Shares in NCR plummeted 15% in morning trading after the US ATM manufacturer posted an 81% fall in third quarter profit, slashed its full year outlook and outlined plans to lay off up to 10% of its staff.
The company says revenue for the quarter was down 18% on the same period the previous year, to $1.14 billion. According to Thomson Reuters, analysts were expecting revenue of $1.22 billion.
Income from continuing operations was $15 million, or nine cents per diluted share, compared to $82 million (49 cents a share) in 2008. Excluding charges, profit was 19 cents a share.
Bill Nuti, chairman and CEO, NCR, says: "In the third-quarter, financial services, and especially retail customer investments were negatively impacted by the global economic downturn in most geographies."
The firm says it now expects non-GAAP earnings from continuing operations to be in the range of 45 cents to 55 cents per diluted share. Previously it had forecast 60 cents to 75 cents per share. Revenue is now expected to fall 12% to 14% on a constant currency basis for the year, compared to the previous outlook of a five per cent to 10% drop.
In a bid to cut costs, the manufacturer says it will slash its global workforce by an incremental five per cent to 10%.
"While we will take additional cost reduction actions to right size our enterprise, our early view is that 2010 will be a better year for NCR and for our customers, and should position NCR for moderate growth and margin expansion," says Nuti.
Shares in NCR were down 16.12%, or $1.97, to $10.25 in mid-morning trading.