US cash machine outfit Diebold is reporting an eight per cent drop in revenue from the sale of financial self-service and security products in the fourth quarter as banks defer spending during the credit crunch.
Total product and services orders for financial self-service and security were down in the double-digit range compared to the prior-year period, says the vendor. Global financial self-service orders decreased in the double-digit range, with a decrease in the high single-digit range in the Americas, and a decrease in the low double-digit range in Emea.
Orders in Asia Pacific (AP) slumped by more than half, attributed to a seasonal anomaly related to high bank IT spending in China ahead of the Olympics.
Diebold says security orders decreased in the low double-digit range as new bank branch construction and retail store openings weakened in its home markets.
"As we look ahead, we believe the global economy will remain extremely challenging throughout 2009," says Thomas W. Swidarski, Diebold president and chief executive officer. "While we're obviously concerned about this negative environment, Diebold is in a unique position to deliver value. The solutions we provide enable customers to reduce costs and improve efficiency, and market demand for financial self-service solutions remains relatively stable."
The company, which has significantly restructured its operations over the past 18 months and scaled back its business in Emea, reported full-year 2008 income from continuing operations of $106.4 million, or $1.60 per share, up 137% and 139%, respectively, from 2007. Full-year 2008 revenue was $3,170.1 million, up 8% from 2007.
Shares in the vendor slipped by almost ten per cent to $22.88 on market opening, just shy of a year low of $22.5.