DULUTH, Ga. — ATM maker NCR said Thursday it plans to cut up to 10 percent of its global work force — possibly more than 2,200 jobs — to reduce costs after reporting its third-quarter profit tumbled 81 percent.
The company, which also makes retail checkout scanners and self-serve kiosks, also cut its adjusted earnings and revenue forecasts for the year.
Its shares plunged $1.82, or 14.9 percent, to $10.40 in morning trading.
NCR, which said in June it was moving its headquarters to Georgia after 125 years in Ohio, said it would cut 5 percent to 10 percent of its work force that currently totals about 22,400 people.
The company earned $15 million, or 9 cents a share, in the July-September quarter, down from $80 million, or 48 cents a share, a year ago.
Excluding impairment and litigation charges totaling 10 cents a share, profit was 19 cents per share. That missed the 24-cents-a-share forecast of analysts polled by Thomson Reuters. Analysts’ estimates normally exclude one-time items.
Revenue fell 11.6 percent to $1.14 billion from $1.38 billion partly on the stronger dollar, falling short of Wall Street’s $1.22 billion estimate.
NCR lowered its full-year adjusted earnings from continuing operations guidance to a range of 45 to 55 cents, down from a range of 60 to 75 cents a share.
The company also cut its annual revenue forecast. NCR now expects revenue to drop 12 percent to 14 percent from the previous year on a constant currency basis. Its prior outlook was for a 5 percent to 10 percent revenue decline.
Analysts predict 2009 profit of 67 cents a share on revenue of $4.67 billion.
NCR is going through a transition, with Chief Financial Officer Anthony Massetti set to resign Friday to take a new position with business telephone and Internet communications provider Avaya.
Corporate Controller Robert Fishman will step in as interim CFO while NCR searches for a replacement.
The company is also in talks with The University of Dayton regarding the purchase of its former headquarters in Dayton, Ohio.
