Computer giant SAP plans year of investment

26th January 2005, Comments 0 comments

26 January 2005, FRANKFURT - Europe's leading software group SAP said on Wednesday it would create 3,000 new jobs worldwide as profits soared in the 2004 business year. The German DAX-listed company said around 600 of the new jobs would be in Germany. "2005 will be a year of investment for SAP," said chairman Henning Kagermann in Frankfurt. SAP, the world's largest maker of business software, said net profit rose by 22 percent to EUR 1.3 billion in 2004 compared to the previous 12 months. Pre-tax profit ro

26 January 2005

FRANKFURT - Europe's leading software group SAP said on Wednesday it would create 3,000 new jobs worldwide as profits soared in the 2004 business year.

The German DAX-listed company said around 600 of the new jobs would be in Germany.

"2005 will be a year of investment for SAP," said chairman Henning Kagermann in Frankfurt.

SAP, the world's largest maker of business software, said net profit rose by 22 percent to EUR 1.3 billion in 2004 compared to the previous 12 months.

Pre-tax profit rose by 17 percent to EUR 2.1 billion and overall sales were up 7 percent to EUR 7.5 billion.

"2004 was again an outstanding year for SAP. We have reached the targets we set for ourselves," said Kagermann.

However, the stock market reacted with disappointment over profit margin forecasts, with SAP shares slipping by more than 2 percent at one stage on the Frankfurt exchange.

Kagermann said SAP would be focusing on investing in new products, for which it would be using part of its 2005 profit margin. SAP's strategy was "organic growth" supplemented by "selective acquisitions".

He expected software revenues for 2005 to grow by 10-12 percent and the operating margin to increase by a 0.5 percentage point.

DPA

Subject: German news

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