ATM, security and election systems maker Diebold Inc. (DBD), Tuesday reported a loss for the third quarter versus a profit last year, primarily due to a significant loss on the sale of discontinued operations. Revenues declined 26% from last year comparable period. Looking ahead, the company revised its earnings guidance for 2009 anticipating a broader revenue decline. The company's shares are trading down more than 6% on the NYSE.
Third-quarter net loss attributable to the North Canton, Ohio-based Diebold was $7.15 million or $0.11 per share, compared with net income of $46.51 million or $0.70 per share in the prior year period.
The three-month period recorded an income from continuing operations of $24.48 million or $0.37 per share, compared with $47.61 million or $0.72 per share last year. The company realized a loss of $31.4 million from the previous closure of its EMEA-based enterprise security operations and also incurred restructuring charges of $0.02 per share, related to severance costs.
Excluding these unusual charges, non-GAAP earnings per share from continuing operations for the quarter declined 67% to $0.39 from $1.18 in the year-ago period. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter.
Net sales for the quarter dropped 26% to $645.22 million from $869.08 million in the comparable period. Analysts estimated revenues of $737.50 million for the quarter.
Revenue decline for the period was led by lower demand in the Financial self-service segment, revenues from which dropped 21% year-on-year to $485.34 million, further hurt by a similar 21% decline in security solutions net sales to $158.37 million. Net sales also suffered the absence of $58.58 million from the sale of Brazilian election systems that helped sales in the year-ago period.
Geographically, revenue decline for the third quarter was shared by a 24% year-on-year fall in Americas region to $475.52 million, a 20% fall in the Asia Pacific segments to $98.14 million and a 40% decline in sales from other regions.
Total cost of goods favorably declined to $493.01 million from $641.15 million year-ago. The company said it continued to " significantly reduce operating expenses on a dollar basis", bringing down the charges to $121.04 million from $161.88 million last year. Operating margins still suffered a decline from year-ago data, dropping to 4.8% from 7.6%.
For the first nine months of this year, net income attributable to the company declined to $24.92 million or $0.37 per share from $87.53 million or $1.32 per share a year ago. Adjusted net income per share from continuing operations declined to $1.36 from $2.27 last year. Revenues for the nine-month period dropped to $1.99 billion from $2.29 billion in the comparable period of 2008. Looking forward to fiscal 2009, the company now expects GAAP earnings per share to be in the range of $1.34 to $1.39 compared with prior range of $1.34 to $1.52. Non-GAAP earnings per share for the year are now projected to be between $1.75 and $1.80 compared with previous range of $1.70 - $1.90. Full-year total revenues are currently anticipated to decline 13% - 9% versus its earlier range of 13% - 7% decline. Analysts estimate earnings of $1.80 per share for the year, on revenues of $2.86 billion.
DBD is currently trading down $1.96 or 6.54% at $27.99 on the New York Stock Exchange.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.