Diebold restructures, ATM biz takes the brunt

Thursday, September 29, 2005

NORTH CANTON, Ohio--A corporate restructuring at Diebold Inc. that came after the company cut its third quarter earning expectations should have little impact on the company's security operations, one of its most successful business units.
The change comes aftercenters around replacing Eric Evans, the company's president and chief operating officer, with Walden O'Dell, the company's chairman and chief executive officer. O'Dell is now responsible for the company's global operations.
"The security business really isn't impacted," said Mike Jacobsen, corporate spokesperson for Diebold Inc. Dennis Moriarty continues to head the company's global security business. "The organizational changes are really focused on the financial self-service, ATM related part of our business,." said Jacobsen.
Approximately half of the company's revenues come from its ATM business, where it installs and services ATM for financial institutions. That side of its business took a hit in late August after Hurricane Katrina impacted ATM deliveries, maintenance and other businesses in the Gulf Coast region, according to an Associated Press report.
While revenues from Diebold's security business have been on the rise--the company reported a 25 percent increase during its second quarter 2005 compared to the same period last year (which was?)--however the overall performance as a company is down. In the second quarter of this year its profits fell 24 percent.