News
Wincor Nixdorf predicts stronger sales from Europe
January 26, 2011
PADERBORN, Germany — Wincor Nixdorf AG expects stronger results this year from Europe because of the improving economy, Eckard Heidloff, the manufacturer’s president and CEO, said at Wincor World 2011, the company’s annual trade show and conference.
“Europe is back on course,” Heidloff told journalists during a news conference attended by a record 100 journalists from 40 countries. The countries included Russia, Italy, the United States, India, Australia and the United Kingdom.
He cautioned, however, that the economy is recovering unevenly throughout Europe. Some Eastern and Western European countries lag others in their recovery. Some banks in those countries are ahead of their colleagues in other countries in making new IT investments.
Gil Luria, senior vice president of Equity Research and Financial Technology at Wedbush Securities in Los Angeles, agreed with Heidloff’s assessment.
“The characterization of a broad, yet uneven, recovery jives well with the commentary from the two U.S.-based companies NCR and Diebold,” Luria said. “While countries like Russia and the U.K. may be ready to recover that may or may not be the case for other countries such as Spain.”
Europe is an extremely important market for Wincor Nixdorf, said Andreas Bruck, vice president of Corporate Communications for Wincor Nixdorf AG.
At the end of Wincor Nixdorf’s 2010 fiscal year, which ended Sept. 30, 2010, 72 percent of the company’s total net sales of 2.239 billion euros (U.S. $3.1 billion) came from Europe, according to the company’s 2010 annual report. Twenty nine percent of Wincor Nixdorf’s regional sales came from Germany, and 43 percent came from the rest of Europe.
“If the European market is weak, the company does not do as well,” said Bruck.
Central and Eastern Europe are growth markets. Western Europe is primarily an ATM replacement market that supports innovative products. By having a strong presence in Europe, Wincor Nixdorf can aggressively pursue markets in other parts of the world, Bruck said. Twenty eight percent of Wincor Nixdorf’s sales come from the Americas and Asia Pacific/Africa.
Heidloff explained that ATM shipments this year are coming from a very low base in Europe because companies decided not to replace their ATMs after a normal 10-year cycle.
"ATM owners kept the machines in place an additional one to two years and now they want to replace them with newer models," he said.
Wincor Nixdorf expects to achieve 6 percent revenue growth in 2011, and 8 percent EBITA (earnings before interest, taxes, depreciation and amortization), Heidloff said.
Included In This Story
Diebold Nixdorf
As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.
