The recent ransomware attack that disrupted CDK Global’s systems has had a negative impact on AutoNation’s quarterly earnings, the car dealership company said in a regulatory filing.
The attack occurred on June 19 and affected CDK Global systems supporting the management systems of thousands of car dealers across the US.
CDK Global provides customer relationship management, dealer management, finance and insurance, intelligence, network and communication, and retail services.
In June, AutoNation informed the US Securities and Exchange Commission (SEC) that the attack had impacted core functions, such as “sales, service, inventory, customer relationship management, and accounting functions”, although its retail locations remained open.
On Monday, the car dealer told the SEC that it has restored most of its systems, including access to its dealer management system (DMS) and core functions.
“Certain ancillary systems and integrations, such as those that help automate ordering, scheduling, payment, and reporting processes, remain unavailable or limited, and efforts remain ongoing to restore these,” the company said.
AutoNation also noted that earnings per share for the quarter that ended June 30, 2024, would be negatively impacted and that it will likely incur additional costs related to recovery after the incident.
The estimated impact, the company said, is of approximately $1.50 per share and includes one-time costs consisting of “guaranteed compensation paid to retain commission-based associates in order to protect the company’s business.”
“While the full scope, nature, and impact of the incident is yet to be known, we do not expect the incident to have a material impact on AutoNation’s overall financial condition or on its ongoing results of operations,” AutoNation said.
CDK Global customers had to revert to pen and paper for roughly two weeks before the software-as-a-service company restored its systems. The firm reportedly paid out $25 million in cryptocurrency to a BlackSuit ransomware affiliate.
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