Engineering company Weir Group to lose £ 5 million due to cyber attack

Although the attack was repelled, the preemptive shutdown of the company’s IT systems led to disruptions in the shipment of goods.

Scottish engineering company Weir Group is addressing the consequences of a ransomware cyberattack. Production and other processes will be restored over the next few weeks, but the company will feel the impact of the disruptions throughout the fourth quarter.

According to the Weir Group, in the second half of last month, attackers tried to attack its computer systems, but its security solutions reacted quickly and the company took immediate action.

In particular, IT systems had to be isolated and shut down, including key engineering and enterprise resource planning applications. Currently, the work of these applications is partially restored, the rest are returning online in accordance with priority business tasks.

The system shutdown caused a series of disruptions in engineering and manufacturing processes, as well as a delay in the shipment of goods. In turn, this led to a delay in revenue and incomplete reimbursement of overhead costs.

An investigation into the incident is ongoing and no evidence has been found that personal or other sensitive data has been compromised or encrypted, Weir said.

However, due to shipping delays in September, Weir faced a delay in revenue of around £ 50m, along with under-meeting manufacturing and engineering overheads.

The impact of the downturn in fourth-quarter revenues on operating income for the full year is expected to be between £ 10 million and £ 20 million, while the impact of incomplete overhead reimbursement will be between £ 10 million and £ 15 million.

The mining division of Weir will be most impacted by the incident due to its complex engineering processes and supply chain. It is expected that the direct costs of the company to eliminate the consequences of the cyberattack will be up to £ 5 million.

According to the forecasts of Weir specialists, the annual profit of the company before tax will be 230-245 million pounds sterling.

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