NORTH CANTON, Ohio (AP) — Diebold Inc.’s profit and revenue
soared in the first quarter as the maker of bank teller machines,
security systems and equipment cut costs and sold more ATMs to North
American banks.
Diebold shares hit their highest level in more
than four years after the company posted per-share earnings that were
more than double what Wall Street expected and raised its outlook for
the rest of the year.
Diebold reported net income rose to $45.2
million, or 71 cents per share, in the three months ended March 31, from
$2.5 million, or 4 cents per share, a year earlier.
Excluding
one-time items such as restructuring charges, North Canton, Ohio-based
Diebold said it earned 74 cents per share, easily beating Wall Street’s
expectations.
Analysts had expected adjusted earnings of 33 cents per share, according to a FactSet survey.
The company cut costs related to sales, research and services provided to customers.
Revenue rose 14 percent to $698.5 million from $614.2 million. Analysts expected on revenue of $648.6
million.
Revenue
from Diebold’s financial self-service division, which sells ATMs and
other products and services, leapt 21 percent. Revenue from its smaller
security division fell 6 percent. Revenue from the company’s smallest
group, which sells polling machines used in elections, plunged 66
percent.
Regionally, Diebold’s strongest revenue gain was in North
America. Overall revenue for Diebold’s international operations fell 3
percent because of declines in Latin America, Europe the Middle East and
Africa.
Based on its performance in the first quarter, Diebold
said it expects revenue growth this year of 7 percent to 10 percent,
compared with earlier guidance of 3 percent to 6 percent. The company
expects much stronger growth in the financial self-service business.
Revenue growth expectations for the security division were unchanged.
Diebold
now expects earnings per share of $2.38 to $2.61, compared with earlier
guidance of $2.18 to $2.41. It expects adjusted earnings per share to
be $2.50 to $2.70, up from earlier guidance of $2.30 to $2.50.
The
guidance was stronger than analysts’ expectations. On average, they
projected unadjusted earnings per share of $2.37 in 2012 and adjusted
earnings per share of $2.44, according to FactSet.
Diebold said it
is still cooperating with the U.S. Department of Justice and the
Securities and Exchange Commission in a probe related to the Foreign
Corrupt Practices Act, which makes it illegal for American companies to
bribe foreign officials. Diebold discovered potential FCPA violations
and voluntarily reported them to the SEC and DOJ in 2010, it said in its
last annual report.
Diebold shares rose $2.47, or 6.4 percent, to
$40.90 in afternoon trading after trading as high as $42.93 earlier
in
the session. That was their highest price during the trading day since
Oct. 16, 2007, when they reached $43.49.
Copyright 2012 The Associated Press.