July 18 - Germany's SAP blamed the economic slowdown in China and customers' move to cloud-based services, as it cut its outlook for software revenue in 2013. Joanna Partridge reports.
Germany's SAP - feeling the effects of China's slowing growth. The business software maker has trimmed its outlook for software revenue this year to 10 percent, down from between 11-13 percent. It said weaker growth in China and customers moving to cloud-based services had hit its results. Jim Hagemann Snabe is Co-CEO. SOUNDBITE: Jim Hagemann-Snabe, SAP Co-CEO, saying (English): "We're seeing a slowdown in the growth rates in China. And that affects the countries around China - in Australia, New Zealand, Japan, who have a lot of trading with China. And therefore we see a short-term slowdown in the Asia-Pacific region on software investments." Despite Hagemann Snabe's warning, he believes business in the region will recover again, although he couldn't say when. Other software makers are also finding the environment tough. SAP's main competitor, U.S-based Oracle, blamed Asia and Latin America last month for its disappointing software sales. The German firm also says it's adapting to customers' changing habits. SOUNDBITE: Jim Hagemann-Snabe, SAP Co-CEO, saying (English): "The cloud transition is happening very rapidly in the U.S. where it's now 25 percent of our portfolio so in many ways we're leading this trend into the future." SAP is sticking by its outlook for 2013 operating profit of 5.85-5.95 billion euros, up 12-14% from 2012.