Schaffer Corporation Limited (ASX: SFC) has withdrawn its first-half financial year 2026 (1H26) profit guidance for its Automotive Leather division. Schaffer Corporation is a diversified industrial company with operations in automotive leather, foams and building materials. The withdrawal is a direct consequence of a cyber incident affecting one of the Automotive Leather division’s major customers, Jaguar Land Rover (JLR), causing a complete standstill in their production. The company announced the news to shareholders this week.
JLR publicly disclosed in early September 2025 that it had suffered a significant cyber-attack impacting multiple systems, leading to a complete halt of production across all its manufacturing plants. Initial estimates suggested a potential restart of production by 24 September 2025, however, Schaffer Corporation’s Automotive Leather division received further notification indicating that the timeline for resuming production remains uncertain. The earliest anticipated recommencement is now projected for 1 October 2025, or later.
Given that JLR is a major customer, this extended production shutdown is expected to significantly impact the Automotive Leather division’s sales volumes and short-term profitability. As a result, the Board of Schaffer Corporation has determined that withdrawing the division’s 1H26 guidance, initially provided to the market on 20 August 2025, is the most appropriate course of action. Divisional management is actively implementing measures to mitigate the financial impact, including aligning raw material procurement and adjusting operating costs to reflect reduced sales activity.
Despite the withdrawn guidance, Schaffer Corporation has assured shareholders that the overall financial position of both the Group and the Automotive Leather division remains strong. The Board intends to maintain the interim fully franked dividend at $0.45 per share. Shareholders can expect a further update at the Annual General Meeting scheduled for 19 November 2025.
