Ericsson reports second quarter results
(Thomson Reuters ONE) - * Sales SEK 52.1 (48.5) b, up 11% in comparable units, down 3% currency adjusted* Operating income 1) before JVs SEK 6.9 (4.7) b, incl capital gains of SEK 0.8 (0.2) b* Operating margin 1) before JVs 11.7% (9.3%), excl capital gains* Share in earnings from JVs SEK -2.1 (0.1) b* Income after financial items1) SEK 4.8 (4.7) b* Restructuring charges of SEK 3.6 (1.8) b, excl JV* Net income SEK 0.8 (2.0) b* Earnings per share SEK 0.26 (0.60)* Cash flow 2) SEK 9.9 (8.7) b1) Excluding restructuring charges2) Excluding cash outlays for restructuring of SEK 0.8 (0.2) bCEO COMMENTS"There are different trends in the current market environment. Theeffects of the global economic climate on the mobile infrastructuremarket are now more notable, especially in markets with currenciesunder pressure and tougher credit environment," said Carl-HenricSvanberg, President and CEO of Ericsson (NASDAQ:ERIC). "At the sametime the consumer demand for new services and broadband capabilitiesare quickly accelerating and rollout of new technologies is ongoingin the world's leading economies. There is also an increasing demandfor professional services from operators across the world.Network sales were down year-over-year currency adjusted, reflectingthe present market environment. The continued strong acceleration ofmobile data traffic is leading to high growth in sales of WCDMA andtransmission as well as upgrades of IP networks. Meanwhile, GSMbuildouts, primarily ongoing in emerging markets, have slowed andoffset sales growth in other areas.Services in total now represent 38% of sales, driven by strongProfessional Services growth. Our leading position was confirmed byour first managed services contract in Africa with Zain and thenetwork services contract with Sprint in the US. In the presenteconomic climate, where operators focus on efficiency and costreductions, Ericsson is benefiting from its sizeable servicesoperation with both scale and global presence.Our early decision to reduce costs is giving results and marginsimproved across all segments. Our target to reduce costs by SEK 10 b.from the second half of 2010 remains, and significant restructuringcharges were made in the quarter. We continue to focus on our capitalstructure and have added long-term loans onfavorable conditions. Our net cash position was further strengthenedby a strong cash flow in the quarter," concluded Carl-HenricSvanberg.FINANCIAL HIGHLIGHTSIncome statement and cash flow Second quarter First quarter Six monthsSEK b. 2009 2008 Change 2009 Change 2009 2008 ChangeNet sales 52.1 48.5 7% 49.6 5% 101.7 92.7 10%Net sales forcomparable units 52.1 47.1 11% 49.6 5% 101.7 89.6 14%Gross margin 36.3% 37.0% - 36.3% - 36.3% 37.8% -EBITDA marginexcl JVs 16.8% 14.8% - 13.2% - 15.1% 13.8% -Operating incomeexcl JVs 6.9 4.7 49% 4.7 47% 11.6 8.0 45%Operating marginexcl JVs 13.3% 9.6% - 9.5% - 11.4% 8.7% -Income afterfinancial items 4.8 4.7 3% 3.3 45% 8.2 9.2 -11%Net income 0.8 2.0 -61% 1.8 -57% 2.6 4.7 -44%EPS diluted, SEK 0.26 0.59 -56% 0.54 -52% 0.79 1.42 -44%Adjustedcash flow 1) 9.9 8.7 - -1.7 - 8.3 11.6 -Cash flowfrom operations 9.1 8.5 - -2.9 - 6.3 13.3 -All numbers, excl. EPS, Net income and Cash flow from operationsexcl. restructuring charges.1) Cash flow from operations excl. restructuring cash outlays and inQ1 2008 a dividend from Sony Ericsson of SEK 2.2 b.Sales in the quarter increased 11% year-over-year for comparableunits, i.e. excluding Ericsson Mobile Platforms and PBX operations,but decreased 3% when adjusted for currency exchange rate effects andhedging.In the quarter, gross margin, excluding restructuring charges,decreased year-over-year to 36.3% (37.0%), but was flat sequentially.Services sales have grown from 33% to 38% of total salesyear-over-year. The margin decline is attributable to this mix shiftand the transfer of Ericsson Mobile Platforms to ST-Ericsson.Operating expenses amounted to SEK 13.6 (14.0) b. in the quarter,excluding restructuring charges. The year-over-year improvement isprimarily a result of ongoing cost reduction activities, despitenegative impact from currency exchange rate effects. Operatingexpenses as a percentage of sales declined to 26% (29%).Operating income, excluding joint ventures, restructuring charges andcapital gains of SEK 0.8 (0.2) b., amounted to SEK 6.1 (4.5) b. inthe quarter resulting in an improved operating margin of 11.7%(9.3%). All three segments showed a positive margin