Diebold CEO Steps Down After Weak Earnings Report
by Security Electronics and Networks | @Articles News | January 24, 2013, 8:00am AEDT
The company expects a loss from continuing operations of 12 cents per share for its fourth quarter on revenue of $US840 million, according to Business Week. Shares of Diebold fell 8 per cent after the company stated it expects to earn 45 cents per share from continuing operations for the period, below the Wall Street estimate of 64 cents a share on revenues of $846.1 million.
Diebold has attributed its lower-than-expected earnings to a slowdown in the U.S. regional bank business and its related service work, Business Week reports. Additionally, Diebold executives says an insurance liability charge due to Hurricane Sandy and activity delays in its Brazil business played a role in the earnings drop.
Swidarski worked for Diebold for 17 years, the last seven as CEO. Company Chairman Henry Wallace, who was appointed executive chairman Monday last, will serve as interim CEO, while the firm seeks a successor. Diebold has promoted George Mayes Jr., executive vice president of global operations, into the new role of COO. He will be responsible for daily operations.