CHARLOTTE, NC – Sonic Automotive (NYSE:SAH) Inc., a prominent auto dealership and gasoline station company, has reported a cybersecurity incident affecting its operations. On June 19, 2024, CDK Global (NASDAQ:CDK), a provider of information systems for Sonic Automotive, experienced a cyberattack that led to the suspension of several critical systems, including those used by Sonic Automotive.
The affected systems are integral to dealership management and support various operations such as sales, inventory, and accounting, as well as customer relationship management (CRM). Despite the cyberattack, all Sonic Automotive dealerships remain open, employing alternative solutions to mitigate the impact of the CDK outage.
The company has initiated an investigation into the unauthorized activity and has taken steps to secure its systems. The extent of the breach, including the potential access to customer data, has not yet been determined.
Sonic Automotive has acknowledged that the incident has disrupted its business and could continue to do so until the systems are fully restored. However, the company has not confirmed whether the event will materially affect its financial condition or results of operations.
This information is based on a recent SEC filing by Sonic Automotive. The company's stock is traded on the New York Stock Exchange under the ticker NYSE:SAH. As the situation evolves, further updates regarding the impact and resolution of the cybersecurity incident are anticipated.
In other recent news, Sonic Automotive, a major player in the U.S. automotive and powersports retail sector, has reported a series of significant developments. The company announced a leadership transition with the retirement of its long-serving Chief Marketing Officer, Rachel Richards. Taking over the role will be Dino Bernacchi, effective May 1, 2024, recognized for his work with EchoPark Automotive, a Sonic Automotive subsidiary.
Simultaneously, Sonic Automotive revealed its first-quarter earnings, noting a slight dip in total revenues to $3.4 billion, a 3% decrease year-over-year. Still, the company saw an increase in adjusted earnings per share to $1.36, attributed to share repurchases and EchoPark's performance.
Despite a projected decline in new vehicle gross profit per unit through 2024, the company's diversified business model remains robust, with EchoPark reporting a significant increase in total gross profit per unit.
Sonic Automotive also confirmed plans to hire 300 additional technicians in 2024 to boost fixed operations gross profit. The company ended the quarter with $847 million in available liquidity and approved a quarterly cash dividend of $0.30 per share. These recent developments highlight Sonic Automotive's commitment to growth and leadership in the automotive and powersports retail industries.
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