06 December 2016
Visit aciworldwide.com

Diebold in legal battle with union over closure of French ATM facility

30 January 2007  |  31852 views  |  0 Diebold

US ATM manufactuer Diebold is facing a legal challenge from a workers union in France over its decision to sack staff and shut down a manufacturing facility in the country under a major overhaul of its European operations.

Diebold said in April last year that it was shutting its ATM production factory in Cassis, France, and shifting the work a new operation in in Budapest, Hungary.

In its financial results statement today the vendor says its Budapest facility is now operational and has produced 1000 Opteva ATMs so far.

Diebold says it has now ended all production at the Cassis plant and has fired 101 of the 122 plant employees. The remaining staff have been retained to facilitate the closure of the facility.

But the vendor says one of the French unions is legally challenging the process and the court is expected to rule on this challenge in the first quarter of 2007.

Diebold says it has officially ceased production at the plant and has also identified a potential buyer for the building and is in the final stages of negotiating the sale.

The restructuring costs associated with the closure of the facility are now expected to be incurred in the first quarter of 2007, and are estimated to be $.25 to $.30 per share, which include cash charges of approximately $18 million to $22 million.

However the manufacturing overhaul, along with rising service revenues, helped Diebold more than double its fourth quarter net income to $27.1 million, compared to $10.4 million in Q4 2005. Fourth quarter revenue reached $825.4 million, up from $810.6 a year ago.

As of year-end 2006, Diebold says it has eliminated $12 million in expense from its 2007 cost structure and identified an additional $23 million in costs that it intends to eliminate by year end.

Diebold president and CEO Thomas Swidarski says: "2006 was a year of transition at Diebold, where we focused primarily on addressing operational issues. Our focus in 2007 will expand to include enhancing and broadening our product and service solutions to bolster our competitive position."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

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

Related stories

SEC probes Diebold

SEC probes Diebold

08 August 2006  |  6371 views  |  0 comments
Diebold terminates IT outsourcing deal

Diebold terminates IT outsourcing deal

17 May 2006  |  6357 views  |  0 comments
Diebold's Q1 profit plummets; to shut French ATM facility

Diebold's Q1 profit plummets; to shut French ATM facility

25 April 2006  |  4762 views  |  0 comments
Diebold overhauls IT function

Diebold overhauls IT function

07 February 2006  |  7290 views  |  0 comments
Diebold CEO O'Dell resigns

Diebold CEO O'Dell resigns

13 December 2005  |  5466 views  |  0 comments
Diebold fires COO; cuts earning forecast

Diebold fires COO; cuts earning forecast

21 September 2005  |  6369 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comFind out morehttp://www.financialcrimerisk.fiserv.com/aml?r=finextra

Who is commenting?

Top topics

Most viewed Most shared
Royal Mint to issue digital goldRoyal Mint to issue digital gold
6931 views comments | 23 tweets | 24 linkedin
Bank CEOs fret about ROI as startups drive IT arms raceBank CEOs fret about ROI as startups drive...
6046 views comments | 16 tweets | 21 linkedin
hands typing furiouslyBanking UX Design Challenges and Opportuni...
5919 views 0 | 12 tweets | 5 linkedin
Amazon signs up tech firms to financial services cloud programmeAmazon signs up tech firms to financial se...
5889 views comments | 14 tweets | 15 linkedin
OCC to offer fintech firms bank charter statusOCC to offer fintech firms bank charter st...
5860 views comments | 22 tweets | 15 linkedin

Featured job

Find your next job