Banking Crisis Could Weigh on ATM Sales

Article Excerpt

DIEBOLD INC. $28 (New York symbol DBD; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 66.1 million; Market cap: $1.9 billion; WSSF Rating: Average) earned $1.16 a share before unusual items in the three months ended September 30, 2008, up 146.8% from $0.47 a year earlier. Revenue grew 20.2%, to $890.3 million from $740.9 million. The higher earnings and revenue were mainly due to a large order from China for automated teller machines (ATMs). An election in Brazil also increased revenue at Diebold’s voting machine division. Diebold has shifted much of its manufacturing operations to Hungary and China, which should cut costs and expand its long-term profitability. However, banking turmoil could hurt demand for new ATMs and security systems in 2009. Diebold is a hold. hold…