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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: DWB who wrote (63)	7/23/1999 1:56:00 AM
From: Ruffian	Read Replies (1) \| Respond to of 13582

Bummer> count & partners> by: cdmaporsche 9234 of 9234 Bummer> Ericsson 2nd-Qtr Net Seen Down 28%: Earnings Outlook (Repeat) (Repeats to change time of release to 9 a.m. from 10 a.m., according to company statement.) Stockholm, July 21 (Bloomberg) -- The following is a summary of Ericsson AB's second-quarter earnings slated for release on Friday, July 23. Expected Numbers Ericsson, the world's third-largest cellular phone maker, is expected to report second-quarter net income slid 28 percent to 2.423 billion kronor ($289 million) from 3.380 billion in the year-earlier quarter, according to a survey of 12 analysts by Bloomberg News. Estimates ranged from 1.920 billion kronor to 2.883 billion. Pretax profit is seen declining to 3.467 billion kronor from 4.934 billion. Time The report is due at 9 a.m. local time. Behind the Numbers Sweden's biggest company by market value warned in March profit would fall in the first half. It has also said it expects a drop in 1999 earnings per share from operations, hurt by costs for job cuts and new products as well as sliding phone sales. Ericsson is benefiting from strong demand for network equipment that transmits calls between cellular phones. It has won the major part of orders for networks based on GPRS, a new technology that boosts the capacity and speed in mobile networks, enabling users to send e-mails and surf the Internet on the go. Two weeks ago, the company ousted Sven-Christer Nilsson as chief executive because he was too slow to implement Ericsson's cost-cutting program, aimed at slashing more than a tenth of its workforce. Chairman Lars Ramqvist took back the helm, fueling concern a turnaround in Ericsson earnings won't come soon and prompting analysts to cut their estimates. The second-quarter results will include a net gain of 900 million kronor after Ericsson this month sold its remaining 5 percent in Intracom SA, a Greek phone-equipment maker. It will take a charge of about 870 million kronor for slashing jobs. What the Experts Say ''Ramqvist is taking a hit in the second quarter,'' said Bo Edvardsson, an analyst at Stockholm-based Fischer Partners, who rates the stock a ''long-term buy.'' ''It's the mobile systems division, where Ericsson has seen strong demand, that generates the best margins in the long run.'' Edvardsson said he expects the company to give guidelines for second-half profit and more detailed information on how many jobs it will cut this year, in connection with its earnings. Stock Performance Ericsson shares rose 36 percent during the second quarter, outpacing an 11 percent climb in Stockholm's benchmark OMX Index. Previous Market Reaction The stock fell 4.5 kronor, or 2.1 percent, to 207.5 on April 22 after Ericsson said first-quarter net income halved as costs rose because of new products and job reductions while phone sales declined.