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Ericsson Reports Q3

STOCKHOLM -- Ericsson reports continued solid financial performance
  • Net sales SEK 40.8 (36.2) b. in the quarter, SEK 124.1 (106.2) b. first nine months
  • Operating income SEK 8.8 (7.8) b. in the quarter, SEK 23.6 (22.7) b. first nine months
  • Operating margin 21.5% (21.6%) in the quarter, supported by strong Sony Ericsson performance
  • Net income SEK 6.2 (5.3) b. in the quarter, SEK 16.5 (15.8) b. first nine months 1)
  • Earnings per share SEK 0.39 (0.34) in the quarter, SEK 1.04 (1.00), first nine months 1)
  • Restructuring charges in the quarter of SEK 2.9 b., divestiture capital gain of SEK 3.0 b.


CEO COMMENTS

"We see continued positive business momentum and accelerating focus on broadband," says Carl-Henric Svanberg, President and CEO of Ericsson (NASDAQ:ERIC). "For billions of people mobile broadband will be the way to reach high-speed connectivity and access to the internet. This will cause a significant increase in voice and data traffic in the world's networks. Traffic in mobile networks is expected to quadruple in the next five years and there is even stronger growth expected in fixed broadband.

Mobile broadband enables high-speed downloads of music, mobile TV, mobile office and other multimedia applications. The rollout of mobile broadband, HSPA, is happening all over the world, and we have announced eight new contracts during the quarter. We have a unique capability to combine leading mobile and fixed broadband solutions, meeting operators' increasing demand for new consumer and enterprise applications.

Our leading services business continues to show strong growth. We offer operators the opportunity to increase their customer focus and realize considerable savings. Our strategy has to date resulted in more than 100 announced managed services contracts across the world.

With key contract wins, we have strengthened our market position further, and through continued focus on operational excellence, including already announced ongoing cost cutting activities, and the very strong performance by Sony Ericsson, our profitability shows a healthy development," concludes Carl-Henric Svanberg.

Ericsson AB (Nasdaq: ERIC)

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