Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Diebold Sees Q4 Below View, CEO Thomas Swidarski Resigns; Shares Slip

RELATED NEWS
Trade DBD now with 

Shares of Diebold Inc. (DBD: Quote) dropped eight percent, after the ATM maker detailed a weak fourth-quarter outlook, which is indicated to miss current Street estimates. The company's Chief Executive Tom Swidarski has also announced his resignation.

North Canton, Ohio-based Diebold expects fourth-quarter loss from continuing operations of $0.12 per share, adjusted income of $0.45 per share, and revenues of about $840 million. On average, seven analysts polled by Thomson Reuters currently expect earnings of $0.64 per share on revenues of $846.48 million for the quarter. Analysts' estimates typically exclude special items.

For the full-year 2012, the company now expect earnings from continuing operations of about $1.28 or adjusted earnings of $2.07 per share. Analysts currently expect earnings of $2.27 per share for the year. Previously, the company expected earnings of $1.91 - $1.99 per share and adjusted earnings of $2.25 - $2.30 per share.

Diebold expects revenue growth of about 6 percent for the full year.

Diebold blamed accelerated slowdown in the US regional bank space and associated declines in non-contract-based service work for the lower-than-expected earnings.

For the full year 2013, the company expects relatively flat revenues.

In a separate statement, Diebold said its CEO and President Thomas Swidarski is stepping down, effective immediately. The company has commenced the search process for a new CEO, however, until then, Board Chairman Henry Wallace will oversee the company.

The company also promoted George Mayes, executive vice president of global operations, to the newly created position of Chief Operating Officer. Mayes will report directly to Henry.

Commenting on the CEO's resignation, Wallace said, "Progress has been made over the past several years in many areas. However, the board's judgment is that given the company's ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders' best interests to make a change in leadership at this time."

DBD is currently trading at $29.84, down $2.82 or 8.63%, on the NYSE.

Register
To receive FREE breaking news email alerts for Diebold Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
German unemployment reached the lowest in more than two decades in November, boosting confidence among businesses and households. The seasonally adjusted jobless rate for November was 6.6 percent, unchanged from October's figure that was downwardly revised, data from the Federal Labor Agency showed Thursday. Eurozone money supply supply growth remained steady in October, while lending to the private sector continued to fall, despite the stimulus efforts from the European Central Bank. The annual growth of broad money, or M3, was 2.5 percent in October, unchanged from September, the ECB said on Thursday.... Australia's international cricketer Phillip Hughes, who sustained critical injury after being hit on the head by a ball during a domestic match Tuesday, has died. The 25 year-old promising player had been fighting for his life for two days at St Vincent's Hospital in Sydney, in induced coma. Australian cricket team's doctor Peter Brukner said at a news conference Thursday that Hughes died as a
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.