Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 07 14T052531Z 2 LYNXMPEJ6D040 RTROPTP 4 ERICSSON CANADA
2023 07 14T052531Z 2 LYNXMPEJ6D040 RTROPTP 4 ERICSSON CANADA

Ericsson’s quarterly operating profit declines, beats expectations


Ericsson’s quarterly operating profit declines, beats expectations

By Martin Coulter

LONDON (Reuters) – Sweden’s Ericsson reported a 62% fall in second-quarter adjusted operating profit on Friday, slightly beating market expectations.

The Swedish telecom equipment maker’s operating profits, excluding restructuring charges, fell to 2.8 billion Swedish crowns ($271 million), compared with 7.4 billion the previous year.

“Building on our strong position and despite challenging market conditions we delivered a solid quarter – meeting expectations,” said Börje Ekholm, president and CEO of Ericsson. “We continue to execute with discipline and focus without losing sight of the long term.”

Citing increasing demand for 5G, Ekholm predicted the market would undergo a “gradual recovery” in late 2023, and improve in 2024.

In recent months, Ericsson has cut costs to mitigate lower spending among its telecom operator customers, announcing plans to layoff 8,500 employees in February. It expects to save another 2 billion crowns ($193 million) in costs.

On Friday, the company said the impact from such cost-cutting activities would be “increasingly visible” over coming quarters.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Net sales rose to 64.4 billion Swedish crowns, above analysts’ mean forecast of 63.9 billion Swedish crowns, according to Refinitiv data.

Ericsson’s reported gross margin for the second quarter fell to 37.4% from 38.6% the previous quarter.

($1 = 10.3374 Swedish crowns)

 

(Reporting by Martin Coulter; Editing by Krishna Chandra Eluri and Tom Hogue)

 

Recent Post: