Driven by sagging revenues in China and Russia, German-based Wincor Nixdorf is undertaking a major restructuring after posting a 65% decline in net profits for the first quarter, compared to one-year ago. The Company will cut its workforce by 12% and may take it cashless business to an IPO.
Wincor Nixdorf says it is is addressing the issue of deteriorating business conditions in key emerging markets such as Russia and China as well as the sluggish recovery in investment spending throughout Europe. Another factor necessitating realignment is the continuing erosion of prices in the company’s Hardware business.
This can no longer be offset in the long term, due in part to insufficient economies of scale. At the same time, the trend towards digitization embraced by both banks and retailers has added to the momentum of change, with software and high-end service solutions playing a prominent role and opening up opportunities for growth at Wincor Nixdorf. The
The Company says it is looking to exploit the market potential of Software and IT Services to an even greater extent, as well as making its Hardware business more cost-effective.
Fast-track expansion of the Software business is to be achieved principally through a combination of additional investment and restructuring of existing capacities at a staffing and operational level. Additionally, the company will be aiming to make acquisitions within the Software business.
Q1/14: 17 million euros
Q2/14: 16 million euros
Q3/14: 19 million euros
Q4/14: 25 million euros
Q1/15: 6 million euros
Source: Wincor Nixdorf
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