Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Diebold Announces Results, Makes Leadership Change

On Thursday, Diebold (NYSE: DBD  ) announced preliminary fourth-quarter earnings, headlined by a 1% decline in revenue year-over-year, a $0.12-per-share GAAP loss from continuing operations, and a free cash flow number that, in the company's own words, fell "well short of expectations."

Simultaneously, Diebold announced a series of changes in its leadership. Specifically:

  • Chief Executive Officer Tom Swidarski has resigned from his post and from the board of directors, effective immediately. The company says it is already searching for a replacement.
  • Executive Vice President for Global Operations George S. Mayes Jr. has been promoted to the newly created position of chief operating officer.
  • Chairman of the Board Henry D.G. Wallace will assume the duties of a CEO (but not the title of CEO or even interim CEO) until a new CEO is hired.  Mayes will be "responsible for daily operations."

Looking forward, Diebold guided investors to expect flat revenues and pro forma earnings "flat to down moderately." On the plus side, free cash flow is expected to improve this year, in comparison to last.

In a statement, Wallace explained the management shift by saying, "the company's execution of its strategies has not been what we want or expect and we have underperformed against the opportunities in the marketplace."

"We wish to thank Tom for the leadership and integrity he provided during his 17-year career at Diebold -- the past seven years as our chief executive. This was a very difficult decision, and we wish Tom all the best in the next step in his career," Wallace was quoted as saying. "Progress has been made over the past several years in many areas. However, the board's judgment is that given the company's ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders' best interests to make a change in leadership at this time."

The stock was down 8.5% as of this writing.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2213838, ~/Articles/ArticleHandler.aspx, 9/30/2016 6:15:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:02 PM
DBD $24.45 Down -0.46 -1.85%
Diebold CAPS Rating: **