Software AG Slumps as Large Project Delays Erode Earnings
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Software AG, Germany’s second-biggest software maker, plunged in Frankfurt trading after project delays eroded second-quarter earnings, forcing the company to lower its full-year forecast. The shares fell as much as 19 percent.
Operating profit dropped 23 percent to 45 million euros ($61 million) as revenue at the Business Process Excellence division dropped to 85 million euros from 91.4 million euros, the Darmstadt-based company said in a preliminary earnings report last night. Sales at the consulting unit also declined as it stopped third-party services related to SAP SE products.