Diebold Misses On Earnings, Drops CEO

What's Next In Payments®
2:45 PM EDT January 24th, 2013

Diebold stocks fell more than BLANK percent Thursday amid a warning of a disappointing Q4 2012 earnings report and the departure of its longtime CEO, Tim Swidarski.

The ATM manufacturer reported preliminary Q4 2012 results that showed around $840 million in revenue and a loss from continuing operations of around 12 cents a share, reports Finextra. Diebold cited slow growth in the U.S. regional bank industry, high costs in American business and ongoing Brazilian delays as causes for its poor numbers.

The company said earnings for all of 2012 would likely amount to $2.07 a share, falling well short of estimates in the $2.25 to $2.30 range, as Bloomberg noted. Diebold also said it expects revenues to be flat and non-GAAP earnings to be flat or slightly down for 2013.

Swidarski, who has been with Diebold for 17 years, will step down from his position as CEO immediately. George Mayes, EVP, global operations, will be promoted to COO and will assume daily operations until a new CEO is found.

“This was a very difficult decision, and we wish Tom all the best in the next step in his career. Progress has been made over the past several years in many areas. However, the board’s judgment is that given the company’s ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders’ best interests to make a change in leadership at this time,” said Henry Wallace, executive chairman.

“The company’s execution of its strategies has not been what we want or expect and we have underperformed against the opportunities in the marketplace.”

Read the full story here.

Topics:
Comments
Also by This Author
What's Hot
Alternative Financial Services
Walmart Unveils Walmart-2-Walmart Money Transfer Service
Merchant Innovation
Home Depot’s eCommerce Renovation Project
Company Spotlight
Australia-based Pinpoint To Be Purchased By MasterCard
News
AmEx Posts Higher Profits As Spending Ticks Up In Q1 2014
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Alternative Financial Services
Walmart Unveils Walmart-2-Walmart Money Transfer Service
B2B Payments
Moving Money Cross Border via an API?
B2B Payments
The SMB Lending Outlook
Merchant Innovation
Home Depot’s eCommerce Renovation Project
View All Articles ››