The German software company SAP reported a year-on-year decline in operating profit of 12 percent to 2.07 billion euros (56.5 billion crowns) in the third quarter. The company said that due to the effects of the pandemic on demand, it must worsen the full-year revenue outlook and give up some medium-term performance targets. The company’s shares fell by more than 20 percent in response.
–
The company’s shares depreciated almost 20 percent on the Frankfurt Stock Exchange in the afternoon and were just below 100 euros apiece. They recorded the deepest decline in 24 years, Reuters reported.
According to Bloomberg, analysts expected an operating profit to fall to 2.15 billion euros on average. Revenues from the company, which specializes in enterprise software, fell to 6.89 billion euros. SAP expects to meet its targets for cloud services revenue, total revenue and operating profit one to two years later due to the covid-19 pandemic.
–
–
Over the next two years, the company expects limited growth and a more modest increase in margins. According to current assumptions, it will probably not reach the strategic plan that the company wanted to fulfill by 2023 until 2025.
SAP chief Christian Klein said he expects a slight recovery in the first half of next year. “As the head of the company, I must focus primarily on the long-term growth of the company’s value,” Klein told Pro CNBC.
–
–
–
–
– .
/imgs/2020/10/26/14/4305348/fbc302a9f1a5cc75a1e45c188c40105892f4642b.jpg?resize=150%2C150&ssl=1 "Geely to build new factory for premium electric cars – Motor")