developmentduring the quarter. A weaker SEK affected income positively but waspartly offset by a currency hedging loss.Ericsson's share in earnings from joint ventures in the quarteramounted toSEK -2.1 (0.1) b., including restructuring costs.Financial net was SEK -0.1 (0.0) b. in the quarter, mainly resultingfrom negative effects of revaluation of financial assets and a lowerinterest net.Net income amounted to SEK 0.8 (2.0) b. in the quarter and wasnegatively impacted by the losses in Sony Ericsson and ST-Ericsson.Adjusted cash flow amounted to SEK 9.9 (8.7) b., excluding cashoutlays for restructuring of SEK 0.8 (0.2) b. The improvement in cashflow was mainly due to strong collections and improved workingcapital efficiency. Year-to-date cash conversion rate was 73%.Trade receivables decreased sequentially due to strong collections.Despite this, days sales outstanding (DSO) remained high at 121 (124)days due to increased business activity and high invoicing in thelater part of the quarter. There are also some effects from operatorsoptimizing their cash situation in the tougher credit environment.Balance sheet and other performance indicators June 30 Mar 31 Dec 31SEK b. 2009 2009 2008Net cash 27.9 22.9 34.7Interest-bearing liabilitiesand post-employment benefits 47.6 41.2 40.4Trade receivables 69.4 75.2 75.9Days sales outstanding 121 124 106Inventory 29.0 30.7 27.8Of which market unit inventory 17.7 18.9 16.5Inventory days 78 83 68Payable days 59 65 55Customer financing, net 3.1 2.8 2.8Return on capital employed 5% 7% 11%Equity ratio 51% 52% 50%Including dividend payment of SEK 6.0 b., the net cash positionamounted toSEK 27.9 (22.9) b. Cash, cash equivalents and short-term investmentsamounted to SEK 75.5 (64.1) b.In May, a USD 483 m. bond under the EMTN program matured and waspaid. During the quarter, a 7-year long-term bilateral loan of USD625 m. was signed with the Swedish Export Credit Corporation and inaddition a EUR 600 m. 4-year bond was issued. These activitieslengthen Ericsson's average debt maturity profile and provide a moreefficient capital structure. Of a total debt of SEK 39.5 b., SEK 3.6b. mature in the next twelve months.Customer financing remains low at a level of SEK 3.1 (2.8) b.During the quarter, approximately SEK 2.0 b. of provisions wereutilized, of which SEK 0.8 b. were related to restructuring.Additions of SEK 3.7 b. were made, of which SEK 1.8 b. related torestructuring. Reversals of SEK 0.1 b. were made.Cost reductionsIn January, 2009, cost reduction activities were announced thattarget annual savings of SEK 10 b. from the second half of 2010, withan equal split between cost of sales and operating expenses.Restructuring charges are estimated to SEK 6-7 b. Restructuringcharges related to activities launched in the second quarter amountedto SEK 3.6 b. At the end of the quarter, cash outlays of SEK 4.2 b.remain to be made. Second quarter First quarter Full yearRestructuring charges, SEK b. 2009 2009 2008Cost of sales -1.3 -0.4 -2.5Research and developmentexpenses -1.7 -0.3 -2.7Selling and administrativeexpenses -0.6 - -1.5Total -3.6 -0.7 -6.7SEGMENT RESULTS Second quarter First quarter Six monthsSEK b. 2009 2008 Change 2009 Change 2009 2008 ChangeNetworks sales 34.7 33.3 4% 33.6 4% 68.3 63.3 8%Of whichnetwork rollout 5.9 4.8 24% 4.7 27% 10.6 9.3 14%EBITDA margin 15% 15% - 14% - 14% 15% -Operating margin 11% 10% - 10% - 10% 9% -ProfessionalServices sales 14.1 11.0 28% 12.8 10% 26.9 21.0 28%Of whichmanaged services 4.6 3.4 34% 4.2 10% 8.8 6.5 34%EBITDA margin 17% 1) 16% - 17% - 17% 1) 16% -Operating margin 16% 1) 14% - 15% - 15% 1) 14% -Multimedia sales2) 3.3 2.7 23% 3.2 3% 6.5 5.3 24%EBITDA margin 2) 17% 8% - 10% - 13% 5% -Operating margin2) 9% -1% - 2% - 5% -5% -Sales fromdivestedand transferredbusinesses 0.0 1.5 - 0.0 - 0.0 3.1 -Total sales 52.1 48.5 7% 49.6 5% 101.7 92.7 10%All numbers exclude restructuring charges1) Second quarter 2009 excludes a capital gain of SEK 0.8 b. fromdivestment of TEMS2) 2008 and 2009 numbers for Multimedia excluding divestedEricsson Mobile Platforms and PBX operations.NetworksNetworks sales increased in the quarter by 4% year-over-year but weredown when adjusted for currency exchange rate effects. TheEBITDA-margin of 15% was flat year-over-year despite the higher levelof network rollout in the quarter, reflecting the cost improvementactions. The cost reduction activities announced at the beginning ofthis year are running according to plan.WCDMA shows strong growth, reflecting the