Germany-based ATM manufacturer and IT solutions provider Wincor Nixdorf AG says the global economic crisis has had an adverse impact on its financial results for the first nine months of fiscal year 2008/2009. Wincor Nixdorf posted net sales of €1,729 million, down 1 percent from the previous year. The close of the third quarter revealed the greatest losses, the company says, with net sales falling 11 percent to €496 million. Net sales from business with banks increased slightly, 1 percent, in the first three quarters, but fell 10 percent in Q3. Net sales from retailers have fallen since the beginning of FY 2008/2009 by 4 percent, with net sales dropping 13 percent in Q3.
Germany remains Wincor Nixdorf's strongest market, with net sales for the first three quarters up 17 percent from the previous FY. Business in Germany accounted for 28 percent of total net sales. Net sales in Germany for Q3 totaled €149 million, up 3 percent from Q3 2007/2008.
Net sales throughout Europe fell 13 percent for the year, though Europe continues to contribute the largest share of net sales, 47 percent. Net sales in Europe for Q3 fell 21 percent.
Net sales in Asia-Pacific and are up 13 percent for the year, but down 5 percent for Q3. Business in the Americas increased slightly, 1 percent, for the year and were up 5 percent in Q3.
The results are not surprising, says Wincor president and chief executive Eckhard Heidloff:
 | "Slower growth at the end of the good first half had already made it clear that we would feel the effects of the global economic crisis. We will have to get used to a shrinking hardware market for the duration of 2009." |  |
Net sales from hardware dropped 7 percent year-over-year, while software and services net sales jumped 10 percent. Hardware, however, still accounts for the majority (55 percent) of Wincor Nixdorf's overall net sales.
Corporate realignment expected to help
Since September, Wincor Nixdorf's workforce has dropped by 69 employees. The company has launched the ProFuture program to prepare and position the company for the current and post-crisis market. The program aims to reduce the company's cost levels by enhancing internal operational efficiencies.
