Diebold posts 4Q loss on pension, probe costs

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Associated Press

Posted on February 12, 2013 at 2:01 PM

NORTH CANTON, Ohio (AP) — Diebold Inc. said Tuesday that it lost $10.6 million in the fourth quarter, reversing a profit in the same period a year ago, hurt by lackluster demand for its products and costs related to pension buyouts and a federal investigation.

The maker of bank teller machines, security systems and equipment said its loss amounted to 17 cents per share and compared with net income of $79.8 million, or $1.26 per share, in the fourth quarter of 2011.

Excluding $21.9 million in pension buyout expenses and $18 million that was set aside for the settlement of a Foreign Corrupt Practices Act investigation, Diebold said it posted an adjusted profit from continuing operations of 45 cents per share for the recent quarter.

Revenue fell 1 percent to $840.1 million from $850 million, as growth in Europe, the Middle East and Africa, along with higher security sales, were offset by lower voting-related revenue in Brazil and the effects of unfavorable exchange rates.

The results fell slightly short of Wall Street predictions. Analysts, on average, expected earnings of 48 cents per share on $842.6 million in revenue.

For the full year 2012, Diebold earned $78.5 million, or $1.23 per share, down from $144.8 million, or $2.24 per share, in 2011. Revenue rose to $2.99 billion from $2.84 billion.

Henry Wallace, Diebold's executive chairman, called the company's 2012 results, along with its current 2013 outlook, "disappointing" and said that things need to improve.

Wallace said the company still expects to post a 2013 profit that is "flat to down modestly" from 2012 on relatively flat revenue. The first-quarter's results are also expected to be "weak" and come in "well below" year-ago levels, he said.

Analysts expect earnings of $2 per share on revenue of $3.03 billion.

Diebold shares fell 19 cents to $29.90 in morning trading Tuesday. They are near the low end of their 52-week range of $27.66 to $42.93.

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