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SAP: Group co-founder Hasso Plattner uses course debacle for mega acquisition 

2020-10-27T10:29:58.701Z

SAP stock crashed nastily on Monday after the second profit warning this year. Chairman of the supervisory board Hasso Plattner took advantage of the setback and acquired additional shares.



SAP stock crashed nastily on Monday after the second profit warning this year.

Chairman of the supervisory board Hasso Plattner took advantage of the setback and acquired additional shares.

  • The corona pandemic is also affecting the Walldorf-based software giant

    SAP

    .

  • The company cut its targets for 2020 and also cut its medium-term forecast, the share plummeted.

  • SAP boss Hasso Plattner now wants to set an example.

Update from October 27th, 11:14 am

-

SAP

supervisory board chairman

Hasso Plattner

used the drop in the price of the software manufacturer's shares to make a bulk purchase.

At the

beginning of the week, the

co-founder of the

Dax

group stocked up on papers for a total of around 248.5 million euros, according to a voting rights notification by the group on Tuesday.

Plattner bought accordingly at prices averaging around 101 euros.

Before founding partner Dietmar Hopp, Plattner is the largest single shareholder of the most valuable German listed company and most recently held just under 5.9 percent of the shares - the package is currently worth a good 7 billion euros.

Hopp holds a good 5 percent of the shares.

The

SAP

stock price was on Monday due to a strategy of pan CEO

Christian Klein

slumped by more than a fifth to 97.50 euros, back to the level of early April, when the papers just recovered from Corona crash.

This was the highest daily loss of the paper since the 1990s, a market value of around 33 billion euros vanished into thin air.

The SAP shares turned positive on Tuesday on the news of Plattner's share purchase.

Even Klein and CFO Luka Mucic had bought more shares after the prices fell, but on a much smaller scale.

(dpa)

First report from October 26th:

Due to the

Corona

* crisis, the

Walldorf-based software company

SAP

has

cut its forecast for the second time this year and has also revised its medium-term forecast downwards.

The news created a sell-off mood on the stock exchange.

On Monday, the share of the most valuable German group fell by around 21 percent to around 99 euros.

This was the biggest daily loss at

SAP

in 21 years, with 31 billion euros of stock market valuation vanishing into thin air.

According to the figures published on Sunday evening, the software giant is now expecting sales between 27.2 and 27.8 billion euros for the current one.

Previously,

SAP

had

targeted a revenue range between 27.8 and 28.5 billion euros for 2020.

The operating result adjusted for special effects such as currency effects should now be between 8.1 and 8.5 (previously 8.1 to 8.7) billion euros.

The group had already reduced its targets for 2020 in April.

SAP 3Q earnings highlights: Strong double-digit growth in EPS and cash flow.

Transition to cloud accelerates.

Read more.

https://t.co/4wAS9THGRV pic.twitter.com/kVyIW3lIXC

- SAP (@SAP) October 25, 2020

In the third quarter just ended,

SAP reported

a decline in sales of four percent to 6.54 billion euros.

The operating result slumped by twelve percent to 1.47 billion euros.

In contrast, the free inflow of funds has recently increased significantly to around 1.05 billion euros thanks to extensive savings measures.

In the same period of the previous year, the free cash flow was 370 million euros.

SAP: Customers are reluctant to invest due to Corona

Many

SAP

customers suffered from the economic consequences of the Covid 19 pandemic, the company announced on Monday.

In view of the economic uncertainty, larger projects would therefore be “examined more closely”.

After a large wave of acquisitions in the past,

SAP

recently announced multiple increases in margins.

According to the plans, the adjusted EBIT margin should increase to 34 percent by 2023.

Now the group has cashed this target.

The consequences of the

corona pandemic

and the growth of the cloud business could burden the operating margin by four to five percentage points in the medium term, it said.

Many investors reacted with irritation to the unexpected turnaround.

SAP in the Corona crisis: CEO Christian Klein defends realignment against criticism from investors

SAP

boss Christian Klein defended the new goals.

"I do not sacrifice the success of our customers to optimize our margin in the short term".

Customers increasingly asked for cloud solutions.

Customers only rent the software instead of buying it.

To further boost the cloud business, SAP wants to expand the necessary infrastructure.

Overall, a mid-three-digit million amount will be invested in 2021 and 2022, said

SAP

CFO

Luka Mucic

.

In the past few years,

SAP

had invested billions in acquisitions and massively expanded its cloud offering.

However, customers repeatedly complained that the group had failed to properly integrate the new software offerings.

Here wants

SAP

boss small additional taxes now.

* Merkur.de is part of the Ippen-Digital network.

Source: merkur

All news articles on 2020-10-27

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