Wincor Nixdorf AG ended fiscal 2011/2012 on Sept. 30 with a slight year-over-year increase in net sales, but a significant downturn in its operating profit.
The company generated net sales of €2,343 million ($1.84 billion), 1 percent up from €2,328 million for fiscal 2010/2011. The company's operating profit was down 38 percent at €101 million ($79 million), compared with €162 million ($127 million) for the previous fiscal.
The operating profit figure includes costs of about €40 million ($31 million) linked to a restructuring program. Profit for the period fell by 42 percent to €63 million ($50 million) in fiscal 2011/2012, compared with €108 million ($84 million) in 2010/2011. The proposed dividend is €1.05 (83 cents), compared with €1.70 ($1.34) in the previous fiscal year.
In fiscal year 2012/2013, Wincor Nixdorf expects to again feel the impact of weak demand in Europe. While the company is making progress with its restructuring measures, the full effects of the project have not yet been realized.
"The aim of our restructuring strategy is to work our way through a sustained process of change as a way of enhancing and strengthening our competitive position at a global level," said Wincor Nixdorf President and CEO Eckard Heidloff.
In its outlook for the current fiscal year, Wincor Nixdorf anticipates a modest improvement in net sales of around two percent, while EBITA is expected to rise to approximately €120 million; this figure takes into account costs of €20 million associated with the restructuring measures.
Restructuring measures already for the new fixcal years mainly relate to research and development, new global supply and manufacturing networks, as well as the provision of solutions to customers. "The main thrust of our expansion strategy will be directed at the emerging markets," said Heidloff. "We aim to increase our share of growth in these countries and at the same time compensate for the difficult market situation currently seen in Europe."
Wincor Nixdorf expects business in the emerging countries to grow much faster than in its established markets. With regard to its domestic European market, currently plagued by uncertainty, the company believes that banks and retailers will invest capital in order to consolidate and streamline their operations. This opens up further business opportunities for the company.
The restructuring program will lead to a further overall reduction in the size of the workforce in fiscal 2012/2013, although employee numbers in fast-growing areas such as Software/Services will increase. In order to support business expansion in growth markets, the main focus of additional recruitment will be outside Germany and Europe.
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