SAP sees 'double-digit' growth in 2013 after record 2012 (Update)

Jan 23, 2013
A worker is seen adjusting screens at the stand of German software company SAP prior to the opening of the CeBIT IT fair in Hanover, central Germany, on March 5, 2012.

German software giant SAP said on Wednesday it was projecting rising sales and earnings this year thanks to new business areas such as cloud computing.

SAP said in a statement it expected a further strong improvement in sales this year from last year's record levels, and profits were also set to rise after falling in 2012.

"We are confident we will continue our double-digit growth momentum in 2013 and further improve our profitability," chief financial officer Werner Brandt said.

As reported earlier, SAP achieved record sales in 2012, beating its full-year forecasts, even though acquisition costs hit earnings.

The group publishes two sets of accounts, the first using IFRS (International Financial Reporting Standards), and the second using domestic German or non-IFRS rules.

On an IFRS basis, full-year revenues rose by 14 percent to 16.22 billion euros ($21.6 billion) and software and software-related sales were up 16 percent to 13.16 billion euros, exceeding expectations for an increase of 10.5-12.5 percent.

At the same time, IFRS operating profit fell by 17 percent to 4.06 billion euros, impacted by acquisition-related charges, the group explained.

Bottom-line net profit was down 18 percent at 2.826 billion euros.

Using non-IFRS figures, however, 2012 net profit actually climbed by 7.0 percent to 3.608 billion euros.

That was because the non-IFRS figures do not include special factors such as acquisition costs and employee stock programmes.

Looking ahead to the whole of 2013, SAP only provided full-year forecasts on a non-IFRS basis.

Here, software and software-related service revenues were projected to rise by 11-13 percent from 13.25 billion euros last year and operating profit to come out at 5.85-5.95 billion euros, compared with 5.21 billion euros in 2012.

Growth would be fuelled by the group's recently acquired cloud-computing activities.

SAP completed its acquisition of California-based cloud computing company Ariba for $4.3 billion at the beginning of October.

Investors appeared to be pleased with SAP's confident outlook and the group's shares were the biggest gainers on Frankfurt's blue-chip DAX 30 index, adding 2.63 percent in a generally firmer market.

Explore further: Record labels sue Pandora over older songs

add to favorites email to friend print save as pdf

Related Stories

SAP reports sales records in 2012

Jan 15, 2013

German software giant SAP said on Tuesday it achieved record sales last year, beating its full-year forecasts, even though acquisition costs hit earnings.

SAP says profits up in first quarter

Apr 13, 2012

German software giant SAP said on Friday it was sticking to its full-year targets for 2012 after profits rose in the first three months.

SAP profits up strongly in third quarter

Oct 14, 2011

German software giant SAP said Friday its profits more than doubled in the third quarter thanks to strong sales and lower legal costs related to litigation with arch-rival Oracle.

SAP says profits up in first quarter

Apr 25, 2012

German software giant SAP said Wednesday it was sticking to its full-year targets for 2012 after net profit rose 10 percent in the first three months.

German software giant SAP raises dividend

Feb 24, 2012

German software giant SAP said on Friday it would pay a substantially increased dividend to shareholders for 2011, its 40th anniversary year, which was its best-ever in terms of profits.

Recommended for you

Weibo IPO below expectations, raises $285.6 mn

Apr 17, 2014

Sina Weibo sold fewer shares than expected in its US IPO which was priced below expectations ahead of a Thursday listing that takes place after tech selloffs on Wall Street.

'Chief Yahoo' David Filo returns to board

Apr 17, 2014

Yahoo announced the nomination of three new board members, including company co-founder David Filo, who earned the nickname and formal job title of "Chief Yahoo."

Fired Yahoo exec gets $58M for 15 months of work

Apr 17, 2014

Yahoo's recently fired chief operating officer, Henrique de Castro, left the Internet company with a severance package of $58 million even though he lasted just 15 months on the job.

User comments : 0

More news stories

White House updating online privacy policy

A new Obama administration privacy policy out Friday explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites. It also clarifies that ...

Hackathon team's GoogolPlex gives Siri extra powers

(Phys.org) —Four freshmen at the University of Pennsylvania have taken Apple's personal assistant Siri to behave as a graduate-level executive assistant which, when asked, is capable of adjusting the temperature ...

Scientists tether lionfish to Cayman reefs

Research done by U.S. scientists in the Cayman Islands suggests that native predators can be trained to gobble up invasive lionfish that colonize regional reefs and voraciously prey on juvenile marine creatures.

Six Nepalese dead, six missing in Everest avalanche

At least six Nepalese climbing guides have been killed and six others are missing after an avalanche struck Mount Everest early Friday in one of the deadliest accidents on the world's highest peak, officials ...

Better thermal-imaging lens from waste sulfur

Sulfur left over from refining fossil fuels can be transformed into cheap, lightweight, plastic lenses for infrared devices, including night-vision goggles, a University of Arizona-led international team ...