NORTH CANTON, Ohio - Diebold Inc. (NYSE:DBD) posted record revenue of $1.76 billion in fiscal year 2001, ending Dec. 31, but saw net income drop by more than 50 percent to $66.9 million once realignment and special charges were included.
Company officials on Jan. 23 announced that income reached a record $140.5 million during the fiscal year, excluding the realignment and special charges. With the charges added to the mix, net income dropped $70 million from last year's $136.9 million. Basic earnings per share, including the charges, was 94 cents, compared to $1.92 in fiscal year 2000.
During fiscal year 2001, the company absorbed $31.4 million in special charges and $42.2 million in realignment charges. The charges were related to the integration of the company's global product offerings, severance payments for certain international operations, and the realignment of several facilities and sales offices. Company officials said the realignments were almost finished, thought some charges might be added to its first-quarter 2002 figures.
The company was also hurt in the third quarter of 2001 when it was forced to take a $29 million pre-tax charge related to the shuttering of financial services kiosk distributor InnoVentry (See story: Diebold affirms earnings estimate, takes special charge).
Despite the diminished returns created by the special charges, company officials were pleased with year-end results, citing Diebold's increased penetration in international markets.
"For the year, our outstanding global results led to international financial self-service revenue exceeding the financial self-service revenue in North America for the first time in Diebold's history," Walden W. O'Dell, Diebold chairman, president and chief executive officer, said in a news release.
Company officials predicted further growth in fiscal year 2002, created in part by the recent acquisitions of Global Election Systems and the assets of Mosler and the service outsourcing business of Bank of America.
Diebold expects full-year core revenue growth will be around 6 to 8 percent, with earnings per share in the range of $2.15 to $2.25.
