News

Wincor first half earnings mixed; full-year outlook confirmed

May 9, 2014

Wincor Nixdorf AG finished out the first six months of its fiscal year 2013/2014 with a decline in net sales and growth in operating profit.

Net sales fell by 3 percent to €1,230 million/$1.70 billion (previous year: €1,266 million/$1.75 billion). Operating profit rose by 3 percent to €68 million/$94 million (€66 million/$91 million). The EBITA margin increased by 0.3 percentage points to 5.5 percent (5.2 percent).

Profit for the first six months of the fiscal year grew by 2 percent to €45 million/$62 million (€44 million/$61 million). In the outlook for fiscal 2013/2014 as a whole Wincor Nixdorf reaffirmed its projection of 4 percent growth in net sales and a 17 percent rise in EBITA to €155 million/$215 million.

As currencies of some key emerging markets depreciated against the euro, customers' local investment budgets declined, leading to lower revenues. Still, the company considers its forecast to be attainable.

"We remain committed to expanding our activities in the emerging markets, despite the fact that business has become more challenging there for Wincor Nixdorf," said Wincor president and CEO Eckard Heidloff.

Net sales in the banking segment fell 6 percent to €778 million/$1.07 billion (€828 million/$1.14 billion) in the first half of fiscal 2013/2014. In the second quarter, net sales were down 1 percent year on year.

Net sales in the retail segment rose by 3 percent in the first six months of the fiscal year, reaching €452 million/$626 million (€438 million/$607 million). In the second quarter, net sales were 1 percent lower compared to the same period a year ago.

Net sales attributable to the hardware business fell by 7 percent year on year to €575 million/$796 million (€616 million/$853 million). In the software and services business, net sales were up 1 percent at €655 million/$907 million (€650 million/$900 million).