NCR Reports $28-Million Charge in 1st Quarter

NCR Corp., one of the biggest makers of automated teller machines, said it will take a first-quarter charge of about $28 million for losses expected from a venture with a distributor of ATMs to small stores. The after-tax charge covers losses on loans and receivables from NCR’s arrangement with Credit Card Center, a closely held distributor of ATMs in the U.S., NCR said. NCR doesn’t expect any further effect on sales or profit this year and is maintaining its sales-growth forecast of 5%, Chief Financial Officer David Bearman said. Analysts had expected NCR to have net income of $9 million to $10 million this quarter, so the $28-million charge will cause a first-quarter loss, Gregg Swearingen, NCR’s investor relations director, said. Profit from operations would be unaffected by the one-time charge. Shares of Dayton, Ohio-based NCR rose $2.57 to close at $46.88 on the NYSE. In the last few weeks, Philadelphia-based Credit Card Center has experienced a decline in new and existing customers and has had difficulty obtaining lease financing, NCR said. The distributor leases ATMs to small retailers, which share in the bank fees paid by customers who use the devices. NCR expects a total pretax charge of $42 million.