NORTH CANTON, Ohio - (02/01/06) -- ATM maker Diebold Inc. reported a77% drop in fourth quarter earnings Tuesday, due mainly tonon-recurring items. The non-recurring items helped push Diebold'snet income for the full year down 45% to $101 million, or $1.42 ashare, compared to 2004. Diebold's financial troubles forced thecompany to fire its President and CEO Walden 'Wally' O'Dell in thefourth quarter. As a result, the company announced plans to cutcosts by $100 million, which include the sale of a manufacturingplant in South Carolina to one of the company's suppliers. For thefourth quarter, Diebold reported net income of $14.6 million, or 21cents a share, even though revenues rose a strong 15%, compared tothe same period in 2004, to $817.6 million. The fourth quarterresults include a $14 million charge for restructuring, voluntaryretirement and other severance costs; and a $28 million reserve fora dispute Diebold has with two counties over its electronic votingmachines.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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