Yazılar

M&S Faces $400 Million Hit from Cyberattack, Online Disruption to Last Into July

/in /tarafından

Marks & Spencer (M&S) confirmed on Wednesday that the cyberattack disclosed in April will cost the British retailer approximately £300 million ($403 million) in lost operating profit, with disruption to its online operations expected to continue into July.

The attack, described by the company as “highly sophisticated and targeted“, forced M&S to shut down its automated stock systems, temporarily reverting to manual, pen-and-paper processes to manage billions of pounds worth of fresh food, clothing, and home goods. The fallout led to empty food shelves, delayed deliveries, and significant customer dissatisfaction.

Financial and Operational Impact

The cyberattack has been a major blow to M&S during a crucial period in its ongoing turnaround strategy. It has already:

  • Wiped more than £1 billion off M&S’s market value,

  • Halted online clothing, home and beauty sales, which have been “heavily impacted”,

  • Caused reduced food availability, higher waste, and increased logistics costs.

Despite this, in-store sales have remained “resilient,” and food sales recovered over the past week.

CEO Stuart Machin said the company expects 85% of online clothing and home items to be back on the site in the coming weeks. However, the full system restart will continue into July.

M&S reported £984.5 million in operating profit for the year ended March 29. It expects to mitigate some of the projected £300 million loss through insurance claims, cost-saving measures, and operational recovery.

Source and Method of Breach

Machin reiterated that the breach did not result from a failure in M&S’s own cybersecurity infrastructure. Instead, hackers gained access via “social engineering” at a third-party contractor. The attackers used deceptive methods to trick employees, breaching external access points rather than M&S’s internal systems.

“We didn’t leave the door open. This wasn’t anything to do with underinvestment,” said Machin.

The National Crime Agency has linked the incident to a group of young, English-speaking hackers, part of a wider pattern of cyberattacks affecting UK institutions including the British Library, London Underground, and blood testing services.

Market Reaction and Outlook

Despite the disruption, M&S shares rose 2% on Wednesday, reflecting investor confidence in the company’s recovery efforts. The stock is still down 9% since the attack.

Archie Norman, M&S chairman, acknowledged the setback but remained optimistic about the company’s broader transformation:

“Just as you think you’re onto a good streak, events have a way of putting you on your backside.”

Analysts said M&S’s strong underlying performance — with adjusted pretax profit up 22.2% and sales rising 6.1% to £13.9 billion — suggests its turnaround remains intact. The clothing and food divisions both gained market share, reinforcing the company’s momentum before the attack.

Nevertheless, competitors like Next, John Lewis, Tesco, and Sainsbury’s may benefit from M&S’s temporary online absence.

Cybersecurity Response

M&S stated that it will use the crisis to accelerate improvements in its technology infrastructure, emphasizing the importance of resilience in the face of rising global cyber threats.

The retailer also disclosed a £248.5 million non-cash impairment charge, linked to longer-term digital and operational investments affected by the incident.

CATL Reports Slowest Profit Growth in Six Years Amid Price War in China’s EV Market

/in /tarafından

Contemporary Amperex Technology Co. Ltd. (CATL), China’s leading electric vehicle (EV) battery manufacturer, has reported a 15% increase in net profit for 2024, marking its slowest growth in six years. The company’s net profit reached 50.7 billion yuan ($7.01 billion), falling short of its projected growth range of 11.1%-20.1%. Meanwhile, revenue decreased by 9.7%, marking its first revenue decline since it began releasing operating figures in 2015.

CATL attributed the revenue drop to declining battery prices prompted by a price war in China’s EV market, which pressured EV makers to reduce component costs. Despite rising sales volumes, lower prices of raw materials like lithium carbonate resulted in a fall in operating income.

For the fourth quarter, CATL reported a 13.6% increase in net profit to 14.7 billion yuan, down from the 26% growth seen in the previous quarter. Revenue for Q4 shrank by 3.1% to 103 billion yuan, marking the fifth consecutive quarterly decline.

The price war in China’s EV market has forced CATL to adjust its battery prices to defend market share. However, the company benefitted from a 17.6% reduction in the cost of its power battery business, outpacing an 11.3% drop in revenue from this segment.

Globally, CATL solidified its position as the dominant player in the EV battery market, extending its market share to 38% in 2024, up from 36% in 2023, according to SNE Research. BYD followed with 15%, while LGES saw its share fall to 10% from 13%.

CATL experienced faster growth in the energy storage system battery market, which accounted for 22.4% of total shipments, up from 19.4% in 2023. The company has also expanded beyond batteries, unveiling a new EV chassis in December and seeking to enter the power grid sector.

Additionally, CATL is investing internationally, with a 7.3 billion euro battery plant in Hungary to supply automakers such as Mercedes-Benz and BMW, along with a jointly-owned battery plant with Stellantis in Spain. The company is also pursuing a listing in Hong Kong to raise funds for its Hungarian plant, aiming to secure at least $5 billion.

Tesla Plans Lower-Cost Model Y to Defend Market Share in China

/in /tarafından

Tesla is set to introduce a lower-cost version of its best-selling Model Y in Shanghai, aiming to recover market share lost during a price war in its second-largest market, according to sources familiar with the plan. The new model, developed under the project codename “E41”, will utilize existing production lines at Tesla’s largest factory by output, with mass production set to begin in 2026.

The upcoming Model Y will be smaller and is expected to cost at least 20% less to produce than the refreshed Model Y launched late last year, which is currently priced starting from 263,500 yuan (~$36,351). This price reduction is part of Tesla’s strategy to defend its market position, particularly in China, where competition from domestic electric vehicle (EV) manufacturers has intensified.

While primarily aimed at the Chinese market, the new model is also planned for production in Europe and North America, though timelines for these markets are not yet specified. Tesla has not commented on the project.

The decision to develop a more affordable Model Y aligns with Elon Musk‘s earlier statement that Tesla would introduce lower-cost models in the first half of 2025, though further details on the exact cost reductions, pricing, and specifications were not disclosed at the time.

In 2023, the Model Y was China’s best-selling car, but its market share has since slipped, now standing at 10.4%, down from 11.7% in the previous year. Tesla faces increased competition from local companies, with models like the YU7 crossover from Xiaomi becoming strong rivals. The YU7 has already outsold Tesla’s Model 3 on a monthly basis since December.

As Tesla contends with rising competition in China, it has focused on introducing various versions of existing models rather than unveiling entirely new products, aside from the Cybercab robotaxi slated for 2026. A six-seat version of the Model Y is also expected to launch in China later this year.