Ericsson's Q3 profit 71.5% below 2008
By Malin Rising |
October 23, 2009, Friday
|
Print Edition
Print Edition
WIRELESS equipment maker LM Ericsson AB's profits dropped 71.5 percent in the third quarter as the global financial crisis hit demand for network equipment, the Swedish company said yesterday.
The world's leading supplier of broadband networks said net profit in the July-September period was 810 million kronor (US$117.6 million), down from 2.84 billion kronor in the same three months last year. Sales fell by 5.6 percent to 46.4 billion kronor, from 49.2 billion kronor in the third quarter of 2008.
Ericsson, which has previously seen only limited effects of the global recession, said the network market is now being hurt by the crisis. The downturn in investments has coincided with a drop in GSM sales, as telecommunication operators shift from voice telephony to mobile broadband, Ericsson said.
"Sales of network equipment declined due to lower demand in the current tougher market environment," outgoing Ericsson Chief Executive Carl-Henric Svanberg said. "The economic climate affects the global mobile infrastructure market and the credit environment is still tight in several emerging markets."
But he said economies such as those of China, India, the United States and Japan show good development and the long-term outlook for the industry remains solid.
Greger Johansson, an analyst at research firm Redeye, said the overall result was much worse than expected.
"It is primarily sales that are lower than expected," Johansson said.
"This shows the downturn in the economy is now affecting Ericsson as well, mainly in Europe, Africa and maybe Latin America."
The world's leading supplier of broadband networks said net profit in the July-September period was 810 million kronor (US$117.6 million), down from 2.84 billion kronor in the same three months last year. Sales fell by 5.6 percent to 46.4 billion kronor, from 49.2 billion kronor in the third quarter of 2008.
Ericsson, which has previously seen only limited effects of the global recession, said the network market is now being hurt by the crisis. The downturn in investments has coincided with a drop in GSM sales, as telecommunication operators shift from voice telephony to mobile broadband, Ericsson said.
"Sales of network equipment declined due to lower demand in the current tougher market environment," outgoing Ericsson Chief Executive Carl-Henric Svanberg said. "The economic climate affects the global mobile infrastructure market and the credit environment is still tight in several emerging markets."
But he said economies such as those of China, India, the United States and Japan show good development and the long-term outlook for the industry remains solid.
Greger Johansson, an analyst at research firm Redeye, said the overall result was much worse than expected.
"It is primarily sales that are lower than expected," Johansson said.
"This shows the downturn in the economy is now affecting Ericsson as well, mainly in Europe, Africa and maybe Latin America."
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
