Wincor Nixdorf reports lower net sales and profit - Group nevertheless strengthened for another difficult fiscal year

Preliminary figures for fiscal 2008/2009 (Sept. 30)

(lifePR) ( Paderborn, )
Against the backdrop of a severe economic crisis, Wincor Nixdorf emerged from the fiscal year just ended with only a moderate fall in sales, although profit contracted at a more pronounced rate. At the same time, the Company has prepared itself for a possible continuation of the difficult economic situation. Net sales for the specialist IT provider, whose core business is centered around the branch operations of banks and retailers, fell 3% in fiscal 2008/2009 to end the year at €2,250 million (2007/2008: €2,319 million). With operating profit (EBITA) down 13% at €179 million (€206 million), profit for the period ended the year 10% lower at €114 million (€127 million). According to President & Chief Executive Officer Eckard Heidloff, the results demonstrate that Wincor Nixdorf has responded proactively to an economic crisis whose impact was more widespread that initially predicted - an important point, he believes, since in many countries economic recovery is still likely to be slow and unsteady. "Thanks to the successful management of our solutions portfolio and costs over recent months, we have been able to adapt to the major changes in the wider economy," he explained. Mr. Heidloff also pointed to the Company's stronger balance sheet, with an improved equity ratio and lower net debt. "Wincor Nixdorf has made a steady start to the new fiscal year," he continued, "but once again we don't expect it to be easy."

In the view of the President & CEO, Wincor Nixdorf showed flexibility and sound judgment during the crisis, for example by maintaining a high level of investment in research and development despite an emphasis on efficient cost management. Furthermore, the Company adapted itself to the various patterns of investment displayed by its customers. Against this background, the Company achieved an increase in net sales of Software/Services by 5%. This helped to stabilize the business as a whole, although without making up entirely for a 9% decline in the Hardware business. As a further example of the Company's ability to adapt successfully to market conditions, Heidloff cited the Company's performance in Germany, where net sales rose 7% despite the economic downturn.

At the start of fiscal 2009/2010, Wincor Nixdorf does not anticipate any fundamental improvement in the economic situation as regards the market for IT solutions tailored to retail banks and retailers. "Given the challenges facing us in the first half compared with the same period last year, we expect to see another decline in net sales and operating profit for the fiscal year as a whole, although it should be no greater than in the preceding year," he observes. In the medium term, however, given the continued pressure on companies in both sectors to be more competitive, he believes there will be a return to higher levels of investment spending and this will create new business opportunities for Wincor Nixdorf. Accordingly, he noted, the Company would be maintaining the medium-term targets it established on flotation of achieving average annual increases of 6% and 8% in net sales and EBITA respectively. "We remain committed to achieving this level of growth even if the economic situation remains tough for a while to come. Thanks to the measures we have put in place, we are confident that we can emerge from the crisis in a stronger position," concluded Mr. Heidloff.

Regional performance inconsistent

Results from the different regions in the Group were inconsistent. In Germany, total net sales rose 7% to around €627million (€588 million). As a result, the country's contribution to total Group sales increased to 28% (25%).

In Europe (excluding Germany), net sales were down 12% to €1,064 million (€1,215 million). At 47% (53%), Europe (excluding Germany) accounted for the largest share of total Group sales.

Results in the Asia/Pacific/Africa region ended the fiscal year on a positive note. Net sales recorded a substantial 9% rise to €359 million (€329 million), taking the region's share of total Group sales to 16% (14%).

Net sales in the Americas increased by 7% to €200 million (€187million), with the result that the region's share of total Group sales rose to 9% (8%).

Decline in net sales in the Banking and the Retail segment

In the reporting year, net sales in the Banking segment were 1% down on the previous year (€1,547 million) at €1,532 million. Net sales in the Retail segment reached €718 million, down 7% on the previous year (€772 million).

An analysis by business stream shows a 9% decline of overall revenue from the Hardware business in the year under review to €1,224 million (€1,346 million). As a result, the contribution to total Group sales made by the Hardware business ended the fiscal year down at 54% (58%). Total net sales for Software/Services rose 5% to €1,026 million (€973 million). Accordingly, the Software/Services business increased its contribution to total Group sales in the reporting year to 46% (42%).

R&D ratio slightly increased

In fiscal 2008/2009, the Group's global spending on research and development was 2% lower at €103 million (€105 million). The R&D ratio rose 0.1 percentage points to 4.6% compared to last year's figure of 4.5%. The Group's total R&D headcount on the reporting date was 956 (945), equivalent to 10% of the entire workforce.

Headcount slightly decreased

At the end of the reporting year on September 30, 2009, the global headcount was down 9,381 on the previous year at 79 (9,460). In total, the Group's headcount outside Germany fell by 71 to 5,193 (5,264). The headcount in Germany was largely unchanged on the previous year at 4,188 (4,196).

Dividend proposal of €1.85 per qualifying share

Wincor Nixdorf remains committed to its existing dividend policy: as regards the dividend for fiscal 2008/2009, profit before charges arising from the carve-out will again form the basis for dividend calculations. The aim is to distribute around 50% of this amount to shareholders in the form of a dividend. For the reporting period, this corresponds to a dividend of €1.85 per qualifying share, a decrease of 13% on the dividend of €2.13 paid out in the preceding year.

For further information about fiscal 2008/2009, please refer to the detailed document published today by Wincor Nixdorf AG as part of its annual press conference in Düsseldorf. The PDF file can be downloaded from (Investor Relations / Reports & Financial Data).

This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Wincor Nixdorf AG to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence 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 forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party 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.
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