NCR Announces Third Quarter Results

NCR Corporation (NYSE: NCR) reported financial results today for the three months ended September 30, 2010. Reported revenue of $1.21 billion increased 6 percent from the third quarter of 2009 and included a 1 percent negative impact from foreign currency translation.
 
NCR reported third quarter income from continuing operations (attributable to NCR) of $78 million, or $0.48 per diluted share, compared to income from continuing operations (attributable to NCR) of $15 million, or $0.09 per diluted share, in the third quarter of 2009. Income from continuing operations (attributable to NCR) in the third quarter of 2010 included $50 million of pension expense ($33 million or $0.20 per diluted share, after-tax), $39 million ($0.24 per diluted share) of income tax benefit due to the release of a valuation reserve related to our Japanese subsidiary, and $6 million ($3 million or $0.02 per diluted share, after-tax) of incremental costs directly related to the relocation of the Company’s global headquarters. Income from continuing operations (attributable to NCR) for the third quarter of 2009 included $41 million of pension expense ($30 million or $0.19 per diluted share, after-tax), an investment impairment charge of $17 million ($11 million or $0.07 per diluted share, after-tax) and $6 million in litigation charges ($4 million or $0.02 per diluted share, after-tax).  Excluding these items, non-GAAP income from continuing operations(1) in the third quarter of 2010 was $0.46 per diluted share compared to $0.37 in the prior year period.
 
“The entire NCR team executed at a high level during the third quarter and we are on track to deliver growth for the full year,” said Bill Nuti, Chairman and Chief Executive Officer. “We generated solid growth in orders, revenue and non-pension operating income in the third quarter and have entered the fourth quarter with momentum across our businesses. Our core financial and retail businesses have further stabilized and our multi-channel self-service technologies continue to gain mindshare and market penetration.  Looking ahead, we believe our focus on generating profitable revenue growth, striving for best-in-class cost structure, and fulfilling our ongoing commitment to innovation all combine to position NCR to benefit as the economic recovery continues and the consumer self-service revolution accelerates.”