Bottom of – Ericsson raging on the stock exchange – Swedish Dagbladet

– A sales approaching 74 billion, is one of the best quarters we’ve had the last 10-15 years, says Ericsson CEO Hans Vestberg told TT on the results .

– We have a profitability of 11.7 billion if you take away restructuring costs. It is also among the best we have had, he added.

But the stock market was not satisfied. Ericsson B plummeting by around six percent since the interim report for the fourth quarter failed to live up to investors’ expectations. Sales and profits increased significantly, raising the dividend proposed by the Board, but it was not enough to convince the market about the company’s position.

telecom analyst Daniel Djurberg at Handelsbanken notes that profits were “slightly worse” than expected.

– But it’s not that great drama, he says.

Behind the strong sales performance is according to Vestberg stabilization in North America, an improvement in China, lower costs and significantly higher patent fees. Especially from Apple, a contract that Ericsson flagged earlier. Compared to the full year 2014 rose patent and license revenues by 4.5 billion to 14.4 billion.

Ericsson has also served on the strong dollar in 2015. Adjusted for currency effects and adjusted for comparable units actually falling sales.

– The fourth quarter was a little less impact but if you look at the full year, we have a good shot of the currency, said Vestberg.

The turbulence in the Chinese economy is not a major concern for Vestberg . He notes that even at a lower growth rate is digitization important for the development of a country.

– Are you in 180 countries have to be prepared for turbulence.

Ericsson CEO Hans Vestberg presents the company’s interim report during a press conference at the headquarters in Kista. Photo: Sören Andersson / TT

The profit before tax of SEK 10.3 billion compared with a profit of 5.8 billion in the same quarter the year before.

The Board proposes an increased dividend to shareholders of 3.70 SEK per share, which compares to last year’s dividend of SEK 3.40 per share.

– It has historically been the case that we always look backward: what we have generated cash flows. And as we look forward. The Board of Directors believes that we can increase the share dividend, said Vestberg.

The CEO is cautious in his statements regarding market generally. The next few years will be important to position themselves within the 5G.

– As for 5G we’re early. Commercially, we will probably sell the network in 2020, said Vestberg.

In 2016, the focus will among other things be on improving profitability further, according to Vestberg, after a period of investment.

Vestberg confirm while the goal of implementing savings of 9 billion by 2017. However, global uncertainty has been the lead turning up preparedness for more savings if needed, according to Vestberg.