ATM maker Diebold reports lower 2nd-quarter earnings, reviews transactions at Russian unit

Diebold posts lower 2Q, starts review of unit

NORTH CANTON, Ohio — Diebold Inc. reported slightly lower second-quarter earnings on a 4 percent drop in sales Thursday. The maker of automated teller machines also said it is conducting an internal review of transactions by its Russian subsidiary that may have violated international corruption standards.

Diebold said it uncovered the transactions, which mostly occurred from 2005 to 2008, while conducting due diligence in connection with a potential acquisition in Russia. Findings from its review are being reported to the U.S. Department of Justice and the Securities and Exchange Commission, Diebold said.

Net income for the second quarter was $29.7 million, or 45 cents per share, down 2 percent from $30.4 million, or 46 cents per share, in the same period a year earlier.

Excluding certain items, the company said earnings from continuing operations were 52 cents per share in the latest quarter, matching the consensus estimate of analysts surveyed by Thomson Reuters.

Revenue declined to $665.2 million from $690.9 million, well below the $715.5 million forecast by analysts.

Diebold narrowed its full-year operating earnings outlook to a range of $1.95 to $2.15 per share from a previous range of $1.90 to $2.15 per share. Analysts predict 2010 earnings of $2.02 per share.

The company also narrowed its revenue growth outlook to a range of 5 percent to 8 percent from a prior forecast of 4 percent to 9 percent.

Diebold shares fell $1.32, or 4.4 percent, to $28.74 in afternoon trading. The stock has ranged from $18.26 to $35.20.