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Wincor Nixdorf reports 1 percent drop in 2010 net sales

November 10, 2010

Wincor Nixdorf AG recently reported lower 2010 net sales compared with 2009.

The Paderborn, Germany-based ATM manufacturer and technology company reported 2010 net sales of 2,239 million euros (U.S.$3,068 billion) compared with 2,250 million euros (U.S.$3,089 billion) in 2009. Net sales were down 1 percent in U.S. dollars, said company officials. Wincor Nixdorf's 2010 fiscal year ended September 30.

Wincor Nixdorf, the world's second-largest ATM manufacturer based on annual shipments, reported an operating profit of 162 million euros, down 9 percent compared with 179 million euros in 2009. The company recorded a profit of 106 million euros, down 7 percent compared with 114 million euros last year. Earnings before the deduction of interest, taxes and amortization (EBITDA) was 223 million euros, down 5 percent compared with 235 million euros in 2009.

On a regional basis, net sales in Germany rose 3 percent to 644 million euros in 2010 compared with 627 million euros in 2009. In Europe, excluding Germany, net sales dropped 10 percent to 959 million euros from 1,064 million euros last year. Net sales in Asia/Pacific/Africa were down 8 percent to 332 million euros compared with 359 million euros in 2009.

The Americas, however, were a bright spot. Net sales increased 52 percent to 304 million euros in 2010 compared with 200 million euros in 2009.

Gil B. Luria, vice president of Equity Research, Financial Technology at Wedbush Securities, said Wincor Nixdorf's momentum in the U.S. is likely to continue past 2010.

"Although sales of 76 million euros in the Americas beat our 65 million euros expectation, we believe that the completion of deposit automation ATM rollouts at [JPMorgan] Chase and Wells Fargo this year will pressure results in 2011," Luria wrote in his analyst's report.