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The company said it plans to cut 300 jobs as it accelerates a cost-cutting program.
Declining demand in the United States and Eastern Europe caused much of the first-quarter decline and the reduced outlook, executives said this morning.
Shares were down $2.97, or 11 percent, to $24.02 at 11:04 a.m.
"As the quarter progressed, the earlier weakness in orders that we had experienced in Eastern Europe, Russia and the regional bank segment of the United States became more precipitous," Chief Executive Officer Thomas Swidarski said in a prepared statement. "This market weakness, which occurred in some of our most profitable business sectors, has forced us to reduce our revenue and earnings expectations for the full year 2009."
Swidarski said he was pleased with the first-quarter results, saying they exceeded internal expectations.
Diebold said it now expects a profit, excluding some items, of $1.70 to $2 a share. Diebold previously estimated it would make $2.10 to $2.40 a share this year.
Revenue might fall as much as 13 percent, more than an earlier estimate for a decline of as much as 10 percent, the company said.
The expected 300 job cuts will be accomplished through hiring restrictions, attrition and job eliminations, Swidarski said. The company did not say where the job cuts will take place.
First-quarter revenue fell 4 percent to $663.1 million, compared to $691.9 million a year ago.
Net income tumbled 88 percent to $1.6 million, or 2 cents per share, for the three months ended March 31, compared with $13.8 million, or 21 cents per share, a year earlier.
Results included a $25 million charge for a deal Diebold announced Monday that it reached with the Securities and Exchange Commission to settle civil charges related to an investigation into now-discontinued company accounting practices. The SEC still needs to formally accept the settlement.
Using non-Generally Accepted Accounting Principles, Diebold said it made 39 cents per share for the quarter compared to 42 cents a year ago.
Diebold has nearly 2,000 employees in Northeast Ohio and about 17,000 employees world-wide.
Bloomberg News and the Associated Press contributed to this report.
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