Diebold Continues To Struggle

NORTH CANTON, Ohio -- Diebold Inc. reported Tuesday that second quarter earnings declined by 46% to $17.2 million, or 26 cents a share, as it restructuring costs and rising expenses continued to trouble the ATM maker. Second quarter revenues rose 17% to $726.4 million, but that was more than offset by a 32% rise in operating expenses for the period, to $136.9 million. The second quarter also included $6.6 million in restructuring charges, mainly from the termination of an IT outsourcing agreement and product development rationalization. The company said it expects more restructuring charges into next year. For the first six months of the year Diebold reported a 50% drop in net income to $29.9 million, or 44 cents a share, even with a 17% rise in revenues to $1.35 billion.