AutoNation expects hit to Q2 profit from CDK outage (updated)

AutoNation

15/07/2024 12:18

(Adds details on profit forecast in paragraph 3, company
statement in last paragraph)
       July 15 (Reuters) - U.S. auto retailer AutoNation said
on Monday it expects a $1.50 per share hit to its second-quarter
profit due to the disruptions caused by a cyberattack at retail
technology provider CDK in June, a crucial selling period for
car dealers. 
    The attack prompted CDK to take down its dealer management
system (DMS), used by over 15,000 retail locations, making it
the latest roadblock for the auto industry that is recovering
from supply-driven challenges.
    AutoNation now expects its earnings per share for the
quarter ended June 30, to be between $3.15 and $3.30,
significantly lower than analysts' expectations of about $4.50,
according to LSEG estimates.
        The company said the CDK outage adversely impacted its
business, including productivity, but does not expect the
incident to have a material impact on its overall financial
condition or its operations.
  
    It also said most operations including the DMS and core
functions were restored, while some ancillary systems and
integrations remain unavailable or limited.
    "We expect to complete the restoration of all such systems
and integrations prior to the end of July 2024," AutoNation
said.

 (Reporting by Nathan Gomes in Bengaluru; Editing by Shinjini
Ganguli)
 ((Nathan.Gomes@thomsonreuters.com;))