Security Sales and Integration Magazine

Business Management

Diebold CEO Steps Down After Weak Earnings Report

January 24, 2013 | Comments (1) | Post a comment

NORTH CANTON, Ohio — Diebold Inc. CEO Thomas Swidarski stepped down from his position Thursday after the firm announced it had underperformed in 2012, Bloomberg reports. Swidarski has also given up his board seat.

The company expects a loss from continuing operations of 12 cents per share for its fourth quarter on revenue of $840 million, according to Business Week. Shares of Diebold fell 8% 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.

The company 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 on Monday, 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.


Read more about: Diebold

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Bummer.
was this review helpful?
Josiah darkbyrd
January 24, 2013

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