Diebold Inc. (NYSE: DBD) has reported a big fourth-quarter loss compared to a small year-earlier profit as the company took a huge writedown in the latest fourth quarter for the writedown of goodwill connected with its European operations.
The producer of automated teller machines and bank security equipment said the net loss in the latest fourth quarter totaled $118.8 million, or $1.83 a share. It included asset impairment charges of $168.8 million and an income tax benefit of $23.8 million.
In the fourth quarter of 2009, Diebold earned $3.2 million, or two cents a share. It incurred an income tax expense of $23.5 million.Sales at Diebold rose 9%, to $791 million from $724.9 million. Gross profit at Dieold increased 7%, to $189.5 million from $176.6 million.In commenting on the company’s business, president and CEO Thomas W. Swidarski said in a statement that Diebold’s orders for financial self-service equipment in North America “grew substantially as that market continues to recover and demand for our deposit automation solutions increases in the regional bank space.”“We are also seeing good progress in other key markets around the world, especially in Latin America and Asia Pacific where customer acceptance of our solutions is growing,” Mr. Swidarski said. “Europe, however, remains a challenging market for us. While Europe has never been a large market for the company, it is strategically important as we consider the global nature of our customer base. Therefore, we are taking decisive actions to re-engineer our infrastructure to free up more resources in core markets where we can compete most effectively. With the right focus and business model in place, we will improve our global competitiveness and achieve sustainable profitability in the region. This is a key priority in 2011.”
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