Wincor Nixdorf AG closed the first six months of fiscal year 2008/2009 with a 4 percent increase in net sales and a 2 percent increase in operating profit (EBITA).
Wincor Nixdorf AG closed the first six months of fiscal year 2008/2009 with a 4 percent increase in net sales and a 2 percent increase in operating profit (EBITA).
Net sales for the first half of the year came in at €1.23 billion (U.S. $1.6 billion), up from the €1.18 billion (U.S. $1.54 billion) reported for the same period last year. Profits for the period were up 5 percent, totaling €64 million (U.S. $83.5 million).
Net sales for the second quarter of the year totaled €588 million (U.S. $727.8 million), up slightly from the €581 million (U.S. $757.7 million) reported last year.
“This slowdown shows that we too are feeling the impact of the economic crisis," said Wincor Nixdorf president and chief executive Eckard Heidloff.
Heidloff added that it was still not clear how extensive the effects of the crisis would be, nor how long the crisis would ultimately last. He also emphasized that Wincor Nixdorf would continue to strive to exploit opportunities in the market.
"On the basis of what we know up to now, we are holding firm to our forecast that our net sales and operating profit will be roughly on a par with the previous year,” he said.
The ability to achieve that goal, the company says, will depend on the impact the economic crisis has on retailers and retail banks. Wincor Nixdorf says it has noticed a declining willingness on the part of retailers and banks to invest as a result of the crisis, but Wincor says its own portfolio of software and services is stabilizing the company’s business. Wincor also says it is well positioned to help its customers save money through solutions designed to optimize processes and reduce costs.
The company says it is focused on further development of its solution portfolio as well as internal cost reductions.
Regionally, Wincor Nixdorf's sales in Germany for the first half of the year were up 26 percent, totaling €336 million (U.S. $438 million). Business in Germany accounted for 27 percent of the company's total sales. And Europe overall contributed the largest share of total sales, accounting for 47 percent of the company's sales, despite an 18 percent dip in net sales during the second quarter.
Asia-Pacific and Africa posted an increase of 20 percent in sales, totaling €219 million (U.S. $285.7 million), up from the €182 million (U.S. $237.5 million) reported last year. Asia-Pacific and Africa accounted for 18 percent of total sales, up from the 15 percent of total sales it accounted for during the first half of FY 2007/2008. Net sales for 2Q were up 17 percent.
Business in the Americas dropped by 1 percent, totaling €102 million (U.S. $133 million). The Americas' contribution to total sales fell to 8 percent from the same period last year and net sales for 2Q were down 17 percent.
Banking and retail business both made contributions to growth. Net sales in the banking segment were up by 6 percent, €866 million (U.S. $1.13 million), but for 2Q, banking sales were down 1 percent.
For the retail segment, sales for the first half of the year were up 1 percent, and for 2Q, the sales were up 6 percent, totaling €178 million (U.S. $232.5 million).
Hardware sales fell by 1 percent while software/services sales were up 12 percent. Wincor's hardware business accounted for 58 percent of total sales; software/services accounted for 42 percent.
The company's number of employees also dropped by about 100 and now totals 9,364.