Ericsson losses less dire than expected
Published: 31 Jan 13 07:46 CET | Print version
Updated: 31 Jan 13 15:35 CET
Online: http://www.thelocal.se/45916/20130131/
Telecom equipment provider Ericsson reported on Thursday that net profit plunged by half last year, hit by a charge for joint venture ST-Ericsson, but posted higher than expected sales in the fourth quarter.
- 350 jobs lost as Ericsson shuts Swedish factory (22 May 13)
- Ericsson probed over suspected bribes (21 May 13)
- Revamp dampens Ericsson profits (24 Apr 13)
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
What do you think? Leave your comment below.
Riksbank unveils new board members
Sweden's central bank has appointed two new board members plucked from banking and academia to replace two outgoing members, one of whom was an outspoken critic of the Riksbank's commitment to the government's inflation goal. READ () »
350 jobs lost as Ericsson shuts Swedish factory
Swedish telecom giant Ericsson has buckled under the pressure of European competition and will turn off the switch on a cable production plant in Sweden, leaving 350 employees without jobs. READ () »
Sweden has 'lower tax burden' than Senegal
While Sweden has a reputation for having one of the most painful tax bills in the world, a new report ranks Sweden 20th when comparing the tax burden on salaries when social security payments and salary brackets are taken into account. READ () »
Ericsson probed over suspected bribes
Swedish telecom equipment maker Ericsson is suspected of having bribed ministers in Romania in connection with being awarded a contract for the country's emergency number and is now under investigation in the United States. READ () »
Warning over 'long-term' Swedish export slump
Sweden's largest business confederation has gone out guns blazing, criticizing politicians for not facing up to the challenges of "a lost year for Swedish exports" in 2012. READ () »
'Lean hospital a sign of Swedish welfare reform'
A Stockholm hospital saved from closure by private health care providers has been hailed by the Economist as one of modern's Sweden public-private success stories. READ () »
H&M mulls production in South America and Africa
Swedish clothing giant H&M is looking into the possibility of sourcing its production to South America, Central America, and even Africa, chief executive Karl-Johan Persson said on Monday. READ () »
Nord Stream plans new gas pipelines
Gas pipeline firm Nord Stream will hold an information meeting on the Baltic island of Gotland on Monday to introduce a proposal to extend its controversial gas pipeline project. READ () »
'Sweden next in line for housing market crash'
Sweden tops a list of countries that risk suffering a housing market crash, Germany's Commerzbank has warned, citing the slackening off of Swedish property prices as a harbinger of a potential downswing. READ () »
Solna voted best place to live in Sweden
Solna, a suburb just north of Stockholm, is the best place to live in Sweden, according to a new ranking published on Friday by Swedish news magazine Fokus. READ () »
- 17/05 LinkedIn profile lands Swede with hefty tax bill »
- 16/05 India in no rush to open first Ikea store »
- 16/05 H&M CEO to Bangladesh: raise minimum wages »
- 15/05 Sweden plummets in income equality ranking »
- 15/05 Pensioners to recruit ageing Swedish rockers »
- 15/05 Swedish shop hits back: our Converse are real »
- 15/05 Young Swedes forced to live with mum and dad »
- 14/05 Converse in bid to ban 'fake' shoes in Sweden »
- 13/05 Nordea tracked clients in secret 'black book' »
- 10/05 ABB executive to quit after five-year tenure »
| 22/05 | Accountant to Bank of ChinaSjr Ab | Stockholm |
| 22/05 | Accountant to Bank of ChinaSJR AB | Stockholm, STHM |
| 22/05 | Accounting ManagerMichael Page | Göteborg |
| 22/05 | Accounting ManagerMichael Page | Göteborg, VTG |
| 22/05 | Architectural Engineer #8409Aker Advantage | Stockholm |
| 22/05 | Business Developer/Account ManagerTransPerfect Translations | Stockholm, STHM |
| 22/05 | CAD/PDM Support EngineerEuropean Spallation Source ESS AB | SKÅ |
| 22/05 | Controller Tele2 Group ProductTele2 | Kista |
| 22/05 | Driven och social nätverkstekniker till ett av världens mest kaenda foeretagAcademic Work | Stockholm, STHM |
| 22/05 | Head of Product Control - If IndustrialIF skadeförsäkring | Stockholm, Nordic |
- 22/05 Spain and Germany fight youth employment »
- 21/05 Car boss asks Merkel to rethink CO2 pledge »
- 21/05 SAP to hire hundreds of autistic IT experts »
- 18/05 Economists warn against German euro exit »
- 17/05 Germany cool to France's EU economy plan »
- 17/05 Au pairs rules relax for non-German families »
- 16/05 Germany refuses to slam French economic policy »
- 16/05 Capri-Sun drink wins false advertising award »
- 15/05 Anaemic economy feels winter chill »
- 15/05 ThyssenKrupp bins 3,000 admin jobs »
- 22:39 Restaurant Inspection Scores
- 22:08 What has happened to TL?
- 21:42 Living costs in London
- 21:37 International school in Lund
- 20:30 Husby Riots and violence against the police...
- 20:15 An alternative on the menu
- 19:57 Investment market in Sweden
- 19:46 I need a dentist, in Malmö?
- 18:50 Where do I find out if my massage qualifications
- 17:49 Moving from Canada to Sweden
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Casa Birgitta in Algarve, Portugal. Reduced price in best location. Private estate on white sand beach. All amenities included. Book here today! edward_george1@hotmail.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
Ericsson has never been formally "ST-Ericsson" , "ST-Ericsson" is a joint venture between Ericsson and STM. And is still called "ST-Ericsson"