20 July 2018
Visit www.gemalto.com

Diebold's Q2 profit falls 46%

25 July 2006  |  4915 views  |  0 Diebold's Q2 profit falls 46%

US ATM manufacturer Diebold is reporting a 46% drop in second quarter profits after earnings were again hit by restructuring charges.

Diebold says net income for the second quarter fell to $17.2 million, from $32 million a year ago. Diluted earnings per share were $0.26 compared to $0.45 in the second quarter of 2005.

The results include a restructuring charge of $0.10 per share from the termination of an IT outsourcing agreement with Deloitte Consulting and product development "rationalisation". Diebold said in May that it was terminating an IT outsourcing deal with Deloitte Consulting as part of an overhaul of its global technology operations. The vendor says excluding the impact of these items, diluted earnings per share would have been $0.36.

But revenue rose 17% to $726.4 million, exceeding analysts' estimates of $654.8 million. Financial self service revenue was up 9.4% in the quarter, led by an increase of 24.4% in EMEA.

Diebold has been struggling against falling financial services revenue in North America and Europe and has incurred restructuring charges to cut costs and improve its profitability.

The vendor has implemented a multi-year profit improvement plan that encompasses a $100 million reduction in cost structure by 2008. Thomas Swidarski, president and chief executive officer, Diebold, says: "While we are still early in this process, we remain on target to meet our multi-year profit improvement goals."

In April the vendor said it was closing its existing ATM production facility located in Cassis, France in order to cut costs and was establishing a new operation in Eastern Europe, most likely in Budapest, Hungary. In today's statement Diebold says the planned production facility in Hungary is "progressing well" and is on schedule to be operating by the fourth quarter 2006.

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

Diebold terminates IT outsourcing deal

Diebold terminates IT outsourcing deal

17 May 2006  |  6709 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  |  5040 views  |  0 comments
Diebold acquires Genpass ATM services unit

Diebold acquires Genpass ATM services unit

28 February 2006  |  7300 views  |  0 comments
Diebold overhauls IT function

Diebold overhauls IT function

07 February 2006  |  7572 views  |  0 comments
Diebold CEO O'Dell resigns

Diebold CEO O'Dell resigns

13 December 2005  |  5793 views  |  0 comments
Diebold fires COO; cuts earning forecast

Diebold fires COO; cuts earning forecast

21 September 2005  |  6669 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit info.nice.comVisit iliad-solutions.com/Visit http://go.jumio.com/finextraAd

Who is commenting?

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
12917 views comments | 6 tweets | 7 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
10362 views comments | 9 tweets | 17 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9760 views 19 comments | 15 tweets | 30 linkedin
IBM to test dollar-pegged 'stablecoin'IBM to test dollar-pegged 'stablecoin'
6796 views comments | 4 tweets | 14 linkedin
Bringing about new systems and faster payments globallyBringing about new systems and faster paym...
6596 views comments | 2 tweets | 7 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job