SAP forecasts 15% sales boom

Germany's SAP sees a tough year ahead

Europe's largest software firm, SAP, has forecast a 15% rise in sales during 2002.

While warning that the year would be tough, the German firm said it expected operating margins to rise to at least 21%.

"SAP expects 2002 to be another challenging year, as software sales trends continue to be unsettled in a tough economic environment," the firm said, reporting results for the last three months of 2001.

Sales for the quarter came in at 2.32bn euros ($2.05bn; £1.62bn), 7% higher than the same period in 2000.

In 2001 as a whole, SAP saw sales growth of 17%, despite the tech downturn which has affected many of the firm's competitors.

US successes

A particularly strong performance in the Americas - where sales rose by 13% in the October to December period - helped lift SAP's overall performance.

"Europe was solid, as anticipated, and the US exceeded our expectations and continued to gain market share," co-chief executive Henning Kagermann said.

But despite rising sales, fourth quarter operating profits fell 8% to 613m euros.

Investors reacted positively to the statement, helping SAP shares climb 2.5%, to 159.86 euros, in early trading on Wednesday.

SAP shares have climbed 73% since September.