WestRock was hit by a ransomware attack in January. The company hopes to begin recovering associated costs during its third and fourth quarters. (“MV18UDY WESTROCK” by eastleighbusman is licensed under CC BY-ND 2.0)
In a May 5 earnings call for WestRock, Wall Street analysts got a rundown of losses resulting from a ransomware attack that hit the corrugated packaging company in January. When combined with the impact of severe weather disruptions, the incident caused a hit of $189 million to revenue, and $80 million to cash flow. Earnings per share was adjusted down by 23 cents. And that did not factor in $20 million paid in ransomware recovery costs.
WestRock, the second largest packaging company in the U.S., expects to begin to recover the losses in quarters three and four, largely through insurance coverage. But the tangible impact to the bottom line, even in the short term, combined with the multi-million dollar ransom payouts by suites adapt ransomware doing business media
