Charges Hit Diebold

The maker of ATMs and electronic voting machines posts an adjusted profit in line with forecasts.
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Diebold

(DBD) - Get Report

reported a 77% drop in its fourth-quarter profit, as results were hit by restructuring costs.

The Ohio-based maker of ATMs and electronic voting machines earned $14.6 million, or 21 cents a share, in the quarter, compared with $62.8 million, or 87 cents a share, a year ago. Adjusted for plant restructuring and other costs, earnings were in line with Thomson First Call's average analyst estimate of 65 cents a share.

The company recorded a restructuring charge of 20 cents a share in relation to its sale of its Sumter, S.C., plant to Porter's Fabrications, a supplier to Diebold. Reserves allocated against trade receivables and deferred assets accounted for another 24 cents a share.

Fourth-quarter revenue rose 15% to $817.6 million.

Diebold said it plans to reduce its costs by more than $100 million over the next three years by improving its operations. In addition, the company considers 2006 to be a transition year requiring focus and investment in key areas of operations to return to "acceptable levels" of profit in 2007 and beyond.

Excluding restructuring charges of 12 cents and stock option expense of 7 cents a share, Diebold anticipates earnings of $1.75 to $1.90 a share for full year 2006. Analysts project 2006 earnings of $2.21 a share.

The stock recently was trading at $38.34, up $1.33, or 3.6%.

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