accelerating consumerdemand for broadband services and the ongoing rollouts in China,Japan and the US. Meanwhile volumes of GSM equipment decreased froman all-time high in 2008, primarily as a result of operators'increased cautiousness in several emerging markets.In July, mobile broadband with MIMO technology enabling speeds of 28Mbps, was commercially launched in Telecom Italia's network. Thecontinued traffic growth is driving upgrades of IP networks andtransmission. As a result, SmartEdge, Packet Core and MiniLinkproducts are all showing strong growth.Ericsson has completed the world's largest upgrade of a live mobilenetwork for Vodafone Essar India in record time. Ericsson replacedmore than 10,500 GSM radio sites, reaching a peak rate of one siteevery minute. This was achieved in just 13 months, two months aheadof schedule.Professional ServicesProfessional Services sales increased 28% year-over-year. Growth inlocal currencies amounted to 16% with managed services and systemsintegration growing the most. The demand for managed services isstrong in the present economic environment and sales increased by 34%year-over-year.EBITDA-margin in the quarter reached 17% (16%) as a result ofcontinued efficiency gains. This excludes a capital gain of SEK 0.8b. for the divested TEMS operation.A groundbreaking 7-year services agreement has been made with Sprintin the US at a total value of USD 4.5 - 5 b. The contract includesthe transfer of approximately 6,000 employees. The first majormanaged services contract in Africa was signed with Zain, Nigeria.Both contracts will commence during the third quarter and, as inprevious large services contracts, there will be some transition andtransformation costs which will impact margins. The agreement with 3in Italy, signed 2005, has been renewed with a smaller scope whichwill impact sequential quarterly growth.Including these contracts, the total number of subscribers in managedoperations is now 350 million, of which 50% are in high-growthmarkets.MultimediaMultimedia sales increased by 23% year-over-year for comparableunits, i.e. excluding the divested PBX operations and Ericsson MobilePlatforms. Revenue Management and multimedia brokering (IPX)continued to show good growth. EBITDA-margin in the quarter forcomparable units was 17% (8%), reflecting a higher proportion ofsoftware license sales and positive effects from cost reductionactivities. Margins may still vary between quarters.Sony Ericsson Mobile Communications Second quarter First quarter Six monthsEUR m. 2009 2008 Change 2009 Change 2009 2008 ChangeNumber of unitsshipped (m.) 13.8 24.4 -43% 14.5 -5% 28.3 46.7 -39%Average sellingprice (EUR) 122 116 5% 120 2% 121 118 2%Net sales 1,684 2,820 -40% 1,736 -3% 3,419 5,522 -38%Gross margin 12% 23% - 8% - 10% 26% -Operating margin -16% 0% - -21% - -19% 3% -Income beforetaxes -283 8 - -370 - -653 201 -Income beforetaxes,exclrestructuringcharges -283 19 - -358 - -640 212 -Net income -213 6 - -293 - -505 139 -Units shipped in the quarter were 13.8 million, a decrease of 43%year-over-year. Sales in the quarter were EUR 1,684 million, adecrease of 40% year-over-year. This was due to continued challengingmarket conditions in all regions, particularly in Latin Americanmarkets. Gross margin improved sequentially, despite lower volumesand sales, driven by a more favorable product mix and lesssignificant write-off costs than the previous quarter.Income before taxes for the quarter, excluding restructuring charges,was a loss of EUR 283 (19) million. The lower loss, compared to theprevious quarter, was due to the better gross margin, as well asreduced operating expenses that are a result of the ongoing costsavings program. As of June 30, 2009, Sony Ericsson retained a goodnet cash position of EUR 965 million.Ericsson's share in Sony Ericsson's income before tax was SEK -1.5(0.0) b. in the quarter.ST-Ericsson 2009 2008 Second Proforma ProformaUSD m. quarter Feb-Mar first quarter second quarterNet sales 666 391 562 966Adjusted operating -150income 1) -165 -78 -69Operating income before -179taxes -224 -98 -94Net income -213 -89 - -1) Operating loss adjusted for amortization of acquisitionrelated intangibles and restructuring chargesNet sales in the quarter were higher than normal seasonal patternsand showed an increase of 18.5% sequentially. This was mainly due tohigher demand in China, driven by TD-SCDMA, and in the rest ofAsia-Pacific as well as alignment of inventory to demand levelsacross the handset supply