Nine-month results within expectations - Forecast affirmed
Wincor Nixdorf AG recorded a 4% increase in net sales and a 2% fall in operating profit (EBITA) for the first nine months of fiscal 2010/2011. The consolidated net sales of the IT company, which specializes in solutions designed for the branch and store operations of banks and retailers, increased in the reporting period to €1,744 million (previous year: €1,682 million). At €119 million, EBITA was slightly down on last year’s figure (€121 million), while net profit for the period was 4% lower at €77 million (€80 million). “Both net sales and operating profit are in line with our expectations,” commented President & CEO Eckard Heidloff. “We thus confirm our forecast for the year as a whole.” Wincor Nixdorf anticipates a rise in net sales of 4% for the current 2010/2011 fiscal year, while operating profit (EBITA) for the annual period is expected to match or slightly exceed the level of the previous year.
In the company’s view, the global market in IT solutions for retail banks and the retail industry has not yet fully recovered. Although it perceives a strong recovery in Europe as a whole, Southern Europe as yet remains tentative with regard to investment spending. Furthermore, Wincor Nixdorf’s ongoing business in the Americas has not been able to match the very good performance achieved last year through buoyant deliveries of high-end systems for automated cash and check processing. In addition, CINEO, a completely new hardware system generation developed by Wincor Nixdorf for banks and retailers, is still in the process of being introduced to the global market.
First nine months with growth in net sales in both segments - regional performance with continued strong divergence
Net sales in the Banking segment ended the first nine months of fiscal 2010/2011 1% higher at €1,143 million (€1,132 million). Net sales for the third quarter were unchanged on the previous year. Net sales generated in the Retail segment rose by 9% to €601 million in the first nine months of fiscal 2010/2011 (€550 million). In the third quarter, net sales increased by 8%.
In Germany, net sales in the first nine months of the fiscal year were down 9% at €465 million (€509 million), thus accounting for 27% (30%) of the Group’s total net sales. For the third quarter of the fiscal year, net sales in Germany were 11% lower at €147 million (€165 million).
At €837 million (€699 million), net sales in Europe (excluding Germany) for the first nine months of the fiscal year were 20% up on the figure posted in the same period a year ago. This region contributed the largest part of total net sales for the Group at 48% (42%). In the third quarter of the fiscal year, net sales in Europe (excluding Germany) improved by 17% to €268 million (€230 million).
Net sales in the Asia/Pacific/Africa region expanded by 9% to reach €268 million in the first nine months of the fiscal year (€246 million). The region’s contribution to total net sales for the Group remained unchanged at 15%. In the third quarter of the fiscal year, net sales generated in Asia/Pacific/Africa increased by 11% to €69 million (€62 million).
In U.S. dollars, the Americas recorded a 22% decline in net sales in the first three quarters of the fiscal year. Expressed in euros, this corresponds to a fall of 24% to €174 million (€228 million). Thus, the proportion of Group net sales generated in the Americas decreased to 10% (13%). In the third quarter of the fiscal year, net sales for the region were down 19% at €52 million (€64 million).
Growth in net sales in both Hardware and Software/Services business
In the first nine months of the fiscal year, net sales attributable to the Hardware business grew by 2% year on year to €877 million (€856 million). Net sales from Software/Services increased by 5% to €867 million (€826 million). The share of total net sales attributable to the Hardware business was slightly lower at 50% in the period under review (51%). Correspondingly, the proportion of total net sales from Software/Services rose to 50% (49%).
For further details of results, please see the Group’s Nine-Month Interim Report 2010/2011. The PDF file and online report can be found at Financial reports under the headings Investor Relations / Reports & Financial Data.