Ericsson : Ericsson's Q4 results negatively impacted by non-cash charge related to ST-Ericsson
(Thomson Reuters ONE) -
* Decision to not acquire full majority of ST-Ericsson.
* Non-cash charge of approximately SEK 8 b. in Q4, 2012 related to its 50%
stake in ST-Ericsson, including approximately SEK 3 b. cash out of which the
majority in 2013.
Ericsson (NASDAQ:ERIC) today announced that it will take a non-cash charge of
approximately SEK 8 b. in Q4, 2012 related to its 50% stake in ST-Ericsson. The
total effect on Ericsson Group Net Income Q4, 2012, is approximately SEK -8 b.
(non-cash), with no tax effect.
The charge includes write down of assets to reflect the current best estimate of
Ericsson's share of the fair market value of the JV, as well as additional
charges related to the available strategic options for the future of the ST-
Ericsson assets.
ST-Ericsson announced its strategic plan in April 2012 and is in the middle of
executing on company transformation aiming at lowering its break-even point and
introducing new technologies. On October 9, 2012, the two parent companies
announced a strategic review of the business plan and the future ownership
structure. On December 10, 2012, STMicroelectronics (NYSE:STM) announced its
intention to exit as a shareholder in ST-Ericsson.
Ericsson continues to believe that the modem technology, which it originally
contributed to the JV, has a strategic value for the wireless industry. For
Ericsson, a key priority in this process is a successful market introduction of
the new LTE modems which Ericsson is certain will be very competitive and needed
in the market.
Ericsson will continue to explore various strategic options for the future of
ST-Ericsson assets. To acquire the full majority of ST-Ericsson is, however, not
an option. Ericsson's current best estimate is that the implementation of the
strategic options at hand will require approximately SEK 3 b. of Ericsson
funding, of which the majority in 2013.
Ericsson will provide any additional financial information in conjunction with
the Q4 report 2012.
During the process of exploring options Ericsson will not speculate on the
possible outcomes, timelines, and future strategic alternatives for ST-Ericsson
assets.
Conference call for analysts, investors and media
Ericsson invites media, investors and analysts to a conference call with
President and CEO Hans Vestberg and Jan Frykhammar, CFO, at 14.00 (CET) on
December 20, 2012.
A replay of the conference call will be available after the scheduled end time.
The playback will be available from approx. 16.30 CET on December 20, 2012,
until 23.59 CET on December 27, 2012.
Dial in number:
Sweden number: +46 850 520 270
International number: +44 208 817 9301
US number: +1 718 354 12 26
Confirmation code: 9624 162# password: Tulip
Replay
Sweden replay number: +46 8 505 202 94
International replay number: +44 20 776 964 25
Replay pass code: 9624 162#
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations(at)ericsson.com
Ericsson discloses the information provided herein pursuant to the Securities
Markets Act and/or the Financial Instruments Trading Act. The information was
submitted for publication on December 20, 2012 at 08.30 CET.
Ericsson's Q4 results negatively impacted by non-cash charge:
http://hugin.info/1061/R/1666557/540889.pdf
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#1666557]
Unternehmensinformation / Kurzprofil:
Datum: 20.12.2012 - 08:31 Uhr
Sprache: Deutsch
News-ID 214670
Anzahl Zeichen: 4540
contact information:
Town:
STOCKHOLM
Kategorie:
Business News
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