chain.Adjusted operating loss in the quarter was USD -165 (-69) m. The USD250 m. cost synergies program, defined by ST-NXP Wireless in thethird quarter 2008, is expected to be completed by year-end,according to schedule. The new restructuring plan of USD 230 m. costsynergies, announced at the end of April, has been initiated and isexpected to be completed by the second quarter 2010.ST-Ericsson is reported in US-GAAP. Ericsson's share in ST-Ericsson'sincome before tax, adjusted to IFRS, was SEK -0.6 b. in the quarter,including restructuring charges of SEK 0.1 b. Ericsson MobilePlatforms incurred a loss of SEK 0.5 b. in January 2009, which isadded to the result in segment ST-Ericsson.REGIONAL OVERVIEW Second quarter First quarter Six monthsSales, SEK b. 2009 2008 Change 2009 Change 2009 2008 ChangeWestern Europe 11.4 12.1 -6% 11.2 1% 22.6 23.8 -5%Central and EasternEurope, Middle Eastand Africa 12.6 11.2 12% 12.5 1% 25.1 22.4 12%Asia Pacific 17.4 15.8 10% 16.3 7% 33.7 28.7 17%Latin America 4.8 5.0 -3% 4.4 10% 9.2 9.1 1%North America 5.9 4.4 34% 5.2 14% 11.1 8.7 28%Total 52.1 48.5 7% 49.6 5% 101.7 92.7 10%Western Europe sales were up 4% year-over-year for comparable units,i.e. excluding Ericsson Mobile Platforms and the PBX operations.Italy and the Netherlands showed good growth while Spain remainsweak. UK showed positive development driven by good growth in managedservices.In Central and Eastern Europe, Middle East and Africa, salesincreased by 12% year-over-year but with significant variationsbetween countries reflecting the economic development. Severalcountries in Eastern Europe are weak although Russia improved in thequarter. Egypt, Saudi Arabia and Turkey showed good development,while sales in Middle East overall was slightly down.Asia Pacific sales increased 10% year-over-year. China remains strongand was Ericsson's largest market in the quarter. The ongoingnationwide 3G rollout is progressing well, with the first phasealready completed. The activity in the Indian market remains high,even though sales were slightly lower year-over-year due to projectphasing. Australia, Indonesia and Japan were also strong, whileoperators in Bangladesh and Pakistan have reduced investmentsdramatically due to tough local business conditions. Republic ofKorea is another country signing up for LTE technology as part of astrategy to build an intelligent sustainable society.Latin American sales were also affected by the economic slow-down anddecreased by 3% year-over-year. Central America, Brazil and Mexicowere weaker, while Chile and Argentina showed good growth.North American sales increased by 34% year-over-year, driven bydemand for mobile broadband and currency exchange rate effects.Ericsson signed its first network services deal in the region on July9 with Sprint. Ericsson is now a strategic supplier to the fourlargest mobile operators in the US.MARKET DEVELOPMENTGrowth rates are based on Ericsson and market estimates.The global economic slowdown is affecting all parts of the society.However, we believe that the fundamentals for longer-term positivedevelopment for our industry remain solid. The need fortelecommunication continues to grow and plays a vital role for thedevelopment of a sustainable and prosperous society. Ericsson is wellpositioned to drive and benefit from this development.There is continued growth in mobile subscriptions, although thecurrent growth rate is lower than in 2008. Mobile subscriptions grewby some 149 million in the quarter to a total of 4.3 billion. Thenumber of new WCDMA subscriptions is accelerating and grew by 40million in the quarter to a total of 377 million. In the firstquarter, fixed broadband connections grew to 408 million, adding 13million subscribers.The traffic in the mobile networks is accelerating, which createsneed for new and expanded mobile networks and correspondingprofessional services. GSM/WCDMA/LTE is the dominating technologytrack. WCDMA is growing strongly and currently surpasses GSM indeliveries. The build-out of telecommunications in emerging marketscontinues, and although they represent less than one third of globalGDP they represent significantly more of the market for mobilenetwork equipment.Data traffic, as part of operator revenues, continues to increase.Mobile operators' data revenues have increased from 20% in the firstquarter to some 25% of total revenues and in some markets mobile datais now more than 30% of total revenues. In addition to capacityenhancements, operators face the