U.S. leads SAP to solid quarter Profit was up 29 percent for the German software company. It said it expected to add 3,000 jobs worldwide in 2005.

SAP AG, propelled by strong growth in the United States, reported a 29 percent increase in fourth-quarter earnings and said it expected to add 3,000 jobs this year.

The company, based in Walldorf, Germany, said that while the majority of the new jobs would be in "low-cost countries" in Asia, about one-third would be in North America, corresponding to the amount of business North America contributes to the parent company.

SAP, which has its U.S. headquarters in Newtown Square, is battling Oracle Corp. for market share in enterprise software, which helps employers run a variety of operations. SAP America expects many hires to come from PeopleSoft, which Oracle recently acquired for $10.3 billion after a long fight.

At the end of 2004, SAP employed 32,205 people. SAP America employs 1,500 in Newtown Square and 5,000 in North America.

SAP said its fourth-quarter profit rose to 542 million euros ($704 million), or 1.74 euros a share, from 420 million euros, or 1.35 euros a share, a year earlier. Revenue increased 8 percent, to 2.4 billion euros ($3.12 billion) from 2.22 billion euros ($2.89 billion) a year earlier.

Software sales in the United States were up 27 percent in the fourth quarter to 318 million euros ($412 million). European software sales were flat, though, at 580 million euros ($751 million) for the quarter.

At a news conference in Germany, Leo Apotheker, president of global field operations, underscored SAP's objective to grab even more market share from Oracle in the United States. Among its big peers, SAP said it ended the quarter with a U.S. market share of 38 percent, up from 32 percent a year earlier.

Oracle, of Redwood Shores, Calif., acquired PeopleSoft to become more competitive, but SAP has for many months been exploiting the fears of PeopleSoft customers that their technology investment will become worthless. Earlier this month, SAP announced a "safe passage" upgrade program that allows PeopleSoft customers who also use SAP to make the full transition to SAP software, which handles a myriad of "back-office" computerized business processes, in a cost-effective manner.

Oracle, for its part, has said it will support PeopleSoft products for the next several years.

SAP shares, which are traded in the United States as American depositary receipts, were down 2 percent, or 92 cents, at $39.38 on the New York Stock Exchange yesterday.

Analysts said the decline reflected investors' concerns about flat sales in Europe and expectations for thin 2005 profit growth as SAP concentrates on hiring new employees and on wooing customers with special incentives.

Contact staff writer Akweli Parker at 215-854-5986 or aparker@phillynews.com.