SAP exceeds profit forecasts
Undeterred by the customs chaos in the USA, the European software giant SAP $SAP (+2,08%) achieves an impressive jump in profits. The share price rises by around six percent after the close of trading, reflecting the positive market sentiment. The DAX-listed company is optimistic and sees its annual targets for 2024 on track following the record result. Despite a slight decline in cloud growth, profits exceeded market expectations of €2.22 billion with an increase of 58% to €2.46 billion. Christian Klein, CEO of SAP, expressed his satisfaction with the company's performance in the current economic environment and confirmed the full-year targets. Cloud revenues increased by 26 percent to 4.99 billion euros, but fell short of analysts' expectations of 5.06 billion euros. However, the order volume in this segment grew by 29 percent to 18.2 billion euros. Despite the uncertainties caused by the tariff war with the USA, SAP is optimistic that the orders can be converted into sales.
Intel halts factory construction in Magdeburg
In the USA and Europe, the new CEO of Intel, Lip-Bu Tan, has to make "painful decisions". Among other things, this concerns the construction of new factories worth billions, which was planned in Magdeburg, among other places. This project was already put on hold in September for an estimated two years. In the USA, the construction of a huge plant in Ohio has also been stopped. Tan emphasizes that Intel first wants to maximize the efficiency of existing capacities before making money available for new expansions. This leaves the Magdeburg project facing uncertain times as the company adapts its strategy to current market conditions. The decision reflects the uncertainty and challenges facing companies in the global chip industry.
Sources:
https://www.n-tv.de/wirtschaft/SAP-legt-beim-Gewinn-um-60-Prozent-zu-article25719621.html