SAP Posts Loss, Says Won't Make Sales Target For Year

Walldorf-based SAP says business would grow by 5 percent to 10 percent instead of the 15 percent it predicted earlier, sending its stock lower.

Shares in SAP dropped to their lowest level since 1997, closing down 14 percent, at $74.03, on the Frankfurt exchange.

In releasing the preliminary second-quarter figures, the company blamed a drop in total sales of 4 percent, and a 23 percent drop in sales of its main product--software that helps companies manage back-office functions like production and distribution.

The company will take a one-time charge of $316 million to write down the value of its 20 percent stake in U.S. e-commerce firm Commerce One, whose market value has plummeted along with those of many other Internet companies.

U.S. rivals such as Oracle and Siebel Systems are also struggling with sluggish sales.

The company planned to provide additional details on its second quarter results next week.

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