Successful first half - Wincor Nixdorf raises its full-year forecast for fiscal year 2005/2006
After experiencing double-digit growth in net sales and operating profit (EBITA) in the first six months of the current fiscal year, Wincor Nixdorf has raised its forecast for the full year. “We are still seeing a favorable overall environment and good prospects for more growth. This is also being driven by good trading in Germany. As a result, we are now predicting that net sales will grow by 10% rather than 8%, and operating profit by 15% instead of 10%”, emphasized President & CEO Karl-Heinz Stiller.
The first six months saw Group net sales improve 12% to € 943 million (€ 841 million). Operating profit before amortization of product know-how (EBITA) was up 19% to € 75 million (€ 63 million), producing an improved return on sales of 8.0% (7.5%). Q2 net sales were € 455 million, 18% ahead of the same figure last year (€ 386 million). In the first half of the year, net profit for the period before carve-out expenses climbed 30% to € 43 million (€ 33 million). Headcount increased to 7,445 as of March 31, 2006 (6,937 as of September 30, 2005).
Strong trading in Germany and net sales growth in Asia and the Americas ahead of market performance
Having seen a fairly long period of stagnation, the German business has continued to perform well, with net sales up 14% at € 253 million (€ 221 million), making a key contribution to overall growth within the Group. The business in Germany contributed share of 27%, up slightly on last year’s figure of 26%. German net sales in Q2 grew by 23%.
In Europe (excl. Germany) net sales during the first six months grew 7% to € 496 million (€ 465 million). At 53% (55%), they continue to contribute the largest share of total Group net sales. Net sales in Europe were up 13% in Q2.
First-half trading in Asia and the Americas was again ahead of the market, with net sales in the Americas 22% ahead at € 71 million (€ 58 million), or 10% in US dollar terms. The Americas’ share of total net sales remained unchanged from last year at 7%.
In Asia-Pacific & Africa, net sales during the first six months moved up 27% to € 123 million (€ 97 million), or 16% when expressed in US dollars, meaning that this region is contributing 13% of total net sales (12%).
Net sales growth in both banking and retail segment
First-half net sales in the banking segment increased by 17% to € 568 million (€ 485 million), with Q2 growth of 23% in this segment. Net sales in the retail segment were up 5% to € 375 million (€ 356 million). Net sales growth in Q2 in this segment was 11%.
Strong product trading providing a foundation for growing services business
Split by business stream, product net sales in the first half of the year were 15% ahead of the same figure last year, reaching € 565 million (€ 493 million). The Solutions & Services business produced net sales 9% higher at € 378 million (€ 348 million), with the overall net sales split shifting in favor of the product business which was 60% (59%) against a Solutions & Services share of 40% (41%). In Q2, product net sales were up 22% to € 268 million (€ 219 million). Net sales of Solutions & Services climbed 12% to € 187 million (€ 167 million).
The Company regards itself as well positioned, concentrating as it does on the changes underway in the branch and store businesses of the banking and retail industries. Recent successes in the area of reverse vending systems and intelligent solutions for cash and check deposits confirm the potential available here in terms of automation and standardization of business processes. The Company believes this will continue to be reflected in profitable growth. Karl-Heinz Stiller commented, “Innovative capability and reliability remain values in which our customers and shareholders can place their trust.”