NORTH CANTON, Ohio - Diebold Inc. reported a 1.8 percent quarterly revenue increase, up from $811 million for the fourth quarter of 2005 to $825 million. In addition, net income for FY '06 increased 160 percent, up from $10 million, or 15 cents per share, in 2005 to $27 million, or 41 cents per share.
For the year, the company's net income dropped 11 percent, down from $97 million for fiscal year 2005 to $87 million for FY '06. Despite the decrease, annual revenue increased from $2.5 billion in FY '05 to $3 billion for FY '06.
"We continued to make progress in the fourth quarter on our key strategic initiatives, including manufacturing optimization, ERP implementation and enhancing our organizational leadership," said Thomas W. Swidarski, Diebold president and chief executive officer. "I am encouraged that these and other efforts driven by our associates continue to result in positive financial improvement."
Regional segments
The Americas region experienced a 7 percent increase for 4Q '06, up from $501 million to $537 million for the quarter. The company's security solutions division contributed 17 percent to the growth while its financial self-services division accounted for 2 percent.
The Asia Pacific region experienced a 2 percent increase for the quarter, up from $91 million to $93 million. Diebold's security solutions division contributed 31 percent to the growth. However, the company's financial self-service solutions dropped 1 percent.
In Europe, the Middle East and Africa, revenue increased 5.6 percent, up from $134 million to $140 million. The security solutions division dropped 37 percent while the company's financial self-services solutions division increased 6 percent.
Legal proceedings
During the quarter, Diebold successfully initiated serial production at its new manufacturing facility in Budapest, Hungary, producing approximately 1,000 Opteva ATMs. The company has ended all production at the plant in Cassis, France.
On January 8, 2007, the company notified 101 of the 122 plant employees of termination of their employment. One of the unions is legally challenging the process and the court is expected to rule on this challenge in the first quarter of 2007.
