NCR Corporation (NYSE:NCR) Q4 2015 Earnings Conference Call - Final Transcript
Feb 09, 2016 • 04:30 pm ET
Good day, and welcome to the NCR Corporation Fourth Quarter Fiscal Year 2015 Earnings Conference Call. [Operator Instructions]
At this time, I'd like to turn the conference over to Mr. Gavin Bell, Vice President of Investor Relations. Please go ahead, sir.
Gavin A. Bell
Good afternoon and thank you for joining our fourth quarter 2015 earnings call. Joining me on the call today and offering opening remarks are Bill Nuti, Chairman and Chief Executive Officer, and Bob Fishman, Chief Financial Officer. Additionally, available on the call today for Q&A are Andy Heyman, Senior Vice President and President, Financial Services; Michael Bayer, Senior Vice President and President, Retail Solutions; and Paul Langenbahn, Senior Vice President and President of Hospitality.
Our presentations and discussions today include forecasts and statements that are considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.
While these statements reflect our current outlook, expectations, and beliefs, they are subject to a number of risks and uncertainties that could cause actual results to vary materially. These risks and uncertainties are described in our earnings release and our periodic filings with the SEC, including our annual report to stockholders.
On today's call, we will be referring to presentation materials posted on our website. We will also be discussing certain non-GAAP financial information such as free cash flow and results excluding the impact of pension and other items. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures, and other information concerning such measures are included in the presentation materials and in our earnings release. These are also available on the Investor Relations section of NCR's website. A replay of the call will be available later today on our website, ncr.com. With that, I'd like to turn the call over to Bill Nuti.
William R. Nuti
Thanks, Gavin. Good afternoon, everyone, and thank you for joining us today. Before we get into Q4 and full year results, I wanted to provide a brief retrospective on 2015. First, let me say that 2015 turned out to be far more challenging than we initially expected, as a result of slower growing China and Russia markets, significantly increased foreign exchange headwinds, which negatively impacted 2015 revenue by $415 million, profit by $72 million, and EPS by $0.27, a third of which was not included in our initial full year guidance, not to mention, the impact significantly weaker local currencies have on the cost of our products in several strong NCR markets around the world.
Just to put that in perspective, in 2015, the Canadian dollar dropped by 16%, Australian dollar by 10%, Brazilian real by 30%, and the euro by 10%. Additionally, as the year we're on with basically the unexpected macro challenge of lower oil prices and destabilization in many of our stronger oil sensitive countries, geopolitical stabs, lower global GDP growth than expected, and volatile capital markets in the back half of the year.
On top of all that we were immersed and all encompassing strategic review process that took the