In line with expectations, Wincor Nixdorf AG completed the first nine months of the current 2009/2010 fiscal year with a decline in net sales and operating profit (EBITA).
In the first nine months net sales contracted by 3% to €1,682 million (previous year: €1,729 million). EBITA declined by 12% to €121 million (€138 million). Accordingly, the EBITA margin fell by 0.8 percentage points to 7.2% (8.0%). Profit for the period was down 8% to €80 million (€87 million). In the third quarter of the current fiscal year net sales for the Group rose by 5% to €521 million (€496 million). In the same period, EBITA fell by 6% to €33 million (€35 million). Against the backdrop of a sluggish quarterly performance, as anticipated, the company confirms its outlook for fiscal 2009/2010 as a whole. On this basis, net sales and operating profit will again contract, but by no more than the decline recorded a year ago. "As announced, for the current fiscal year we anticipate further reductions up to a maximum of 3 percent in net sales and of 13 percent in operating profit. Thus, the adverse effects of the financial and economic crisis on Wincor Nixdorf as a whole can be contained," said President & CEO Eckard Heidloff in response to the Group's performance.
Against the backdrop of both positive assessments and continued skepticism among leading economic research institutes as to whether the economic crisis had been overcome, the President & CEO emphasized that the market had yet to see a fundamental change in the investment behavior of many of the retail banks and retailers served by the company. "It is apparent that the propensity to invest within our customer base has not yet improved fully and continues to be influenced primarily by the financial resources available to individual companies," said Heidloff. This had led to both regional and seasonal volatility in Wincor Nixdorf's business. Regardless of the direction taken in the short term as a result of the general economic climate, the long-term trends witnessed in retail banking and retailing had remained unchanged. Prompted by increasingly intense competition, enterprises operating within both industries were having to place their business processes under close scrutiny, an area in which Wincor Nixdorf had positioned itself particularly well with a highly focused service portfolio. "We will benefit from this trend as soon as our target markets recover," said Heidloff.
Inconsistent business performance in segments and regions
Net sales in the Banking segment ended the first nine months of fiscal 2009/2010 5% lower at €1,132 million (€1,195 million). In the third quarter, net sales grew by 3%.
Net sales generated in the Retail segment were up by 3% to €550 million in the first nine months of fiscal 2009/2010 (€534 million). In the third quarter, net sales increased by 8%.
In Germany, net sales rose by 5% to €509 million in the first nine months of the fiscal year (€484 million), thus accounting for 30% (28%) of total net sales. For the third quarter of the fiscal year, net sales in Germany amounted to €165 million (€149 million), which translates into year-on-year growth of 11%.
At €699 million (€805 million), net sales in Europe (excluding Germany) for the first nine months were 13% down on the figure posted in the same period a year ago. This region contributed the largest proportion of total net sales for the Group at 42% (47%). In the third quarter of the fiscal year net sales in Europe (excluding Germany) rose by 1% to €230 million (€228 million).
Net sales in the Asia/Pacific/Africa region receded by 16% to €246 million in the first nine months of the fiscal year (€294 million). Asia/Pacific/Africa contributed a share of 15% to total net sales for the Group (17%). In the third quarter of the fiscal year, net sales generated in Asia/Pacific/Africa decreased by 17% to €62 million (€75 million).
In U.S. dollars, the Americas delivered a 61% increase in net sales in the first nine months of the fiscal year. Expressed in euros, this corresponds to growth of 56% to €228 million (€146 million). Thus, the proportion of Group net sales generated in the Americas increased to 13% (8%). In the third quarter of the fiscal year, the Americas achieved 45% growth in net sales, taking the figure to €64 million (€44 million).
Encouraging revenue growth for Software/Services; Hardware business still under pressure
In the first nine months of the fiscal year, net sales attributable to Hardware business contracted by 10% year on year to €856 million (€956 million). By contrast, net sales from Software/Services increased by 7% to €826 million (€773 million).
The share of total net sales attributable to Hardware business stood at 51% (55%). Correspondingly, the proportion of total net sales from Software/Services rose to 49% (45%).