NORTH CANTON, Ohio, Oct. 13 /PRNewswire-FirstCall/ -- In a letter dated
today, Diebold, Incorporated (NYSE: DBD) has learned that United Technologies
Corporation (UTC) has withdrawn its unsolicited bid for the company of
February 29, 2008. UTC released a copy of its letter publicly today.
"The Diebold board of directors remains confident that the company is on
the right path, and is encouraged by the continued improvement it has seen in
the company's strategic initiatives to gain cost efficiencies and increase
profitability," said John N. Lauer, non-executive chairman of the board for
Diebold. "This gives the board confidence that Diebold is on-course for
creating substantial shareholder value for its investors, despite current
global financial market conditions."
Also, despite the current turmoil in the financial industry, Diebold
increased its 2008 earnings expectations on Sept. 30, 2008, when the company
became current with its financial reports. Today Diebold is reiterating those
expectations as follows:
Diebold's current earnings expectations are the result of earlier-than-
expected progress from its cost-reduction initiatives, improved profitability
from the company's Brazilian voting and lottery businesses, continued demand
for the company's solutions in the global financial markets and a lower
anticipated effective tax rate.
"Since 2006, we have focused on putting the right leadership in place,
improving the key drivers of profitability and positioning the company for
future growth," said Thomas W. Swidarski, Diebold president and chief
executive officer. "We are now seeing the tangible results of these efforts.
Recognizing there's much more for us to accomplish, I am increasingly
confident in our strategies and our ability to execute on those strategies."
Forward-Looking Statements
In this press release, statements that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. 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, the company's implementation of cost-
reduction initiatives and measures to improve pricing, including the
optimization of the company's manufacturing capacity, and the ongoing SEC and
DOJ investigations. 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:
-- the results of the SEC and DOJ investigations;
-- 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;
-- acceptance of the company's product and technology introductions in the
marketplace;
-- the amount of charges in connection with the planned closure of the
company's Newark, Ohio facility;
-- unanticipated litigation, claims or assessments;
-- variations in consumer demand for financial self-service technologies,
products and services;
-- challenges raised about reliability and security of the company's
election systems products, including the risk that such products will
not be certified for use or will be decertified;
-- changes in laws regarding the company's election systems products and
services;
-- potential security violations to the company's information technology
systems;
-- the company's ability to successfully execute its strategy related to
the election systems business; and
-- the company's ability to achieve benefits from its cost-reduction
initiatives and other strategic changes.
About Diebold
Diebold, Incorporated is a global leader in providing integrated
self-service delivery and security systems and services. Diebold employs more
than 17,000 associates with representation in nearly 90 countries worldwide
and is headquartered in Canton, Ohio, USA. Diebold is publicly traded on the
New York Stock Exchange under the symbol 'DBD.' For more information, visit
the company's Web site at www.diebold.com.
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