NCR to Reduce Earnings for Settlement Reserve
NCR Corp., the largest seller of automated teller machines, will reduce second-quarter earnings by $7 million to create a reserve for the company’s share of an out-of-court lawsuit settlement.
Second-quarter net income, reported July 25, was reduced to $25 million, or 25 cents a share, from $32 million, or 32 cents.
NCR will create a reserve of $9 million on a pre-tax basis to cover its share of $350 million in costs to settle a class-action complaint that accused Lucent Technologies Inc. and AT&T; Corp. of misleading consumers about telephone leases.
NCR wasn’t a defendant, but the company was liable for some of the expenses under terms of its 1996 spinoff from AT&T.;
Shares rose 73 cents to $27.73 on the NYSE.
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