© Business | October 24, 2013

Lower sales – better results for Ericsson

Swedish Ericsson, recorded – as a whole – a solid quarter, with slightly lower sales but better results, compared to previous quarter. However, the company indicates that sales are under pressure.
“Sales for comparable units, adjusted for FX, grew 3%. Reported sales were slightly down YoY, primarily due to continued currency headwind,” said Hans Vestberg, President and CEO of Ericsson.

Third quarter highlights:
  • Sales amounted to SEK 53.0 billion or EUR 6.04 billion, down -3% YoY.
  • For comparable units and adjusted for FX, sales increased 3% YoY.
  • Operating income incl. JV was SEK 4.2 billion or EUR 478.5 million (3.1 billion). with an operating margin of 8.0% (5.7%).
  • Net income was SEK 3.0 billion or EUR 341.8 million, (2.2) billion.
  • Cash flow from operating activities was SEK 1.5 billion or EUR 170.9 million, (7.0) billion.

“We are currently seeing sales coming under some pressure. In addition to FX, the major drivers for this development are the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013. We also saw impact from reduced activity in Japan where we are getting closer to completion of a major project, Vestberg continued.

The pace is picking up in the European market with continued WCDMA/LTE investments. Ericsson now sees growth in several European markets and margins are also improving as the network modernization projects gradually come to an end and the company can engage more in new capacity and LTE business, concludes Vestberg.
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