SAP Cuts Forecast as Cloud Shift Weighs on Profit
This article is for subscribers only.
SAP SE cut its full-year earnings forecast as software customers move to applications delivered through the Internet, a trend that’s brought sweeping changes in the technology industry.
The world’s largest maker of business-management software said today its 2014 operating profit excluding some items will be in a range of 5.6 billion euros ($7.1 billion) to 5.8 billion euros. That compared with an earlier projection for as much as 6 billion euros. Third-quarter profit on that basis rose 4.6 percent to 1.36 billion euros, trailing the 1.37 billion-euro average of estimates compiled by Bloomberg.