10 February 2016

Diebold scraps plans for new HQ as Q3 profits tumble

25 October 2012  |  6246 views  |  0 Dead end

Reporting plummeting quarterly profits, US ATM manufacturer Diebold has pulled the plug on plans to build a new headquarters in Ohio, deciding the $100 million outlay is "not economically feasible".

In January Diebold signed a purchase agreement for 55 acres of land in Green, Ohio, on which it planned to build a new global headquarters.

It now says it is suspending the plans indefinitely and has no intention to build a site in Ohio or anywhere else, committing to its current location, also in Green. The various state and local financial incentives it was previously offered will be declined.

"As we've been analysing our near- and long-term growth priorities, it has become clear that investing more than $100 million in a headquarters facility is not economically feasible given the other priorities for the business at this time," says Thomas Swidarski, president and CEO, Diebold.

The company says money is better spent on things like the recent acquisitions of businesses in Brazil and Turkey, as well as IT and services infrastructure, software and global shared services.

But the decision also comes as disappointing third quarter results are published. Revenues were up slightly at $709.9 million but net income fell from $41.8 million, or 65 cents a diluted share, in Q3 2011 to just $17.4 million, or 27 cents per diluted share.

Blaming project delays in Brazil and mix shift in North America, the firm has slashed its full year earnings per share guidance from $2.31 - $2.44, to $1.91 - $1.99.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

24 October, 2012
22 October, 2012
03 June, 2010
03 February, 2010
05 May, 2009
04 February, 2009

Related company news

 
Your browser is unable to support Flash files.

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
12068 views comments | 52 tweets | 45 linkedin
Digital transformation driving earnings at...
10802 views comments | 49 tweets | 45 linkedin
UK sets out open banking API framework
8965 views comments | 64 tweets | 63 linkedin
Visa opens up to developers
8831 views comments | 24 tweets | 41 linkedin
European mobile banking service Pocopay go...
7462 views comments | 24 tweets | 14 linkedin

Featured job

to $120K base, double OTE, benefits
New York City, NY or Boston, MA (USA)

Find your next job