Clorox Warns Current Quarter Results Will Be Affected by Cyber Attack

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published September 18, 2023
Clorox toilet bowl cleaner arranged in Germantown, New York, US, on Monday, July 24, 2023.

Gabby Jones/Bloomberg via Getty Images

Clorox (CLX) warned it is still dealing with the fallout from a recent cyberattack, saying the hack will have a significant effect on its current quarter results.

Key Takeaways

  • Clorox said a cyberattack last month will have a material impact on current quarter results.
  • The hack damaged portions of the company's IT systems, and it switched to manual ordering and processing procedures.
  • Because of the attack, Clorox said it couldn't give a fiscal year outlook.

The attack, first discovered Aug. 14, damaged portions of the company's information technology (IT) systems, which caused “widescale disruption of Clorox’s operations," it said in a filing Monday.

In response, the company took some systems offline and began manual ordering and processing procedures. Clorox continues operating at a lower rate of order processing and has recently started to experience higher consumer product availability issues, the company said.?

Clorox indicated that because of those problems, “the impact will be material” on first quarter results and that it is “premature” for the company to estimate what it will mean longer-term, including on its fiscal year outlook.

The company expects to begin transitioning back to normal automated order processing next week, it said, and has already resumed production at the vast majority of its manufacturing facilities. It "expects to ramp up to full production to occur over time.” However, it couldn’t estimate how long that would take.?

Shares of Clorox?were down slightly Monday afternoon but remain up for 2023.

Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Clorox. "FORM 8-K."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description