The future direction of the global economy is difficult to predict, particularly as the full extent of the crisis to have engulfed the international financial markets and the real economy remains somewhat unclear. Indeed, even leading economic research institutes are as yet unable to provide a reliable projection of future developments.
Against this backdrop of uncertainty, the fact is, however, that the general economic conditions have deteriorated significantly since the beginning of current fiscal year in October 2008, as a result of which the anticipated growth rates have been revised downwards for all economic regions within the global economy. In view of these circumstances, those markets formerly producing high levels of growth are now no longer in a position to offset weaknesses in other regions.
Having said that, this scenario also opens up certain possibilities for Wincor Nixdorf’s business activities, as banks and retailers embrace the principles of corporate streamlining and focus more closely on “costs” as an important factor in their operations. Offering an extensive portfolio of products and services, Wincor Nixdorf is well positioned to seize these opportunities. Therefore, the company is cautiously optimistic with regard to its medium-term development, as sector-specific trends within the area of retail banking and retailing, such as intense competition, considerable requirements for streamlining, globalization as well as standardization, continue to apply to these segments of the economy.
With this in mind, Wincor Nixdorf anticipates that both net sales and EBITA for fiscal 2008/2009 as a whole will progress at a level similar to that seen in the previous fiscal year. However, as expenditure cuts within the area of retail banking and retailing cannot be ruled out entirely in response to deteriorating conditions in the economy as a whole, business development may in fact be less dynamic in the short term. The company has made suitable preparations by initiating measures to bring greater flexibility to its cost structures.
