Diebold Nixdorf (DBD) Q4 2012 earnings summary

Executive summary

• FY 2012 revenue rose 5.5% to $2,991,693, but operating profit fell 19.8% to $124,712 and net income attributable to shareholders declined 45.8% to $78,454.

• Services were 54.4% of revenue as the business continued shifting toward software-led services; full-year EMEA operating profitability returned after restructuring.

Financial highlights

• FY 2012 net sales were $2,991,693 versus $2,835,848 in 2011; gross profit was nearly flat at $736,153 versus $735,929.

• Net income attributable to shareholders was $78,454 versus $144,815; continuing-operations income attributable to shareholders was $81,579, or $1.28 diluted EPS, versus $144,292 and $2.23.

• Q4 net sales were $840,095 versus $849,987; continuing-operations income was a $4,300 loss versus $83,047 income, and attributable net income was a $10,645 loss versus $79,755 income.

• Reported FY results included $15,241 of restructuring charges and $42,328 of non-routine expenses, including $21,907 for pension buyouts and $16,750 for estimated FCPA-related losses.

Outlook and guidance

• 2013 outlook was cautious, citing a difficult YoY comparison and uncertainty in U.S. regional banking; timing and outcomes of large pending Brazil orders could materially affect 2013 earnings.

• SB 300 initiatives target an additional $100,000 in efficiencies by end-2013; growth priorities include software-led and integrated services, security, deposit automation and emerging markets.

• Backlog growth in Asia Pacific and U.S. national accounts was encouraging; approximately 25% of ATMs globally were configured for automated deposits.