Ericsson announces preliminary Q3, 2016 earnings
(Thomson Reuters ONE) -
* Business result for the third quarter 2016 will be significantly lower than
company expectations. Negative industry trends from first half 2016, with
weaker demand for mobile broadband, especially in markets with weak macro-
economic environment, have further accelerated.
* Sales declined by -14% YoY to SEK 51.1 (59.2) b., driven by slower
development in Segment Networks where sales declined by -19%.
* Gross margin declined to 28% (34%) following lower volumes in Segment
Networks, lower mobile broadband capacity sales, and higher share of
services sales.
* Operating income declined to SEK 0.3 (5.1) b., including restructuring
charges of SEK 1.3 b.
* Current trends are expected to continue short term.
* All numbers are preliminary and unaudited.
* Conference call for analysts, investors and media will be held today,
October 12, 09.00 CEST.
* Full report to be published October 21, approx. 07.30 CEST.
Ericsson (NASDAQ:ERIC) today announced that the business result for the third
quarter 2016 will be significantly lower than company expectations. The negative
industry trends from the first half of 2016 have further accelerated, impacting
Q3, 2016 numbers primarily in Segment Networks. The sales decline was mainly
driven by markets with weak macro-economic environment such as Brazil, Russia
and the Middle East, impacting both coverage and capacity sales in those
markets. In addition, capacity sales in Europe were lower following completion
of mobile broadband projects in 2015.
Jan Frykhammar, President and CEO says: "Our result is significantly lower than
we expected, with a particularly weak end of the quarter, and deviates from what
we previously have communicated regarding market development. The negative
industry trends have further accelerated affecting primarily Segment Networks.
Continued progress in our cost reduction programs did not offset the lower sales
and gross margin. More in-depth analysis remains to be done but current trends
are expected to continue short-term. We will continue to drive the ongoing cost
program and implement further reductions in cost of sales to meet the lower
sales volumes."
Key numbers (preliminary and unaudited)
+--------------------------------------+-----+-----+----------+-----+----------+
|SEK b. |Q316 |Q315 |YoY change|Q216 |QoQ change|
+--------------------------------------+-----+-----+----------+-----+----------+
|Sales |51.1 |59.2 |-14% |54.1 |-6% |
+--------------------------------------+-----+-----+----------+-----+----------+
| Of which Networks |23.3 |28.8 |-19% |26.8 |-13% |
+--------------------------------------+-----+-----+----------+-----+----------+
|Gross income |14.5 |20.1 |-28% |17.5 |-17% |
+--------------------------------------+-----+-----+----------+-----+----------+
|Gross margin |28.3%|33.9%|- |32.3%|- |
+--------------------------------------+-----+-----+----------+-----+----------+
|Operating expenses |-14.1|-14.9|-6% |-14.5|-3% |
+--------------------------------------+-----+-----+----------+-----+----------+
|Operating income |0.3 |5.1 |-93% |2.8 |-88% |
+--------------------------------------+-----+-----+----------+-----+----------+
| Of which Networks |-0.3 |2.8 |-109% |1.6 |-116% |
+--------------------------------------+-----+-----+----------+-----+----------+
|Operating income excl. restructuring |1.6 |6.1 |-73% |3.8 |-58% |
|charges | | | | | |
+--------------------------------------+-----+-----+----------+-----+----------+
Ericsson will, as previously communicated, announce its full report for the
third quarter 2016 on October 21, at approximately 07.30 CEST.
CONFERENCE CALL FOR ANALYSTS, INVESTORS AND JOURNALISTS
Following today's announcement Ericsson will host a conference call for
analysts, investors and journalists starting at 09.00 CEST (08.00 BST in the UK,
03.00 EDT in the US and 16.00 JST in Japan).
Sweden: +46 (0) 8 5664 2694 (Toll-free Sweden: 0200 883817)
International/UK: +44 203 008 9801 (Toll-free UK: 0808 2370059)
US: +1 646 502 5116 (Toll-free US: 18558315945)
Please call in at least 15 minutes before the conference call begins. With a
large number of callers, it may take some time before you are connected.
Live audio webcast of the conference call is also available here
Replay of the conference call details will be available approximately one hour
after the call on www.ericsson.com/press and www.ericsson.com/investors, where
supporting presentation will also be available.
NOTES TO EDITORS
For media kits, backgrounders and high-resolution photos, please visit
www.ericsson.com/press
Ericsson is the driving force behind the Networked Society - a world leader in
communications technology and services. Our long-term relationships with every
major telecom operator in the world allow people, business and society to
fulfill their potential and create a more sustainable future.
Our services, software and infrastructure - especially in mobility, broadband
and the cloud - are enabling the telecom industry and other sectors to do better
business, increase efficiency, improve the user experience and capture new
opportunities.
With approximately 115,000 professionals and customers in 180 countries, we
combine global scale with technology and services leadership. We support
networks that connect more than 2.5 billion subscribers. Forty percent of the
world's mobile traffic is carried over Ericsson networks. And our investments in
research and development ensure that our solutions - and our customers - stay in
front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales
in 2015 were SEK 246.9 billion (USD 29.4 billion). Ericsson is listed on NASDAQ
OMX stock exchange in Stockholm and the NASDAQ in New York.
www.ericsson.com
www.ericsson.com/news
www.twitter.com/ericssonpress
www.facebook.com/ericsson
www.youtube.com/ericsson
FOR FURTHER INFORMATION, PLEASE CONTACT
Peter Nyquist, Head of Investor Relations
Phone: +46 10 714 64 49
E-mail: peter.nyquist(at)ericsson.com
Ericsson Corporate Communications
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
This information is information that Telefonaktiebolaget LM Ericsson is obliged
to make public pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person set out
above, at 07:30 CET on October 12, 2016.
Ericsson announces preliminary Q3, 2016 earnings:
http://hugin.info/1061/R/2048427/765891.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 12.10.2016 - 07:31 Uhr
Sprache: Deutsch
News-ID 499953
Anzahl Zeichen: 8177
contact information:
Town:
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Kategorie:
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