Performing in line with expectations, Wincor Nixdorf AG completed the first quarter of its current fiscal year with a decline in net sales and operating profit (EBITA).
While net sales contracted by 4% compared with the same period a year ago, EBITA - as previously announced by the company - fell by a significant 22% year on year. Net sales for the Group totaled €608 million (previous year: €634 million) and EBITA stood at €40 million (€51 million). The company reaffirmed its outlook for the current fiscal year, according to which a slight contraction or a moderate increase in net sales are equally possible. Similarly, the forecast for operating profit ranges from a significant decline to slight growth.
In view of bleaker economic conditions at a global level and continuing uncertainty surrounding the sovereign debt crisis within the eurozone, the prospects for Wincor Nixdorf's business in the coming months remain difficult to gauge. "With this in mind, we will continue to adapt to changing circumstances and further refine our internal structures. The aim of these measures is to strengthen our sales activities, expand our business with Software and Services, and participate more broadly in the growth of the emerging markets," said President & CEO Eckard Heidloff, adding that these activities would be complemented by stringent cost management.
Divergent performances by the segments
Net sales in the Banking segment were down 10% at €391 million in the first quarter of fiscal 2011/2012 (€435 million). EBITA for the Banking segment contracted by 34% year on year to €27 million in the first three months (€41 million). Net sales generated in the Retail segment rose by 9% in the first three months of the fiscal year, reaching €217 million in total (€199 million). EBITA for the Retail segment increased by 30% to €13 million in the period under review (€10 million).
Net sales in Europe at prior-year level
In Germany, net sales declined by 7% to €156 million in the first quarter (€167 million), thus accounting for 26% of the Group's total net sales, unchanged from the previous year. At €294 million (€293 million), net sales generated in Europe (excluding Germany) over the course of the first three months of the fiscal year remained largely unchanged year on year. This region contributed the largest part of total net sales for the Group at 48% (46%).
Net sales in Asia/Pacific/Africa totaled €91 million (€108 million) in the first three months of fiscal 2011/2012, which corresponds to a year-on-year decline of 16%. Asia/Pacific/Africa contributed a share of 15% (17%) to total net sales for the Group. In U.S. dollars, the Americas recorded a 2% increase in net sales during the reporting period. Translated into euros, net sales for this region also rose by 2% to €67 million (€66 million). On this basis, the Americas continued to account for 11% of total net sales at Group level.
Net sales down for Hardware - Growth for Software/Services
In the first quarter of the fiscal year, net sales attributable to the Hardware business fell by 14% year on year to €285 million (€333 million). Net sales from Software/Services rose by 7% to €323 million (€301 million).