In response to unfavorable developments in key emerging markets, Wincor Nixdorf AG has revised its forecast issued for fiscal 2013/2014 as a whole. The Company now expects net sales to reach a level comparable to that recorded in the previous year instead of rising by the 4% it had originally projected. The forecast for operating profit, by contrast, remains unchanged, with EBITA expected to increase by 17% to €155 million. However, this projected figure now includes the proceeds from the forthcoming sale of the Company’s former production facility in Singapore. The Company decided in favor of selling the building, and it is highly probable that the process of disposal will be completed by the end of September 2014. Following the discontinuation of production activities by Wincor Nixdorf at the Singapore site, the Company had been faced with the option of selling the facility or utilizing it for other purposes.
As regards the original annual forecast for fiscal 2013/2014, high expectations had been placed in particular on growth within the emerging markets. In the meantime, however, business performance in this region has been affected by a sustained deceleration of economic momentum. Additionally, business has become more difficult in some key emerging markets by the depreciation of local currencies. However, CEO & President Eckard Heidloff views the challenging climate associated with these developments as being of a temporary nature. “Our strategy with a focus on growth in the emerging countries is and remains the right choice. After all, as the local population continues to expand and the level of prosperity grows, so too will demand for banking and retail services. We want to and, indeed, have to be in on the action.”
As anticipated at the beginning of the current fiscal year, business in the industrialized markets of Europe is progressing at a subdued rate. There is still no prospect of a sustained improvement in the investment climate for retail banks and retailers in this region, which remains Wincor Nixdorf’s largest market. “In order to cushion the effects of slower growth, we will continue to restructure our company,” said Heidloff. He sees particular potential in supporting customers with their efforts to evolve their businesses in response to the progressive digitalization of sales channels. “In combination with innovative hardware, software is increasingly establishing itself as a core element underpinning this change.”
