Ericsson management briefing in New York
(Thomson Reuters ONE) -
* Revenues 2010 increased in markets with high smartphone penetration
* Continued ramp up of production of RBS6000
* Network service provider equipment market CAGR estimated at 3-5% 2010-2013
* Total exchange rate and hedging impact on Group revenues were -10% first
quarter 2011
At Ericsson's (NASDAQ:ERIC) Management Briefing in New York today President and
CEO Hans Vestberg will elaborate on the company's strategies and overall market
trends and CFO Jan Frykhammar will comment on financial performance and capital
structure. Head of Business Unit Networks Johan Wibergh and head of Business
Unit Global Services Magnus Mandersson will comment on market development,
revenue growth and profitability.
Vestberg will also elaborate on how the company would work to meet the targets
in the Executive Performance Stock Plan with its three performance criteria:
compound annual growth rate of net sales of 4 -10% 2010-2013; compound annual
growth rate of operating income of 5-15% 2010-2013; cash conversion above 70
percent during each of the years 2011-2013.
To deliver on these targets Vestberg sees three growth levers: portfolio
momentum in mobile broadband, managed services and BSS/OSS transformation;
market share gains by building presence in large markets, gaining footprint in
technology shifts and increasing its share of operators capex/opex; M&A and
partnering to be part of market consolidation, fill portfolio gaps and
accelerate entry in new growth areas such as machine-to-machine.
During the presentation Ericsson will state that:
- The total telecom market based on operator opex and capex in 2010
estimated to USD 223 b.
- Total network service provider equipment market 2010 estimated to USD
94 b. with an estimated compound annual growth rate (CAGR) at 3-5% 2010-2013
* Mobile networks market (excluding WiMax, site material and OSS) compound
annual growth rate estimated at 6-8% 2010-2013
* Ericsson's market share in mobile networks (excluding WiMax) approximately
32%
- Total addressed global telecom services market 2010 estimated to USD
96-101 b. with an estimated compound annual growth rate (CAGR) at
6-8% 2010-2013.
* Ericsson's market share estimated to 11%
Johan Wibergh will talk about how Ericsson has continued to ramp up its
production of its multi-standard radio base station RBS 6000. By year-end 2011
more than 80% of radio product deliveries are expected to be RBS 6000. He will
also say that in countries with high smartphone penetration Ericsson has
increased sales of radio access networks. As a result, 2010 radio access sales
in the US and Japan increased by 60% year-over-year and by more than 40% in the
UK.
Jan Frykhammar will discuss the capital targets, which remain unchanged, with
days sales outstanding of less than 90 days, inventory days of less than 65
days, payable days of more than 60 days and a cash conversion target of above
70%.
With presence in more than 180 countries Ericsson is exposed to fluctuations in
currency exchange rates. Over the past years Ericsson has worked to better
balance exchange rate exposure.
- Total exchange rate and hedging impact on Group revenues were year-
over-year +1% in 2008, +9% 2009, by -2% 2010, and by -10% first quarter 2011.
Webcast and presentations will be available at 15.00 CET on: Management Briefing
New York, May 12, 2011
Notes to editors:
Ericsson is the world's leading provider of technology and services to telecom
operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and
provides support for networks with over 2 billion subscribers and has the
leading position in managed services. The company's portfolio comprises mobile
and fixed network infrastructure, telecom services, software, broadband and
multimedia solutions for operators, enterprises and the media industry. The Sony
Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich
personal mobile devices.
Ericsson is advancing its vision of being the "prime driver in an all-
communicating world" through innovation, technology, and sustainable business
solutions. Working in 180 countries, more than 90,000 employees generated
revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in 1876 with
the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ OMX,
Stockholm and NASDAQ New York
www.ericsson.com
www.twitter.com/ericssonpress
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FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail:media.relations(at)ericsson.com
Ericsson Media Relations North America
Phone: +1 212 843 8422
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 May 12, 2011 at 14.30 CET.
Press release PDF:
http://hugin.info/1061/R/1515262/451492.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#1515262]
Unternehmensinformation / Kurzprofil:
Datum: 12.05.2011 - 14:30 Uhr
Sprache: Deutsch
News-ID 54609
Anzahl Zeichen: 6406
contact information:
Town:
STOCKHOLM
Kategorie:
Business News
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