(COMTEX) Ericsson posts 3Q loss, but says minus restructuring expenses, company profit
ble ( AP WorldStream )
STOCKHOLM, Sweden, Oct 30, 2003 (AP WorldStream via COMTEX) -- LM Ericsson, the
world's largest supplier of equipment for wireless phone networks, posted a loss
during the third quarter, but said Thursday its pre-tax figures showed a profit,
the first in nearly three years.
The company lost 3.9 billion kronor (US$505.3 million), or 0.25 kronor (3 cents)
a share, compared with a loss 5 billion kronor, or 0.41 kronor a share, in the
year-ago period.
But without the expenses of its massive cost-cutting program, Ericsson earned 1
billion kronor (US$129.5 million) for the quarter ended Sept. 30, compared with
a loss of 3.6 billion kronor a year ago. Analysts had predicted a pre-tax profit
of 410 million kronor (US$53.1 million).
Net sales for the quarter were down 16 percent, falling to 28 billion kronor
(US$3.6 billion) compared with 33.5 billion kronor in the same period a year
ago.
The results were released before markets opened in the Swedish capital,
Stockholm.
"Ericsson is back to profit, which is an important milestone, but a lot still
remains to be done before we reach good profitability," said Carl-Henric
Svanberg, president and chief executive. "The cost savings, as well as cash flow
and gross margin improvements are the result of dedicated employees with a clear
understanding of the need to be in control of our own destiny."
The Swedish company has been cutting jobs for the past two years amid a deep
slump in demand from its telephone-operator customers. It expects to be at
47,000 employees next year from 107,000 at the start of 2001. It currently has
more than 53,000 workers.
Ericsson said the entire industry has shown signs of gradual recovery.
"We expect the mobile systems market in 2004 to be in line with 2003," the
company said in a statement, predicting its fourth-quarter sales were expected
to increase.
Svanberg said that Ericsson's "gradual shift in focus from financial
restructuring to business development leads us to believe that the market is
stabilizing and that the dramatic market decline is behind us."
---
On the Net:
Ericsson: ericsson.com
By MATT MOORE
AP Business Writer
Copyright 2003 Associated Press, All rights reserved
-0-
APO Priority=r
(PROFILE
(WS SL:BC-EU-FIN-EARNS--Sweden-Ericsson; CT:f;
(REG:ASIA;)
(REG:ENGL;)
(REG:AFRI;)
(REG:MEST;)
(LANG:ENGLISH;))
)
KEYWORD: STOCKHOLM, Sweden
*** end of story *** |
