Germany’s Wincor Nixdorf reports fiscal year net sales totaled €2,427 million, down 2% on the prior-year figure. Talks of a merger with U.S.-based Diebold also continue on track.
Operating profit before restructuring measures amounted to €102 million (€135 million without exceptional items). After taking restructuring measures into account, EBITA was €22 million, reflecting the €80 million incurred as expenses under the restructuring program initiated during the fiscal year just ended. Thus, the Group’s profit for fiscal 2014/2015 stood at €8 million (€104 million).
Against the backdrop of ongoing activities to restructure and reposition the Group, Wincor Nixdorf considers itself well placed to achieve a turnaround in its business performance in the current fiscal year 2015/2016. Wincor Nixdorf expects to generate slight growth in net sales, while operating profit is predicted to rise substantially by an estimated 50% to €150 million. As the amount still outstanding with regard to restructuring expenses is expected to be €40 million for the fiscal year, Wincor Nixdorf anticipates that EBITA after restructuring expenses will stand at €110 million.
Wincor Nixdorf Aktiengesellschaft and Diebold, Incorporated, with registered office in North Canton, Ohio, United States of America, are currently in discussions regarding a potential business combination.
On 24 September 2015 the companies entered into a term sheet regarding the key parameters of a potential strategic business combination, to be implemented through a public tender offer for all issued and outstanding shares of Wincor Aktiengesellschaft. These discussions are ongoing.
Over the course of the current fiscal year 2015/2016 Wincor Nixdorf will be looking to make visible progress in the fields targeted for strategic growth, in addition to pursuing substantial cost savings on top of those already achieved. In total, the company expects a positive impact on earnings equivalent to €50 million in 2015/2016 as a result of these efforts.
Among the key factors generating forward momentum are measures implemented swiftly by Wincor Nixdorf – and already completed – with a view to reducing costs and raising efficiency levels. Software and software-related services are also set to generate further substantial increases in Group earnings.
Q2/14: 16 million euros
Q3/14: 19 million euros
Q4/14: 25 million euros
Q1/15: 6 million euros
Q2/15: -6 million euros
Q3/15: -5 million euros
Source: Wincor Nixdorf
For data, background and forecasts on Wincor Nixdorf: Search CardWeb.com’s CardFlash® Library of more than 58,000 archived articles; Access CardWeb.com’s CardData® for current and historical Performance, Portfolios, Profiles, etc. Visit RAM Research® (ramresearch.com) for quarterly and annual forecasts covering more than 150 metrics. [complimentary or deeply discounted access to CardWeb.com subscribers].
Additional database resources include CardWeb.com’s CardExecs® – comings & goings of payments movers & shakers; CardWeb.com’s CardWatch® – ears & eyes on marketing globally (57K items); and CardWeb.com’s CardPixes® – form & function of card design (7K items).