challenge of converting to all-IPbroadband networks. This will include increased deployments ofbroadband access, routing and transmission equipment along withnext-generation service delivery and revenue management systems.There is continued strong growth in services, fueled by operators'desire to reduce operating expenses and improve efficiency in networkoperation and maintenance. The move toward all-IP and increasednetwork complexity will create further demand for systems integrationand consulting.PARENT COMPANY INFORMATIONNet sales for the six-month period amounted to SEK 0.3 (3.1) b. andincome after financial items was SEK 5.2 (7.0) b. Effective January1, 2009, the right to all license revenues from third parties relatedto patent licenses was transferred to Ericsson AB, a wholly ownedsubsidiary, and consequently net sales in 2009 will be insignificantcompared to 2008. During the second quarter, the TEMS operations weresold with a capital gain of SEK 0.8 b.Major changes in the Parent Company's financial position for thesix-month period include investments of SEK 8.4 b. in the jointventure ST-Ericsson, decreased current and non-current receivablesfrom subsidiaries of SEK 6.6 b., decreased other current receivablesof SEK 3.5 b. and increased cash, bank and short-term investments ofSEK 3.1 b. During the second quarter, the dividend payment of SEK 5.9b. decided by the Annual General Meeting was made. Notes and bondloans increased by SEK 11.1 b. through new borrowings of EUR 0.6 b.and USD 0.6 b., while current maturities of long-term borrowingsdecreased by SEK 3.7 b. at repayment of a USD 0.5 b. loan. Othercurrent liabilities decreased by SEK 6.0 b. As per June 30, 2009,cash, bank and short-term investments amounted to SEK 62.3 (59.2) b.In the second quarter, as decided by the Annual General Meeting 2009,a stock issue and a subsequent stock repurchase of 27,000,000 shareswas carried out related to Ericsson's Long-Term Variable RemunerationProgram 2009 (LTV 2009). In accordance with the conditions of theStock Purchase Plans and Option Plans forEricsson employees, 1,577,990 shares from treasury stock were sold ordistributed to employees during the second quarter. The holding oftreasury stock at June 30, 2009, was 84,380,337 Class B shares.OTHER INFORMATIONNew President and CEO appointedOn June 25, 2009, the Ericsson Board of Directors announced theappointment of Hans Vestberg as President and CEO as of January 1,2010. Carl-Henric Svanberg has decided to leave as President and CEOof Ericsson and take on the position as Chairman of BP as of January1, 2010. Svanberg remains as a member of the Ericsson Board ofDirectors.Acquisition of Elcoteq's operations in TallinnOn June 17, 2009, Ericsson announced the purchase of Elcoteq'smanufacturing operation in Tallinn to secure manufacturing capacity.The purchase price was EUR 30 m., relating to inventory and someminor assets. The agreement includes transfer of about 1,200employees.Ericsson holds more than 95% of LHS sharesOn July 3, 2009, Ericsson announced that it held shares representingmore than 95% of the outstanding shares in LHS. Ericsson has informedLHS that it requests a squeeze-out resolution to be passed at nextmeeting of shareholders in LHS.Increase in total number of votesOn June 30, 2009, Ericsson announced an increase in the number ofvotes caused by the Company having converted 27,000,000 newly issuedClass C shares into Class B shares. This is in accordance with theresolution by the Annual General Meeting 2009 to expand the treasurystock as part of the financing of the long-term variable remunerationprogram. Shares held by the Company are not eligible for exercise ofany voting rights.Acquisition of systems integration company Bizitek in TurkeyOn May 28, 2009, Ericsson announced that is has acquired all sharesin Bizitek, the leading Turkish integrator of business supportsystems. All 116 employees will be transferred to Ericsson.Assessment of risk environmentEricsson's operational and financial risk factors and uncertaintiesare described under "Risk factors Assessment of risk environment" inour Annual Report 2008.Risk factors and uncertainties in focus during the forthcomingsix-month period for the Parent Company and the Ericsson Groupinclude:* potential negative effects of the continued uncertainty in the financial markets and the weak economic business environment on operators' willingness to invest in network development as well as uncertainty regarding the financial stability