Diebold reports third quarter financial results

Trading update

Diebold has released its trading update for the third quarter (view press release). Highlights include total revenue for 3Q 2012 increasing 0.1% compared with prior-year period, or 5.6% on constant currency; free cash use for 3Q 2012 increased USD 40.5 million from 3Q 2011, but improved on a YTD basis by USD 28.5 million; net debt at the 30th of September was USD 151.2 million, a decrease of USD 81.1 million; security revenue grew 7.7% during the quarter; company reduces YE earnings guidance to reflect customer project delays in Brazil and mix shift in North America.

“While our business in the third quarter remained sound, as we generated slight revenue increases off a very strong prior-year period, our profitability was negatively affected by a number of factors,” said Thomas W. Swidarski, Diebold president and CEO. “Profit fell off considerably in Brazil, due to the year-over-year decline in the cyclical voting business there. While our business remains robust in North America, a greater-than-expected shift in revenue mix significantly impacted profit margin on several sub-components of the business during the quarter. In addition, increased investments in our service infrastructure and timing of customer projects negatively impacted service margins. To offset ongoing competitive pressures in our global markets and the increased investment required in our business, we have a number of initiatives to address our long-term cost position. These include implementing a global shared services model, global realignment of resources and investing in service technology infrastructure.”

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