Ericsson reports bigger than expected third quarter loss

Cornelia Mascio
Ottobre 21, 2017

Sweden's Ericsson (ERIC) reported Friday that its third-quarter net loss was 4.3 billion Swedish kronor, wider than loss of 0.2 billion kronor a year ago.

The net loss for July-September came in at 4.4 billion kronor (457 million euros/$540 million) compared with a 233 million loss a year earlier and well above average forecasts of 3.5 billion.

Sales at Ericsson, one of the top global mobile networks equipment makers, were 47.8 billion crowns, slightly above a consensus forecast of 47.5 billion. Losses, adjusted for non-recurring costs, were 6 cents per share. "We also see signs of improvements in our performance", Chief Executive Boerje Ekholm said on a conference call.

As a result of the ongoing cost reductions, restructuring charges of 2.8 billion kronor were taken in the quarter, compared to 1.3 billion kronor a year ago. He added that "while losses continue in IT & Cloud, we see increased stability in product roadmaps and projects", but noted that sales in China declined as the market normalised post significant 4G rollout.

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