Diebold Misses On Earnings, Drops CEO

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.”

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