German software maker SAP trims 2013 sales forecast

AFP: German software giant SAP said yesterday it will trim its full-year sales forecast in the face of the “difficult macroeconomic environment” Asia and Japan.

Nevertheless, the group’s performance in the second quarter was “solid”, SAP insisted.

The software maker said it was now pencilling in “at least” 10 percent growth in software and software-related service revenue this year from 13.25 billion euros (US $ 17.4 billion) in 2012.

Previously, SAP which is a leader in supplying software systems for industrial sites and business management, had forecast 2013 sales growth of 11-13 percent.

The downgrade was attributable to “the difficult macroeconomic environment in particular in Asia Pacific/Japan and the rapid transition” to cloud computing, the statement explained.

On the earnings side, however, SAP said it was sticking to its full-year operating profit forecast of 5.85-5.95 billion euros, up from 5.21 billion euros in 2012.

Turning to its performance in the second quarter of this year, SAP said business was “solid”.

Revenues from software and software-related services grew by 6.5 percent to 3.347 billion euros.

Operating profit rose by 4.0 percent to 1.219 billion euros and net profit was up 5.0 percent at 874 million euros.

“SAP had a solid overall performance in the second quarter,” said chief financial officer Werner Brandt.

“We improved the profitability of our core business and see good traction in the cloud on our way towards building a profitable cloud business,” Brandt said.