Sonic Automotive, a major player in the U.S. automotive retail market and headquartered in North Carolina, faced a significant financial setback following a recent ransomware incursion. This digital attack, targeting CDK Global, a pivotal software provider for numerous dealerships across North America, resulted in a marked decrease in Sonic’s earnings per share by a third for the quarter ending June 30.

The ransomware incident on June 19 forced CDK Global to disable crucial systems that facilitate dealership operations like sales and inventory management. This shutdown sent ripples throughout the automotive industry, compelling companies like Sonic Automotive and others to alert investors about the disruptions' adverse effects on their operations.

Sonic reported a diluted earnings per share of $1.18 for the second quarter, a stark $0.64 drop attributed to the fallout from the CDK disruption. This decline encompasses an estimated $30 million loss in income before taxes, of which $11.6 million was excess compensation for employees affected by the outage. Despite these setbacks, CDK Global projected a swift system recovery, although they remained silent on ransom payment rumors.

Key Tronic Corp., another victim of a recent ransomware attack, disclosed a financial impact exceeding $17 million. The attack, claimed by the Black Basta group, interrupted Key Tronic's operations across several locations, halting production for approximately two weeks and leading to substantial revenue loss. The company, however, anticipates reclaiming most lost orders in fiscal 2025 and reported partial insurance compensation for incurred expenses.

In the wake of these cyber incidents, multiple legal actions have been initiated against CDK Global, highlighting the pervasive and costly nature of ransomware attacks on large-scale businesses.