NORTH CANTON, Ohio, Jan. 24, 2013 /PRNewswire/ -- Diebold, Incorporated (NYSE: DBD) today announced Thomas W. Swidarski, president and chief executive officer (CEO), is stepping down from the company and its board of directors, effective immediately. In addition, George S. Mayes, Jr., executive vice president, global operations, has been promoted by the board to the newly created position of chief operating officer, reporting directly to Henry D.G. Wallace, Diebold executive chairman of the board. Wallace will assume regular oversight of the company until a new CEO is hired; Mayes will be responsible for daily operations. The search process for a new chief executive is currently underway.
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"We wish to thank Tom for the leadership and integrity he provided during his 17-year career at Diebold – the past seven years as our chief executive. This was a very difficult decision, and we wish Tom all the best in the next step in his career," said Wallace. "Progress has been made over the past several years in many areas. However, the board's judgment is that given the company's ongoing performance and pace with which it is delivering tangible value, it is in our stakeholders' best interests to make a change in leadership at this time.
"As we look to the future, the board feels Diebold's strategies are sound given the company's progress on several fronts, including integrated services and the growth potential of electronic security. Our anticipated revenue growth for the year is evidence that our markets remain sound," Wallace continued. "However, the company's execution of its strategies has not been what we want or expect and we have underperformed against the opportunities in the marketplace."
Wallace continued, "This reflects the need for deeper, faster operational transformation. Our search for a new chief executive will focus on attracting a candidate with a proven track record for successfully executing growth strategies in a global software and services environment."
In discussing Mayes' promotion to the COO role, Wallace said, "George's near-term focus will be to look at all aspects of the organization and identify areas that will help us accelerate the speed with which we reduce our cost structure and capitalize on changes in the marketplace. His track record of delivering sound, fiscally responsible results in his career makes him ideally suited to lead our operations during this time of transition. This is a challenging opportunity, yet I am confident in our ability to begin the process of putting this great company back on a more positive trajectory. We will have much more to report on our progress and immediate plans for 2013 during our fourth quarter and year-end conference call with investors in February."
Mayes, 54, joined Diebold in 2005 as vice president, global manufacturing, and was appointed executive vice president of global operations in April 2008. He began his career at General Motors, where he spent 15 years in manufacturing, quality and engineering. During this period, he served as director of manufacturing, Mexico, Delphi operations; and director, operations, for Delphi Thermal division in Buffalo, N.Y.
Prior to joining the company, Mayes served as chief operating officer and a member of the board of directors at Tinnerman Palnut Engineered Products, LLC. He has extensive experience in lean manufacturing and Six Sigma processes and has managed plants in Canada, Mexico, France, Hungary, Brazil, China, Poland, Italy and the United States. Mayes is a native of Orange, N.J., and resides in North Canton, Ohio, with his wife. He holds a bachelor's degree in engineering from the United States Military Academy at West Point.
SPECIAL NOTE: Please refer to the Diebold press release "Diebold Announces Preliminary Fourth Quarter and Year-end Results," also issued today, for related information.
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements". 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, and the company's implementation of cost-reduction initiatives and measures to improve pricing, including the optimization of the company's manufacturing capacity.
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:
- competitive factors, including pricing pressures and rapid 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;
- global economic conditions, including any additional deterioration and disruption in the financial markets, including the bankruptcies, restructurings or consolidations of financial institutions, which could reduce our customer base and/or adversely affect our customers' ability to make capital expenditures, as well as adversely impact the availability and cost of credit;
- acceptance of the company's product and technology introductions in the marketplace;
- the company's ability to maintain effective internal controls;
- changes in the company's intention to repatriate cash and cash equivalents and short-term investments residing in international tax jurisdictions could negatively impact foreign and domestic taxes;
- unanticipated litigation, claims or assessments, as well as the impact of any current/pending lawsuits;
- variations in consumer demand for financial self-service technologies, products and services;
- potential security violations to the company's information technology systems;
- the investment performance of our pension plan assets, which could require us to increase our pension contributions, and significant changes in health care costs, including those that may result from government action;
- the amount and timing of repurchases of the company's common shares, if any;
- the outcome of the company's global FCPA review and any actions taken by government agencies in connection with the company's self-disclosure, including the pending DOJ and SEC investigations; and
- the company's ability to achieve benefits from its cost-reduction initiatives and other strategic changes, including its restructuring actions.
Diebold, Incorporated is a global leader in providing integrated self-service delivery and security systems and services. Diebold employs approximately 17,000 associates with representation in nearly 90 countries worldwide and is headquartered in the Canton, Ohio region, USA. Diebold is publicly traded on the New York Stock Exchange under the symbol 'DBD.' For more information, visit the company's website at www.diebold.com or follow the company on Twitter: http://twitter.com/DieboldInc.
SOURCE Diebold, Incorporated
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