DAYTON, Ohio - A drop in NCR Corp.'s financial self-service operating income was offset by income increases in the Teradata, Retail Store Automation and Customer Services businesses; but it wasn't enough to positively impact NCR's net, which dropped 39 percent from second-quarter 2005. On July 27 the company reported net income of $78 million, 42 cents per share, down from $127 million, 67 cents per share, last year.
According to a company statement, net income was affected by a $19 million pension expense paid as part of an early retirement plan to Customer Services employees.
"Revenue growth in NCR's data warehousing, financial and retail segments shows good demand for our products, while our overall profitability continues to improve as we implement operational enhancements," said NCR president and chief executive Bill Nuti.
"Our Customer Services business is clearly showing the benefits of our efforts to both drive a higher proportion of revenue from servicing NCR-branded products and to make our services infrastructure more efficient. This work continues, along with other targeted initiatives focused on improving growth and profitability across all of our businesses."
Second-quarter revenue came in at $1.53 billion, up from $1.47 billion in 2Q '05. Data warehousing revenue increased 11 percent, financial self-service revenue was up 6 percent, retail automation revenue jumped 5 percent and customer service revenue remained flat. Though financial self-service operating income fell, from $43 million in 2Q '05 to $31 million, operating income improved by $10 million for Teradata, by $2 million for Retail Store Automation and by $17 million for Customer Services.
NCR attributed the drop in financial self-service income to price erosion related to higher manufacturing-related costs.
