DAYTON, Ohio -- NCR Corp. (NYSE:NCR), crediting sluggish economic conditions for slowing capital sales, on July 25 reported net income of $32 million for the second quarter ending June 30, a decline of 8.6 percent over the corresponding quarter in 2001.
For the quarter, NCR reported total revenue of $1.38 billion, down 8 percent over second-quarter revenue of $1.50 billion in 2001.
The Financial Self Services and Retail Store Automation divisions both suffered expected declines in revenue. Financial Self Services revenue dipped 2 percent despite double-digit growth in the Asia-Pacific region. Retail Store Automation revenue dropped 22 percent, though company officials said that was a significant improvement over the first quarter of 2002.
NCR chairman and chief executive officer Lars Nyberg said his company was not expecting significant improvement over the second-quarter figures in the near term, citing the current economic climate.
"We have not seen signs of improved capital spending," Nyberg said in a news release. "As a result, visibility into the coming quarter remains limited. However, we continue to expect … Financial Self Service and Retail Store Automation to drive sequential revenue and operating margin improvement throughout the balance of the year."
The Financial Self Service and Retail Store Automation divisions are expected to experience third-quarter revenue declines of up to 5 percent and between 5 percent and 10 percent, respectively, company officials said.
During the second quarter, NCR took a $10 million charge because of accounting discrepancies at an unnamed international subsidiary. NCR chief financial officer Earl Shanks said the charges were related with the failure to completely recognize expenses in the unit and were not materially related to the second-quarter results.
