Earnings Slump At Diebold
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.