Schaffer Withdraws Automotive Leather Guidance After JLR Cyber Incident

Schaffer Corporation Limited (ASX: SFC) announced that at the time of writing it has withdrawn its first-half FY26 profit guidance for the Automotive Leather division following a major cyber incident at key customer Jaguar Land Rover (JLR). The attack, disclosed by JLR in early September, forced production halts across all its manufacturing sites.

Initial expectations pointed to production resuming on 24 September 2025, but updates now suggest that operations may not restart until at least 1 October 2025, with uncertainty remaining. Given JLR’s importance as a customer, the extended shutdown is expected to materially reduce Automotive Leather’s sales volumes and profitability in the short term.

Schaffer has adjusted raw material procurement and operating costs to offset the impact. Despite this, the company’s balance sheet remains strong, and the Board confirmed it will maintain the interim fully franked dividend at AU$0.45 per share.

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