Ericsson Evaluates Earthquake Effect

Japan disaster will have no material impact on Ericsson's sales for Q1 2011, believes vendor

March 16, 2011

1 Min Read

STOCKHOLM -- Ericsson (NASDAQ:ERIC) extends its condolences to the Japanese people in this tragic situation and remains fully committed to supporting all our customers in any way possible in securing that the vital mobile networks are functioning satisfactorily.

Ericsson has to date no reports of injured or missing employees. The situation in Japan is still developing and focus of Japanese authorities is on saving lives and supporting affected areas.

At the same time, Ericsson is analyzing the broader effects on the telecommunications industry and Ericsson's business.

Japan is a large supplier to the global market for semiconductors and other components. The telecommunications industry, as well as many other industries, source components from Japan. It is reasonable to expect that the events in Japan will affect supply of components but it is too early to say to what extent.

Business continuity plans and work to assess the impact on Ericsson and mitigation activities has been ongoing since Friday March 11. Typically such activities include supply and sourcing activities such as spot market purchases, redirecting orders to alternative suppliers and tight collaboration with our Japanese supplier base.

Although it is too early to get an accurate picture of how Japanese enterprises are affected, and how this affects Ericsson and the industry, no material impact on Ericsson's sales are expected for Q1 2011.

Ericsson AB (Nasdaq: ERIC)

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