NORTH CANTON, Ohio – ATM maker Diebold reported yesterday that first quarter net dropped 90% as sales fell, margins declined and operating expenses jumped sharply.
First quarter net was $2.5 million, compared to $23.9 million for the same period last year. First quarter revenues declined slightly to $614 million.
The big difference was a 20% rise in operating expenses to $140.5 million.
Operating expenses in the first quarter 2011 included $5.6 million of restructuring charges associated with the previously announced restructuring plan for international operations. Operating expenses also included non-routine expenses of $5.8 million related to the previously disclosed U.S. Foreign Corrupt Practices Act investigation.
Diebold has been restructuring its European business, changing manufacturing, supply chain, logistics and administrative functions. The company booked per-share charges of 14 cents on the overhaul, exceeding its prior view for full-year restructuring charges of 9 cents to 12 cents a share. It now expects restructuring charges of 23 cents to 28 cents a share and said costs will continue into 2012.
“As expected, we got off to a slow start in the first quarter,” said Thomas Swidarski, president of Diebold.