of suppliers, for example due to lack of borrowing facilities, or reduced consumer telecom spending, or increased pressure on us to provide financing;* effects on gross margins and/or working capital of the product mix in the Networks segment between sales of software, upgrades and extensions and the proportion of new network build-outs and break-in contracts;* a volatile sales pattern in the Multimedia segment or variability in our overall sales seasonality could make it more difficult to forecast future sales;* results and capital needs of our two major joint ventures, Sony Ericsson and ST-Ericsson, which both are negatively affected to a larger extent than our three other segments by the current economic slowdown;* effects of the ongoing industry consolidation among our customers as well as between our largest competitors, e.g. intensified price competition;* changes in foreign exchange rates, in particular USD and EUR;* continued political unrest or instability in certain markets.Ericsson conducts business in certain countries which are subject totrade restrictions or which are focused on by certain investors. Westringently follow all relevant regulations and trade embargosapplicable to us in our dealings with customers operating in suchcountries. Moreover, Ericsson operates globally in accordance withGroup level policies and directives for business ethics and conduct.In no way should our business activities in these countries beconstrued as supporting a particular political agenda or regime. Wehave activities in such countries mainly due to that certaincustomers with multi-country operations put demands on us to supportthem in all of their markets.Please refer further to Ericsson's Annual Report 2008, where wedescribe our risks and uncertainties along with our strategies andtactics to mitigate the risk exposures or limit unfavorable outcomes.BOARD ASSURANCEThe Board of Directors and the CEO certify that the financial reportfor the first six months gives a fair view of the performance of thebusiness, position and profit or loss of the Company and the Group,and describes the principal risks and uncertainties that the Companyand the companies in the Group face.Stockholm, July 24, 2009Telefonaktiebolaget LM Ericsson (publ)Org. Nr. 556016-0680Sverker Martin-Löf Michael Treschow Marcus WallenbergDeputy chairman Chairman Deputy chairmanRoxanne S. Austin Sir Peter L. Bonfield Anders NyrénMember of the board Member of the board Member of the boardBörje Ekholm Ulf J. Johansson Nancy McKinstryMember of the board Member of the board Member of the boardAnna Guldstrand Jan Hedlund Karin ÿbergMember of the board Member of the board Member of the board Carl-Henric Svanberg Member of the board and President and CEOAUDITORS' REVIEW REPORTWe have reviewed this report for the period January 1 to June 30,2009, for Telefonaktiebolaget LM Ericsson (publ). The board ofdirectors and the CEO are responsible for the preparation andpresentation of this financial information in accordance with IAS 34and the Annual Accounts Act. Our responsibility is to express aconclusion on this financial information based on our review.We conducted our review in accordance with the Standard on ReviewEngagements SÿG 2410, Review of Interim Financial InformationPerformed by the Independent Auditor of the Entity, issued by FARSRS. A review consists of making inquiries, primarily of personsresponsible for financial and accounting matters, and applyinganalytical and other review procedures. A review is substantiallyless in scope than an audit conducted in accordance with Standards onAuditing in Sweden, RS, and other generally accepted auditingpractices. The procedures performed in a review do not enable us toobtain a level of assurance that would make us aware of allsignificant matters that might be identified in an audit. Therefore,the conclusion expressed based on a review does not give the samelevel of assurance as a conclusion expressed based on an audit.Based on our review, nothing has come to our attention that causes usto believe that the interim report is not prepared, in all materialrespects, in accordance with IAS 34 and the Swedish Annual AccountsAct regarding the Group and with the Swedish Annual Accounts Actregarding the Parent Company.Stockholm, July 24, 2009PricewaterhouseCoopersABPeter ClemedtsonAuthorized PublicAccountantDate for next report: October 22, 2009EDITOR'S NOTETo read the complete report with tables, please go