Clorox Co. said Monday it discovered unauthorized activity or a cyberattack on its computer systems, forcing it to manually process a large number of orders. This has resulted in a slowdown in the pace of its industrial operations, thereby affecting the availability of its products..
The Oakland, California-based company, maker of Clorox brand cleaning products and other products, announced the news in a filing with the U.S. Securities and Exchange Commission on Monday.
Cyberattacks may impact product availability
The last time there was a serious shortage of disinfecting cleaning products was during the coronavirus pandemic, when collective fear of a virus that was once thought to be spread through contact led the public to hoard products from Clorox and its competitors.
The Clorox Company is best known for its liquid bleach bottles, disinfectant wipes, and brands like PineSol, FreshStep cat litter, and Hidden Valley Ranch salad dressing, but No reporting on which brands were affected by cyberattack.
However, some media outlets, including the New York Times, reported that products affected by the cyber attack are expected to include disinfecting wipes and other cleaning products.
Clorox said in the presentation that supply disruptions to its products could begin in the coming weeks, as flu season begins.
“The cybersecurity attack damaged part of the company’s IT system infrastructure, causing a large-scale disruption to Clorox’s operations,” the company said in the filing.
Cyberattack affects Clorox computer systems
The company said it discovered the vulnerability on August 14 and immediately took steps “to address the attack, including taking certain systems offline,” and expected to resume automated order processing next week.
The company also said that “the vast majority of production sites have resumed production and expect to accelerate production to normal speeds in a short period of time,” but did not estimate when it would fully return to normal.
Clorox added that cyberattacks ” has caused and is expected to continue to cause disruption to some of the company’s business operations“.
He also told the media that they have managed to resume production and have even shipped some goods, and that they are in contact with customers to assess their urgent needs.
Clorox said in a filing on Monday that its profits could take a hit from the cyberattack.
“Due to delays in order processing and the severity of product disruptions, the company now believes this will have a material impact on first-quarter financial results,” the filing explained.
However, he clarified that “given the continued economic recovery, it is too early for the company to determine the long-term impact, including the outlook for this fiscal year.”
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