Wincor Nixdorf reports bullish first quarter

Source: Wincor Nixdorf

Recording a positive first quarter, Wincor Nixdorf AG has begun fiscal 2007/2008 (ending Sept. 30, 2008) on a solid footing and can look forward with confidence to meeting its projected growth targets.

The supplier of IT solutions deployed within the branch networks of banks and retailers achieved a 10% rise in consolidated net sales, taking this figure to €602 million in the first quarter of 2007/2008 (Q1 2006/2007: €549 million).

Adjusted for exchange rate movements between the euro and U.S. dollar, growth in net sales amounted to 13%. Earnings before interest, taxes and amortization of product know-how (EBITA) rose by 13% to €52 million (€46 million).

As a result, the EBITA margin improved by 0.2 percentage points to 8.6% (8.4%). Net profit for the period rose to €32 million, thus outpacing last year's figure of €26 million by 23%.

Given the continued momentum in business development - strong banking business and growth abroad -, Wincor Nixdorf is confident of meeting the growth rates forecast for the fiscal year as a whole. "We have confirmed our forecast of an 8% rise in net sales and 10% growth in EBITA," said President & CEO Eckard Heidloff when commenting on the Group's expectations for fiscal 2007/2008.

Buoyant international business, double-digit growth rates in Europe, Asia/Pacific/Africa and the Americas

Europe (excluding Germany) was the most significant growth driver in the first three months of fiscal 2007/2008, producing a 15% increase in net sales. During this period net sales rose to €333 million (€290 million). With a share of 55% (53%), this region was once again the main contributor to total net sales within the Group.

At -5%, net sales in Germany were down on last year's figure for the first quarter. They amounted to €138 million (€145 million). Thus, business in Germany contributed 23% (26%) to total net sales.

Business in Asia/Pacific/Africa generated significant growth over the course of the first quarter. Net sales calculated on the basis of U.S. dollars rose by 30% year on year. Translated into euros, this corresponds to an increase of 14%, taking the figure to €81 million (€71 million). Correspondingly, Asia/Paacific/Africa accounted for 14% (13%) of net sales in the first quarter of 2007/2008.

The Americas also recorded double-digit growth in the period under review. There, net sales calculated in U.S. dollars were propelled upward by 30%. Expressed in euros, this represents a year-on-year increase of 16%, taking the first-quarter total to €50 million (€43 million). Thus, as in the same period a year ago, the Americas accounted for 8% of total net sales at Group level.

Buoyant growth in Banking segment continues

Net sales generated within the Banking segment improved by 16% to €406 million in the first quarter of 2007/2008 (€349 million), driven by both hardware/software business and services.

At -2%, the Retail segment was slightly down on last year's first-quarter figure, reaching €196 million in net sales (€200 million).

Categorized according to business stream, net sales from Product business rose by 6% to €358 million in the first quarter of 2007/2008 (€339 million). Net sales from Software/Services increased by 16% to €244 million (€210 million).

Net sales from Product business accounted for 59% (62%) of total revenue, while Software/Services contributed 41% (38%).

At December 31, 2007, the number of employees within the Group rose by 199 to 8,578 (Sept. 30, 2007: 8,379 employees).

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