Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  SAP AG    SAP   DE0007164600

SAP AG

(SAP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

SAP : Pushes to Cloud Computing SAP to Recast 4,400 Jobs In Cloud-Computing Push

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/30/2019 | 02:48am EDT

By Sara Germano

WALLDORF, Germany -- Business-software maker SAP SE said Tuesday it will restructure at a cost of nearly $1 billion as it continues to shift toward cloud-based computing.

Chief Executive William McDermott said roughly 4,400 employees are likely to be affected, though the company expects its current workforce of about 96,500 to grow by the end of 2019.

"We are going to move our people, and our focus, to the areas where the new economy needs SAP the most," he said in an interview, citing such opportunities as artificial intelligence, the Internet of Things, blockchain and quantum computing.

Mr. McDermott said there would be a mix of new assignments, early retirements and exit packages, and the company will continue to offer training.

"We are building a company that is a fighting machine, that is ready to go into the marketplace against any dot-com from America, and win," he said.

The cost of the restructuring, the company's first in four years, is expected to run between EUR800 million to EUR950 million ($915 million to $1 billion), with the majority being booked in the current quarter.

The company on Tuesday also reported its fourth-quarter profit fell 15% from a year earlier to EUR1.8 billion, despite a 9% rise in revenue to EUR7.4 billion. Analysts polled by FactSet anticipated profit of EUR1.86 billion on revenue of EUR7.2 billion.

SAP's shares fell 2.8% to EUR89.81.

The German company offers a range of products and services to businesses, including its Concur expense-management platform, IT-data platform SAP Hana, analytics, customer-experience software and digital supply-chain tools.

SAP has been expanding its cloud-computing business as growth in its core software division has slowed. Excluding the effect of currency fluctuations, fourth-quarter bookings in its cloud-services division grew 23% to EUR736 million, while cloud revenue for the full year rose 33% to EUR5 billion. The company's total revenue grew 5% to EUR24.7 billion in 2018.

Mr. McDermott said the company isn't expecting to feel the effects of a slowdown in China's economy, citing its cloud partnership with Alibaba Group Holding Ltd., which was expanded last year.

"I think I've been listening to how China is slowing down now for at least eight years," he said. "Don't be too short on China, would be my advice."

SAP said it expects strong revenue growth this year, with cloud subscriptions and support revenue rising by 33% to 39% to between EUR6.7 billion and EUR7 billion.

Write to Sara Germano at sara.germano@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
E.ON SE 0.81% 8.928 Delayed Quote.3.49%
SAP AG 0.63% 115.48 Delayed Quote.32.84%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on SAP AG
10/15SAP : SuccessFactors Solutions Named 2019 Customers' Choice for Corporate Learni..
AQ
10/15SAP : The Journey to Autonomous Support Through AI
PU
10/15SAP : How Companies Can Take Advantage of the $3.7 Billion Robotics Opportunity
PU
10/14SAP : Names Former Juvo Executive as Head of Product for SAP SuccessFactors
PU
10/14SAP : Welcome to the Age of Human Experience Management
PU
10/14SAP : SuccessFactors Solutions Named 2019 Customers' Choice for Corporate Learni..
PU
10/14SAP : Viessmann Implements Industrial ERP Transformation to SAP S/4HANA
PU
10/11ADRs Climb on Friday with SAP, Rio Tinto and JD.com Trading Actively
DJ
10/11Fastenal surges ; Wendy's, SAP rise
AQ
10/11EUROPE : European shares soar on rising hopes of Brexit, trade deal
RE
More news
Financials (EUR)
Sales 2019 27 533 M
EBIT 2019 8 111 M
Net income 2019 3 230 M
Debt 2019 9 689 M
Yield 2019 1,32%
P/E ratio 2019 43,6x
P/E ratio 2020 26,9x
EV / Sales2019 5,36x
EV / Sales2020 4,87x
Capitalization 138 B
Chart SAP AG
Duration : Period :
SAP AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SAP AG
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 37
Average target price 128,78  €
Last Close Price 115,12  €
Spread / Highest target 32,9%
Spread / Average Target 11,9%
Spread / Lowest Target -24,4%
EPS Revisions
Managers
NameTitle
William R. McDermott Chief Executive Officer
Hasso Plattner Chairman-Supervisory Board
Christian Klein COO-Intelligent Enterprise Group
Luka Mucic Chief Financial Officer
Juergen Mueller Head-Innovation & Technology
Sector and Competitors
1st jan.Capitalization (M$)
SAP AG32.84%152 127
ORACLE CORPORATION24.81%185 331
INTUIT38.94%69 975
SERVICENOW, INC.51.33%50 510
CONSTELLATION SOFTWARE INC.52.43%21 331
RINGCENTRAL, INC.114.05%14 641