News

NCR 2Q '03 profits drop on flat sales, pension expenses

July 24, 2003

DAYTON, Ohio -- NCR Corporation (NCR:NYSE) earned $9 million, or 9 cents a share, in 2003's second quarter, compared with $26 million, or 25 cents a share, in 2002's second quarter.

According to a news release, the drop in profit was partially due to an increase in pension expenses. NCR said it had pension expenses of $24 million in the latest quarter, compared with $19 million of pension income in the 2002 period.

Sales were $1.37 billion, down 1 percent from $1.38 billion a year ago. Sales saw a 6 percent benefit from foreign currency fluctuations, NCR said.

NCR's Financial Self Service segment, which includes ATMs, generated second-quarter revenue of $260 million, in line with analysts' expectations and up 2 percent from the 2002 period.

According to NCR, revenue growth in the Americas offset continued market weakness in Europe and the impact of Severe Acute Respiratory Syndrome (SARS) in China. Second-quarter revenue includes a year-over-year benefit of 8 percentage points from foreign currency fluctuations. Operating income of $32 million improved from $25 million generated in the prior-year period.

NCR said that five of the largest U.S. banks ordered more than $25 million of its advanced-function ATMs in the quarter. The manufacturer also received significant orders from the State Bank of India, which selected NCR to supply, install and manage 1,500 ATMs, and two Chinese banks, which placed orders for NCR's Personas ATMs and APTRA software.

Looking to the third quarter, NCR said it expects to earn 7 cents to 13 cents a share. Revenue in the quarter is expected to be flat to up 2 percent, the company said. Analysts expect earnings of 14 cents a share on sales of $1.37 billion.

The manufacturer expects full-year earnings of 45 cents to 55 cents a share, and analysts are looking for 52 cents a share. NCR earned $1.36 a share last year.