Diebold to restructure in Europe after weak performance

Diebold to restructure in Europe after weak performance

US ATM manufacturer Diebold is to restructure its European operations after experiencing a slowdown in financial self-services orders from the region's banks during the fourth quarter of 2004.

Emea revenue for financial services was up 4.5% to $103 million in Q4 2004 from $99 million a year earlier, representing a 2.8% shortfall at fixed exchange rates.

The weak order levels in Europe offset double-digit revenue gains in Diebold's financial self-services business in Asia and the Americas.

Walden O'Dell, Diebold chairman and chief executive officer, blamed the downturn on an ongoing failure to achieve customer certification for its Opteva operating system and significant pricing pressure from comeptitive vendors.

"We have made significant strides in achieving certification for Opteva in Western Europe and anticipate key certifications will be achieved by the end of the first quarter," he says.

O'Dell says the company will take "aggressive actions in 2005" to streamline operations and cut costs to improve its competitive position.

"As a result, we anticipate restructuring charges in the range of $.08 to $.11 per share in 2005 related to realignment of production capacity as well as streamlining of operations and infrastructure in Western Europe."

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