NORTH CANTON, Ohio — Diebold Inc. says United Technologies Corp. has withdrawn its unsolicited bid for Diebold. UTC originally made an offer for the company Feb. 29, 2008.
Diebold's John Lauer, the non-executive chairman of the board, says Diebold's financial improvement has shed new light on the company's outlook and strategic initiatives.
"This gives the board confidence that Diebold is on-course for creating substantial shareholder value for its investors, despite current global financial market conditions," he said.
Diebold on Sept. 30 increased its 2008 earnings expectations when it released its financial reports for 2007 and the first two quarters of 2008. The company's 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's president and chief executive. "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."