Diebold Inc. is planning to restructure its North American operations following flat sales of automated teller machines that drove down fourth-quarter and yearend revenue.
Thomas W. Swidarski, the North Canton, Ohio, company's president and chief executive, told analysts during a conference call Wednesday that Diebold is eliminating 350 full-time positions.
"These reductions will be largely completed in by mid-February," Swidarski said. "As always, these are extremely difficult decisions, but necessary to ensure we're in a position of strength for our industry."
Sales of ATMs to regional banks, historically a key revenue generator, remained flat as banks opened fewer branches in 2009, reducing opportunities for Diebold to sell ATMs.
"Several years ago, banks annually opened 3,500 to 4,000 branches," Swidarski said. "Last year, they opened 1,800 to 2,000 and in 2010, we anticipate banks will open 1,500 branches. We have to make adjustments.
"The U.S. is our largest market, and regional banks are our greatest concern to me. The outlook is very cloudy."
Diebold's fourth-quarter revenue fell 8.4% year over year, to $724.9 million. Net income for the quarter was $16.7 million, versus $1.1 million a year earlier, when the company recorded depreciation of some assets.
Revenue for the year fell 11.7%, to $2.7 billion, and net income fell 53%, to $41.6 million.