SAP chief says business never been stronger
FRANKFURT (Reuters) - Business at German business software maker SAP has never been stronger, its chief executive told Reuters Insider television on Friday.
Asked about SAP's order portfolio, Bill McDermott said: "Our business has never been stronger. We have a fine, fine company and we are doing all the right things for our customers."
McDermott was responding to a report published by German website Boerse Online on Wednesday, which had quoted company sources as saying that fourth-quarter orders were below expectations, sending shares down on heavy trading volumes.
It also cited a memo from SAP's finance chief urging employees to cut costs, in which some investors saw signs of trouble for the Walldorf, Germany-based company.
McDermott dismissed such speculation. "We are investing, we are hiring, we have lots of things that we are doing to grow our company. We are spending more all the time and I think it is prudent for a CFO to always keep businesses lean, because we are a growth company," McDermott said.
SAP will report third-quarter results on Oct. 20. "And I am looking forward to showing up for that," McDermott said.
SAP shares turned positive after McDermott's remarks. The shares rose as much as 2 percent before falling back 0.8 percent by 1040, topping a 2 percent weaker German blue-chip index.
McDermott declined to make any further comments as SAP is in the quiet period ahead of its third-quarter results, which are due to be published on Oct. 20.
In the past 30 days, 6 out 16 analysts have cut their third-quarter earnings per share estimates for SAP by an average of 0.6 percent, according to Thomson Reuters StarMine data.
(Reporting by Harro ten Wolde; Editing by Maria Sheahan and Georgina Prodhan)
