Diebold has named a former executive with Siemens and Hewlett-Packard as its new chief executive officer.
A former executive with Hewlett-Packard and Siemens is Diebold’s the new chief executive officer.
Andy W. Mattes, 52, moves into the job Thursday, according to a report by the Wall Street Journal. A company spokesman confirmed the report.
He replaces Thomas W. Swidarski, who stepped down in January after serving seven years a president and chief executive officer, and 17 years with the company.
Mattes takes over as Diebold has launched into an austerity program aimed at cutting $100 million to $150 million in spending per year by 2015. The company anticipates 700 layoffs worldwide — with about 100 locally — as the plan moves forward.
According to the Wall Street Journal report Mattes will try to move the cost-cutting plan along at a faster pace. He also wants to see Diebold expand its $300 million per year electronics-security business, a goal previously expressed by company directors.
A native of Germany,Mattes comes to Diebold after three months as an executive of Violin Memory, a small maker of flash-memory computer storage systems. Before that he worked as a business consultant, advising smaller firms.
Mattes held management jobs at Siemens AG from 1985 until 2005. He joined Hewlett-Packard in January 2006 as senior vice president and chief sales officer for the Technology Solutions Group.
He left Hewlett-Packard in 2011. He was senior vice president and general manager for enterprise services, Americas, a unit with about $10 billion in annual revenue and 40,000 employees.
Following Swidarski’s departure, board chairman Henry D.G. Wallace moved into the position of executive chairman, over seeing operations while the board sought a new chief executive. Directors quickly promoted George S. Mayes Jr. to serve as chief operating officer to director daily operations.
Directors called Swidarski’s departure voluntary, although it sounded more like a dismissal. It came as poor projections for fourth quarter 2012 earnings were announced.
At the time, Wallace said the board’s decision to replace Swidarski was difficult. The board believed the company’s strategies were sound given the progress made in several areas. But executive of the strategies didn’t meet the board’s expectations. The company had “underperformed against the opportunities in the marketplace,” Wallace said.
Diebold ended 2012 with profits of $78.5 million, or $1.23 per share, but that was down when compared with $144.8 million, or $2.24 per share, in 2011. Revenue came in at $2.99 billion compared with $2.84 billion last year. A fourth-quarter loss of $10.6 million on lower sales pulled own the 2012 earning.
Diebold’s first quarter was no better. It reported a loss of $13.4 million, or 21 cents per share. That compares with profits of $45.2 million, or 71 cents per share, last year. Revenue was $633.5 million, down 9.3 percent from $698.5 million posted last year.