The Home Depot, Inc. Eliminates Malware, Warns Of Unknown Cost

The Home Depot, Inc. HD said it solved its criminal malware problems and boosted its 2014 earnings outlook slightly on Thursday. But the Atlanta-based retailer cautioned that its latest fourth-quarter earnings estimate doesn't include a long laundry list of potentially major costs related to the cyber attack that put payment card information at risk for some 56 million customers. Following an investigation that began September 2, the company eliminated malware related to the attack from its U.S. and Canadian networks as of Thursday. The attacks are believed to have occurred from April through September of this year. "Customers will not be liable for fraudulent charges," Chief Executive Francis S. Blake said, adding that "we want to apologize for the inconvenience and anxiety this has caused." Home Depot boosted its 2014 earnings outlook to $4.54 per share, from $4.52, and said the estimate includes a charge of $62 million for initial investigation and remediation work related to the data breach. The charge will be offset by $27 million Home Depot expects to recover from insurance. Wall Street expects 2014 earnings of $4.50 per share. But an array of yet-to-be estimated and potentially steep costs aren't included in the company's latest earnings outlook. Among unknown costs for Home Depot are reimbursements to credit card companies for fraud and card re-issuance costs; liabilities from civil litigation, governmental investigations and enforcement proceedings; legal and investigation fees as well as further expense for fixing the problem. Home Depot shares faltered earlier this month but have since largely recovered.