WINCOR NIXDORF Aktiengesellschaft

EANS-Adhoc: WINCOR NIXDORF Aktiengesellschaft / Wincor Nixdorf specifies business outlook: significant reduction in operating profit - extensive restructuring program initiated (with document)

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  ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
  adhoc with the aim of a Europe-wide distribution. The issuer is solely
  responsible for the content of this announcement.
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16.04.2012

Paderborn, April 16th, 2012. On completing the first two quarters of fiscal
2011/2012, Wincor Nixdorf AG has further specified its prospects for the
financial year as a whole. While the company anticipates that net sales will
develop at a level comparable to that achieved in the previous year (EUR2,328
million in FY 2010/2011) operating profit (EBITA) is expected to contract
significantly to around EUR100 million (prev. year: EUR162 million). This takes
into account costs of approx. EUR40 million attributable to a restructuring
program already initiated by the company. 

The earnings outlook has been revised downwards primarily as a result of the
continued and substantial decline in net sales generated within the Banking
segment, which has been accompanied by significant pressure on margins in the
Hardware business. The contraction in business was attributable, firstly, to
subdued investment spending still evident throughout the western European
banking market in particular, as a direct result of the sovereign debt crisis.
Secondly, net sales were adversely affected by the fact that Banking business in
the emerging countries failed to develop to the extent originally anticipated
and that the solutions portfolio tailored specifically to this business has yet
to be taken forward to the appropriate level. Primarily as a result of these
developments in the Banking business, net sales attributable to Hardware
declined by 13% at Group level compared to the same period a year ago. By
contrast, net sales from the Software/Services business rose by 5%.

In view of this performance, the company has initiated a process of strategic
realignment with regard to its activities, launching an extensive restructuring
program that is currently being implemented. Among other measures, the staff in
western Europe in particular is to be downsized by more than five hundred;
Germany will account for around half of this figure. The aim of restructuring is
to extend and substantially strengthen global competitiveness, as well as
targeting business activities at the emerging markets faster and in a more
pronounced manner. To this end, Wincor Nixdorf will significantly tighten the
management, support and administrative functions of its international business
organization. For instance, the resources of several countries are to be brought
together as part of new, larger units, while at the same time the structures of
managerial responsibility for the global Banking and Retail segments are to be
sharpened substantially.

In parallel, the company will relocate to the Asia/Pacific region key capacities
required for future growth in the emerging markets. As part of this process,
development activities in this region are to be further expanded, while those
located in Europe are to be scaled back. In taking this route, the company will
be looking to develop hardware for the emerging markets in particular, as well
as establishing an appropriately targeted portfolio of products and services as
soon as possible. Additionally, in future a larger proportion of products within
the existing portfolio is to be manufactured in China, while at the same time
production capacities in Germany and Singapore are to be adjusted accordingly. 

The downsizing measures are to be implemented in two stages, with one half of
the staff reduction taking place in the current 2011/2012 fiscal year and the
other half in the coming 2012/2013 fiscal year. As regards the total headcount
of those employed within the Group, there are likely to be contrary effects due
to the recruitment of personnel in areas of significant growth, such as
Software/Services, but also in growth regions. 

At the beginning of the current fiscal year, Wincor Nixdorf had already
announced that it could not rule out entirely a significant contraction in
operating profit compared to the previous fiscal year. In view of the
uncertainties within the European banking market in particular, the company had
given a skeptical assessment of the market conditions for business development
and - depending on net sales performance - had also outlined the possibility of
a significant decline in earnings. The company considers the latest progression
of business over the course of the first two quarters as confirmation of this
assessment.

In the first half of fiscal 2011/2012, net sales of the Wincor Nixdorf Group
declined by 4% to EUR1,156 million (6 months 2010/2011 [referred to hereafter as
"prev. year"]: EUR1,208 million). In the same period, operating profit stood at
EUR45 million and was thus down 49% on the previous year's figure for this
period (prev. year: EUR88 million). The EBITA margin fell by 3.4 percentage
points to 3.9% (prev. year: 7.3%). Profit for the first six months of the fiscal
year declined to EUR27 million, thus contracting by 53% year on year (prev.
year: EUR58 million). All figures mentioned with regard to the first half of the
fiscal year are based on preliminary figures - the detailed financial results
for the first half of the fiscal year are to be published on April 26, 2012.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/5LNc31CT

Further inquiry note:
Andreas Bruck
Telefon: +49 (0)5251 693 5200
E-Mail: andreas.bruck@wincor-nixdorf.com

end of announcement                               euro adhoc 
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/5LNc31CT


issuer:      WINCOR NIXDORF Aktiengesellschaft
             Heinz-Nixdorf-Ring  1
             D-33106 Paderborn
phone:       +49 (0)5251 693 30
FAX:         +49 (0)5251 693 6767
mail:     info@wincor-nixdorf.com
WWW:      http://www.wincor-nixdorf.com
sector:      Computing & Information Technology
ISIN:        DE000A0CAYB2
indexes:     MDAX, CDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Stuttgart, regulated
             dealing: Berlin, Düsseldorf, regulated dealing/prime standard:
             Frankfurt 
language:   English
 



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