German Stocks Fall as SAP Posts Slowdown in Sales

German stocks declined for the second time this week, led by a selloff in SAP AG (SAP), after the company reported its first decline in software sales in more than three years.

SAP lost 2.8 percent as the largest maker of business-management software also abandoned its revenue forecasts. Deutsche Lufthansa AG (LHA) fell for a second day as JPMorgan Chase & Co. downgraded the airline. ThyssenKrupp AG (TKA) climbed to the highest price since March 25 after Vale SA sought to keep its 26 percent stake in the German steelmaker’s plant in Brazil.

The benchmark DAX Index (DAX) slid 0.2 percent to 8,241.58 at 10:03 a.m. in Frankfurt. The gauge climbed 0.7 percent yesterday after the Federal Reserve Chairman Ben S. Bernanke said the bank’s asset purchases are not on a preset course. The broader HDAX Index retreated 0.1 percent today.

“Earnings downgrades continue,” said Nick Xanders, an equity strategist at BTIG Ltd. in London. “Today’s earnings have been less than stellar with SAP lowering its outlook on Asia. Early weakness in the market may not be met by the same rebound today as yesterday.”

SAP lost 2.8 percent to 56.03 euros after the company said software licenses, an indicator of future income, fell about 3 percent to 982 million euros ($1.3 billion) excluding currency swings. That missed the average analyst estimate of 1.02 billion euros in a Bloomberg survey and marked the first decrease since the fourth quarter of 2009.

Lufthansa lost 1.4 percent to 15.12 euros after JPMorgan lowered its recommendation for Europe’s second-largest airline to neutral from overweight. The earlier recommendation was similar to a buy rating.

ThyssenKrupp rose 1.8 percent to 16.60 euros, its highest price since March 25 after Vale Chief Executive Officer Murilo Ferreira told reporters in Brasilia yesterday that the company will its 26 percent stake in ThyssenKrupp’s steel plant in Rio de Janeiro.

The volume of shares changing hands in companies listed on the DAX was 22 percent lower than the average of the past 30 days, according to data compiled by Bloomberg.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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