21 April 2014

CEO Swidarski out as Diebold warns on disappointing Q4 results

24 January 2013  |  11654 views  |  0 Stock market graph on screen

Shares in Diebold fell more than eight per cent in morning trading after the ATM manufacturer warned that it will post a fourth quarter operating loss and confirmed that CEO Tom Swidarski has left.

The firm has reported preliminary fourth quarter revenue of around $840 million and a loss from continuing operations of 12 cents a share, or income from continuing operations of 45 cents a share on a non-GAAP basis.

Diebold blamed the disappointing figures on an accelerating slowdown in the US regional bank arena, higher costs in the American service business and ongoing delays in its Brazil operations.

With the US market continuing to struggle, for 2013 the company expects revenues to be flat and non-GAAP earnings to be flat to slightly down.

Meanwhile, after 17 years with Diebold, seven as president and CEO, Tom Swidarski is "stepping down" from the company and its board, effective immediately.

George Mayes, currently EVP, global operations, has been promoted to the new role of COO and will be responsible for daily operations until a CEO is found.

Executive chairman Henry Wallace - who was only elected to the position earlier this month - will also take on regular oversight of operations in the interim.

"This was a very difficult decision, and we wish Tom all the best in the next step in his career. Progress has been made over the past several years in many areas. However, the board's judgement is that given the company's ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders' best interests to make a change in leadership at this time," says Wallace.

Shares in Diebold were down $2.89, or 8.85%, to $29.77 at pixel time.

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