Ericsson self-critical after slump

Ericsson CEO Carl-Henrik Svanberg has admitted that the company has plenty of cause for introspection following Tuesday's unexpected profit warning.

“We have reason to be self-critical today. We need to consider whether we described the dynamics of the market in such a way that everyone understands what can happen,” he told the TT news agency.

“We also need to see if we can find systems capable of detecting fluctuations at an earlier stage,” he added.

According to Svanberg, earlier predictions for the telecoms industry remained intact despite Ericsson’s shock earnings warning.

“We don’t envisage any change in developments in the industry. The long-term trends have not changed as far as we can see.”

The new figures published by Ericsson put profits at 5.6 billion kronor, as opposed to the 9 billion kronor predicted by analysts.

“Our own predictions were not as high as those of the analysts but it was still several billion lower than we had expected,” he said.