May 18 (Bloomberg) -- SAP AG, the world's biggest maker of business-management software, said the U.S. market environment ``is tough, but not worsening.''

``There is no spillover from the recession in the U.S. to Asia and Europe,'' Chief Executive Officer Henning Kagermann said at a press reception in Berlin today. ``We are not immune, but we are more global.''

While competitors generate more than half of their business in North America, SAP generates only 30 percent to 35 percent of its sales there, Kagermann said. ``Europe and Asia are still strong,'' he said. ``This may seem surprising from the outside, but it's a fact.''

The Walldorf, Germany based company said April 30 net income in the first quarter fell 22 percent to 242 million euros ($377 million) as the dollar lost value against the euro. Analysts had forecast profit of 340 million euros, the median of seven estimates compiled by Bloomberg.

``Currency isn't helpful, but I don't think it will get worse,'' Kagermann said. ``The biggest hit we had already.'' The dollar fell the most against the euro since March as a drop in consumer confidence and record crude oil prices raised concern that U.S. economic growth will slow.

The dollar's second consecutive weekly decline against the euro pared its increase from the all-time low reached last month to 2.7 percent.

Co-CEO Leo Apotheker said today the integration of Business Objects ``is performing in a very satisfactory manner. We'll be done before the end of the year,''

Organic Strategy

``Before we haven't done that, not much else will happen'' in terms of mergers and acquisitions, Apotheker said. SAP's strategy remains to grow organically, Apotheker said.

SAP had 130 million euros in charges from the 4.8 billion- euro purchase of French rival Business Objects SA in February, and the company delayed its sales target for a new software product.

``Together we have between 65,000 and 70,000 customers,'' Apotheker said. About 10,000 are joint customers, according to the executive.

SAP will communicate its vision for the time beyond 2010 in 2009, Apotheker said, after confirming targets stated earlier for the coming two years. The handover from Kagermann is ``proceeding in a very smooth way,'' Apotheker said. ``It's an easy thing to do with someone you have known for 20 years. Henning hands over more and more of what he does to me.''

The German company promoted Apotheker to co-CEO on April 2. Apotheker will then become the sole CEO when Kagermann retires in May 2009.

``We are not too optimistic,'' Kagermann said. ``We always have a Plan B at hand in case the situation is worsening.''

``We don't have endless flexibility, but we have enough flexibility,'' he said.

To contact the reporter on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net

Last Updated: May 18, 2008 14:26 EDT