Diebold Weighs Strategy for Voting Unit
Mar 4, 3:29 PM (ET)
By M.R. KROPKO
CLEVELAND (AP) - Diebold Inc. (DBD) saw great potential in the modernization of elections equipment. Now, analysts say,
executives may be angling for ways to dump its e-voting subsidiary that's widely seen as tarnishing the company's reputation.Though Diebold Election Systems - the company's smallest business segment - has shown growth and profit, it's faced persistent criticism over the reliability and security of its touch-screen voting machines. About 150,000 of its touch-screen or optical scan systems were used in 34 states in last November's election.
The criticism is particularly jarring for a nearly 150-year-old company whose primary focus has long been safes and automated teller machines.
"This is a company that has built relationships with banks every day of every year. It pains them greatly to see their brand tarnished by a marginal operating unit," said Gil Luria, an investment analyst who monitors Diebold for Wedbush Morgan Securities Inc.
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