Diebold Inc. shares sold off Tuesday after the Green maker of ATMs and security systems said it expected to earn less money this year than it previously forecast because of slower-than-expected sales.
For the first time since the summer of 2005, Diebold announced preliminary third-quarter earnings results — full results for the period will be released before the stock market opens Oct. 25.
Diebold said it expects to earn between $2.25 to $2.30 a share this year, down from previous guidance of $2.50 to $2.60 a share. Revenue is expected to rise 6 percent, on the low end of previous guidance of 6 to 8 percent.
This is the second time this year that Diebold has reduced its full-year outlook. The company in April said it expected to earn $2.38 to $2.61 a share for 2012 with revenue to rise 7 to 10 percent from 2011 levels, based on a strong first quarter.
Now the company is lowering expectations.
Diebold said it expects to earn 27 cents per share based on generally accepted accounting principles, or 39 cents per share using a different (non-GAAP) formulation, on revenue of $710 million for the third quarter.
The company also said, without providing details, that it was planning to cut costs and take other steps in light of its reduced financial outlook.
Shares on Tuesday fell $2.46, or 7.3 percent, to $31.28. Shares are up 6.5 percent, including dividends, since Jan. 1 and are up 7.4 percent from a year ago.
“We’re disappointed in our revised outlook, as the business mix from regional to national accounts in North America continued to accelerate at a faster rate than we anticipated,” Thomas W. Swidarski, Diebold president and chief executive officer, said in a statement. “In addition, we have also experienced customer delays related to our financial self-service business in Brazil, which will have an adverse effect on our full-year results.”
The fundamentals of Diebold’s global markets remain sound, Swidarski said.
“To improve our near-term performance, we are taking steps to further reduce costs and better align our operations with the opportunities that exist in the markets we serve,” he said.
The company will give more details during a conference call 10 a.m. Oct. 25 with industry analysts, Diebold spokesman Mike Jacobsen said.
Diebold makes less money on its national accounts than on its regional accounts.
“That’s always been the case,” Jacobsen said.
For fiscal 2011, Diebold made $144.8 million, or $2.24 a share, on revenue of nearly $2.84 billion. That was a sharp turnaround from 2010, when Diebold lost $20.3 million on revenue of $2.82 billion.
The public may listen in on next week’s analyst conference call by going to Diebold’s website, www.diebold.com/earnings.
Diebold will release its quarterly earnings report, including a press release, supplementary financial data and an earnings overview presentation, on the website.
People may also listen in to the call by dialing 719-457-2087 and using the passcode 8473473.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com