Cash is king at Diebold. The company is one of the leading
global producers of automated teller machines (ATMs). In addition,
it offers remote teller systems, cash dispensers, and check cashing
machines. Originally a manufacturer of safes, the company is still
active in its original market, offering products that include
vaults and security systems for financial institutions. It also
provides electronic voting machines in Brazil. The company's
related services range from traditional maintenance to remote
monitoring, transaction processing, and currency management.
Diebold, which has operations in more than 90 countries, gets half
of sales outside North America.
The company's largest product segment, financial
self-service (FSS), includes ATMs and other financial machines and
accounts for 72% of revenue. The security segment (electronic
security systems and products) accounts for 21% of sales; election
and lottery systems contribute 7%.
North America (primarily the US) is Ohio-based Diebold's
largest market, accounting for 46% of the company's sales. Latin
America (including Brazil) brings in 24% of its revenue, with the
Asia-Pacific and EMEA (Europe, Middle East, and Africa) regions
contributing in the neighborhood of 15% each.
Diebold's sales rebounded in 2014 to rise 7% to $3 billion from
$2.8 billion in 2013. In 2014, security sales increased in the
electronic security business. From a regional perspective, the
increase in total security sales came primarily from North America.
Sales in Brazil rose 16% in 2014 on sales for Brazil's lottery and
sales of IT equipment to its education ministry. Net income swung
to a profit of $114 million in 2014 after the company posted a loss
of $181 million in 2013. The company's Diebold 2.0 restructuring
plan began to show results in 2014 with lower sales and
Amid falling sales and profits, Diebold in late 2013 unveiled a
multi-year turnaround strategy called Diebold 2.0. Its aim is to
transform Diebold into a world-class, services-led and software
enabled provider of secure, convenient, and efficient products to
customers. The four key elements of Diebold 2.0 include: reducing
costs and improving near-term delivery and execution; generating
increased cash flow; recruiting and retaining top talent to drive
innovation and execute its transformation; return the company to
sustainable, profitable growth.
Diebold's growth strategy is focused largely on providing
software-oriented services; the company now generates more than 55%
of its revenue from services supporting its product lines. In 2015,
the moved to consolidate it business in Brazil and the rest of
Latin America, which has been run serparately. The new structure is
to improve operational efficiency and improve customer service.
The company has been taking steps to become more efficient in
its manufacturing, procurement and logistics, and product
development, as part of a multiyear program aimed at reducing its
costs. Its efforts have included consolidation of its manufacturing
and distribution operations in the EMEA (Europe, Middle East, and
Africa) region, as well as job cuts.
Mergers and Acquisitions
In 2015, Diebold acquired Phoenix Interactive Design, a software
developer for ATMs and other financial self-service applications.
The purchase is to accelerate Dieobld's growth in managed services
and branch automation. In 2014, Diebold acquired Cryptera, a
supplier of Diebold's encrypting PIN pad technology.