SAP misses internal mark, to rein in costs: report
FRANKFURT (Reuters) - SAP (SAPG.DE: Quote), the world's biggest maker of business software, failed to reach its internal profit target in the first half and told staff to rein in costs to meet the full-year goal, a German magazine reported on Saturday.
"We have to cut costs considerably in the second half to reach our internal target," weekly WirtschaftsWoche cited finance chief Werner Brandt as saying in an internal video message to employees that the magazine obtained.
While last month SAP confirmed its full-year outlook for operating profit to reach 5.05-5.25 billion euros ($6.23-$6.48 billion), WirtschaftsWoche cited Brandt as saying in the video that the internal yardstick for the payment of bonuses was 5.3 billion euros.
"Our internal ambitions are of course higher," Brandt said.
Excluding the effect of currency swings, SAP posted an operating profit of 1.9 billion euros in the first half, which according to WirtschaftsWoche was 95 percent below internal targets.
As part of the cost cutting drive, Brandt asked staff to refrain from business travel and to use video conferences instead.
SAP was not immediately available for comment.
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(Reporting by Ludwig Burger)
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