Oct 16 ATM and voting machine maker Diebold Inc
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
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
"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
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,
said it plans to release full third-quarter results on Oct. 25.