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SAP Q1 profits tanks

AFP/The Local · 29 Apr 2009, 16:52

Published: 29 Apr 2009 16:52 GMT+02:00

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The net profit of €204 million ($270 million) was well below an average forecast of €261 million compiled by Dow Jones Newswires.

SAP sales slipped by three percent to €2.397 billion, a statement said, while analysts had penciled in an increase of 3.7 percent. Software revenues, the group's benchmark, recorded a steep drop of 33 percent to €418 million.

“While visibility for software revenues remains limited, we continue to take the necessary steps to protect our margin in this tough operating environment,” Léo Apotheker, co-CEO of SAP, said in a statement.

“We expect to exit this recession even stronger, just like we did after the downturn earlier in the decade.”

SAP said a recently-announced restructuring programme had taken €160 million from its bottom line and would end up costing a total of €200 to 300 million. The group's first such programme since its creation in 1972 is expected to result in the loss of 3,300 jobs.

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For the full year, SAP said it hoped that software revenues would fall by less than one percent, excluding exceptional items.

AFP/The Local (news@thelocal.de)

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