NCR Earnings Down 63 Pct on Spinoff

DAYTON, Ohio – NCR Corp., which makes automated teller machines, said Wednesday that its third-quarter earnings fell 63 percent, reflecting the spinoff of its Teradata unit.

NCR said it earned $33 million, or 18 cents a share, in the quarter ended Sept. 30, compared with $89 million, or 49 cents a share, for the same period in 2006.

Excluding expenses for the Teradata Corp. spinoff on Oct. 1 and NCR’s manufacturing realignment, profit in the July-September period would have worked out to 39 cents per share for the quarter compared with 21 cents a share a year ago.

NCR also reported revenue of $1.28 billion, up 12 percent from revenue of $1.14 billion in the year ago quarter.

Analysts surveyed by Thomson Financial expected earnings of 27 cents a share on revenue of $1.19 billion. The estimates usually excludes one-time charges.

In early trading, NCR shares rose $2.69 to $28.22.

“With the Teradata separation behind us, NCR’s focus on the implementation of our long-term vision and business strategy will sharpen, as will the focus of our overall cost structure,” said Bill Nuti, chairman and chief executive.

NCR makes ATMs and checkout scanners for the retail industry. It employs about 21,000 workers worldwide.

NCR announced plans for the Teradata spinoff in January, saying it would allow each company to better concentrate on its individual customer base, business strategy and operational needs.

On Tuesday, Dayton-based Teradata Corp., which makes data warehousing software, said its earnings fell 79 percent in the third quarter, in part because of expenses related to its spinoff from NCR.

Teradata, which makes data warehousing software, said it earned $9 million, or 5 cents a share, in the three months ended Sept. 30, compared with $43 million, or 24 cents a share, in the same period of 2006.

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