Results for the first nine months of 2009/2010
Subdued third-quarter performance - Wincor Nixdorf confirms outlook for current fiscal year
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 longterm 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 yearonyear 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%).
For further details of results, please see the Group's Nine-Month Interim Report 2009/2010. The PDF file and online report can be found at http://www.wincor-nixdorf.com under the headings Investor Relations / Reports & Financial Data.
This document contains forwardlooking statements that are based on current estimates and assumptions made by the management of Wincor Nixdorf AG to the best of its knowledge. Such forwardlooking statements are subject to risks and uncertainties, the nonoccurrence or occurrence of which could cause the actual results - including the financial condition and profitability of Wincor Nixdorf - to differ materially from or be more negative than those expressed or implied by such forwardlooking statements. This also applies to the forwardlooking estimates and forecasts derived from thirdparty studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments.