Diebold Streamlining Latin America Operations To Drive Growth, Improve Efficiencies
Company merging Brazil business unit into Latin America division
NORTH CANTON, Ohio, Jan. 15, 2015 /PRNewswire/ -- As part of the company's on-going transformation efforts, Diebold, Incorporated (NYSE: DBD) is realigning the structure of its Brazil and Latin America operations to drive greater efficiency and further improve customer service. Effective immediately, Diebold's Brazil and Latin America businesses will be merged into a single division and led by Octavio Marquez, senior vice president and managing director, Latin America. Joao Abud, president of Diebold Brazil, is leaving the company to pursue other interests.
"We are committed to continually improving our global operations, and are confident that merging our Brazil and Latin America operations will further advance our Diebold 2.0 transformation efforts," said Andy W. Mattes, Diebold president and chief executive officer. "We've been on a solid growth path in Latin America. This change will enable us to fully leverage our resources in Brazil for the entire region and unlock more opportunities to drive growth, improve efficiencies and reduce costs."
From a financial reporting perspective, moving forward Diebold will record combined results from its Latin America and Brazil businesses beginning with the first quarter 2015 earnings release. Costs associated with this operational change are expected to fall within the company's previously reported earnings guidance for restructuring charges and net non-routine income and expenses of $.05 to $.15 per share, as announced during Diebold's investment community conference on Dec. 10, 2014.
Diebold is the financial self-service market leader in both Brazil and Latin America, according to recent market data from Retail Banking Research (RBR)[1]. The company entered the Brazil market with the acquisition of Procomp Amazonia Industria Electronica, S.A., in October 1999. Diebold began competing in the Latin America market through a joint venture in Mexico in 1988. The company currently employs approximately 3,300 people in Brazil and 2,500 in its Latin America division.
Forward-Looking Statements
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements". Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. These forward-looking statements relate to, among other things, the company's future operating performance, the company's share of new and existing markets, the company's short- and long-term revenue and earnings growth rates, and the company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company's manufacturing capacity.
The use of the words "will," "believes," "anticipates," "expects," "intends" and similar expressions is intended to identify forward-looking statements that have been made and may in the future be made by or on behalf of the company. Although the company believes that these forward-looking statements are based upon reasonable assumptions regarding, among other things, the economy, its knowledge of its business, and on key performance indicators that impact the company, these forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in or implied by the forward-looking statements. The company is not obligated to update forward-looking statements, whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Some of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements include, but are not limited to:
- 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;
- 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, including Brazil, where a significant portion of the company's revenue is derived;
- global economic conditions, including any additional deterioration and disruption in the financial 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;
- acceptance of the company's product and technology introductions in the marketplace;
- the finalization of the company's financial statements for the periods discussed in this release;
- 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, including with respect to the company's Brazil tax or Thailand customs disputes;
- variations in consumer demand for financial self-service technologies, products and services;
- potential security violations to the company's information technology systems;
- the investment performance of our pension plan assets, which could require us to increase our pension contributions, and significant changes in healthcare costs, including those that may result from government action;
- the amount and timing of repurchases of the company's common shares, if any; and
- the company's ability to achieve benefits from its cost-reduction initiatives and other strategic changes, including its multi-year realignment plan and other restructuring actions, as well as its business process outsourcing initiative with Accenture.
About Diebold
Diebold, Incorporated (NYSE: DBD) is a global leader in providing innovative self-service technology, security systems and related services. Diebold has approximately 16,000 employees worldwide and is headquartered near Canton, Ohio, USA. Visit Diebold at www.diebold.com or on Twitter: http://twitter.com/DieboldInc.
[1] Retail Banking Research Global ATM Market and Forecasts to 2019, International Overview – Sept. 2014
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SOURCE Diebold, Incorporated
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