SAP says U.S. challenging; Europe, Asia strong

BERLIN, May 18 (Reuters) - Business conditions in the United States remain challenging for software maker SAP (SAPG.DE: Quote, Profile, Research) thanks to the financial crisis but there are no signs that matters are worsening, and demand in Europe and Asia is strong, co-Chief Executive Henning Kagermann said on Sunday.

"Europe and Asia are still strong," Kagermann told journalists on the eve of the company's annual European conference, "Sapphire", in Berlin.

Kagermann said he was "not too optimistic" about this year but said the company's profit targets left enough room for conditions to worsen without the targets' having to be adjusted.

(Reporting by Hendrik Sackmann)