Ericsson continues to struggle as profits slop

Wednesday, 18 July 2012
Swedish telecom giant, Ericsson reports profit before tax was Skr 1.8 billion for the second quarter of 2012.

Analysts had on average expected a profit of Skr2.5 billion and a turnover of Skr54.9 billion, according to Reuters consensus.

Operating income, excluding share of profit from joint ventures, was Skr3.3 billion, compared with Skr5.0 billion a year ago. Here analyst expectations was within the region of Skr3.5 billion.
Cash flow from operating activities amounted to minus Skr1.4 billion, compared with Skr5.8billion in the past similar period. Gross margin was 32.0 percent, compared with 37.8 percent the same period in 2011.

Sales amounted to Skr55.3 billion in the period as against Skr54.8billion. Analysts had expedited Skr54.9 billion.
For Ericsson's largest segment, Networks, sales fell by 17 percent compared to second quarter last year to Skr27.8 billion. Operating margin declined to 5 percent, from 14 percent.
Ericsson's  President and CEO Hans Vestberg writes that “In the quarter, demand for Global Services and Support Solutions was strong, while Networks sales decreased YoY mainly due to the expected decline in CDMA equipment sales as well as lower business activity in China, including weaker sales of GSM and lower 3G sales in Russia.”
Full report cold be found here
by Scancomark.se Team