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SAP SAYS PROFITS SHOULD GROW FASTER THAN 25% SALES GROWTH

Walldorf-based SAP AG expects sales to rise by between 25% and 30% in 1997 and says pre-tax earnings growth should be a bit better than that – The increase in pre-tax profit should be one to two percentage points higher than the growth in sales, SAP board member Henning Kagermann declared. As reported, SAP’s 1996 group sales were equivalent to $2.2bn, and group net profit rose 40.1% to $337m. SAP plans to boost the dividend by about 30 cents to $1.07, and to mark its 25th anniversary, SAP will also pay a bonus dividend of 30 cents per share. On the figures, SAP said that cash flow adjusted according to the German Financial Analysts method rose 40% to $464m, accounting for 21% of revenue. SAP’s results were also a mirror image of those from the likes of IBM Corp, because they benefited from the strong dollar – exchange rates boosted sales $34m last year and operating profits $10.7m. SAP is not planning to come to the markets for more cash in 1997, chief executive Dieter Hopp said.

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CBR Staff Writer

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