ATM manufacturer Wincor Nixdorf AG Monday reported a lower profit and reduced net sales for its fiscal 2010 first quarter ended Dec. 31. Eckard Heidloff, the company’s president and CEO, warned in a statement the slowed global economy will cause further declines for the entire fiscal year.
“In the short term, at least, we expect the worldwide environment to remain challenging,” he said. “Developments in the market and in our business are still difficult to predict.”
The Paderborn, Germany-based technology company and the world’s second-largest ATM manufacturer based on annual shipments reported a first-quarter profit of 33 million euros (US$46.7 million), down 5.7% from 35 million euros during the same period a year earlier. Net sales were 607 million euros, down 6% from 646 million euros.
Despite the drop in profit and sales, Wincor Nixdorf’s first-quarter sales were better than expected in most parts of the world, notes Gil Luria, an analyst with Wedbush Securities in Los Angeles, citing sales increases in Germany, the Asia and Africa region, and the Americas. Wincor Nixdorf’s U.S. market share is expanding because the company may be selling ATMs to smaller banks in addition to national banks, Luria says.
“There is a strong sense that the reason Wincor Nixdorf is growing so fast in the United States is because it is selling machines to small banks, while NCR’s and Diebold’s market shares are shrinking,” Luria says.
Wincor Nixdorf reported net sales for the quarter in its banking segment of 419 million euros, down 8.1% from 456 million euros during the same period a year earlier. Retail sales were down 1.1%, to 188 million euros from 190 million euros.
Net sales in the Americas totaled 79 million euros, up 36.2% from 58 million euros. In the Africa and Asia/Pacific regions, net sales were 98 million euros, down 2% from 100 million euros. Net sales in Germany rose 14.8%, to 178 million euros from 155 million euros. Net sales in Europe, excluding Germany, dropped 24.3%, to 252 million euros from 333 million euros.
Net sales for Wincor Nixdorf’s hardware business were 326 million euros, down 12.6% from 373 million euros. Net sales for software services were 281 million euros, up 2.9% from 273 million euros.
