Wincor Nixdorf to miss full year guidance

Source: Wincor Nixdorf

Wincor Nixdorf AG will not meet its guidance for net sales and EBITA issued for the current 2014/2015 fiscal year.

After six months of the current fiscal year, the company’s net sales are 2% short of the comparative prior-year figure, while EBITA is down 31% on the figure for the same period a year ago (based on preliminary figures). The year-on-year decline is attributable primarily to a contraction by 12% in net sales from Hardware business. Growth generated by Software and IT Services was not sufficiently strong to offset the aforementioned decline.

A restructuring program is being initiated for the purpose of counteracting developments seen within the Hardware sector. This program will be aimed at driving forward expansion in the field of Software and IT Services. Capacity adjustments within the Hardware sector as well as cost streamlining are elements within the restructuring program. This program will serve to accelerate the ongoing transformation of the company. Supported by Software and IT Services, Wincor Nixdorf is looking to further expand its role in the highly dynamic trend towards digitization within the retail banking and retail business.

Based on preliminary figures, Wincor Nixdorf recorded net sales of €1,208 million (prev. year: €1,230 million) in the first half of the current 2014/2015 fiscal year. Of this total, €504 million (€575 million) was attributable to Hardware business. EBITA stood at €47 million (€68 million).

Wincor Nixdorf had originally anticipated moderate year-on-year growth in net sales for the current fiscal year 2014/2015 (FY 2013/2014: €2,469 million). Revenue growth was to be accompanied by an expansion in operating profit: taking the figure for fiscal 2013/2014 (€135 million), adjusted for exceptional items, as a starting point, the company had aimed to achieve a percentage increase in EBITA slightly above that of net sales. From the current perspective, these targets will not be met.

Further information on the company’s business performance as well as details of the strategic focus to be pursued at pace through restructuring measures will be provided by Wincor Nixdorf on April 23, 2015, as part of the interim report on the first six months of the current 2014/2015 fiscal year. 

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