Friday, 19 July 2013

SAP also suffering from the weak economy

The weak global economy hits and SAP: The German software company has revised its forecast for sales of software and services. But the profit is expected to grow as planned.

SAP also suffering from the weak economy
The world's largest enterprise software maker SAP pays tribute to the weak economy and has slashed its forecast for sales of software and services.

In the current year is only a currency-adjusted increase of software and software-related service revenue by at least ten percent instead of the previously expected 11 to 13 percent expected, the group said.

Especially the difficult macroeconomic environment in the Asia-Pacific region burdened competing with Oracle software provider, also the rapid transition to cloud software have skipped the expectations of the royalty income lower.

Less investment in Asia and Australia

The companies held in the wake of reduced growth rates in China with investment returns, said co-CEO Jim Hagemann Snabe. This concerns mainly Australia and Japan, added Chief Financial Officer Werner Brandt.

SAP, however, reiterated its expectation, 2013, from 5.85 to 5.95 billion euros, currency-neutral operating earn more than € 5.21 billion from the year of 2012.

In the second quarter, total sales increased by four percent to 4.06 billion euros, the bottom line with SAP earned 724 million euros ten percent more.

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