Events Calendar
In This Section
High-tech company expands downtown
Folgers coffee perks up Smucker earnings
Region's stocking full of ideas for those on the prowl for holiday gifts
Ohio sues credit-rating companies
Study tracks newspaper, online readership
Michelin chief says revenue won't increase
Most Read Stories
Man found dead in North Akron home is identified
NFL star Chris Spielman's wife loses cancer battle
Poor machine maintenance blamed for fire at Akron business
Dad accused of forcing son into field, killing him
Coventry man killed in crash at I-77 ramp
College student mistaken for deer, shot to death
Man allegedly paid teens to spit in his face
Indians add 7 players to 40-man roster
Body with gunshot wounds found in Canton Township creek
Blogs:
Pets:
Cat-loving chihuahua suckles seven abandoned kittens
The Heldenfiles:
Friday Night Notebook
Patrick McManamon:
The proposed new LeBron mural doesn't do it for me
Akron Zips:
Two blowouts, one night
Tribe Matters:
Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Hey, somebody's gotta stick up for the Browns
Kent State Sports:
Singletary update
Cleveland Cavaliers:
Gameblog: Cavs at Indiana Pacers – Here’s to LBJ and Free Throws
Buckeye Blogging:
OSU – Michigan college football rivals meet in Baghdad
Varsity Letters:
Bowling season starts today
All Da King's Men:
Headed For Disaster
Blog of Mass Destruction:
Muslim McCarthyism & Death Prayers
Akron Law Café:
Federal Judge Declares DOMA Unconstitutional
See Jane Style:
Vintage Chic
Car Chase:
TIME TO GET YOUR COLLECTOR CARS WINTERIZED
Let's Talk Real Estate:
Silverdome Potentially SOLD!
Ohio Travels with Betty:
Norma asks if Barkitecture is still at Stan Hywet.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Colloquium at University of Akron
Akron Gamer:
Nintendo's Mario endures even as games come and go
Green-based company says it plans to cut 300 jobs. Shares close down 4.2 percent
By Jim Mackinnon
Beacon Journal business writer
POSTED: 08:34 p.m. EDT, May 05, 2009
Shares in Green-based Diebold Inc. plunged today after the maker of automated teller machines released first quarter earnings and lowered its outlook for the remainder of the year.
The company said it plans to cut 300 jobs as it accelerates a cost-cutting program.
Declining demand in the United States and Eastern Europe caused much of the first quarter decline and the reduced outlook, executives said in a conference call with analysts.
Shares today closed down 4.2 percent, or $1.14, to $25.85, after falling more than 13 percent in trading earlier in the day. Shares are down 7 percent since Jan. 1, including reinvested dividends. Shares are down 33.3 percent from a year ago.
''As the quarter progressed, the earlier weakness in orders that we had experienced in Eastern Europe, Russia and the regional bank segment of the United States became more precipitous,'' Chief Executive Officer Thomas Swidarski said in a prepared statement. ''This market weakness, which occurred in some of our most profitable business sectors, has forced us to reduce our revenue and earnings expectations for the full year 2009.''
Diebold is ''seeing severe economic weakness in Russia and Eastern Europe,'' Swidarski said. ''The sustained drop in oil prices have significantly impacted the Russian economy.''
As a result, Diebold has ''really taken Russia off the table for the remainder of the year,'' he said.
Swidarski said he was pleased with the first quarter results, saying they exceeded internal expectations.
Leslie Pierce, Diebold's controller and acting chief financial officer, said there has been a ''dramatic weakening in demand from some of our most profitable markets.''
Diebold said it now expects a profit, excluding some items, of $1.70 to $2 a share. Diebold previously estimated it would make $2.10 to $2.40 this year.
Revenue might fall as much as 13 percent, more than an earlier estimate for a decline of as much as 10 percent, the company said.
The expected 300 job cuts will be accomplished through hiring restrictions, attrition and job eliminations, Swidarski said. The company did not say where the job cuts will take place.
Revenue fell 4 percent to $663.1 million, compared with $691.9 million a year ago.
Net income fell 88 percent to $1.6 million, or 2 cents per share, for the three months ended March 31 compared with $13.8 million, or 21 cents per share, a year earlier.
Results included a $25 million charge for a deal Diebold announced Monday that it reached with the Securities and Exchange Commission to settle civil charges related to an investigation into now-discontinued company accounting practices. The SEC has yet to accept the settlement.
Using nongenerally accepted accounting principles, Diebold said it made 39 cents per share for the quarter compared with 42 cents a year ago.
Diebold has nearly 2,000 employees in Northeast Ohio and about 17,000 employees worldwide.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Bloomberg News and the Associated Press contributed to this report.
Shares in Green-based Diebold Inc. plunged today after the maker of automated teller machines released first quarter earnings and lowered its outlook for the remainder of the year.
The company said it plans to cut 300 jobs as it accelerates a cost-cutting program.
Declining demand in the United States and Eastern Europe caused much of the first quarter decline and the reduced outlook, executives said in a conference call with analysts.
Shares today closed down 4.2 percent, or $1.14, to $25.85, after falling more than 13 percent in trading earlier in the day. Shares are down 7 percent since Jan. 1, including reinvested dividends. Shares are down 33.3 percent from a year ago.
''As the quarter progressed, the earlier weakness in orders that we had experienced in Eastern Europe, Russia and the regional bank segment of the United States became more precipitous,'' Chief Executive Officer Thomas Swidarski said in a prepared statement. ''This market weakness, which occurred in some of our most profitable business sectors, has forced us to reduce our revenue and earnings expectations for the full year 2009.''
Diebold is ''seeing severe economic weakness in Russia and Eastern Europe,'' Swidarski said. ''The sustained drop in oil prices have significantly impacted the Russian economy.''
As a result, Diebold has ''really taken Russia off the table for the remainder of the year,'' he said.
Swidarski said he was pleased with the first quarter results, saying they exceeded internal expectations.
Leslie Pierce, Diebold's controller and acting chief financial officer, said there has been a ''dramatic weakening in demand from some of our most profitable markets.''
Diebold said it now expects a profit, excluding some items, of $1.70 to $2 a share. Diebold previously estimated it would make $2.10 to $2.40 this year.
Revenue might fall as much as 13 percent, more than an earlier estimate for a decline of as much as 10 percent, the company said.
The expected 300 job cuts will be accomplished through hiring restrictions, attrition and job eliminations, Swidarski said. The company did not say where the job cuts will take place.
Revenue fell 4 percent to $663.1 million, compared with $691.9 million a year ago.
Net income fell 88 percent to $1.6 million, or 2 cents per share, for the three months ended March 31 compared with $13.8 million, or 21 cents per share, a year earlier.
Results included a $25 million charge for a deal Diebold announced Monday that it reached with the Securities and Exchange Commission to settle civil charges related to an investigation into now-discontinued company accounting practices. The SEC has yet to accept the settlement.
Using nongenerally accepted accounting principles, Diebold said it made 39 cents per share for the quarter compared with 42 cents a year ago.
Diebold has nearly 2,000 employees in Northeast Ohio and about 17,000 employees worldwide.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com. Bloomberg News and the Associated Press contributed to this report.
Comments
Click here to post your comments
