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NCR cutting up to 2,200 jobs to reduce costs

/ Source: The Associated Press

ATM machine maker NCR Corp. 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.

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 per share, in the July-September quarter, down from $80 million, or 48 cents per share, a year ago.

Excluding impairment and litigation charges totaling 10 cents per 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 cents to 55 cents, down from a range of 60 cents to 75 cents per 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 per share on revenue of $4.67 billion.

NCR is going through a transition, with Chief Financial Officer Anthony Massetti set to resign on Friday to take a new position with business telephone and Internet communications provider Avaya Inc.

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.