News

Wincor's profit jumps 19% in 3Q

August 23, 2006

PADERBORN, Germany - Wincor Nixdorf AG reported a 19 percent increase in profit for the third quarter of the year, up from €36 million (U.S. $46.1 million) during the same period in fiscal year 2005-2006 to €43 million (U.S. $55 million). Net sales for the quarter jumped 16 percent, from €424 million (U.S. $543 million) to €494 million (U.S. $632 million).

Wincor attributed that growth in part to a greater demand from the banking side for high-end intelligent-deposit solutions, which include cash and check authentication and posting as well as deposits at banking self-service channels.

On the retail side, a higher demand for automated reverse-vending is having an impact, the company said.

For the year, net sales are up 13 percent, from €1.27 billion (U.S. $1.62 billion) to €1.4 billion (U.S. $1.8 billion). Profit for the year is up 45 percent from last year to €58 million (U.S. $74.3 million).

"Our shareholders can take special pleasure in this sizeable leap in net profit for the period," said Wincor chief executive Karl-Heinz Stiller.

Stiller said he was pleased that the company successfully reduced volatility from quarter to quarter, and he expects the trend to continue.

"Our current performance underpins the full-year forecast we raised back in April," he said. "We're expecting those figures to mark the lower end of what we are going to achieve, i.e. net sales up at least 10 percent and EBITA up at least 15 percent."

According to a July 27 Reuters story, Wincor's better-than-expected earnings are pushing it to consider acquisitions in the United States. The company is looking at small-sized buyouts to boost its market share in the United States.

"We are too small in the United States to play a big role," Stiller told Reuters in an interview. "That's why we are planning smaller acquisitions."

Wincor has just 3 percent to 4 percent of the U.S. market, and Stiller said the company has the ability to gain a significant share within the next three to five years.

Wincor's net sales in America increased 11 percent for the year from FY '05-'06, with strong growth reflected in Latin America. Wincor's business share in the United States remained steady at 8 percent.

Global perspective

Europe, excluding Germany, continues to be the company's strongest market, accounting for its largest share of business at 52 percent, a 2 percent drop from last year. Net sales for the year in Europe hit €751 million (U.S. $962.4 million), up 10 percent from €682 million (U.S. $874 million). During the quarter, net sales jumped 18 percent, from €217 million (U.S. $278 million) to €255 million (U.S. $327 million).

Net sales for the year in Germany climbed 16 percent to €392 million (U.S. $502.3 million); 3Q net sales were up 19 percent, from €116 million (U.S. $148.6 million) in FY '05-'06 to €138 million (U.S. $176.8 million).

Germany's share of Wincor's overall business remains 27 percent.

In Asia-Pacific and Africa, net sales for the year are up 24 percent to €180 million (U.S. $230.6 million). During the third quarter net sales jumped 16 percent.

Strong banking and retail growth

Net sales for the year in the Wincor's banking segment are up 19 percent. In the retail segment, net sales are up 6 percent.

Wincor's service-oriented solutions and business increased 10 percent during 3Q. Wincor has acquired the cash-in-transit business of Heros Netherlands to strengthen its local service capacities.

Wincor's number of service-segment employees also has increased, up 631, to 7,568, from Sept. 30, 2005.