Reply #32: Diebold's quarterly earnings fall 55% [View All]

[EFerrari]

Diebold's quarterly earnings fall 55%



Company cites costs of global realignment
Wednesday, April 26, 2006
Alison Grant
Plain Dealer Reporter

Diebold Inc. reported a 55 percent plunge in first-quarter profits, a drop attributed to restructuring of manufacturing operations and a global realignment of research and development.

The Green, Ohio, maker of automated teller machines said that it plans to open an ATM factory in Eastern Europe, probably in Budapest, Hungary. Diebold anticipates that it will be operating by the fourth quarter of 2006.

It also plans to close a plant in Cassis, France. The company on Tuesday notified plant employees and the related Work Council, as required by French law.

"Realigning the company's manufacturing operations in Europe is necessary given the tangible growth we're seeing in Central and Eastern Europe, as well as the prevailing market and competitive conditions in the financial self-service industry worldwide," said Thomas Swidarski, president and chief executive officer.

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