Diebold Continues ToStruggle
NORTH CANTON, Ohio - (07/26/06) -- Diebold Inc. reported Tuesday thatsecond quarter earnings declined by 46% to $17.2 million, or 26cents a share, as it restructuring costs and rising expensescontinued to trouble the ATM maker. Second quarter revenues rose17% to $726.4 million, but that was more than offset by a 32% risein operating expenses for the period, to $136.9 million. The secondquarter also included $6.6 million in restructuring charges, mainlyfrom the termination of an IT outsourcing agreement and productdevelopment rationalization. The company said it expects morerestructuring charges into next year. For the first six months ofthe year Diebold reported a 50% drop in net income to $29.9million, or 44 cents a share, even with a 17% rise in revenues to$1.35 billion.