North America Growth Propels Diebold’s Q1 Earnings

Growth in its North America and Asia-Pacific businesses helped Diebold Inc. to report a sizable increase in first-quarter net income.

The North Canton, Ohio, ATM maker on April 25 reported a profit for the quarter ended March 31 of $45.2 million, up dramatically from $2.5 million a year earlier.

Diebold said its total revenue rose almost 14%, to $698.5 million, year over year. Revenue in its North America segment rose almost 31%, to $399.9 million, as demand for deposit automation and integrated services continued to grow. The Asia-Pacific business' revenue climbed more than 14%, to $96.2 million, from a year earlier.

Diebold's results this year also were boosted by ATM installations related to the March deadline for U.S. financial institutions to meet requirements for the Americans with Disabilities Act, Thomas W. Swidarski, Diebold president and chief executive, said in a news release.

Within its financial self-service segment, Diebold's revenue totaled $561 million, up 21% from a year earlier. Revenue for its security solutions business fell almost 6%, to $134.9 million.

A year ago, Diebold's income suffered from what the company called "a slow start," with "heavy losses" in Europe caused by bad investments (see story).  This year, its revenue from Europe, the Middle East and Africa fell 9%, to $64.7 million, from a year earlier. Its Latin America revenue dropped 10%, to $137.7 million.

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