Wincor Nixdorf remains on track for growth

Forecast reaffirmed in spite of more challenging business conditions

Paderborn, (PresseBox) - Having completed the first six months of fiscal 2007/2008, Wincor Nixdorf AG remains well on track to achieve its growth targets. Consolidated net sales generated by the company specializing in IT solutions for bank branches and retail outlets rose by 9% to €1,183 million in the first half of the fiscal year (prev. year: €1,085 million); adjusted for exchange rate effects associated with the weak U.S. dollar, revenue growth amounted to 13%. The EBITA margin improved by 0.2 percentage points to 8.5% (8.3%). Net profit for the period increased to €61 million, thus outpacing last year's figure of €49 million by 24%.

While according to President & CEO Eckard Heidloff the detrimental effects associated with the financial crisis had not yet impinged on Wincor Nixdorf's business, the weakness of the U.S. dollar would have dampening effect on the overall increase in net sales within the Group. Despite this, he was able to reaffirm Wincor Nixdorf's growth targets for the current 2007/2008 fiscal year: "Our forecast remains unchanged at 8% growth in net sales and a 10% increase in operating profit," said Heidloff in confirming the company's expectations for the full financial year ending September 30, 2008. The company's solid performance within the international arena and buoyant business in the banking segment were cited as the principal growth drivers.

Europe stable, significant gains in Asia and Americas

In the first six months of the fiscal year, net sales generated in Europe (excluding Germany) rose by 9% year on year to €631 million (€581 million). With a share of 53% (54%), this region was once again the main contributor to total net sales within the Group. In the second quarter of fiscal 2007/2008 Europe (excluding Germany) achieved 3% growth in net sales, taking the figure to €298 million (€290 million).

In Germany, net sales fell by 7% year on year to €267 million (€286 million). Calculated on this basis, business in Germany contributed 23% (26%) to total net sales. In the second quarter of the fiscal year, net sales amounted to €129 million (€141 million) in Germany, down 9% on the figure posted a year ago.

By contrast, business in the region of Asia/Pacific/Africa recorded excellent growth rates. Calculated on the basis of U.S. dollars, net sales rose by 48%, which corresponds to growth of 32% in euro terms, taking the total to €182 million (€138 million). Thus, Asia/Pacific/Africa accounted for 15% (13%) of total net sales. At plus 49%, the second quarter also produced a sizeable increase in net sales, taking the Q2 total for this region to €101 million (€68 million).

Business in the Americas continued to generate significant net sales growth. During the reporting period, net sales calculated in U.S. dollars rose by 46%. Translated into euros, this corresponds to 29% growth, taking the figure to €103 million (€80 million). On this basis, the Americas accounted for 9% (7%) of total net sales at Group level. In the second quarter of the fiscal year, net sales surged by 39% to €53 million (€38 million).

Strong growth in banking segment, business in retail sector remains weak

Net sales in the banking segment rose by 17% to €818 million (€698 million) in the first six months of the fiscal year. In the second quarter net sales growth within the banking segment amounted to 18%.

Net sales within the retail segment were 6% down on the figure posted for the same period a year ago and totaled €365 million (€387 million). In the second quarter net sales fell by 10% year on year.

Categorized according to business stream, net sales from product business rose by 9% to €715 million in the first quarter of 2007/8 (€655 million). Net sales from solutions/services also rose by 9% to €468 million (€430million).

The share of net sales attributable to product business remained unchanged year on year at 60% of overall business. Correspondingly, the share of net sales attributable to solutions/services was 40%.

At March 31, 2008, the number of employees within the Group rose by 635 to 9,014 (Sept. 30, 2007: 8,379 employees). The increase in staffing levels includes 223 staff members employed by prosystems IT GmbH, based in Bonn. In acquiring a 51% interest retrospectively as of January 1, Wincor Nixdorf assumed operational control of the company specializing in IT services within the savings bank environment and thus strengthened its activities in the area of IT operations management performed on behalf of retail banks.

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