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To: SKIP PAUL who wrote (19742)	12/14/1998 11:49:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Ericsson Must Be Really Hurting, Another 10k Jobs> Ericsson eliminating 10,000 more jobs Austin American-Statesman ROME -- Ericsson AB, the Swedish company that has been aggressively reorganizing its business to resist growing competition in its key cellular-phone business, said Thursday that its fourth- quarter profit would be 15 percent to 20 percent lower than expected and that it would cut 10,000 more jobs because of flagging demand for its phones and public switching systems. The company, which has its U.S. operations based in Richardson, had warned investors in October to expect slower sales because of economic turmoil in Asia and Latin America. The 10,000 job cuts in January would be in addition to 10,000 the company is eliminating as part of a cost-cutting effort started a year ago. Ericsson reported that revenue from cellular phones in the third quarter fell by 1.6 percent, to 10.82 billion Swedish kronor, or $1.35 billion, from 11 billion kronor in the period a year earlier. But the company said it had maintained its global market share, which is 16 percent, according to Dataquest, the market research consulting company. Analysts who follow Ericsson, the world's third-largest wireless phone company after Nokia and Motorola Inc., interpreted the announcement as an effort by Ericsson to manage market expectations and said it reflected disappointingly low growth in public contracts from Asia and Latin America, where a recovery is taking longer than expected. Laurent Douillet, who follows Ericsson at Lehman Brothers Securities in London, said he had downgraded his earnings estimates. "But it is not a major downgrading," he said. Ericsson's cellular-phone sales have been hurt by slower economic growth in emerging markets, and while signs are emerging of gradual recovery in some Asian countries, Sven-Christer Nilsson, Ericsson's chief executive, said that "wider repercussions on global demand" were depressing sales and income. Last year, Ericsson began moving swiftly to increase productivity and improve earnings, including cutting 10,000 jobs worldwide. The company now employs about 100,000 people, including about 9,000 in the United States. Along with its domestic headquarters in [ Richardson ] , the company has major operations in North Carolina, Virginia, California and New York. Lars Stolberg, Ericsson's spokesman, said Ericsson was more than halfway through the last round of layoffs and had not yet decided where the additional job cuts would come. (Copyright 1998) _____via IntellX_____ Publication Date: December 14, 1998 Powered by NewsReal's IndustryWatch ...back to top