Diebold Inc. has announced the indefinite suspension of plans to build a new global headquarters facility. The company said it will instead focus on generating long-term sustainable growth, using assets to capitalize on acquisition opportunities and to invest in technologies and services that will help grow the business. The announcement came in the wake of a disappointing Q3 earnings report and downward revision of annual earnings expectations.
"As we've been analyzing our near- and long-term growth priorities, it has become clear that investing more than $100 million in a headquarters facility is not economically feasible given the other priorities for the business at this time," said Thomas W. Swidarski, Diebold president and CEO. "We have tremendous opportunities for growth, both through acquisition and organic means. Therefore, we must ensure that we maintain adequate capital flexibility to take advantage of these prospects that will position us for long-term growth."
In April of 2011, Diebold announced plans to construct a new, consolidated corporate campus in the Akron/Canton, Ohio, region. This January, the company announced it had selected a 55-acre building site. But with plans for the project now on indefinite hold, Swidarski said the company would instead update and enhance the company's existing corporate headquarters in Green and other facilities it occupies in the surrounding area.
"We greatly appreciate the tremendous support from the State of Ohio, the City of Green and other key partners we engaged throughout this process," Swidarski said. "Also, I deeply regret that our plans raised the hopes and expectations of our associates and the community. However, I believe this decision is in the best interests of our company, our associates, our shareholders and the long-term growth prospects of our business."
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