Wincor Nixdorf AG April 28 reported a lower profit on reduced sales for the first half of fiscal 2010. However, second-quarter sales in the Americas exceeded one financial analyst’s expectations for the ATM maker.
The Paderborn, Germany-based company reported net income of 60 million euros (US$79.16 million) for the six-month period ended March 31, down 6.3% from 64 million euros during the same period last year. The company’s fiscal year ends Sept. 30.
Sales declined 5.7%, to 1.16 billion euros from 1.23 billion euros. Hardware sales declined 14%, to 608 million euros from 711 million euros. Software sales, however, increased to 553 million euros, up 6% from 523 million euros.
Earnings before interest taxes and amortization were 88 million euros, down 14.6% from 103 million euros, company officials said in a statement.
Wincor Nixdorf anticipates further declines in net sales and EBITA for the remainder of the fiscal year, but not by as a sharp of a decline as the previous year, Eckard Heidloff, the company’s president and CEO, said in the statement. “We have prepared ourselves for continued sluggishness within our markets,” he said.
The ATM maker’s market share in the United States is growing, however, Gil Luria, an analyst with Wedbush Securities in Los Angeles, wrote in an analyst report. Wincor Nixdorf is expanding its market share into Tier 2 and Tier 3 banks after capturing market share from Tier 1 banks JPMorgan Chase & Co. and Wells Fargo & Co., he said.
Wincor Nixdorf reported fiscal second-quarter sales in the Americas of 85 million euros, up 93.2% from 44 million euros during the same period last year. Second-quarter sales beat Wedbush’s expectations of 50 million euros, Luria says. Wincor Nixdorf reported a 59.8% rise in net sales for the Americas for the six-month period, to 163 million euros from 102 million euros for the same period last year.
In Germany, six-month net sales rose 2%, to 344 million euros from 336 million euros. However, net sales in the Asia/Pacific and Africa regions dropped 16%, to 184 million euros from 219 million euros. Europe, excluding Germany, recorded a 19% drop in net sales, to 470 million euros from 577 million euros.
