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Restructuring nets 'substantial' earnings growth for Wincor Nixdorf

May 6, 2016

Wincor Nixdorf AG has recorded "substantial" revenue gains through the first six months of the current fiscal year, according to the company's recent earnings report.

Net sales increased 8 percent to 1.31 billion euros/$1.5 billion (previous year: 1.21 billion euros/$1.38 billion).

"Our transformation program has exceeded expectations. We have been advancing at a faster rate than anticipated, while the costs incurred have been lower than projected," said Wincor Nixdorf CEO and President Eckard Heidloff.

Profit for the period, which takes into account transaction costs incurred to date in the business combination between Diebold Inc and Wincor Nixdorf, increased 103 percent to 63 million euros/$72 million (31 million euros/$35 million).

In line with an improved forecast issued at the end of the first quarter, the company has now upgraded its outlook and anticipates a moderate increase in net sales. The previous outlook was for a slight increase over the prior year.

The banking segment saw net sales fall 1 percent to 778 million euros/$889 million in the first six months of the fiscal year (783 million euros/$895 million).

Net sales generated in the retail segment rose 25 percent in the first half to 531 million euros/$607 (425 million euros/$486 million).

In Germany, net sales for the first half of the fiscal year rose 2 percent to 282 million euros/$322 million (277 million euros/$317 million), despite a downturn of 8 percent in the second quarter.

At 613 million euros/$701 million (553 million euros/$632 million), Europe (excluding Germany) saw a year-on-year increase in net sales of 11 percent in the first half of the current fiscal year.

Asia/Pacific/Africa saw net sales expand to 239 million euros/$273 million in the first six months of the current fiscal year (234 million euros/$267 million), a 2 percent increase on the prior-year.

In U.S. dollars, the Americas recorded a 26 percent increase in net sales during the first half of the fiscal year. Translated into euros, this is equivalent to growth of 22 percent to 175 million euros/$200 million (144 million euros/$165 million).

The group managed to lift net sales attributable to hardware 15 percent year on year to 578 million euros/$661 million (504 million euros/$576 million).

In the software and services business, net sales were up 4 percent at 731 million euros/$835 million (704 million euros/$805 million).

The share of total net sales generated in the first half by the hardware business rose to 44 percent (42 percent), while software and services fell to 56 percent (58 percent).