• Sweden edition
 
Ericsson losses less dire than expected

Ericsson losses less dire than expected

Published: 31 Jan 2013 07:46 GMT+01:00
Updated: 31 Jan 2013 15:35 GMT+01:00

The company also said it was confident about prospects this year as more operators boost their network capacity.

In 2012, Ericsson made a net profit of 5.575 billion kronor ($876 million) on sales of 227.779 billion kronor, about the same as in 2011.

Ericsson said in December that it would book a charge of 8.0 billion kronor after the announcement that French-Italian group STMicro was pulling out of ST-Ericsson.

The joint venture has not reported a single quarter of profits since being created at the beginning of 2009. In the fourth quarter of last year it reported a net loss of $133.0 million.

Chief executive Hans Vestberg said the company should benefit in the second half of 2013 from projects by telecom operators to increase the capacity of their networks.

In 2012, the company won more contracts to increase network coverage, which has traditionally been a less profitable part of the business.

"While the macroeconomic and political uncertainty continues in certain regions the long-term fundamentals in the industry remain attractive and we are well-positioned," Vestberg said in a statement.

The results for the fourth quarter were hit hard by the outcome at ST-Ericsson which Ericsson is reportedly seeking to sell.

Ericsson reported a net loss for the quarter of 6.462 billion kronor.

Stripping out costs related to ST-Ericsson, the company would have posted a rise in net profit for the period.

Sales for the quarter rose by 5.0 percent on a 12-month basis to 66.936 billion kronor. This was better than the average of estimates by analysts polled by Dow Jones Newswires who had expected a 3.1 percent rise to 65.66 billion kronor.

Network sales were particularly strong in North America, where gross

margins had previously been suffering while the company grew its market share.

Shares in Ericsson were up 9.16 percent in early afternoon trading on the Stockholm exchange, which was down 0.20 percent overall.

AFP/The Local/dl

Follow The Local on Twitter

The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

11:59 January 31, 2013 by Casual
"A review done by Reuters had predicted that the company, formally ST-Ericsson, would reach losses as high as 4.3 billion kronor."

Ericsson has never been formally "ST-Ericsson" , "ST-Ericsson" is a joint venture between Ericsson and STM. And is still called "ST-Ericsson"
Today's headlines
Stockholmers sound off on 'beautiful Swedes'
Swedish girls in Stockholm. Photo: Susanne Walström/Imagebank Sweden

Stockholmers sound off on 'beautiful Swedes'

Following a Nordic survey in which Swedes were voted the "most attractive", The Local hit the streets to see what Stockholmers thought. READ  

Sweden keeps eye on Norway bomb threat
Norwegian police car at Oslo Gardemoen Airport. Photo: TT

Sweden keeps eye on Norway bomb threat

The Swedish Security Service (Säpo) have said that an "imminent terror threat" to neighbouring Norway doesn't yet affect Sweden although developments are being closely followed. READ  

Seven-year-old Swede cycles to Berlin
The Blomdahl family in Berlin. Photo: Private

Seven-year-old Swede cycles to Berlin

Edvin Blomdahl is seven-years-old. He also cycled from Sweden to Berlin, a journey of 370 kilometres, in four days. READ  

Opinion
'Gaza conflict needs help, not empty rhetoric'
Demonstrations at Sergels Torg in Stockholm. Photo: Kent Vilhelmsson

'Gaza conflict needs help, not empty rhetoric'

As the rhetoric rises at demonstrations in Swedish cities, Stockholm-based Israeli writer David Stavrou calls on Swedes to think before they shout and to cast a critical eye over much that is written and said about the conflict in Gaza. READ  

Brit's charity tractor trek heads for Sweden
The vintage tractor ready to travel from UK to north Norway. Photo: Peter Matheson

Brit's charity tractor trek heads for Sweden

A British man is set next month to drive from Scotland, across Sweden, and to the northern tip of Norway on a vintage tractor to raise money for a cancer charity. READ  

Sweden agency hikes heat warning to 'extreme'
This canine friend is not amused. Photo: TT

Sweden agency hikes heat warning to 'extreme'

Swedish weather agency SMHI has raised its weather warning to class 2, giving notice of "extremely high temperatures" in parts of the country. READ  

Songs for a hot Swedish summer
Ted Gärdestad. Photo: TT

Songs for a hot Swedish summer

Contributor Paul Connolly has put together a list of Swedish songs to capture balmy summer days, which in his neck of the northern woods are pushing the mercury above 35c for the first time in a century. READ  

Swedes suffer as buses boil in the summer sun
Photo: TT

Swedes suffer as buses boil in the summer sun

Stockholm's local traffic authority has received almost 300 complaints since June 1st with many regarding stifling heat on the city's buses, which lack air con. READ  

Grounded flights strand Swedes in Tel Aviv
Photo: Matt Rourke/TT

Grounded flights strand Swedes in Tel Aviv

UPDATE: About 270 passengers planning to fly to Stockholm are still stranded in Tel Aviv, and airlines have stated that flights will likely be grounded on Thursday as well. READ  

The Local List
Top ten: Swedish taboos
The butter knife is for butter. Photo: Mats Sandelin/TT

Top ten: Swedish taboos

From standing in line to taking your hols in the off-season, Sweden is a society with customs and faux pas, the Danes might say taboos. Here is a list of ten to watch out for. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
Blog updates

22 July

Det (The Swedish Teacher) »

"Hej! “Det” is a personal pronoun that can be used in many ways, and it might me confusing if you always translate “det” to English “it”. In this article I will do my best to guide you to how to use “det”. Det replacing a word, a phrase or a clause Let us begin with the less confusing..." READ »

 

22 July

PROTECTING GIRLS FROM ABUSE OF THEIR RIGHTS (The Diplomatic Dispatch) »

"Today (22 July) my Prime Minister, David Cameron, and UNICEF, are hosting the world’s first #GirlSummit in London. The Summit’s aim is to mobilise domestic and international efforts to end the appalling practices of Female Genital Mutilation (FGM) and Child Early Forced Marriage (CEFM). This is a high priority for the UK government and the Prime..." READ »

 
 
 
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
National
Malmö mayor slams Danish beggar ban
National
Swedish anti-abortion midwife sues county
National
Swede's salary chopped for Facebook use
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

713
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se