Ericsson vinstvarnar – sharp pin in the third quarter of the year – privata Affärer

“The negative industritrenderna from the first half of 2016, with weaker demand for mobile broadband, especially in markets affected by a weak macroeconomic situation, has deepened”, said in a press release.

the Following figures pertain to the third quarter of 2016.

Sales decreased by -14% compared with the same quarter of the previous year eur 51.1 billion (59.2 v). It can be compared with the SME Direkt consensus that lay at the of 54.6 billion.

Sales in the quarter declined by 19 percent to 23.3 billion kronor (28,8). This was 26.1 billion expected, according to SME direkt.

the Group’s gross margin decreased to 28 per cent (34%). Here, the low expectations of 32.2 per cent, according to SME direkt.

Operating profit decreased to sek 0.3 billion (5.1) including restructuring costs of sek 1.3 billion. According to SME direkt was an operating loss of sek 3.5 billion is expected.

these negative trends have deepened

The negative industritrenderna from the first half of 2016 has deepened, which affects the result for the third quarter of 2016, primarily in the Networks segment.

According to the Ericsson powered the decline in sales most of the markets with weak macroeconomic situation, such as Brazil, Russia and the Middle east, which affected the sales of mobile broadband both in terms of capacity and expansion in these markets.

in Addition to this, sales of mobile broadband in Europe has been lower as a result of the completion of the project in 2015.

“Our performance is substantially lower than we anticipated and different from what we previously reported on market developments, with a weak end to the quarter. The negative industritrenderna has deepened and primarily impacted segment Networks. Despite the continued implementation of our cost reduction programme, this has not compensated for lower sales and gross margin,” commented acting ceo Jan Frykhammar.

According to the Ericsson is expected to present trends remain unchanged in the short term.

“We will continue to work with ongoing cost savings, and to take further measures to reduce the cost of goods sold in order to adapt operations to lower sales volumes,” said the ceo.