Ericsson second quarter 2012
(firmenpresse) - STOCKHOLM, SWEDEN -- (Marketwire) -- 07/18/12 --
* Sales increased 1% YoY and showed a good performance QoQ, +9%.
* Networks sales decreased YoY due to the expected decline in CDMA
equipment sales as well as weaker sales in China and Russia.
* Global Services and Support Solutions showed strong performance YoY and
QoQ.
* The underlying business mix, with higher share of coverage projects
than capacity projects, was unchanged in the quarter and is expected to
prevail short-term. The negative gross margin impact from the network
modernization projects in Europe will start to gradually decline end
2012.
* Cash flow from operations SEK -1.4 b. impacted by high working capital
mainly due to late invoicing.
* Net income SEK 1.2 b., down from SEK 3.2 b. YoY, impacted by lower
profitability in Network and increased loss in ST-Ericsson.
* EPS diluted SEK 0.34 (0.96). EPS Non-IFRS SEK 0.78 (1.60).
Comments from Hans Vestberg, President and CEO
"In the quarter, demand for Global Services and Support Solutions was
strong,
while Networks sales decreased YoY mainly due to the expected decline in
CDMA
equipment sales as well as lower business activity in China, including
weaker
sales of GSM and lower 3G sales in Russia," says Hans Vestberg, President
and
CEO of Ericsson (NASDAQ: ERIC). "In Global Services all areas showed good
growth
in the quarter due to operators' focus on operational efficiency and high
project activities. The strong development for Support Solutions was
driven by
billing systems and TV solutions. Global Services and Support Solutions
together
represented about half of the Group's revenues. The growing Global Services
business has a dilutive impact on gross margin.
We continue to stay close to our customers to monitor the impacts of
macroeconomic development and political uncertainty in certain regions on
their
investments. In customer conversations it is clear that the fundamental
drivers
for increased data traffic are unchanged. Today there are more than 700
million
smartphone subscriptions and according to our estimates this number will
increase to three billion in 2017. Based on these drivers, we see an
increasing
focus from our customers on network performance and quality of service.
This
will require continuous operator investments in hardware, software and
services.
Our joint venture ST-Ericsson is still in a challenging situation due to a
significant drop in sales of new products to one of the largest customers
and
continued decline in legacy products. The company continues to focus on
securing
the successful execution and delivery of its NovaThor ModAp platforms and
Thor
modems to customers while executing on company transformation aiming at
lowering
its break-even point.
In 2010 we made a conscious decision to gain market share and increase
technology and services leadership, well aware of the short-term
profitability
pressure. Our focus is now on translating these gains into sustainable
profitable growth," concludes Vestberg.
You find the complete report with tables in the attached PDF or by
following
this link:
NOTES TO EDITORS
To read the complete report with tables, please go to:
Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
July 18, 2012. An
analysts, investors and media conference call will begin at 14.00 (CET).
Live webcast of the press conference and conference call as well as
supporting
slides will be available at and
Video material will be published during the day on
Ericsson discloses the information provided herein pursuant to the
Securities
Markets Act. The information was submitted for publication at 07.30 CET, on
July
18, 2012.
Second quarter report 2012:
Press release second quarter report 2012:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
[HUG#1627496]
FOR FURTHER INFORMATION, PLEASE CONTACT
Helena Norrman
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Phone: +46 10 719 3472
E-mail: or
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Datum: 18.07.2012 - 05:42 Uhr
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