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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?

To: Mika Kukkanen who wrote (3627)	8/23/1999 11:43:00 AM
From: elmatador	Read Replies (1) \| Respond to of 5390

ERICSSON: HELLSTROM OPEN TO SELL ENTERPRISE SOLUTIONS - VA (Nyhetsbyr†n Direkt) - STOCKHOLM (Direkt) Ericsson's new president is open to divesting the group's enterprise solutions business according to an interview in Veckans Affarer Monday. "My predecessor declared that this business would remain intact, but I have an open mind. If someone makes a proposal, I am willing to discuss it," Kurt Hellstrom told the business magazine in a far-reaching interview. The article also concludes that Ericsson will sharpen its focus on the mobile-related operations and that other businesses will be put up for sale or phased out. In part, Ericsson's problems have stemmed from its mobile phone operations, where it has been plagued by delays and problems in bringing new models to the market. This has led to price cuts as the group has been forced to lower prices to get the phones sold. However, with a new string of mobile phones now being launched, Hellstrom said he expects the mobile phone operations to swing back to the profitability seen in earlier years by the end of this year or early 2000. Hellstrom also reiterated that group profit will be back at the 1998 level by year 2000.