Wednesday, Diebold, Inc. (DBD), ATM, security and election systems maker, reported significant decrease in fourth quarter profit, hurt by a 8% decline in revenue from last year. Looking ahead, the company provided its guidance for the fiscal year 2010. Additionally, Diebold said it intends to cut about 350 jobs in North America.
Diebold's net income from continuing operations attributable to Diebold, net of tax, for the fourth quarter was $9.9 million or $0.12 per share, down 55% from $19.1 million or $0.26 per share in the prior year quarter.
The current quarter income includes after-tax restructuring charges of $9.8 million and after-tax, non-routine and impairment charges of $1.7 million, while prior year quarter result includes after-tax restructuring charges of $8.6 million, and after-tax, non-routine charges of $2.4 million.
Fourth quarter net income attributable to Diebold surged to $16.6 million or $0.25 per share from $1.1 million or $0.01 per share in the year-ago period.
North Canton, Ohio-based Diebold's income from discontinued operations, net of tax was $10.6 million in the quarter. Loss from discontinued operations narrowed to $1.8 million from $16.3 million. On a per share basis, the company recorded income of $0.13, compared to a loss of $0.25 in the prior year quarter.
Total net sales, including a net positive currency impact of 6% was $724.9 million, down 8% from $791.2 million in the comparable quarter last year
The decline in revenue was mainly affected by lower sales from its Security Solutions segment of $174.5 million, down from $207.6 million followed by a decrease from Financial Self- Service segment of $548.8 million from $583.1 million in the year-ago period.
Quarterly gross margin was 24.4%, essentially flat from the same quarter last year.
In the current quarter, operating expenses increased to $148.2 million from $143.9 million, while operating profit plunged to $28.3 million from $49.6 million in the prior year quarter.
The company plans to eliminate about 350 jobs by mid-February as part of restructuring its North American operations and corporate functions.
For the full year, the company reported net income from continuing operations attributable to Diebold of $79.3 million or $1.09 per share, compared to $114.8 million or $1.62 per share last year. Net income attributable to Diebold declined to $41.6 million or $0.62 per share from $88.5 million or $1.33 per share in the prior year.
Total net sales for the full year, slipped to $2.7 billion from $3.1 billion in the prior year period.
Analysts expected earnings of $1.77 per share on revenue of $2.76 billion for the full year.
Looking forward, Diebold expects fiscal 2010 earnings from continuing operations in the range of $1.87 - $2.10 per share and non-GAAP earnings in the range of $1.90 - $2.15 per share. Revenue is estimated to grow 4% to 9% for the full year 2010.
Analysts currently expect the company to generate earnings of $2.06 per share on revenue of $2.89 billion for the year.
DBD is currently trading at $27.58, down $0.88 or 3.09% on a volume of 0.31 million shares on the NYSE.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.