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

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1/24/2013 11:52 AM ET

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.

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by RTT Staff Writer

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