Ericsson third quarter report 2012

* Sales decreased -2% YoY and -1% QoQ. * Networks decreased YoY due to weaker sales in parts of Europe, China, Korea and Russia as well as continued decline in CDMA equipment sales. This was partly offset by strong development in North America. Operating margin was stable QoQ. * Global Services increased sales 19% YoY. Operating margin increased QoQ...

New York, 26/10/2012 (informazione.news - comunicati stampa - telecomunicazioni)

 

 

 

"Demand for Global Services and Support Solutions continued to be good, while Networks showed a decline in sales YoY. In North America Networks sales developed favorably, despite the expected decline in CDMA sales, while parts of Europe, China, Korea and Russia continued to be slow," says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). "The growing Global Services business contributes not only with topline but also with stable operating profitability and, together with Support Solutions, represented more than 50% of Group sales.

We believe that the fundamentals for longer-term positive development for the industry remain solid. T here are now one billion smartphones in the world and the number is expected to reach three billion in 2017. The introduction of new devices and applications put higher consumer demands on network performance and quality. This drives demand for our technology, software and services capabilities. However, at the same time, we see a continued macroeconomic slow down and political unrest in parts of the world, which has led to more cautious operator spending in some parts of the world.

Our joint venture ST-Ericsson is still in a challenging situation although performance improved in the quarter. Ericsson, together with STMicroelectronics, is continuously reviewing the strategy and business case. We remain confident that ST-Ericsson has a strategic position in the industry to enable the device ecosystem.

We have a strong portfolio, position and capabilities in place. However, our profitability is not satisfactory. Operating expenses for comparable units have declined -7% YoY and we also see steady improvements in execution of projects. These improvements are encouraging, but not enough and we will continue to proactively identify and execute additional efficiency gains and cost reductions," concludes Vestberg.

You find the complete report with tables in the attached PDF or by following this link:
www.ericsson.com/res/investors/docs/q-reports/2012/9month12-en.pdf   

To read the complete report with tables, please go to:
www.ericsson.com/res/investors/docs/q-reports/2012/9month12-en.pdf  

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), October 26, 2012.
An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors  

Video material will be published during the day on www.ericsson.com/broadcast_room  

Helena Norrman, Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: investor.relations@ericsson.com  or media.relations@ericsson.com

Åse Lindskog, Vice President,
Head of Investor and Analyst Relations
Phone: +46 10 719 9725
+46 730 244 872
E-mail: investor.relations@ericsson.com

Stefan Jelvin, Director, Investor Relations
Phone: +46 10 714 2039
+46 709 860 227
E-mail: investor.relations@ericsson.com

Åsa Konnbjer, Director, Investor Relations
Phone: +46 10 713 3928
+46 730 825 928
E-mail: investor.relations@ericsson.com  

Rikard Tunedal, Director, Investor Relations
Phone: +46 10 714 5400
+46 761 005 400
E-mail: investor.relations@ericsson.com  

Ola Rembe, Vice President,
Head of Corporate Public & Media Relations
Phone: +46 10 719 9727
+46 730 244 873
E-mail: media.relations@ericsson.com

Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com  

Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 00 00
www.ericsson.com   

Ericsson discloses the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET, on October 26, 2012.

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