"With the plans and programs we have, I think that the cashier is enough."
So choose Ericsson, acting ceo Jan Frykhammar to reassure the shareholders, employees and the general public.
the Market responded with a new race.
Ericsson’s doldrums deepens all the more. When the company reported all figures and reports which formed the basis for the profit warning on October 12, found the analysts more dirt in the corners, or alternatively, lost confidence in management’s ability to reverse the trend.
the Share dropped further to 5.9 per cent, and is now down by 45.2% since the end of the year, the worst of the stock exchange all companies.
the Third quarter landed in a net loss of 180 million. A declining market for mobile systems, especially among oil-producing countries, the organic sales growth continues to dive. Even in Europe, hugging the customers wallet.
Now, more and more questions about the dividend, which for 2015 was 3,70 crowns.
Acting president and ceo Jan Frykhammar would, however, not respond directly.
Ericsson Has enough money to keep the dividend unchanged?
"Typically the fourth quarter the strongest quarter. We start with the complete year. Then looking at the company’s earning capacity for the next three years."
the Answer to Di is almost a carbon copy of the response to a highly ranked analysts received during the rapportpresentationen.
net Cash is down to 16 billion. You have big restructuring charges and a decline in the market for several quarters in front of you. Enough checkout?
"With the plans and programs we have, I think the cashier is enough. I think it’s going to be tough in the fourth quarter, but with the measures we have, we have a sufficient cash position," says Jan Frykhammar.
He keeps the hängsle and belt also on the question whether the capital need can be acute.
See you at some point, the needs of the new issue?
"With the conditions we have now I see that we will have a sufficient balance sheet forward."
Ericsson Is worse there than for it – and telekombubblan around the turn of the millennium?
"No. I think you should compare with 2007-2009."
In October 2007 vinstvarnade then-ceo Carl-Henric Svanberg. Surprise lowered the share price by 23.8 per cent, the largest fall in a day.
three weeks ago, on 4 October, extended Ericsson its savings program: 3,000 employees in Sweden would have to go. A mere eight days later, came the profit warning.
Why was it separate?
"When we sat down and looked through the numbers, we found that we could not manage our own förväntansbild," says Jan Frykhammar.
It is very close to these events, and the normal is that it makes it here at the same time.
"Our reality is not such."
if you Have an understanding of that there can be a perception that Ericsson does not know from one week to another?
"We have of course taken a lesson from the situation in 2007, and we are working very closely with the leading indicators, and so on. But the reality is, in any case in the way that much of the result is determined the final month and perhaps the last weeks of each quarter," says Jan Frykhammar.
He likes to talk about the next-generation mobile, 5g, as a potentially large source of revenue.
But there it is far, and analysts that Di has spoken with talk about a "smeared investeringspaj" rather than a steep intäktspuckel.
When will 5g be launched, it is south Korea in 2018?
"the Olympics in Korea and in Tokyo in 2020 will certainly be very much showcase around 5g," says Jan Frykhammar.
It sounds more like the so-called soft launch?
"We will have 5g or 5g-like characteristics 2017 or 2018. I don’t think the standards for 5g will be ready until 2018-2019."
When is it going in Sweden?
"I have no idea."
Ericsson’s welfare is still a national concern. Minister for enterprise Mikael Damberg has said to Di that the 5g is not only important for Ericsson’s future, but also to "other Swedish industry".
Have you had contact with Mikael Damberg about 5g?
"Absolutely, we’ve been talking 5g. He is very interested in how 5g can help Swedish companies, and he is also interested in understanding Ericsson’s strategy for 5g."
Jan Frykhammar has openly declared that he will continue to stand as long as it takes, even if it is about several years. However, the question is how strong he is.
What mandate do you have from the board when it comes to the more strategic questions?
"We are working with the board all the time with Ericsson’s strategy. If we feel that you need to change a strategy, then you go and debate it properly with the board."