Wincor Nixdorf Q3 profits rise
24 July 2007 | 794 views | 0
Source: Wincor Nixdorf
Achieving double-digit growth rates, Wincor Nixdorf AG has maintained its successful track record after the first nine months of fiscal 2006/2007.
Consolidated net sales rose by 12% to €1,602 million (€1,435 million), while EBITA increased by 17% to €138 million (€118 million). The EBITA margin thus grew by 0.4 percentage points to 8.6% (8.2%). Profit for the period climbed by 29% to €76 million (€59 million). Consolidated net sales in the third quarter alone rose by 5% year on year, thereby contributing €517 million (€492 million) to Wincor Nixdorf's highly encouraging performance for the first nine months. In view of the, on the whole, favorable course of business in recent months and the continued buoyancy witnessed in the market environment, the company reaffirmed its positive outlook for the full fiscal year. "We are confident that our upgraded forecast for the full annual period will be met. In other words, we anticipate that revenue will grow by 9% and EBITA by 15%," emphasized President and CEO Eckard Heidloff when assessing the remainder of the fiscal year ending September 30, 2007.
Strong growth in Europe - Expansion of business in Asia and Americas continues
Wincor Nixdorf's growth in net sales was driven, in particular, by dynamic business in Europe. Thereby in Germany, net sales rose by 8% to €425 million (€392 million). Thus, as was the case in the previous year, business in Germany contributed 27% to total net sales. In the third quarter net sales remained unchanged year on year at €138 million.
In Europe (excluding Germany), which at 54% (52%) remains the largest contributor to revenue, net sales increased to €864 million in the first nine months (€751 million), a gain of 15% compared with the same period a year ago. In the third quarter net sales for this region rose by 11% to €284 million (€255 million).
Calculated on the basis of U.S. dollars, Asia/Pacific/Africa increased its net sales by 20% compared with the same period a year ago. Translated into euros, this corresponds to growth of 11%, taking the total to €199 million (€180 million). Thus, this region contributed a a share of 12% (13%) to total net sales for the Group. In the third quarter of the fiscal year net sales generated in Asia/Pacific/Africa rose by 7% to €61 million (€57 million).
On the whole, business in the Americas developed well compared with the previous year. However, with some projects having been postponed to the fourth quarter, growth was restricted to around 10% - calculated in U.S. dollar terms. Translated into euros, net sales rose by 2% to €114 million (€112 million). Overall, the Americas thus accounted for 7% (8%) of total net sales. In the third quarter of the fiscal year, net sales stood at €34 million, a decline of 19% compared with the same period a year ago (€42 million).
Significant growth in Banking
The Banking segment increased its net sales by 17% in the first nine months of fiscal 2006/2007, taking the figure to €1,026 million (€874 million). Growth within this area was driven in particular by several large-scale rollout projects in the United Kingdom, Italy and Eastern Europe over the course of the first two quarters. In the third quarter, net sales growth within the Banking segment amounted to 7%.
The Retail segment achieved net sales growth of 3% in the first nine months of the fiscal year, taking net sales to €576 million (€561 million). In the third quarter, net sales growth within the Retail segment amounted to 2%.
Strong demand for software
Categorized according to business stream, net sales attributable to Product business rose by 11% year on year to €953 million for the first three quarters of fiscal 2006/2007 (€861 million). Net sales from Solutions/Services increased by 13% to €649 million (€574 million). "This fiscal year our software business continues to be buoyed by significant orders placed by key accounts from both segments," said Eckard Heidloff when commenting on the company's most recent accomplishments within this area.
The share of net sales attributable to Product business was 59% of overall business (60%), while Solutions/Services accounted for 41% (40%).
In the third quarter of fiscal 2006/2007 net sales from Product business grew by 1% to €298 million (€296 million). Net sales from Solutions/Services increased by 12% to €219 million (€196 million).
As of June 30, 2007, the Group headcount had risen by 479 year on year to 8,266 (7,787 as of September 30, 2006).