NCR Lowers Fourth-Quarter Projections, Says 2001 On Track

NCR (NCR Quote) on Friday lowered its fourth-quarter earnings and revenue expectations, due in part to lower-than-anticipated sales in its retail store automation business.

The Dayton, Ohio, banking, retail and marketing computer systems supplier said it sees fourth-quarter earnings, before special items, of $1 to $1.05 a share, up from 75 cents a share in the year-ago period. Six analysts polled by First Call/Thomson Financial expected fourth-quarter earnings of $1.14 a share. The company also said it sees operating earnings, before items, of about $130 million.

NCR said it expects revenue in the fourth quarter to be $1.79 billion, up slightly from $1.76 billion a year ago. First Call analysts expected $1.85 billion in quarterly sales.

NCR warned it anticipates "continued slowness in the retail area" in the first half of 2001, but said cost reduction measures taken in the fourth quarter would help "offset this situation." For 2001, the company affirmed its previous earnings growth guidance. It continues to expect operating income, before items, of $380 million to $385 million, and earnings of $2.80 to $2.90 a share. Analysts on average are expecting 2001 earnings of $2.86 a share.

Shares of NCR closed at $49.06 in Thursday trading on the Big Board.