Net sales and profit up in first quarter / Wincor Nixdorf anticipates gradual market recovery / Outlook unchanged
Net sales and operating profit (EBITA) at Wincor Nixdorf AG both rose by 4% in the first quarter of fiscal 2010/2011 compared with the same period in the preceding year. Group net sales for the IT company, which specializes in the branch operations of banks and retailers, ended the first three months of the fiscal year on €634 million (previous year: €607 million). EBITA rose to €51 million (€49 million), while net profit for the period ended the first quarter up 3% at €34 million (€33 million). “What we are seeing is confirmation of our own forecast of a gradual, albeit slow, improvement in the business environment in our markets,” observed the company's President and CEO Eckard Heidloff with regard to the start of the fiscal year. Over the year 2010/2011 as a whole, Wincor Nixdorf remains committed to its target of 6 percent growth in net sales and 8 percent in operating profit. Whether these targets are attainable will depend crucially on the speed with which the market recovers in the coming months.
In the company's own view, regional performance in the months ahead will again decouple from economic developments in individual countries. In Europe (excluding Germany), for example, Wincor Nixdorf anticipates positive momentum for growth despite a rather modest and slow economic recovery. Signs of a gradual recovery in the global Hardware business are already emerging, and the company expects to see continued growth in Software/Services. Both the Banking and Retail segments will benefit from the recovery in the form of improved revenue. “Wincor Nixdorf is well prepared for taking advantage of the continuing recovery in demand,” noted Heidloff. As in the past, in order to support business growth, Wincor Nixdorf is maintaining a high level of spending on research and development. At the same time, Wincor Nixdorf is making further efforts to improve its cost structure and margin situation.
First quarter with growth in net sales in both segments - regional performance remains uneven
Net sales in the Banking segment ended the first quarter 4% higher at €435 million (€419 million). First-quarter net sales generated in the Retail segment showed a year-on-year increase of 6% to €199 million (€188 million).
Net sales in Germany for the first three months of the current fiscal year fell by 6% to €167 million (€178 million), thus accounting for 26% (29%) of total Group net sales. At €293 million (€252 million), net sales in Europe (excluding Germany) showed an increase of 16% in the first quarter. This region contributed the largest part of total Group net sales at 46% (42%). Net sales in the Asia/Pacific/Africa region ended the quarter up 10% at €108 million (€98 million), taking the region’s share of total Group net sales to 17% (16%). In U.S. dollars, the Americas recorded a 24% decline in net sales over the period, equivalent to a reduction in euro terms of 16% to €66 million (€79 million), thus reducing the region’s share of total Group net sales to 11% (13%).
Growth in net sales of Hardware and Software/Services
Net sales attributable to the Hardware business rose by 2% to €333 million (€326 million) in the first quarter of the current fiscal year. Net sales from Software/Services showed a 7% rise to €301 million (€281 million). As a result, the share of total Group net sales attributable to the Hardware business stood at 53% (54%), while the share achieved by Software/Services climbed to 47% (46%).
For further details of results, please see the Group’s Three-Month Interim Report 2010/2011. The PDF file and online report can be found at http://www.wincor-nixdorf.com under the headings Investor Relations / Reports & Financial Data.