NORTH CANTON, Ohio, March 27, 2020 /PRNewswire/ -- Diebold Nixdorf (NYSE:DBD), a global leader in driving connected commerce for the banking and retail industries, today announced a business update relating to the novel coronavirus (COVID-19) pandemic.
As discussed in the company's recent press release, Diebold Nixdorf's business offerings have been designated as essential by the U.S. Department of Homeland Security and numerous other state, local and international governments. Diebold Nixdorf's services business is providing much-needed maintenance and support for our customers' ATM and retail checkout networks around the world, which are essential to maintaining public health and safety as well as economic security during the COVID-19 pandemic. In addition, technology support of financial institutions and key retailers including grocery, pharmacy and fuel, through products and software solutions, are also essential during the crisis. At the same time, in certain locations, Diebold Nixdorf is seeing instances of product installation disruptions from coronavirus-related logistics challenges, which impacts the company's ability to forecast product revenue. In light of these developments, the prudent course at this point in the global pandemic is to withdraw the company's full-year outlook.
As a result of the company's continued cash management programs and the prudent recent draw down of its revolver facility, Diebold Nixdorf currently has ample liquidity and is strengthening its financial position by accelerating its DN Now cost initiatives and implementing incremental actions.
"We have been hard at work prioritizing the health and safety of our employees, while maintaining outstanding service to customers," said Gerrard Schmid, Diebold Nixdorf president and chief executive officer. "While conditions remain dynamic, I am extremely proud of how our team has responded to recent events. We have taken actions to avoid major disruptions to our supply chain during our first quarter and Diebold Nixdorf is performing an essential role by enabling vital commerce activities at our customer locations. We will continue to carefully manage costs and cash as conditions warrant. We expect to resume our practice of providing an annual outlook after business conditions return to a more normal environment."
Additionally, in light of travel restrictions and focus on social distancing, the company has decided to postpone its Investor Day event, previously scheduled for May 21.
About Diebold Nixdorf Diebold Nixdorf, Incorporated (NYSE: DBD) is a world leader in enabling connected commerce. We automate, digitize and transform the way people bank and shop. As a partner to the majority of the world's top 100 financial institutions and top 25 global retailers, our integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day.
The company has a presence in more than 100 countries with approximately 22,000 employees worldwide. Visit www.DieboldNixdorf.com for more information.
This press release contains statements that are not historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding potential impact of the ongoing coronavirus (COVID-19) outbreak, anticipated revenue, future liquidity and financial position. Statements can generally be identified as forward looking because they include words such as "believes," "anticipates," "expects," "could," "should" or words of similar meaning. Statements that describe the company's future plans, objectives or goals are also forward-looking statements. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The factors that may affect the company's results include, among others: the ultimate impact of the ongoing coronavirus (COVID-19) outbreak; the ultimate impact of the appraisal proceedings initiated in connection with the implementation of the domination and profit and loss transfer agreement with Diebold Nixdorf AG and the merger squeeze-out; the company's ability to achieve benefits from its cost-reduction initiatives and other strategic initiatives, such as DN Now, including its planned restructuring actions, as well as its business process outsourcing initiative; the success of the company's new products, including its DN Series line; the company's ability to comply with the covenants contained in the agreements governing its debt; the company's ability to successfully refinance its debt when necessary or desirable; the ultimate outcome of the company's pricing, operating and tax strategies applied to former Diebold Nixdorf AG and the ultimate ability to realize cost reductions and synergies; the changes in political, economic or other factors such as interest rates, currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the company's operations; interest rate foreign currency exchange rate fluctuations, including the impact of currency devaluations in countries experiencing high inflation rates; changes in political, economic or other factors such as currency exchange rates, inflation rates, recessionary or expansive trends, taxes and regulations and laws affecting the worldwide business in each of the company's operations; the company's reliance on suppliers and any potential disruption to the company's global supply chain; the impact of market and economic conditions, including any additional deterioration and disruption in the financial and service markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer base and/or adversely affect our customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit; interest rate and foreign currency exchange rate fluctuations, including the impact of possible currency devaluations in countries experiencing high inflation rates; the acceptance of the company's product and technology introductions in the marketplace; competitive pressures, including pricing pressures and technological developments; changes in the company's relationships with customers, suppliers, distributors and/or partners in its business ventures; the effect of legislative and regulatory actions in the United States and internationally and the company's ability to comply with government regulations; the impact of a security breach or operational failure on the company's business; the company's ability to successfully integrate other acquisitions into its operations; the company's success in divesting, reorganizing or exiting non-core and/or non-accretive businesses; the company's ability to maintain effective internal controls; changes in the company's intention to further repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions, which could negatively impact foreign and domestic taxes; unanticipated litigation, claims or assessments, as well as the outcome/impact of any current/pending litigation, claims or assessments; the investment performance of the company's pension plan assets, which could require the company to increase its pension contributions, and significant changes in healthcare costs, including those that may result from government action; and the amount and timing of repurchases of the company's common shares, if any; and other factors included in the company's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2019 and in other documents that the company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only to the date of this release.