to:www.ericsson.com/investors/financial_reports/2009/6month09-en.pdfEricsson invites media, investors and analysts to a press conferenceat the Ericsson headquarters, Torshamnsgatan 23, Stockholm, at 09.00(CET), July 24.An analysts, investors and media conference call will begin at 14.00(CET).Live webcasts of the press conference and conference call as well assupporting slides will be available at www.ericsson.com/press andwww.ericsson.com/investors.FOR FURTHER INFORMATION, PLEASE CONTACTHenry Sténson, Senior Vice President, CommunicationsPhone: +46 10 719 4044E-mail: investor.relations(at)ericsson.com orpress.relations(at)ericsson.comInvestorsGary Pinkham, Vice President,Investor RelationsPhone: +46 10 719 0000E-mail: investor.relations(at)ericsson.comSusanne Andersson,Investor RelationsPhone: +46 10 719 4631E-mail: investor.relations(at)ericsson.comAndreas Hedemyr,Investor RelationsPhone: +46 10 714 3748E-mail: investor.relations(at)ericsson.comMediaÿse Lindskog, Vice President,Head of Media RelationsPhone: +46 10 719 9725, +46 730 244 872E-mail: press.relations(at)ericsson.comOla Rembe, Vice President,Phone: +46 10 719 9727, +46 730 244 873E-mail: press.relations(at)ericsson.comTelefonaktiebolaget LM Ericsson (publ)Org. number: 556016-0680Torshamnsgatan 23SE-164 83 StockholmPhone: +46 10 719 0000www.ericsson.comDisclosure Pursuant to the Swedish Securities Markets ActEricsson discloses the information provided herein pursuant to theSecurities Markets Act. The information was submitted for publicationat 07.30 CET, on July 24, 2009.Safe Harbor Statement of Ericsson under the US Private SecuritiesLitigation Reform Act of 1995;All statements made or incorporated by reference in this release,other than statements or characterizations of historical facts, areforward-looking statements. These forward-looking statements arebased on our current expectations, estimates and projections aboutour industry, management's beliefs and certain assumptions made byus. Forward-looking statements can often be identified by words suchas "anticipates", "expects", "intends", "plans", "predicts","believes", "seeks", "estimates", "may", "will", "should", "would","potential", "continue", and variations or negatives of these words,and include, among others, statements regarding: (i) strategies,outlook and growth prospects; (ii) positioning to deliver futureplans and to realize potential for future growth; (iii) liquidity andcapital resources and expenditure, and our credit ratings; (iv)growth in demand for our products and services; (v) our joint ventureactivities; (vi) economic outlook and industry trends; (vii)developments of our markets; (viii) the impact of regulatoryinitiatives; (ix) research and development expenditures; (x) thestrength of our competitors; (xi) future cost savings; (xii) plans tolaunch new products and services; (xiii) assessments of risks; (xiv)integration of acquired businesses; (xv) compliance with rules andregulations and (xvi) infringements of intellectual property rightsof others.In addition, any statements that refer to expectations, projectionsor other characterizations of future events or circumstances,including any underlying assumptions, are forward-looking statements.These forward-looking statements speak only as of the date hereof andare based upon the information available to us at this time. Suchinformation is subject to change, and we will not necessarily informyou of such changes. These statements are not guarantees of futureperformance and are subject to risks, uncertainties and assumptionsthat are difficult to predict. Therefore, our actual results coulddiffer materially and adversely from those expressed in anyforward-looking statements as a result of various factors. Importantfactors that may cause such a difference for Ericsson include, butare not limited to: (i) material adverse changes in the markets inwhich we operate or in global economic conditions; (ii) increasedproduct and price competition; (iii) reductions in capitalexpenditure by network operators; (iv) the cost of technologicalinnovation and increased expenditure to improve quality of service;(v) significant changes in market share for our principal productsand services; (vi) foreign exchange rate or interest ratefluctuations; and (vii) the successful implementation of our businessand operational initiatives.http://hugin.info/1061/R/1330715/314651.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 24.07.2009 - 07:30 Uhr
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