News
Diebold turns in improved earnings in 4Q
January 28, 2003
NORTH CANTON, Ohio -- Diebold, Incorporated (NYSE: DBD) reported fourth quarter record revenue of $525.8 million and net income of $21.9 million or diluted earnings per share of 30 cents, which includes the previously announced impact of settling the dispute with the IRS regarding the deductibility of interest on debt related to corporate owned life insurance (COLI).
According to a news release, Diebold's fourth quarter 2002 net income was $48.4 million or diluted earnings per share of 67 cents, excluding the impact from settling the COLI claim. This compares to fourth quarter 2001 net income of $17.2 million or diluted 24 cents per share on revenue of $508.2 million.
Fourth quarter 2002 earnings per share was within the range of the company's previous guidance of 66 cents to 72 cents, which excluded the COLI impact.
Financial self-service revenue, including ATM sales and service was $1.3 billion for 2002, down from $1.4 billion in 2001, according to the release.
In 2002's fourth quarter, financial self-service product sales were $209.9 million, down 12 percent from $240 million in 2001's fourth quarter. The decline was offset by services revenue of $182.6 million, a 5 percent increase from $173.6 million in 2001's fourth quarter. For the 2002 quarter, total self-service revenue was $392.5 million, a 5 percent drop from $413.8 million in 2001's fourth quarter.
For the year, financial self-service product sales were $686 million, a 9.5 percent drop from $758 million in 2001. Service revenue grew 9 percent, from $648 million in 2001 to $707 million in 2002. Total self-service revenue was $1.3 billion in 2002, a slight drop from $1.4 billion in 2001.
Security and voting were better performers for Diebold.
For 2002, security revenues were $436.2 million, up 30.6 percent from $333.9 million in 2001. Voting revenues were $111.1 million, up from $2.1 million in 2001.
"Despite a challenging global economic environment and increased competitive pressures, we are now the clear global leader in operating profit in the financial self-service industry," said Walden O'Dell, Diebold's chairman, president and chief executive, in the release.
O'Dell mentioned that the $111 million in voting revenue far exceeded the company's initial expectations of $60 million. Diebold expects its recent acquisition of Data Information Management Systems (DIMS), a voter registration company, to lead to further growth in its voting division. (See related story Diebold acquires leading voter registration company)
For the fourth quarter, Diebold said that total orders for products and services increased in the low single-digit range. The Americas increased in the high single-digit range and Asia-Pacific orders increased in the mid single-digit range, while Europe, the Middle East and Africa (EMEA) orders decreased in the low double digit range, according to the release.
For the first quarter of 2003, Diebold forecasts a small increase in revenue and earnings per share in the range of 34 cents to 39 cents.
For the entire year, Diebold predicts revenue growth of 5 percent to 10 percent, on a fixed exchange rate basis, with financial self-service revenue growth of 2 percent to 5 percent; security growth of 10 percent to 20 percent; and voting business growth of 15 percent to 30 percent.
Diebold confirmed its 2003 earnings per share guidance of $2.32 to $2.45, including pension expense, a 9 percent to 15 percent increase in earnings per share over 2002, excluding the pension impact.
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Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
