Paderborn, Germany-based Wincor Nixdorf AG says the economic downturn has impacted its business, but not so severely. The company today released year-end results for fiscal year 2008/2009, with only a slight decline in sales.
The company also says it has prepared itself for a possible continuation of the economic downturn.
Wincor's net sales for the year were down 3 percent from FY 2007/2008, totaling â‚¬2.25 million (U.S. $3.37 million) compared with â‚¬2.32 million (U.S. $3.48 million) the previous year. The company's net income was down 10 percent year over year, totaling â‚¬114 million (U.S. $170.9 million), down from â‚¬127 million (U.S. $190.5 million).
Wincor Nixdorf president and chief executive Eckard Heidloff says the earnings are positive, and show that the company responded proactively to the economic crisis.
"Thanks to the successful management of our solutions portfolio and costs over recent months, we have been able to adapt to the major changes in the wider economy," he said. "Wincor Nixdorf has made a steady start to the new fiscal year; but once again, we don't expect it to be easy." Wincor Nixdorf saw a 5 percent increase in net sales of software and services, while hardware saw a 9 percent decline. "Given the challenges facing us in the first half compared with the same period last year, we expect to see another decline in net sales and operating profit for the fiscal year as a whole, although it should be no greater than in the preceding year," Heidloff said.
As of Sept. 30, the company's global workforce totaled 9,381 employees, a 70-employee reduction from the previous year.
But Heidloff says continued pressure to be more competitive will push Wincor to higher levels of investment spending, creating new business opportunities for the company. He says Wincor will maintain medium-term targets of achieving average annual increases of 6 percent in net sales and 8 percent in EBITA.
"We remain committed to achieving this level of growth even if the economic situation remains tough for a while to come. Thanks to the measures we have put in place, we are confident that we can emerge from the crisis in a stronger position," Heidloff said. Regional performance inconsistent
In Germany, net sales were up 7 percent, while overall European net sales were down 12 percent. Europe, excluding Germany, accounts for 47 percent of Wincor's overall net sales.
In Asia-Pacific and Africa net sales were up 9 percent and accounted for 16 percent of the company's net sales.
Net sales in the Americas also increased, up 7 percent from last year. The Americas region now accounts for 9 percent of the company's net sales, up from 8 percent last year.
In the banking segment, net sales dropped 1 percent, while net sales in the retail segment were down 7 percent. Revenue from hardware sales was down 9 percent.