Cyber woes: Expeditors nearly triples 2022 capex budget to $100m after cyber-attack

© Khunaspix Dreamstime.

In its 10-K filed this week – later than expected due to a much-publicised cyber-attack on 20 February – 3PL Expeditors said that cash used in investing activities for the year ended 31 December 2021 “was $37 million, as compared with $46 million in 2020”.

Meanwhile, capital expenditures – which are part of the investing cash flows – were “$36 million in 2021” compared to $47.5m and $47m, respectively, in 2020 and 2019.

The group is still unable to estimate “any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters, including potential claims resulting from a cyber-attack in February 2022”.

Notably, however, total anticipated capital expenditures in 2022 are “currently estimated to be $100 million”, it said, adding “this includes routine capital expenditures, upgrades to computer equipment related to the cyber-attack and investments in technology”.

That, based on forward revenues expectations, equates to 0.6% out of annual 2022 turnover.