountable to risks, uncertainties and added factors which could account absolute after-effects to alter materially from actual acquaintance or from approaching after-effects bidding or adumbrated by such advanced statements. Potential risks and uncertainties include, but are not bound to, bread-and-er altitude in the all-around markets in which we operate, our adeptness to auspiciously accommodate the businesses and operations of FedEx Accurate and TNT in the accepted time frame, our adeptness to bout accommodation to alive aggregate levels, changes in ammunition prices or bill barter rates, a cogent abstracts aperture or added disruption to our technology infrastructure, acknowledged challenges or changes accompanying to FedEx Ground’s owner-operators and the drivers accouterment casework on their behalf, new U.S. calm or all-embracing government regulation, our adeptness to finer operate, accommodate and advantage acquired businesses, disruptions or modifications in account by, or changes in the business of, the U.S. Postal Service, the appulse from any agitator activities or all-embracing conflicts, the appulse of the TNT cyber-attack declared in this columnist absolution and added factors which can be begin in FedEx Corp.’s and its subsidiaries’ columnist releases and FedEx Corp.’s filings with the SEC. Any advanced account speaks alone as of the date on which it is made. We do not undertake or accept any obligation to amend or alter any advanced statement, whether as a aftereffect of new information, approaching contest or otherwise.

 

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