Diebold cuts full-year forecast on delays in Brazil
(Reuters) - ATM and voting machine maker Diebold Inc (DBD.N) reported preliminary quarterly results below analysts' estimates and cut its full-year outlook as customers in Brazil delayed purchases and revenue from regional banks in North America declined.
Shares of the company fell nearly 12 percent to a near 10-month low of $29.78 in early morning trade. They later recouped some of the losses to trade down $31.18 on the New York Stock Exchange.
"Some major customer orders for ATMs in Brazil are being delayed," company spokesman Michael Jacobsen said.
Latin America accounts for more than a fifth of the company's revenue, with a large chunk coming from Brazil.
Lower-than-expected revenue from smaller regional banks at the North American business also impacted profit, Jacobsen said.
Regional banks generate higher profit as larger national banks are eligible for discounts based on higher sales volumes, the company said.
Diebold now expects full-year revenue growth of 6 percent and adjusted earnings of $2.25 to $2.30 per share, down from its earlier forecast of 6 to 8 percent revenue growth and earnings of $2.50 to $2.60 per share.
The company had lowered the top end of its 2012 earnings forecast when it announced second-quarter results after Brazil said it would not order more voting terminals ahead of October elections.
Diebold expects revenue of $710 million and adjusted earnings of 39 cents per share for the third quarter. Analysts on average expect revenue of $735 million and earnings of 50 cents per share, according to Thomson Reuters I/B/E/S.
The company, whose competitors include NCR Corp (NCR.N), said it plans to release full third-quarter results on October 25.
(Reporting by Tej Sapru in Bangalore; Editing by Sriraj Kalluvila)