Wincor Nixdorf AG closed the first nine months of the 2011/2012 fiscal year with a two percent drop in net sales and a 42 percent drop in operating profit (EBITA), compared with the same period in the previous year.
Consolidated net sales fell in the reporting period to €1,704 million ($2.09 million) from €1,744 million ($2.14 million) in the previous year. The company's banking segment recorded a decline in net sales; the retail segment posted a modest gain. At €69 million ($8.47 million), EBITA was down from last year’s figure of €119 million, ($146.13 million) while net profit for the period declined by 45 percent to €42 million ($51.57 million).
After specifying its profit forecast for the current fiscal year, the company sees its annual targets confirmed by these figures, said Wincor Nixdorf CEO Eckard Heidloff. "Both net sales and operating profit are developing in line with our expectations and are heading toward the targets we stated for the year as a whole."
Wincor Nixdorf anticipates net sales performance for the current 2011/2012 fiscal year at the previous year’s level, while operating profit (EBITA) is expected to come in at around €100 million ($122.80 million). Costs of around €40 million ($49.12 million) for an initiated restructuring program have been factored in.
According to Heidloff, the sovereign debt crisis in the Eurozone is continuing to cause Wincor Nixdorf problems. "The associated uncertainty is having a direct impact on our European business, which accounts for 75 percent of our total sales," he said.
In Heidloff's view, it is undeniable that banks are delaying larger-scale investments. The company is stepping up its efforts to expand in emerging countries, not least in response to this situation. To complement the expansion of production and service capacities in the Asia/Pacific region, several projects have also been initiated to expand development resources specifically for emerging countries.
Wincor Nixdorf is continuing to implement the restructuring program unveiled at the end of the fiscal half-year. The focus of this program is on aligning corporate performance to changing market requirements around the world. Leaner management structures and standardization of processes should also contribute to cost reductions across the group.
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