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ATM maker loses $7.1 million or 11 cents a share in third quarter
By Jim Mackinnon
Beacon Journal business writer
Published on Wednesday, Nov 04, 2009
Diebold Inc. couldn't pull enough money out of its ATMs and other related products and services for the third quarter to keep it from a loss.
The Green ATM manufacturer and financial industry service provider reported Tuesday it lost more than $7.1 million, or 11 cents a share, on revenue of $645.2 million for the three months ending Sept. 30.
Revenue was down 25.8 percent from the record $869.1 million in sales reported a year ago. Diebold had earnings of $46.5 million, or 70 cents per share, for the third quarter in 2008.
Company executives also tightened their earnings guidance for the year while saying the range was still within their forecast from early 2009. The company also reduced its revenue estimate for 2009.
Diebold said that when factoring in a loss of $31.4 million on the sale of its Premier Election Systems and other one-time charges, the company had net income of 39 cents per share for the third quarter this year.
Diebold's third-quarter results fell below analysts' estimates.
Shares on Tuesday fell $1.96, or 6.5 percent, to $27.99. Shares are up 2.6 percent, including reinvested dividends, since Jan. 1 and are down 0.4 percent from a year ago.
''While we performed well in the third quarter considering the environment we're facing, consumer spending remains very, very strained in our core financial markets,'' Thomas Swidarski, president and chief executive officer, told investors in a conference call. ''Overall, we still believe our markets reached their low point earlier this year, while we've not seen any rebound in demand. In most markets, we've seen further signs of stability.''
Swidarski said Diebold continues to reduce operating expenses while still investing in future products and services.
For the first nine months of 2009, Diebold had net income of $24.9 mil
lion, or 37 cents per share, on revenue of nearly $2 billion. For the same nine months in 2008, Diebold made $87.5 million, or $1.32 a share, on revenue of nearly $2.3 billion.
Diebold said it expects to earn between $1.34 and $1.39 a share for the year, a change from previous guidance of $1.34 to $1.52. Using non-generally accepted accounting methods, Diebold said it expects earnings per share will range from $1.75 to $1.80, compared with a previous forecast of $1.70 to $1.90.
Total revenue for the current fiscal year is expected to drop between 13 percent and 9 percent, compared with a previous estimate of 13 percent to 7 percent.
Executives continue to shift Diebold's focus toward services instead of manufacturing, the company said.
An FDIC proposal to have regional banks prepay assessments by Dec. 31 for upcoming years through 2012 might significantly reduce the amount of money banks would otherwise make in capital expenditures such as buying new Diebold technology, Swidarski said. The FDIC proposal likely would raise about $45 billion, he said.
While executives have tightened guidance for 2009, ''our overall outlook for the year remains essentially unchanged,'' Swidarski said. ''We continue to face a challenging market environment.''
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Diebold Inc. couldn't pull enough money out of its ATMs and other related products and services for the third quarter to keep it from a loss.
The Green ATM manufacturer and financial industry service provider reported Tuesday it lost more than $7.1 million, or 11 cents a share, on revenue of $645.2 million for the three months ending Sept. 30.
Revenue was down 25.8 percent from the record $869.1 million in sales reported a year ago. Diebold had earnings of $46.5 million, or 70 cents per share, for the third quarter in 2008.
Company executives also tightened their earnings guidance for the year while saying the range was still within their forecast from early 2009. The company also reduced its revenue estimate for 2009.
Diebold said that when factoring in a loss of $31.4 million on the sale of its Premier Election Systems and other one-time charges, the company had net income of 39 cents per share for the third quarter this year.
Diebold's third-quarter results fell below analysts' estimates.
Shares on Tuesday fell $1.96, or 6.5 percent, to $27.99. Shares are up 2.6 percent, including reinvested dividends, since Jan. 1 and are down 0.4 percent from a year ago.
''While we performed well in the third quarter considering the environment we're facing, consumer spending remains very, very strained in our core financial markets,'' Thomas Swidarski, president and chief executive officer, told investors in a conference call. ''Overall, we still believe our markets reached their low point earlier this year, while we've not seen any rebound in demand. In most markets, we've seen further signs of stability.''
Swidarski said Diebold continues to reduce operating expenses while still investing in future products and services.
For the first nine months of 2009, Diebold had net income of $24.9 mil
lion, or 37 cents per share, on revenue of nearly $2 billion. For the same nine months in 2008, Diebold made $87.5 million, or $1.32 a share, on revenue of nearly $2.3 billion.
Diebold said it expects to earn between $1.34 and $1.39 a share for the year, a change from previous guidance of $1.34 to $1.52. Using non-generally accepted accounting methods, Diebold said it expects earnings per share will range from $1.75 to $1.80, compared with a previous forecast of $1.70 to $1.90.
Total revenue for the current fiscal year is expected to drop between 13 percent and 9 percent, compared with a previous estimate of 13 percent to 7 percent.
Executives continue to shift Diebold's focus toward services instead of manufacturing, the company said.
An FDIC proposal to have regional banks prepay assessments by Dec. 31 for upcoming years through 2012 might significantly reduce the amount of money banks would otherwise make in capital expenditures such as buying new Diebold technology, Swidarski said. The FDIC proposal likely would raise about $45 billion, he said.
While executives have tightened guidance for 2009, ''our overall outlook for the year remains essentially unchanged,'' Swidarski said. ''We continue to face a challenging market environment.''
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.
Comments
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Akron, oh
Posted 07:21 AM, 11/04/2009
Diebold will rebound. U S inflation will be so bad because of the democrates and Obama spending the machines will be have to be replaced often passing outd many worthless dollars out of the ATM's
