SAP Cautious on 2008 Outlook - Organic Growth
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Chief Executive Henning Kagermann told a news conference SAP would not pass up future acquisition opportunities if they were good enough, despite the fact that the company will be busy with the Business Objects integration for a while.
"If the right opportunity were to present itself it would be absolutely false not to pursue it -- regardless of our general strategy," said Kagermann, acknowledging that the such a large acquisition was a departure from SAP's organic growth policy.
Arch-rival Oracle, which is bigger overall than SAP, has bought up companies over the past few years to challenge SAP's lead in software that helps companies manage functions like supply chains, customer relations or payroll.
Oracle gave a confident outlook after last quarter's results, easing concerns a slowing U.S. economy may curb business software spending, and SAP's Kagermann told CNBC television on Wednesday he had not seen any sign of customers changing their spending behavior.
Indirectly, the weakening U.S. economy cost SAP 366 million euros in sales and 129 million euros in operating income in 2007 due to the decline in the U.S. dollar, SAP said.
In the fourth quarter, SAP's quarterly operating profit rose 2 percent to 1.112 billion euros, while net profit fell 6 percent to 756 million.
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