The former Investorchefen Börje Ekholm has just taken over as ceo of telekomjätten Ericsson. Arkivbild. Photo: Janerik Henriksson/TT
– the full Year of 2016 was a tough year, ” the company’s ceo Börje Ekholm to TT.
– It is the trends we saw in the beginning of the year that continued, he says.
Loss before tax landed on the 963 million, compared with a profit of 10.3 billion in the corresponding period in 2015. Net sales in the fourth quarter fell 11 percent to 65.2 billion, compared to 73,6 billion a year earlier. The operating result was a loss of sek 280 million, compared with earnings of just over sek 11 billion in the corresponding period in 2015.
Analysts had on average expected operating profit would land at a profit of sek 417 million, according to Reuters compilation. The turnover was snittprognosen 59.2 billion crowns.
the Board of directors proposes a dividend to shareholders for the year 2016 of sek 1 per share. It can be compared with the dividend of 3:70 sek per share for 2015.
The newly appointed ceo Börje Ekholm’s use of a quote from the legendary Russian ice hockey player Wayne Gretzky, in his commentary to the financial statements.
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“We should focus on to go to the place where the puck will be, not to where it has been,” he writes.
Excluding restructuring, operating income declined to a profit of 4.4 billion crowns, against 11.7 billion a year earlier. It can be compared with a snittprognos for this vinstmått of 3.6 billion kronor, according to a Reuters poll.
Behind the greatly reduced sales is a decrease in patent and license revenue of 5.5 billion, according to Ericsson.
He points to a continued weak underlying market during the fourth quarter.
Börje Ekholm says to TT that Ericsson is a good position when it comes to 5G.
– We have many opportunities for growth and development opportunities already in the day and we’ll see that develop.
Its mission from ägarhåll he describes like this:
– A strong Ericsson in five to ten years ahead. We invest in the right areas where we can really win in five to ten years ahead, it is incredibly fun.
Joakim Bornold, sparekonom at Nordnet, believe that telekomjättens interim report is completed tunder expectation:
– Ericsson booms once again quite a bit, ” he says.
” Sales are not better than what it is, it also delivers minusresultat and it lowers the dividend drastically, down to a dime. The point of how bad it is, that one chooses to draw down the dividend so hard.
Ericsson type in the interim report that the current branschtrenderna and the so-called business mix is expected to continue in 2017. But with the poor performance “is growing more and more question marks” around the forecast, and how bad it really is, ” says Joakim Bornold.
He sees a clear risk of further large reductions in the workforce.
I firmly believe that it is.
Esbjörn Lundevall, aktiestrateg at SEB, says that Ericsson’s results were better than he expected, but that many may be reacting to the sharp reduction of the dividend.
” It’s very tough times. They are definitely not out of the crisis, if one were to summarize it, he says.
On the question of whether there can be further cuts to respond Lundevall:
” I dare not say it in the moment. But there is a company in crisis, so it is clear that you need to save. At the same time, there is much that is announced and not yet fully implemented, so I feel that it is too early to comment on it.
Ericsson’s gross margin, in other words, gross profit as a percentage of revenue, plummeted to 26.1 percent in the fourth quarter. According to Ericsson, it was an effect of the lower patent and license revenues, higher restructuring charges and a higher share of sales within the Global Services segment, which during the quarter had a lower margin.
According to the financial statements continued the major restructuring announced in the autumn according to plan. For the full year of 2016 was the restructuring costs 7.6 billion, which can be compared with the estimated of 5.5–6.5 billion.
“This will lead to lower restructuring costs in 2017. Under the current plan, estimated to approximately sek 3 billion,” writes Ericsson.
the Facts: Ericsson’s interim report,
the Loss before tax landed at 963 million, compared with a profit of 10.3 billion in the corresponding period in 2015.
net Sales in the fourth quarter fell 11 percent to 65.2 billion, compared to 73,6 billion a year earlier.
Operating income was a loss of sek 280 million, compared with earnings of just over sek 11 billion in the corresponding period in 2015.
Ericsson’s so-called gross margin, i.e. gross profit as a percentage of revenue, plummeted to 26.1 percent in the fourth quarter. It can be compared with 36.3 per cent in the fourth quarter of 2015.
the Board of directors proposes a dividend to shareholders for the year 2016 of sek 1 per share. It can be compared with the dividend of 3:70 sek per share for 2015.
Source: Ericsson
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