Shares of Clorox Co. (CLX) are currently on track for their longest losing streak since 2009. The well-known cleaning-products maker recently disclosed that the aftermath of a cybersecurity attack would have a “material” impact on first-quarter results. On Wednesday, shares were down 0.5%. In fact, the stock has been declining for nine consecutive days, approaching the record of 10 continuous trading days of declines set in May 2009.
Fallout from Cybersecurity Attack
Clorox announced last month that it had successfully identified a cybersecurity attack which prompted the company to temporarily shut down certain systems. In order to continue operations, Clorox resorted to reduced-rate manual ordering and processing procedures. Unfortunately, this led to subsequent challenges with product availability. As a result, the company now expects a significant impact on its Q1 financial results.
Road to Recovery
While Clorox believes that it has successfully contained the attack and most of its manufacturing sites are operating again, the long-term impact remains uncertain. The company laid out its plans for moving forward but acknowledged the difficulty in predicting future consequences.
As shares of Clorox Co. continue their downward trend, investors eagerly await updates on both the immediate and long-term implications of the recent cybersecurity attack.