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

To: Mika Kukkanen who wrote (4664)	4/19/2001 12:59:52 PM
From: Jim Oravetz	Read Replies (1) \| Respond to of 5390

TOKYO -- Sweden's Telefon AB L.M. Ericsson said it is in talks with Sony Corp. over merging the companies' mobile-phone businesses. The deal would lift Sony's mobile-phone unit, which has lagged behind its Japanese rivals, to a position among the world's top players. If confirmed, this is a logical move. It allows Ericsson to offload its loss-making handset unit and focus on its more lucrative networks. The Swedes must now deliver on these promises, or investors will be sorely disappointed. "We are talking with Sony, but nothing is decided yet," Ericsson spokeswoman Pia Gideon said. An announcement of the deal could come within days, according to a person familiar with the companies' plans. Under the proposed agreement, the two companies would jointly develop, manufacture and market next-generation mobile phones. A Sony-Ericsson tie-up would be the latest to link Japanese and European communications-equipment makers. Toshiba Corp. is jointly developing mobile phones that can send and receive video with Germany's Siemens AG. The deals are founded on the need to share the risk of developing expensive next-generation mobile phones. Despite Sony's strong position in many consumer-electronics products, it has always struggled with the cellular handset business. After years of effort it was forced to pull out of the U.S. handset market in 1999. Over the past year it has channeled more investment into mobile devices, including a hand-held personal digital assistant that competes with Palm Inc.'s products. Ericsson has also faced setbacks in its mobile-phone business. The world's No. 3 handset maker, it recently announced that losses are forcing it to outsource all handset production to a manufacturing specialist. Todays WSJI From Briefing.com 06:41 ET LM Ericsson (ERICY) 6.32: Sony Corp (SNE) and Ericsson are discussing the idea of folding their cell phone operations into a joint venture in Britain, reported Japanese television network NHK. 09:08 ET LM Ericsson (ERICY) 6.32: -- Update -- The Ericsson/Sony (SNE) joint venture talk (see 6:41 ET comment) is eliciting positive comments from brokerage firms; Bear Stearns' Ripple Effect views a JV as positive for ERICY because 1) Sony has consumer electronics' expertise, 2) limits ERICY's exposure to handsets, and 3) allow mngmt to focus on wireless infrastructure. Lehman Brothers also makes positive comments about the potential deal. Jim

To: Mika Kukkanen who wrote (4664)	4/20/2001 4:56:43 AM
From: elmatador	Respond to of 5390

EFFICIENCY PROGRAM CLD AFFECT 10,000 EMPLOYEES (News agency Direkt) -- Ericsson`s cost-savings and efficiency program could affect as many as 10,000 employees, more than half outside of Sweden, the company wrote in its interim report Friday. The company is streamlining global operations with the goal of saving more than 20 billion annually, beginning 2002. The restructuring provisions for the efficiency program and the extended Back to Profits program will be taken as a one-time change in Q2 2001 and are seen amounting to about 15 billion kronor. Ericsson added its is further streamlining its phone operations, bringing the number of employees to less than 5,000 by end 2001. The company has earlier said it would cut the number of employees from 16,800 to 7,000 by end of this year. "These new actions will deliver additional savings of three billion kronor over and above the 15 billion savings earmarked for the original back to profits program," the company said. I think they will get rid only of the contractors. Then they will close one office in Nepal another one in Vanuatu.

To: Mika Kukkanen who wrote (4664)	4/20/2001 5:10:27 AM
From: elmatador	Read Replies (1) \| Respond to of 5390

Elmatador views of the job cutting plan. From the FT: Part of its drive to improve margins would include cutting up to 10,000 jobs, more than half of which would be outside Sweden. The 10,000 cuts would include more than halving the number of consultants from today's level of 15,000. The number of employees at the handset division will fall to less than 5,000 by the end of the year, the company said. How it will be done (according to elmatador): More than halving the number of consultants gives 7.500+ cuts. 5.000+ are foreigners who came to Sweden as consultants. Now remains those less than 2.500 additonal job cuts will come from: Closing the offices in Nepal and Vanutu minues 6 employes. Then the other 2494 are the ones retiring from May to December 2001. Voila Swedishness at work!!!