From staff and wire reports
Diebold Inc.’s second-quarter earnings jumped 27 percent, as revenue growth from Latin America helped the maker of bank teller machines, security systems and equipment.
Even so, the Green company said Monday it lowered the top end of its 2012 earnings forecast, and it now expects smaller revenue growth, partly because of a negative shift in currency exchange rates, mainly from Brazil.
Diebold now expects 2012 adjusted earnings, which exclude one-time items, to range between $2.50 and $2.60 per share, compared to its previous range of $2.50 to $2.70 per share. It now forecasts revenue growth to range between 6 percent and 8 percent, compared to its previous outlook calling for 7 percent to 10 percent.
The new range would amount to revenue of about $3.01 billion to $3.07 billion for the company that employs roughly 2,000 people at facilities in Stark and Summit counties.
Analysts surveyed by FactSet expect, on average, earnings of $2.67 per share on $3.06 billion in revenue.
Diebold President and CEO Thomas W. Swidarski noted in a prepared statement that, “We generated double-digit growth in revenue and earnings during the second quarter, and we improved our net debt position by nearly $50 million.”
He said the company “achieved profitability” in Europe, the Middle East and Africa during the quarter and is “on track to achieve our goal to be profitable for the full year in that region”
For the second quarter, the company earned $26.5 million, or 41 cents per share. That compared to $20.8 million, or 32 cents per share in last year’s quarter. Adjusted earnings were 49 cents per share this year.
Revenue climbed 12 percent to $743.2 million.
Analysts expected, on average, earnings of 58 cents per share on $729.8 million in revenue.
Diebold saw 30 percent revenue growth in the Latin America/Brazil region. But the company’s total cost of services rose 13 percent to $557.6 million and its taxes on income more than doubled to $14.2 million in the three months that ended June 30.
Diebold also said it changed its 2012 forecast due to a delay in anticipated additional revenue from Brazil’s election systems into 2013.
Company shares fell 9.1 percent, or $3.31, to $33.01 Monday. Diebold’s share price had topped $40 in April, but Monday’s slide brought it closer to its 2011 closing price of $30.07.
Diebold plans to break ground in the fall of 2013 on a new headquarters complex in Green at Massillon Road and Town Park Boulevard.
The company hopes to open the new complex in the first half of 2016. About 1,800 of Diebold’s employees will work there.