Wincor earnings up, revenue down in 2001/2002

PADERBORN, Germany -- German manufacturer Wincor Nixdorf says it increased earnings before interest, taxes and amortizations (EBITA) by five percent to EUR90.2 million (about $89.5 million U.S.) in the 2001/2002 financial year,compared with EUR86.0 million ($85.3 million U.S.) the year before.

At the same time, revenue fell by 8 percent to EUR1.35 billion ($1.34 billion U.S.), down from EUR1.4billion ($1.39 billion U.S.) the year before.

According to a news release, the company's positive results came even though it increased its workforce by about 4 percent to 4,618 employees (from 4,433 the year before) and investments in research and development by 20 percent to EUR62.8 million ($62.3 million U.S.). In addition, the company invested EUR21.5 million ($21.3 million U.S.) in plants and equipment.

The company's performance reflected the international economic situation, according to Karl-Heinz Stiller, Wincor's president and chief executive. "Revenue was up internationally but down (in Germany)," he said in the release.

Of the total sales of EUR1.35 billion in the 2001/2002 financial year, Wincor said that 60 percent were achieved outside Germany. However, the 5.3 percent hike in international sales did not offset a 23 percent drop in revenue in Germany. German revenue was EUR534.7 million (about $531.3 million U.S.) in the last financial year, compared to EUR692.7 million ($688.2 million U.S.) the previous year.

According to the release, a sharp decline in German ATM sales was caused by mounting pressure on public and cooperative banks to lower costs as a result of the general economic downturn.

Despite a drop in sales of ATMs to German financial institutions, Wincor Nixdorf said it won market share In several Eastern European countries, as well as in other growth markets such as China and the U.S.

In Taiwan, Wincor Nixdorf installed 1,550 ATMS in 7-Eleven stores as part of an IT modernization project in conjunction with two large domestic banks. (See related story Wincor Nixdorf scores with 7-Eleven in Taiwan)

Through its partnership with IBM, Wincor Nixdorf landed a major U.S. account for more than 1,000 ATMs to be installed in Valero gas stations/convenience stores. (See related story Wincor Nixdorf to supply 1,200 ATMs to Valero)

According to the release, Wincor expects a boost in its ATM business in 2003 through sales of more cash-recycling systems, which both dispense and collect money, in Europe.

Wincor's services and solutions activities accounted for 39 percent of total sales, up from 32 percent the year before. The company set up its own service organization and infrastructure, as well as a new partnership program, after acquiring IBM's financial self-service activities in Germany in May 2001. 

In addition to Germany, the company has service organizations with their own technicians in Switzerland, Greece, Venezuela, Morocco, China and Taiwan. The service group also was given global responsibility for spare part logistics.

Wincor Nixdorf offered support to 20 postal organizations, according to the release, and made inroads into the lottery business in North and South America, as well as Asia. The company won its first contracts with restaurants, hotels and social service groups in the hospitality sector and launched its own sales offices in select countries.

Worldwide, Wincor's sales of point-of-sale terminals grew 14 percent, with double-digit growth rates in Eastern Europe. Wincor is now the market leader in Hungry, Poland, Russia and the Czech Republic, according to the release.

A highlight of the current financial year was Wincor's Nov. 1 acquisition of the business of Banksys, a Belgian company specializing in IT services for banks. (See related story Wincor Nixdorf acquires Banksys third-party services)

In France, Wincor said it succeeded in winning the last of the major banks as a customer, while another major bank selected the company in the UK.

"We expect another difficult year in Germany but see growth potential outside the country," said Stiller, commenting on his outlook for the current financial year. "We are concentrating on comprehensive solutions that consist of consulting, hardware and software and services that optimize processes and strengthen customer loyalty at the same time."