Net sales up substantially and earnings boosted in first quarter – positive impact from restructuring – earnings guidance upgraded

Published: 26 January 2016 y., Tuesday

Wincor Nixdorf AG saw net sales rise by 14% year on year in the first quarter of the current fiscal year 2015/2016, while operating profit (EBITA) before restructuring expenses increased by 78%. After restructuring expenses EBITA was up by 46%. In absolute terms, net sales generated by the Group totaled €727 million (previous year: €640 million). Operating profit reached €66 million before restructuring expenses and €54 million after expenses for restructuring (prior-year EBITA: €37 million). Thus, measures centered around business restructuring and realignment proved beneficial in particular to the company's earnings performance. Against this background, the company has upgraded its earnings guidance for the current fiscal year 2015/2016. As part of the revised outlook, operating profit before restructuring expenses is expected to lie within a range of €160 to 190 million (previous guidance: €150 million). The upgraded guidance on earnings has no impact on the outlook previously issued with regard to net sales, which points to slight growth in this area.

The upgraded earnings guidance for fiscal 2015/2016 contains a positive earnings contribution from the restructuring program that is much more pronounced than originally anticipated (€60 to 80 million instead of €50 million). At the same time, the restructuring expenses originally budgeted are not likely to be utilized in full (€30 million instead of €40 million). What is more, expenses incurred in this area may possibly be more than offset by a number of activities currently underway as well as further one-off factors. In fact, Wincor Nixdorf currently anticipates a positive net effect ranging from €0 to 30 million.

For instance, the sale of ownership interests in the Group's "AEVI" business with cashless and mobile payment systems has progressed well. In this context, Wincor Nixdorf plans to dispose of a non-controlling interest in AEVI. Given the strong interest already shown by investors, the company is confident that this sales transaction will be successfully concluded in the coming months. Furthermore, Wincor Nixdorf is discussing the possibility of a cooperation agreement for its business activities in China. At present, negotiations are underway with a Chinese partner regarding its majority-stake investment in a joint venture covering Wincor Nixdorf's business dealings in that country.

The outlook issued by Wincor Nixdorf for fiscal 2015/2016 does not include one-off costs that will come into effect on conclusion of the business combination with Diebold. They are estimated to be around €50 million.

Šaltinis: wincor-nixdorf.com
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