Wincor Nixdorf posts H1 profit rise

Source: Wincor Nixdorf

Wincor Nixdorf AG closed the first six months of fiscal 2008/2009 with an increase of 4% in net sales and 2% in operating profit (EBITA).

An expert in IT solutions for bank branches and retail stores, Wincor Nixdorf increased its net sales in the first half of the year to 1,234 million euros (1,183 million euros) and EBITA to 103 million euros (101 million euros). Profits for the period rose by 5% to 64 million euros (61 million euros). As President and CEO Eckard Heidloff made clear when the figures were announced, the positive result for the first half as a whole was mainly influenced by a good start to the fiscal year in the first quarter. Net sales in the second quarter were 588 million euros (581 million euros), representing an increase of 1%. "This slowdown shows that we too are feeling the impact of the economic crisis."

Heidloff noted that it was still not clear how extensive the effects of the crisis would be and how long it would ultimately last. He also emphasized that Wincor Nixdorf would continue to strive to exploit the many good opportunities in the market and thus achieve its targets for the current fiscal year. "On the basis of what we know up to now, we are holding firm to our forecast that our net sales and operating profit will be roughly on a par with the previous year."

Well positioned with a cost-efficient portfolio of solutions

However, the company's ability to achieve this goal will depend greatly on the impact the economic crisis has on retailers and retail banks. On the one hand, Wincor Nixdorf is noticing a declining willingness to invest as a result of the crisis. On the other, its own portfolio of software and services is having a significant stabilizing effect on the company's business. Moreover, Wincor Nixdorf is well positioned with a portfolio that helps its customers save money, and is registering continuing interest in solutions designed to optimize processes and reduce costs. In view of this, the company is keeping to its strategy of future-oriented expansion and further development of its solution portfolio in order to continue offfering its customers innovative concepts and to position itself for the post-crisis market. At the same time, it is continuing its efforts to flexibilize cost structures and reduce its own cost levels.

Development in the regions inconsistent

The company again performed inconsistently in the regions: sales revenues in Germany in the first half soared by 26% to 336 million euros (267 million euros). As a result, business in Germany accounted for 27% (23%) of total sales. Sales in the second quarter improved to 181 million euros (129 million euros) or by 40%.

In Europe (excluding Germany), sales in the first six months were 577 million euros (631 million euros), 9% down year-on-year. Europe again contributed the largest share to the Group's total sales: 47% (53%). Net sales in the region fell in the second quarter by 18% to 245 million euros (298 million euros).

A significant driver behind net sales growth in the period under review was the Asia/Pacific/Africa region, which posted an increase of 20% to 219 million euros (182 million euros), representing an increase of 5% when calculated in US-Dollar. The region thus accounted for 18% (15%) of total sales. Net sales increased by 17% in the second quarter to 118 million euros (101 million euros).

Business in the region America fell slightly in the first half by 1% to 102 million euros (103 million euros), a decline of 14% in US-Dollar terms. As a result, the share this region contributes to total sales fell to 8% (9%). Net sales in the second quarter decreased 17% to 44 million euros (53 million euros).

Banking and retail contribute to growth

Banking and retail business both made contributions to growth. Net sales in the banking segment rose in the first half by 6% to 866 million euros (818 million euros). Net sales in the second quarter were down 1% year-on-year at 410 million euros (413 million euros). The figure in the retail segment improved slightly in the period under review by 1% to 368 million euros (365 million euros). In the second quarter, net sales rose to 178 million euros (168 million euros), an increase of 6%.

Broken down by types of business, net sales from hardware business fell slightly by 1% to 711 million euros (715 million euros). In contrast, software/services business recorded an increase of 12% to 523 million euros (468 million euros). As a result, hardware business accounted for 58% (60%) of total sales. The share contributed by software/services business rose accordingly to 42% (40%).

The number of persons employed at the Group fell by 96 to 9,364 up to and including March 31, 2009 (September 30, 2008: 9,460).

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