Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DMaA who wrote (3650)	8/31/1999 9:09:00 AM
From: Ellen	Read Replies (1) \| Respond to of 5390

Ericsson to Sell Real Estate for Billion Dollar Gain By Linda Andersson at Bloomberg News 30 August 1999 Ericsson AB, the world's third-largest cellular phone maker, said it will sell its real estate holdings for as much as 10 billion kronor ($1.2 billion) before the end of next year to focus on making phone equipment. The Stockholm-based company, which has seen an average cash outflow of 2 billion kronor a month in the past year, expects to make a gain of between 2 billion and 2.5 billion kronor from the sale, said Lars Oestlund, a company spokesman. Ericsson saw 19 billion kronor flow out of the company in the first half, while profit slumped 32%, hammered by costs for job cuts and new products as well as a drop in market share for mobile phones. Selling its property could help it revive earnings and generate a positive cash flow. "This is an important measure in order to focus on core business and strengthen capital utilization efficiency," the company said. "All measures to allocate capital more efficiently and increase both yield and capital turnover will be taken." Ericsson shares fell 10.5 kronor, or 3.7%, to 271. They traded as low as 265 kronor before the announcement as AT&T Corp., the biggest U.S. cellular services company, said Friday it will cut orders from Ericsson by half and use equipment from Nortel Networks Corp. and Lucent Technologies Inc. instead. Copyright 1999, Bloomberg L.P. All Rights Reserved. totaltele.com [registration is free]