Diebold moves into the red on Emea restructuring charge
25 April 2007 | 4906 views | 0
Financial self-services vendor Diebold has recorded a Q1 net loss of $5.9 million after taking a $.32 earnings per share restructuring charge over the closure of a manufacturing plant in Fance.
The shuttering of the French plant was first announced by the vendor back in April last year, but has been held up by legal wrangles with labour unions. The US firm says it finalised an agreement with the union at the end of last month and switched Emea production to a new facility in Hungary.
The company says it is on target to produce approximately 10,000 ATMs in Hungary in 2007.
The net loss of $5.9 million compares to net income of $12.7 million in the year ago period. First quarter revenue was up 0.8% to $628.4 million. The company performed well in sales to financial services firms, up 6.1% across self-service and security, but suffered from problems in its electoral voting business.
Shares in the firm moved down by 1.3% to $48.68 as investors expressed disappointment at management's failure to reach a decision on the possible sale of its electoral unit.