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SAP defies gloomy forecast

Monday, October 21, 2013 - 00:55

Oct. 21 - German business software firm SAP has bucked the trend among rivals by sticking to its 2013 profit forecast, buoyed by strong demand for its web-based software, though it warned volatile exchange rates could hit its results. Andrew Potter reports

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SAP is swimming against a tide of gloomy forecasts by its competitors. The German business software giant is sticking to its 2013 outlook, helped by strong demand for its web-based software. That helped its shares to rise by as much as 5% on Monday morning. But it's sounded a warning that volatile exchange rates could still hit its results. Jim Hagemann Snabe is SAP co-CEO. SOUNDBITE: JIM HAGEMANN SNABE, SAP CO-CEO, SAYING (English): "We basically focus our attention on running a well-perfoming software business, we're not in the speculation or hedging business. And so we're just taking the consquences of a rather unusual development in currencies." SAP expects its operating profit for the full year to be between 5.85 and 5.95 billion euros. Its main rival Oracle gave a cautious outlook last month, as it battles smaller rivals and soft demand for IT around the world.

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SAP defies gloomy forecast

Monday, October 21, 2013 - 00:55